Institute of Correctional Administration, Chandigarh v. ITO, Chandigarh

ITA 1105/CHANDI/2014 | 2010-2011
Pronouncement Date: 18-10-2016 | Result: Allowed

Appeal Details

RSA Number 110521514 RSA 2014
Assessee PAN AAAJI0166R
Bench Chandigarh
Appeal Number ITA 1105/CHANDI/2014
Duration Of Justice 1 year(s) 10 month(s) 6 day(s)
Appellant Institute of Correctional Administration, Chandigarh
Respondent ITO, Chandigarh
Appeal Type Income Tax Appeal
Pronouncement Date 18-10-2016
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted B
Tribunal Order Date 18-10-2016
Date Of Final Hearing 19-09-2016
Next Hearing Date 19-09-2016
Assessment Year 2010-2011
Appeal Filed On 12-12-2014
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH CHANDIGARH BEFORE SHRI BHAVNESH SAINI JUDICIAL MEMBER AND SMT. ANNAPURNA GUPTA ACCOUNTANT MEMBER ITA NO.1049/CHD/2013 ( ORDER UNDER SECTION 12A) THE INSTITUTE OF VS THE CIT-II CORRECTIONAL ADMINISTRATION CHANDIGARH. INDUSTRIAL AREA SECTOR 26 CHANDIGARH. PAN: AAAJI0166R (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ALOK MITTAL RESPONDENT BY : SHRI MANJIT SINGH & ITA NO.1105/CHD/2014 ASSESSMENT YEAR : 2010-11 THE INSTITUTE OF VS THE ITO CORRECTIONAL ADMINISTRATION WARD 5(4) INDUSTRIAL AREA SECTOR 26 CHANDIGARH. CHANDIGARH. PAN: AAAJI0166R (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI VINEET KRISHAN RESPONDENT BY : SHRI MANJIT SINGH DATE OF HEARING : 26.09.2016 DATE OF PRONOUNCEMENT : 18.10.2016 O R D E R PER BHAVNESH SAINI JM THIS ORDER SHALL DISPOSE OFF BOTH THE APPEALS FILE D BY SAME ASSESSEE. 2 2. WE HAVE HEARD LD. REPRESENTATIVES OF BOTH THE PARTIES PERUSED THE FINDINGS OF AUTHORITIES BELOW AND CONSIDERED THE MATERIAL AVAILABLE ON RECORD. ITA 1049/2013 3. THIS APPEAL BY ASSESSEE HAS BEEN DIRECTED AGAINS T THE ORDER OF LD.CIT-2 CHANDIGARH DATED 18.09.2013 REJECTING THE APPLICATION FOR REGISTRATION UNDER SE CTION 12AA OF THE INCOME TAX ACT. 4. EARLIER THIS APPEAL WAS DISMISSED FOR DEFAULT HOWEVER THE ASSESSEE MOVED THE MISCELLANEOUS APPLICATION AND EXPLAINED THE CAUSE OF NON APPEARAN CE. THE EX-PARTE ORDER WAS RECALLED AND APPEAL OF THE ASSESSEE WAS RE-FIXED FOR HEARING ON MERITS. 5. THE APPEAL IS FILED ON FOLLOWING AMENDED GROUNDS OF APPEAL : 1. THAT THE LD. CIT-II CHANDIGARH HAS WRONGLY REJE CTED THE APPELLANT'S APPLICATION FOR REGISTRATION U/S 12A OF THE INCOME TAX ACT 1961. 2. THAT THE LD. CIT-II CHANDIGARH HAS WRONGLY FAILED TO PROPERLY & CORRECTLY APPRECIATE THE NATURE OF ACTIV ITIES CARRIED ON BY THE APPELLANT AND OTHER RELEVANT FACTS AND CIRCUMSTANCE S OF THE APPELLANT'S CASE. 3. THAT THE LD. CIT-II CHANDIGARH HAS WRONGLY HELD THAT THE APPELLANT IS ENGAGED IN IMPARTING TRAINING TO GOVER NMENT OFFICER WHO ARE PAID BY GOVERNMENT DEPARTMENTS AND RENDER SERVICES AS PART OF OFFICIAL DUTIES AND THEREFORE THE SAID ACTIVITIES CANNOT BE CATEGORIZED AS AN OBJECT OF GENERAL PUBLIC UTILITY. 4. THAT THE LD. CIT-II CHANDIGARH HAS WRONGLY HELD THAT NO CHARITY IS INVOLVED IN THE ACTIVITIES CARRIED OUT B Y THE APPELLANT. 3 5. THAT THE LD. CIT-II CHANDIGARH HAS WRONGLY HELD THAT THE OBJECTS OF THE APPELLANT ARE NOT CHARITABLE IN NATU RE. 6 THAT THE ORDER PASSED BY THE LD. CIT-II CHANDIGA RH IS BAD IN LAW AS WELL AS ON FACTS AND THEREFORE THE SAME DESERVES TO BE QUASHED. 7. THAT THE APPELLANT CRAVES LEAVE TO ADD OR AMEND ANY GROUND OF APPEAL BEFORE THE SAME IS FINALLY HEARD AND DISPOSE D OF. 6. