Kakaveri annamar samy Vilayankula Kongu Vallala Goundergal Arakkattalai, Salem V. CIT, Salem

ITA 987/CHNY/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 90393 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 1 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-05-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 15-04-2015
• Assessment Year: misc
• Appeal Filed On: 21-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N MADHAVAN
• Assessee Lawyers: T S LAKSHMIVENKATARAMAN
• Section: 12AA; 2

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , D B ENCH, CHENNAI . , ' $ , % ' BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER ./ I.T.A.NO. 987/MDS/2014 M/S. KAKAVERI ANNAMARSAMY VILAYANKULA KONGU VALLALA GOUNDERGAL ARAKKATTALAI, 88, SALEM ROAD, NAMAKKAL-637 001 VS COMMISSIONER OF INCOME TAX, 3, GANDHI ROAD, SALEM-7. PAN: AACTK0861B ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR. T.S.LAKSHMI VENKATARAMAN, C.A /RESPONDENT BY : MR. N.MADHAVAN, JCIT /DATE OF HEARING : 15 TH APRIL, 2015 /DATE OF PRONOUNCEMENT : 22 ND MAY, 2015 / O R D E R PER CHALLA NAGENDRA PRASAD, JM: THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE O RDER OF THE COMMISSIONER OF INCOME TAX, SALEM DATED 14.0 2.204 IN REFUSING REGISTRATION UNDER SECTION 12AA OF THE ACT. 2. THE COMMISSIONER OF INCOME TAX REFUSED REGISTRAT ION HOLDING THAT ASSESSING OFFICER OBSERVED IN HIS REPO RT THAT MAIN OBJECTS OF THE TRUST IS RENOVATION OF KAKAVERI ARULMIGU ANNAMARSAMY KOIL TEMPLE AT KAKAVERI OUT OF DONAT IONS RECEIVED FROM THE PUBLIC. THE ASSESSING OFFICER IN HIS REPORT OBSERVED THAT TRUST WAS MAINLY FORMED FOR THE PURPO SE OF A 2 ITA NO.987/MDS/2014 PARTICULAR COMMUNITY OR CASTE AND THUS APPLICATION FILED BY THE ASSESSEE SHOULD BE REJECTED. IT WAS ALSO OBSERVED T HAT MOST OF THE EXPENSES RELATING TO DAILY POOJA, SALARY OF POOJARY, PANDARAM AND SWEEPER ETC. ARE SELF-MADE. COMMISSION ER OF INCOME TAX OBSERVED THAT TRUST DID NOT CARRY ON CH ARITABLE OBJECTS AND DID NOT FURNISH RELEVANT DETAILS IN SPI TE OF OPPORTUNITIES PROVIDED. HE DENIED REGISTRATION HOLD ING THAT APPLICANT TRUST FAILED TO PROVE THE ONUS OF CHARITA BLE NATURE OF OBJECTS AND GENUINENESS OF ACTIVITIES CARRIED OUT. 3. COUNSEL FOR THE ASSESSEE SUBMITS THAT THOUGH OB JECTS ARE ADMIXTURE OF BOTH RELIGIOUS AND CHARITABLE, REG ISTRATION UNDER SECTION 12AA CANNOT BE DENIED . HE PLACES REL IANCE ON THE DECISION OF JURISDICTIONAL HIGH COURT IN THE C ASE OF CIT VS. ARULMIGU SRI KAMATCHI AMMAN TRUST (20 TAXMANN.C OM 55). COUNSEL FURTHER SUBMITS THAT IF AN OPPORTUNITY IS GIVEN, HE WILL SUBMIT ALL THE DETAILS BEFORE THE COMMISSIONER OF INCOME TAX. 4. DEPARTMENTAL REPRESENTATIVE SUPPORTS THE ORDER O F THE COMMISSIONER OF INCOME TAX IN REFUSING REGISTRATION . 3 ITA NO.987/MDS/2014 5. ON HEARING BOTH THE PARTIES AND ON GOING THROUGH THE ORDER OF THE COMMISSIONER OF INCOME TAX, WE FIND TH AT THE ASSESSEE HAS NOT CO-OPERATED WITH THE PROCEEDINGS B EFORE THE COMMISSIONER OF INCOME TAX. THEREFORE IN THE IN TEREST OF JUSTICE, WE RESTORE THE ISSUE BACK TO THE FILE OF T HE COMMISSIONER OF INCOME TAX FOR DECIDING THE ISSUE A FRESH IN ACCORDANCE WITH LAW. THE ASSESSEE SHALL CO-OPERATE WITH THE PROCEEDINGS BEFORE THE COMMISSIONER OF INCOME TAX. THE COMMISSIONER SHALL DECIDE THE ISSUE KEEPING IN VIEW THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT I N THE CASE OF CIT VS. ARULMIGU SRI KAMATCHI AMMAN TRUST (SUPRA). 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 22 ND DAY OF MAY, 2015 . SD/- SD/- ( ) ( # % ) ( CHANDRA POOJARI ) ( CHALLA NAG ENDRA PRASAD ) ' / ACCOUNTANT MEMBER %( ' / JUDICIAL MEMBER % /CHENNAI, * /DATED 22 ND MAY, 2015 SOMU (,- .- / COPY TO: 1. APPELLANT 2. RESPONDENT 3. / () /CIT(A) 4. / /CIT 5. - ((3 /DR 6. 6 /GF .