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE SOCIETY FILED ITS APPLICATION IN FORM 10-A ON 01.04 .2013 FOR REGISTRATION UNDER SECTION 12A OF THE ACT. THE AID SOCIETY HAS BEEN REGISTERED WITH THE REGISTRAR OF F IRMS & SOCIETIES CHANDIGARH ON 11.07.1989. THE INQUIRY REPORT OF THE ASSESSING OFFICER HAS BEEN RECEIVED I N THIS CASE IN WHICH IT WAS SUBMITTED THAT OBJECTS OF THE ASSESSEE SOCIETY ARE NOT OF CHARITABLE NATURE AS PE R PROVISIONS OF SECTION 2(15) OF THE ACT. HENCE ASS ESSING OFFICER HAS NOT RECOMMENDED THE CASE FOR GRANT OF REGISTRATION UNDER SECTION 12AA OF THE ACT. THE LD .CIT FIXED THE CASE FOR HEARING AND ASSESSEE SOCIETY WAS REQUESTED TO FURNISH SUPPORTING DOCUMENTS INCLUDING THE BOOKS OF ACCOUNT BILLS AND VOUCHERS ETC. IN RESPONSE TO THIS ASSESSEE'S COUNSEL ATTENDED PROCEEDINGS BEFORE LD.CIT. DURING THE COURSE OF HEARING ASSESSEE WAS DIRECTED TO EXPLAIN AS TO HOW OBJECTS OF THE ASSESSEE SOCIETY WERE OF CHARITABLE NATURE WITHIN THE MEANING OF PROVISIONS OF SECTION 2(15) O F THE ACT. THE ASSESSEE FILED WRITTEN EXPLANATION BEFORE LD. CIT AND THE RELEVANT PORTION IS REPRODUCED IN THE 4 IMPUGNED ORDER WHICH READS AS UNDER : I WISH TO SUBMIT THAT VARIOUS HIGH POWERED COMMITTEES CONSTITUTED BY THE GOVERNMENT OF INDIA HAVE EMPHASI ZED OF THE NEED FOR IMPARTING TRAINING TO PRISON PERSONAL AT DIFFERENT LEVELS. THESE COMMITTEES HAVE OBSERVED THAT THE SUCCESS OF THE CO RRECTION ADMINISTRATION WOULD DEPEND MAINLY ON THE FAITH PH ILOSOPHY AND EFFICIENCY OF THE CORRECTIONAL PERSONAL WHICH IN TU RN ARE DETERMINE BY THE QUALITY OF TRAINING TO THEM. THE ALL INDIA COMMITTEE ON JAIN REFORMS (1980-83) ALSO LAID GREAT STRESS ON TRAINING OF PRISON PERSONAL AND RECOMMEND ED ESTABLISHMENT OF PROPER TRAINING INSTITUTIONS FOR CORRECTIONAL OF FICER AT THE REGIONAL AND NATIONAL LEVELS-WHILE TRAINING OF THE WARDER STAFF COULD BE IMPART AT STATE LEVEL. THE CABINET COMMITTEE ON POLITICAL AFF AIRS WHILE CONSIDERING THE SCHEME ON MODERNIZATION OF PRISON . ADMINISTRATION DECIDED IN THEIR MEETING ON 02.08.1988 THAT THE REG IONAL TRAINING CENTRE FOR PRISON PERSONAL SHOULD BE ESTABLISHED BY THE CENTRAL GOVERNMENT PREFERABLY IN UNION TERRITORIES. THERE AFTER THE SOCIETY INSTITUTION OF CORRECTIONAL ADMINISTRATION HAS BEEN INCORPORATED WITH FOLLOWING OBJECTS.:- I) TO IMPART TRAINING IN CORRECTIONAL ADMINIS TRATION AND ALLIED SUBJECTS TO ALL OFFICERS OF CENTRAL /STA TE GOVERNMENT ANOTHER INCLUDING THOSE OF PRISONS POLICE AND JUDICIAL DEPARTMENT. II) TO PROMOTE AND PROVIDE FOR THE STUDY OF CORRECTIONAL ADMINISTRATION WITH SPECIAL REFERENCE TO CRIMINAL JUSTICE AND THE MACHINERY OF GOVERNMENT AND FOR EDUCATIONAL AND TRAINING PURPOSE INCIDENTAL THERETO. III) TO UNDERTAKE ORGANIZE AND FACILI TATE STUDY COURSES CONFERENCES AND LECTURE AND RESEARCH IN MATTER RELATING TO CORRECTIONAL ADMINISTRATION AND THE MACHINERY OF GOVERNMENT. IV) TO UNDERTAKE AND PROVIDE FOR THE PUBLICATION OF A JOURNAL AND OF RESEARCH PAPERS AND BOOKS TO IMPART TRAINING IN AND PROMOTE STUDY OF CORRECTIONAL ADMINISTRATION V) TO ESTABLISHED AND MAINTAIN LIBRARIE S AND INFORMATION SERVICES TO FACILITATE THE STUDY OF CORRECTIONAL ADMINISTRATION AND SPREADING INFORMATION IN REGARD THERETO 5 VI) TO COOPERATE WITH APPROVED INSTITUTIONS AND BODIES FOR THE PURPOSE OF HELPING TO CAUSE OF CORRECTIONAL ADMINISTRATION VII) TO ACT AS NODAL INTUITION OF INTERNATIONAL COOPERATION IN THE FIELD OF CORRECTIONAL ADMINISTRATION AND AL LIED SUBJECTS. THE SOCIETY HAS BEEN IN OPERATION FOR LAST 25 YEARS APPROX AS PER THE DIRECTIONS OF GOVERNMENT OF INDIA WITH 10% FUNDING BY THEM. FURTHERMORE THE BOARD OF MANAGEMENT OF THE SOCIETY WAS NOTIFIED IN THE GAZETTE OF INDIA FROM TIME TO TIME THE PRESENT BOARD WAS CONSTITUTED BY GOVT. OF INDIA MINISTRY OF HOME AFF AIRS VIDE THE ORDER ON NOTIFICATION NO.V-16014/3/99/GPA DATED 11 TH MAY 2004. AS REGARD THE APPLICABILITY OF CHARITABLE ACTIVITIE S ARE CONCERNED IT IS STATED THAT 'CHARITABLE PURPOSE INCLUDES NOT ONL Y RELIEF OF THE POOR EDUCATION AND MEDICAL RELIEF ALONE BUT ADVANCEMENT OF OTHER OBJECTS OF GENERAL PUBLIC UTILITY AS WELL. THE CLAU SE IS INTENDED TO SERVE AS A SPECIAL DEFINITION OF THE EXPRESSION 'CHARITABLE PURPOSE' FOR THE ACT IT IS AGAIN INCLUSIVE AND NOT EXHAUSTIVE OR EX CLUSIVE. EVEN IF THE OBJECT OR PURPOSE MAY NOT BE REGARDED AS CHARITABLE IN ITS POPULAR SIGNIFICATION AS NOT TENDING TO GIVE RELIEF TO THE POOR OR FOR ADVANCEMENT OF EDUCATION OR MEDICAL RELIEF IT WOUL D STILL BE INCLUDED IN THE EXPRESSION 'CHARITABLE PURPOSE' IF IT ADVANC ES AN OBJECT OF GENERAL PUBLIC UTILITY. THE EXPRESSION 'OBJECT OF G ENERAL PUBLIC UTILITY' HOWEVER IS NOT RESTRICTED TO OBJECTS BEN EFICIAL TO THE WHOLE OF MANKIND. AN OBJECT BENEFICIAL TO A SECTION OF TH E PUBLIC IS AN OBJECT OF GENERAL PUBLIC UTILITY. TO SERVE A CHARIT ABLE PURPOSE IT IS NOT NECESSARY THAT THE OBJECT SHOULD BE TO BENEFIT THE WHOLE MANKIND OR EVEN ALL PERSONS LIVING IN A PARTICULAR COUNTRY OF PROVINCE. IT IS SUFFICIENT IF THE INTENTION TO BENEFIT A SECTION OF THE PUBLIC AS DISTINGUISHED FROM SPECIFIED INDIVIDUALS. OBSERVATI ONS TO THE COUNTRY MADE BY BEAUMONT C.J. IN CIT VS. GRAIN MERCHANTS' A SSOCIATION OF BOMBAY (1938) 6 ITR 427(BOM): TC23R.412 THAT 'AN O BJECT OF GENERAL PUBLIC UTILITY MEANS ON OBJECT OF PUBLIC UT ILITY WHICH IS AVAILABLE TO THE GENERAL PUBLIC AS DISTINCT FROM ANY SECTION OF THE PUBLIC' AND THAT OBJECTS OF AN ASSOCIATION 'TO BENE FIT WORKS OF PUBLIC UTILITY CONFINED TO A SECTION OF THE PUBLIC I.E. - THOSE INTERESTED IN COMMERCE' ARE NOT OBJECTS OF GENERAL PUBLIC UTILITY ' I.E. THOSE 6 INTERESTED IN COMMERCE' ARE NOT OBJECTS OF GENERAL PUBLIC UTILITY '. THE SECTION OF THE COMMUNITY SOUGHT TO BE BENEFITED MUST UNDOUBTEDLY BE SUFFICIENTLY DEFINED AND IDENTIFIABL E BY SOME COMMON QUALITY OF A PUBLIC OR IMPERSONAL NATURE WHERE THER E IS NO COMMON QUALITY UNITING THE POTENTIAL BENEFICIARIES INTO A CLASS IT MAY NOT BE REGARDED AS VALID. HON'BLE SUPREME COURT OF INDIA AS EXPLAIN THE WORD AND PHRASES 'OBJECTS OF GENERAL PUBLIC UTILITY' IN THE FOLLOWIN G CASES WHICH ARE CLEARLY SIMILAR TO OUR CASE:- COMMISSIONER OF INCOME TAX VS. ANDHRA CHAMBER OF COMMERCE (1965) 55ITR722(SC) COMMISSIONER OF INCOME TAX VS. GUJARAT MARITIME BOARD (2008) 214 CTR (5CJ81: (2007) 295 ITR 561(SC) COMMISSIONER OF INCOME TAX VS. ANDHRA CHAMBER OF COMMERCE (1981) 130ITR184(SC) SINCE THE SOCIETY IS ACHIEVING POLITICAL AND SOCIAL OBJECTS OF GOVT. OF INDIA AND SERVING THE GENERAL PUBLIC IT IS PRIM A FACIE FULFILLING THE OBJECTS OF GENERAL PUBLIC UTILITY- TO A G ROUP OF SOCIETY TO BRING THE UNLAWFUL PEOPLE/PRISONERS TO MAIN STEAM OF TH E SOCIETY. THE ACTIVITIES OF THE SOCIETY ARE CLEAR CUT NOT TO EARN ANY PROFITS. 7. THE LD.CIT HOWEVER DID NOT ACCEPT CONTENTION O F THE ASSESSEE AND REJECTED THE APPLICATION FOR REGISTRATION UNDER SECTION 12AA OF THE ACT. THE FI NDINGS OF CIT IN IMPUGNED ORDER IN PARAS 5 TO 6 ARE REPROD UCED AS UNDER: 5. THE SUBMISSIONS OF THE APPLICANT SOCIETY HAVE B EEN CONSIDERED BUT THEY ARE NOT ACCEPTABLE FOR THE REASONS AS DISCUSSE D BELOW: THE AR OF THE APPLICANT SOCIETY HAS SUBMITTED THAT THE SOCIETY IS ACHIEVING POLITICAL AND SOCIAL OBJECTIVE OF GOVT. OF INDIA AN D SERVING THE GENERAL PUBLIC 7 UTILITY. FROM THE PERUSAL OF OBJECTS AS DETAILED IN THE MEMORANDUM OF ASSOCIATION OF THE SOCIETY IT IS SEEN THAT THE MAI N OBJECT OF THE SOCIETY IS TO IMPORT TRAINING IN CORRECTIONAL ADMINISTRATION A ND ALLIED SUBJECTS TO ALL OFFICERS OF CENTRAL/STATE GOVERNMENT INCLUDING THO SE OF PRISONS POLICE & JUDICIAL DEPARTMENT. THE SOCIETY IMPARTS TRAINING T O OFFICIALS OF THE GOVERNMENT DEPARTMENTS BY WAY OF ORGANIZING WORKSHO PS SEMINAR ON VARIOUS SUBJECTS LIKE HUMAN RIGHTS IN MANAGEMENT P ERSONALITY DEVELOPMENT RIGHT TO INFORMATION ACT ETC. IT IS EV IDENT FROM THE DETAILS FURNISHED BY THE AR DURING THE COURSE OF PROCEEDING S THAT THE SOCIETY HAS ORGANIZED WORKSHOP/VARIOUS COURSES IN ITS INSTITUTE FOR IMPARTING TRAINING TO 570 608 & 646 OFFICERS DURING THE CALENDAR YEAR 2010 2 011 & 2012 RESPECTIVELY. AS SUCH THERE IS NO ELEMENT OF CHARIT Y INVOLVED BECAUSE THESE WORKSHOPS/COURSES WERE ORGANIZED FOR OFFICERS ONLY AND IN NO WAY IT CAN BE TERMED AS ADVANCEMENT OF ANY OTHER OBJECT OF GEN ERAL PUBLIC UTILITY. THE AR'S SUBMISSION THAT THIS TRAINING IS NECESSARY TO BRING THE UNLAWFUL PEOPLE/PRISONERS TO THE MAIN STREAM OF THE SOCIETY IS ALSO NOT RELEVANT. THE APPLICANT SOCIETY IS ENGAGED IN IMPARTING TRAINING BY WAY OF ORGANIZING SEMINARS ETC. TO THE GOVT. OFFICERS WHO ARE BEING PAID BY THE GOVT. DEPARTMENTS AND THEY RENDER THEIR SERVICES AS PART OF THEIR OFFICIAL DUTIES. SUCH ACT OF RENDERING SER VICES AS OFFICIAL DUTY CAN NEVER BE CATEGORIZED AS AN OBJECT OF GENERAL PU BLIC UTILITY AND HENCE THERE IS NO CHARITY INVOLVED. THE AR HAS ALSO RELIED UPON VARIOUS DECISIONS OF HI GH COURT AND THE APEX COURT AS QUOTED ABOVE REGARDING EXPLANATIO N OF PHRASE 'GENERAL PUBLIC UTILITY' WHICH HAVE BEEN CONSIDERED . HOWEVER RATIO OF ABOVE QUOTED DECISIONS IS NOT APPLICABLE IN THIS CA SE AS THE FACTS OF ABOVE QUOTED CASES ARE DIFFERENT AND DISTINGUISHABLE FROM THE FACTS OF THE INSTANT CASE OF THE APPLICANT SOCIETY. 6. IN VIEW OF ABOVE I AM NOT SATISFIED ABOUT T HE OBJECTS OF THE APPLICANT SOCIETY WHICH IS ONE OF THE TWO CONDITION S (I.E. OBJECT OF THE SOCIETY AND GENUINESS OF THE ACTIVITIES) CONSIDERED IMPERATIVE FOR GRANT OF REGISTRATION U/S 12AA AND REFUSE TO GRANT REGISTRAT ION TO THE APPLICANT SOCIETY U/S 12AA OF THE INCOME TAX ACT 1961. 8 8. THE LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS MADE BEFORE AUTHORITY BELOW AND REFERRE D TO OBJECTS OF THE ASSESSEE SOCIETY WHICH ARE MAINLY TO IMPART TRAINING IN CORRECTIONAL ADMINISTRATION AND ALLIED SUBJECTS TO ALL THE OFFICERS OF CENTRAL/STAT E GOVERNMENT AND OTHERS INCLUDING THOSE OF PRISONS POLICE AND JUDICIAL DEPARTMENTS. THE SOCIETY WAS F ORMED AS NOTIFIED BY THE CENTRAL GOVERNMENT AND ITS OFFIC E BEARERS WERE MAINLY FROM MINISTRY OF HOME AFFAIRS A ND IG (PRISONS) ETC. THE DETAILS ARE ALSO FILED IN PB . HE HAS REFERRED TO THE DETAILS SUPPLIED BEFORE LD.CIT ON THE OBJECTS AND FUNCTIONING OF THE ASSESSEE COPY OF WH ICH IS FILED AT PAGES 48 TO 52 OF THE PAPER BOOK AND READS AS UNDER : INSTITUTE OF CORRECTIONAL ADMINISTRATION CHANDIGARH WITH THE INCREASING EMPHASIS ON TREATING JAILS AS C ORRECTIONAL CENTRES FOR REHABILITATION OF PRISONERS THE SUBJECT OF TRAININ G OF THE CUSTODIAL OFFICERS AND STAFF HAS ASSUMED GREAT SIGNIFICANCE. IF SOCIETY'S ATTITUDE TOWARDS THE PRISONER HAS TO CHANGE A BEGINNING WILL HAVE TO BE MADE WITH THE PRISON PERSONNEL SCHOOLED IN THE OLD IDEAS OF PROTECTION OF SOCIETY BY INFLICTING PUNISHMENT ON THE PRISONER. HOWEVER IT IS NOT ONLY A REORIENTATI ON OF ATTITUDE FOR WHICH TRAINING IS NECESSARY THE VERY COMPLEXITIES OF CRI ME IN A CHANGED SOCIAL SCENARIO HAVE MADE IT IMPERATIVE THAT CUSTODIAL OFF ICERS ARE WELL VERSED WITH ASPECTS OF CRIMINOLOGY OF LAW PUBLIC ADMINISTRATIO N AND PERSONNEL MANAGEMENT BESIDES OF COURSE SOCIOLOGY AND PSYCH OLOGY WHICH HAVE A BEARING ON CRIMINAL BEHAVIOUR. THUS TRAINING TO B E IMPARTED TO THE PRISON PERSONNEL WILL HAVE TO BE MULTIDIMENSIONAL IN CHARA CTER AND APPROACH. THIS WOULD NATURALLY CALL FOR WELL-ORGANIZED TRAIN ING INSTITUTIONS BOTH AT THE STATE AS WELL AS REGIONAL LEVELS. 9 VARIOUS HIGH POWERED COMMITTEES CONSTITUTED BY THE GOVERNMENT OF INDIA HAVE EMPHASIZED ON THE NEED FOR IMPARTING TRA INING TO PRISON PERSONNEL AT DIFFERENT LEVELS. THESE COMMITTEES HA VE OBSERVED THAT THE SUCCESS OF THE CORRECTIONAL ADMINISTRATION WOULD DE PEND MAINLY ON THE FAITH PHILOSOPHY AND EFFICIENCY OF THE CORRECTION AL PERSONNEL WHICH IN TURN ARE DETERMINED BY THE QUALITY OF TRAINING IMPA RTED TO THEM. THE ALL INDIA COMMITTEE ON JAIL REFORMS (1980-83) A LSO LAID GREAT STRESS ON TRAINING OF PRISON PERSONNEL AND RECOMMEN DED ESTABLISHMENT OF PROPER TRAINING INSTITUTIONS FOR CORRECTIONAL OF FICERS AT THE REGIONAL AND NATIONAL LEVELS - WHILE TRAINING OF THE WARDER STAFF COULD BE IMPARTED AT STATE LEVEL. THE CABINET COMMITTEE ON POLITICAL AFF AIRS WHILE CONSIDERING THE SCHEME ON MODERNIZATION OF PRISON ADMINISTRATIO N DECIDED IN THEIR MEETING ON 2.8.1988 THAT THE REGIONAL TRAINING CENT RES FOR PRISON PERSONNEL \SHOULD BE ESTABLISHED BY THE CENTRAL GOV ERNMENT PREFERABLY IN UNION TERRITORIES. IN PURSUANCE TO THIS DECISION IT WAS DECIDED TO SET UP AN INSTITUTE OF CORRECTIONAL ADMINISTRATION AT CHANDIGARH AND TO DE VELOP IT AS A REGIONAL INSTITUTE ON LINES WITH THE EXISTING INSTITUTE AT V ELLORE WHICH CATERS TO THE TRAINING NEEDS OF CORRECTIONAL OFFICERS IN THE SOUT HERN STATES OF TAMIL NADU KERALA KARNATAKA AND ADHRA PRADESH. THE INSTITUTE AT CHANDIGARH HAS SINCE STAR TED FUNCTIONING FROM THE YEAR 1989 WITH THE FINANCIAL ASSISTANCE FROM THE CENTRE. IT IS A SOCIETY REGISTERED UNDER THE SOCIETIES REGISTRATION ACT AND IT HAS ITS OWN BOARD OF MANAGEMENT HEADED BY SPECIAL SECRETARY (NE) GOVERNMENT OF IND IA MINISTRY OF HOME AFFAIRS. IN THE ABSENCE OF ITS OWN BUILDING THE IN STITUTE STARTED CONDUCTING SHORT-TERM ORIENTATION COURSES IN THE U.T. STATE G UEST HOUSE AT CHANDIGARH FROM JULY 1991. LATER ON THE INSTITUTE BECAME FUN CTIONAL IN ITS PRESENT CAMPUS W.E.F. FEBRUARY 1999. THE EXISTING BUILDING OF THE INSTITUTE WAS PURCHASED FROM THE CHANDIGARH ADMINISTRATION AT A C OST OF RS. 73.59 LACS. THE COST OF THE BUILDING WAS ASSESSED BY THE CENTRA L PWD AND IT WAS PAID IN FIVE ANNUAL INSTALLMENTS. THE FOUR ACRE VAC ANT LAND ADJOINING TO THE BUILDING COMPLEX WAS ALLOTTED BY THE CHANDIGARH ADM INISTRATION FREE OF COST TO THE INSTITUTE. WE HAVE SINCE PAID THE ENTIRE COST O F THE .BUILDING TO THE CHANDIGARH ADMINISTRATION (DIRECTOR TECHNICAL EDUC ATION CHANDIGARH). THE ADDITIONS ALTERATIONS AND RENOVATION WORK OF THE B UILDING COMPLEX WAS 10 ENTRUSTED TO THE ENGINEERING DEPARTMENT OF THE CHAN DIGARH ADMINISTRATION AS A DEPOSIT WORK. STAFF STRENGTH OF THE INSTITUTE DURING THE LAST TWO FINANCIAL YEARS. GROUP A: HOME SECRETARY CHANDIGARH ADMINISTRATION CONC URRENTLY HOLDS THE CHARGE OF THE POST OF DIRECTOR GROUP B : I) LECTURER IN PSYCHOLOGY (DESIGNATED AS DEPUTY D IRECTOR) II) ADMINISTRATIVE OFFICER WORKING ON CONTRACT BA SIS. I) ONE STENOGRAPHER-CURN-COMPUTER OPERATOR II)ONE DRIVER III)ONE CLERK IV)ONE LIBRARY ATTENDANT ON CONTRACT BASIS I)TWO CHOWKIDARS (ONE IS REGULAR AND ONE O N CONTRACT) II)TWO PEONS ON C ONTRACT BASIS III) TWO SWEEPERS (ON E IS ON CONTRACT AND OTHER IS PART TIME ON DAILY RATES WAGES THREE MALIS ON DAILY RATES WAGES. THE INSTITUTE HAS SO FAR ORGANIZED 326 TRAINING COU RSES BOTH FOR PRISON AND POLICE APART FROM HOLDING A NUMBER OF SYMPOSIA SEM INARS PANEL DISCUSSIONS ON JAIL REFORMS. THE FOLLOWING TRAINING COURSES HAV E BEEN ORGANIZED FOR THE PRISON PERSONNEL : IDENTIFICATION OF BEST PRISON PR ACTICES CORRECTIONAL LEGISLATION COUNSELLING TECHNIQUES FOR CORRECTION CAPACITY BUILDING FOR PRISONERS WELFARE ATTITUDINAL CHANGE MOTIVATION AND LEADERSHIP FOR CORRECTION CONTEMPORARY ADVANCES IN CRIMINOLOGY AN D CORRECTION CORRECTIONAL ALTERNATIVES TO IMPRISONMENT EMERGING MODELS AND - MEASURES OF CORRECTION : INTRAMURAL AND EXTRAMURAL PRINCIPLES AND TECHNIQUES OF CORRECTIONAL MANAGEMENT ETC. THE HON 'BLE HIGH COURT JUDGES PROFESSORS IN THE UNIVERSITIES FROM VARIOUS DISCIPLINES VIZ. PSYCHOLOGY SOCIOLOGY CRIMINOLOGY LAWS PSYCHIATR Y AND JAIL ADMINISTRATORS HAVE BEEN PARTICIPATING IN THE CORRE CTIONAL PROGRAMMES OF THE INSTITUTE. SINCE THE JAIL ADMINISTRATION THAT THE C OUNTRY HAS INHERITED IS GOVERNED GROUP C : GROUP D IV) 11 BY THE PHILOSOPHY OF DETERRENCE THE CUSTODY ORIENTA TION GAINS PRECEDENCE OVER CORRECTION. WHAT IS NEEDED IS EFFECTIVE INTROD UCTION OF CORRECTIONAL MEASURES IN JAILS. BETTER KNOWN SUCH MEASURES ARE E DUCATION VOCATIONAL TRAINING EMPLOYMENT REHABILITATION OF PRISONERS AF TER RELEASE MEDITATION POSITIVE REINFORCEMENT AND AFTER CARE SERVICES. THE INTRODUCTION OF SUCH MEASURES OBVIOUSLY SHALL REQUIRE A CHANGE IN THE AI M AND OBJECTIVE OF PRISON ADMINISTRATION. IT ALSO UNDERLINES THE NEED TO RECR UIT CORRECTIONAL STAFF AS WELL AS INITIATING THE EXISTING STAFF IN THE THEORY AND PRACTICE OF CORRECTION BY MEANS OF INSERVICE TRAINING. THIS PRECISELY IS WHAT THE I NSTITUTE IS STRIVING TO ACHIEVE BY ORGANIZING COURSES ON CORRECTIONAL ADMINISTRATIO N AND CORRECTIONAL SERVICES IN JAILS. OF LATE THE INSTITUTE HAS STARTED ORGANIZING SPECI ALIZED TRAINING COURSES FOR POLICE PERSONNEL OF UNION TERRITORY CHANDIGARH AND HIMACHAL PRADESH. THE THEME OF SUCH COURSES HAVE BEEN STRESS MANAGEME NT GENDER SENSITIZATION POLICE-COMMUNITY RELATIONS AND MEDIA MANAGEMENT DRUG LAW ENFORCEMENT ATTITUDINAL CHANGE MOTIVATION AND LEADERSHIP COUNSELLING SKILLS FOR EFFECTIVE POLICING HUMAN RI GHTS AND CUSTODIAL DEATHS ETC.. THE TRAINING COURSES BEING ORGANIZED BY THE I NSTITUTE NOT ONLY GENERATE A POSITIVE ORIENTATION IN THE PARTICIPANTS ABOUT THE CORRECTIONAL PHILOSOPHY AND THEY TEND TO EQUIP THE PARTICIPANTS WITH SKILLS AND TECHNIQUES OF CORRECTION. SOME OF THE SALIENT FEATURES OF OUR TRAINING COURSE S ARE :- I) IMPORTANCE OF EDUCATION PARTICULARLY VOCATIONA L EDUCATION FOR CORRECTION IS EMPHASIZED. WHILE EDUCATION ENHANCES THE SELF-CONCE PT OF A PRISONER VOCATIONAL EDUCATION PAVES THE WAY TO CORRECTION BY MAKING HIM SELF-RELIANT AND SOCIALLY ACCEPTABLE. IN THIS CONTEXT PRISON ADMINISTRATION IN THE RAJASTHAN STATE IS DOING A COMMENDABLE JOB IN AS-MUCH AS THEY HAVE SUC CEEDED IN STARTING INDUSTRIAL TRAINING INSTITUTE IN THE JAIL PREMISES ITSELF FOR IMPARTING SKILLS AND TRAINING FOR THE PRISON INMATES. THEY HAVE ALSO STA RTED COMPUTER TRAINING COURSES APART FROM AN ADVANCE BOURSE IN TAILORING I N THE JAIL PREMISES. (II) THE CONCEPT AND TECHNIQUES OF COUNSELLING ARE EXPLAINED AT LENGTH TO THE PARTICIPANTS. THEY ARE TRAINED IN THE USE OF VARIOUS AIDS FOR CORRECTION. IDENTIFYING LISTENING AS A CRUCIAL ELEMENT OF COUNS ELLING WORKSHOPS ARE CONDUCTED SO AS TO SENSITIZE THE PARTICIPANTS TO SKILLS OF LI STENING FOR EMPATHETIC UNDERSTANDING. THE OFFICERS ARE ADVISED TO BUILD TR UST AND RAPPORT THROUGH THE PROCESS OF COUNSELLING. 12 (III) OUR TRAILING COURSES ALSO GIVE DUE IMPORTANCE TO THE CONCEPT OF STRESS MANAGEMENT. THE FACTORS AND PSYCHOSOMATIC OU TCOME OF STRESS ARE BROUGHT HOME TO THE PARTICIPANTS. PARTICIPANTS ARE ALSO TRAINED IN STRESS RELIEVING TECHNIQUES. (IV) AN AWARENESS IS BEING CREATED AMONGST THE P RISON MANAGEMENT ABOUT THE ROLE AND PARTICIPATION OF PRIVATE INDUSTRIAL ENTREP RENEURS IN THE PRISON INDUSTRY. IN FACT A BEGINNING HAS BEEN MADE IN A PRISON IN HI MACHAL PRADESH WHERE KEROSENE HEATERS ON THE JAPANESE MODEL ARE BEING MA NUFACTURED / ASSEMBLED BY A NRI INDUSTRIALIST. HIS PLANS TO EMPLOY THE PRISONERS AS UNSKILLED LABOUR IN HIS ENTERPRISE ARE APT TO GO A LONG WAY I N THE REHABILITATION OF THE PRISONERS AFTER THEIR RELEASE WITH THE MONEY THEY W ILL EARN IN THE PRISON. SIMILARLY THE PRISON DEPARTMENT IN THE PUNJAB STAT E HAS INVOLVED PRIVATE ENTREPRENEURS WITH WHOSE COOPERATION SPORTS GOODS A RE BEING MANUFACTURED IN THE JAIL PREMISES OF JALANDHAR V) THE TRAINING COURSES OF THE INSTITUTE ALSO INCLU DE WORKSHOPS ON THE TECHNIQUES OF BEHAVIOUR MODIFICATION WHICH INCLUDE LIFE PLANNING MENTAL HEALING AND SELF-ANALYSIS. VI) GUIDED : BY THE EXPERIENCE OF SOME PREVIOUS CO URSES IN WHICH PARTICIPANTS EXPRESSED THEIR CONCERN ABOUT THE LACK OF CO-ORDINATION AMONG THE AGENCIES OF CRIMINAL JUSTICE ADMINISTRATION SY MPOSIA SEMINARS AND PANEL DISCUSSIONS ARE ARRANGED WHERE IMPORTANCE ON THE NE ED FOR CO-ORDINATION AMONG THE PRISON POLICE AND JUDICIARY IS STRESSED. IT IS FEARED THAT SOMETIME THESE AGENCIES ARE FOUND WORKING AT CROSS PURPOSES THEREBY DONG DISSERVICE TO THE CAUSE OF CORRECTION. FOR INSTANCE POLICE ST ILL RESORT TO THIRD DEGREE METHODS TO EXTRACT CONFESSION RATHER THAN EMPLOYING SCIENTIFIC METHODS. VII) TO ACHIEVE THE GOAL OF CORRECTION OUR STRESS IS ON RITUALISTIC SCIENTIFIC AND HOLISTIC MEASURES. THE RITUALISTIC MEASURING SIGNIF IES STRICT ENFORCEMENT OF DISCIPLINE WITHIN THE PRISON IN ACCORDANCE: WITH TH E RULE BOOK. THEY BE COMPLEMENTED WITH SCIENTIFIC CLASSIFICATION OF PRIS ONERS. THE HOLISTIC INTERVENTION IMPLIES COMPREHENSIVE UNDERSTANDING OF THE ROOT CAUSE OF CRIMINALITY AND CORRESPONDING MODE OF TREATMENT LEADING TO PROV ISION OF AFTER CARE FOR REHABILITATION. MOST IMPORTANT OF ALL OUR COURSES EMPHASIZE THE NEED FOR PURITY OF CONSCIOUSNESS LEADING TO CONSISTENCY BETWEEN THO UGHT WORDS AND ACTION. THIS IS NECESSARY IN THE FIRST INSTANCE FOR THE CORRECTI ONAL AGENT AND THEN FOR THE PRISON INMATES FOR ACHIEVING THE GOAL OF CORRECTION. 13 9. THE LD. COUNSEL FOR THE ASSESSEE REFERRING TO AB OVE AIMS AND OBJECTS AND ACTIVITIES OF THE ASSESSEE SUBMITTED THAT THE OBJECT OF THE CREATION OF THE AS SESSEE SOCIETY IS TO IMPROVE THE ATTITUDE AND BEHAVIOUR OF THE PRISON AND JAIL AUTHORITIES TOWARDS THE OFFENDERS A ND THUS TRY TO HELP THEM TO ASSIMILATE BACK INTO THE SOCIETY WHICH SHOWS THAT SAME IS OBJECT OF GENERAL PUBLIC UTILITY AS THE OFFENDERS ARE ENABLED TO LEAD A GOOD PUBLIC LIFE WHEN THEY CAME OUT OF THE PRISON. THE LD. CIT DID NOT APPRECIATE THE NATURE OF ACTIVITIES CAR RIED ON BY THE ASSESSEE AND THE RELEVANT FACTS. THE BARE PERUSAL OF THE OBJECTS FOR WHICH THE ASSESSEE SOCIE TY IS CREATED AND ACTIVITIES UNDER TAKEN BY THE ASSESSEE SOCIETY SHOWS THAT SAME IN ALL RESPECT AND IN ESSEN CE FULFILLED THE CRITERIA TO FALL WITHIN THE AMBIT OF TERMINOLOGY ADVANCEMENT OF ANY OTHER OBJECT OF GEN ERAL PUBLIC UTILITY AND THUS FALLS WITHIN THE DEFINITI ON OF CHARITABLE PURPOSES AS DEFINED UNDER SECTION 2(15) OF THE ACT. THE IDEA BEHIND THE CREATION OF THE ASSES SEE SOCIETY WAS TO PROVIDE TRAINING TO THE JAIL/CORRECT IONAL CENTRES FOR REHABILITATION OF THE PRISONERS THE SU BJECT OF TRAINING OF CUSTODIAL OFFICERS AND STAFF HAS ASSUME D GREAT SIGNIFICANCE. IF SOCIETIES ATTITUDE TOWARDS THE PRISONERS HAS TO CHANGE A BEGINNING WILL HAVE TO B E MADE WITH THE PRISON PERSONNEL STAFF. THE PSYCHOLO GY OF THE CORRECTIONAL INSTITUTION TOWARDS THE CRIMINALS SHALL HAVE TO BE CHANGED SO THAT THE ATTITUDE AND BEHAVIO UR OF THE PRISONERS HAS CHANGED THUS TRAINING TO BE IMPA RTED 14 TO THE PRISON PERSONNEL WILL HAVE TO BE MULTI- DIMENSIONAL IN CHARACTER AND APPROACH. THIS WOULD NATURALLY CALL FOR WELL ORGANIZED TRAINING INSTITUT IONS BOTH AT THE STATE AS WELL AS REGIONAL CENTRES. THE LD. COUNSEL FOR THE ASSESSEE FURTHER SUBMITTED THAT GENUINENESS OF THE ACTIVITIES OF THE ASSESSEE HAVE NOT BEEN DISPUTED BY THE LD. CIT. THE OBJECT OF THE AS SESSEE SOCIETY ARE CLEARLY FOR ADVANCEMENT OF ANY OTHER O BJECT OF GENERAL PUBLIC UTILITY. THEREFORE ASSESSEE IS ENTITLED FOR REGISTRATION UNDER SECTION 12AA OF THE ACT. IN SUPPORT OF HIS CONTENTION HE HAS RELIED UPON DECIS IONS OF THE DELHI HIGH COURT IN THE CASE OF BUREAU OF I NDIAN STANDARDS VS DIRECTOR GENERAL OF INCOME TAX (EXEMPTION) WRIT PETITION (C-1755/12 DATED 27.09.20 12) IN WHICH IT WAS HELD THAT THE PRIMARY OBJECT FOR S ETTING UP SUCH REGULATORY BODIES WOULD BE TO ENSURE GENERA L PUBLIC UTILITY. HE HAS ALSO RELIED UPON DECISION OF THE GUJRAT HIGH COURT IN THE CASES OF CIT VS KANDLA POR T TRUST 364 ITR 164 IN WHICH IT WAS HELD AS UNDER : HIGH COURT HAVE PERUSED NUMBER OF DECISIONS OF THI S COURT WHICH HAVE INTERPRETED THE WORDS IN SECTION 2(15) NAMELY 'A NY OTHER OBJECT OF GENERALLY PUBLIC UTILITY'. FROM THE SAID DECISIONS IT EMERGES THAT THE SAID EXPRESSION IS OF THE WIDEST CONNOTATION. THE WORD ' GENERAL' IN THE SAID EXPRESSION MEANS PERTAINING TO A WHOLE CLASS. THERE FORE ADVANCEMENT OF ANY OBJECT OF BENEFIT TO THE PUBLIC OR A SECTION OF THE PUBLIC AS DISTINGUISHED FROM BENEFIT TO AN INDIVIDUAL OR GROU P OF INDIVIDUALS WOULD BE A CHARITABLE PURPOSE (COMMISSIONER OF INCOME-TAX GUJARAT-ILL AHMEDABAD V. AHMEDABAD RANA CASTE ASSOCIATION (198 3) 140 ITR 1 SC) . THE SAID EXPRESSION WOULD PRIMA FACIE INCLUDE ALL O BJECTS WHICH PROMOTE 15 THE WELFARE OF THE GENERAL PUBLIC. IT CANNOT BE SAI D THAT A PURPOSE WOULD CEASE TO BE CHARITABLE EVEN IF PUBLIC WELFARE IS IN TENDED TO BE SERVED. IF THE PRIMARY PURPOSE AND THE PREDOMINANT OBJECT ARE TO P ROMOTE THE WELFARE OF THE GENERAL PUBLIC THE PURPOSE WOULD BE CHARITABLE PURPOSE. WHEN AN OBJECT IS TO PROMOTE OR PROTECT THE INTEREST OF A P ARTICULAR TRADE OR INDUSTRY THAT OBJECT BECOMES AN OBJECT OF PUBLIC UTILITY BU T NOT SO IF IT SEEKS TO PROMOTE THE INTEREST OF THOSE WHO CONDUCT THE SAID TRADE OR INDUSTRY (COMMISSIONER OF INCOME-TAX MADRAS V. ANDHRA CHAMBE R OF COMMERCE - (1 965) 55 ITR 722 SC) . IF THE PRIMARY OR PREDOMIN ANT OBJECT OF AN INSTITUTION IS CHARITABLE ANY OTHER OBJECT WHICH M IGHT NOT BE CHARITABLE BUT WHICH IS ANCILLARY OR INCIDENTAL TO THE DOMINANT PU RPOSE WOULD NOT PREVENT THE INSTITUTION FROM BEING A VALID CHARITY- (ADDL. COMMISSIONER OF INCOME- TAX GUJARAT V. SURAT ART SILK CLOTH MANUFACTURE AS SOCIATION (1980) 121 ITR 1 (SC) HE HAS ALSO SUBMITTED THAT LD. CIT-II CHANDIGARH HA S GRANTED REGISTRATION UNDER SECTION 12AA TO M/S TECHNICAL TEACHERS TRAINING INSTITUTE VIDE ORDER DATED 13.07.2002. COPY FILED. ITS OBJECTIVE WAS T O PROVIDE PROFESSIONAL EDUCATION AND TRAINING FOR TEACHERS OF ENGINEERING & TECHNOLOGY DISCIPLINE IN TECHNICAL INSTITUTION. 10. ON THE OTHER HAND LD. DR RELIED UPON IMPUGNED ORDER AND SUBMITTED THAT ASSESSEE IS MERELY PROVIDI NG TRAINING TO THE GOVERNMENT OFFICERS THEREFORE IT IS NOT DOING ANY CHARITABLE ACTIVITY OR ANY OTHER OBJECT O F GENERAL PUBLIC UTILITY THEREFORE REGISTRATION HAS BEEN CORRECTLY DENIED TO THE ASSESSEE. 11. WE HAVE CONSIDERED RIVAL SUBMISSIONS. SECTION 12AA OF THE INCOME TAX ACT PROVIDES PROCEDURE FOR 16 REGISTRATION AND PROVIDES THAT THE COMMISSIONER ON RECEIPT OF APPLICATION FOR REGISTRATION SHALL CALL FOR SUCH DOCUMENT OR INFORMATION FROM THE TRUST OR INSTITUTI ON IN ORDER TO SATISFY HIMSELF ABOUT THE GENUINENESS OF T HE ACTIVITIES OF THE TRUST OR INSTITUTION AND AFTER SA TISFYING HIMSELF ABOUT THE OBJECTS OF THE TRUST OR INSTITUTI ON AND GENUINENESS OF ITS ACTIVITIES MAY GRANT REGISTRATIO N OR MAY NOT GRANT REGISTRATION. THEREFORE BEFORE GRAN T OF REGISTRATION OR REJECTING THE GRANT OF REGISTRATION LD. CIT IS REQUIRED TO SATISFY HIMSELF ABOUT THE OBJECTS OF THE INSTITUTION AND GENUINENESS OF ITS ACTIVITIES. SEC TION 2(15) OF THE ACT PROVIDES DEFINITION OF CHARITABLE PURPOSE AND READS AS UNDER : 2(15) 'CHARITABLE PURPOSE INCLUDES RELIEF OF THE POOR ED UCATION MEDICAL RELIEF ''PRESERVATION OF ENVIRONMENT (INCLUDING WATERSHEDS FORESTS AND WILDLIFE) AND PRESERVATION OF MONUMENTS OR PLACES OR OBJECTS OF ARTISTIC OR HISTORIC INTEREST ] AND THE ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY: PROVIDED THAT THE ADVANCEMENT OF ANY OTHER OBJECT O F GENERAL PUBLIC UTILITY SHALL NOT BE A CHARITABLE PURPOSE IF IT INVOLVES T HE CARRYING ON OF ANY ACTIVITY IN THE NATURE OF TRADE COMMERCE OR BUSINESS OR AN Y ACTIVITY OF RENDERING ANY SERVICE IN RELATION TO ANY TRADE COMMERCE OR B USINESS FOR A CESS OR FEE OR ANY OTHER CONSIDERATION IRRESPECTIVE OF THE NAT URE OF USE OR APPLICATION OR RETENTION OF THE INCOME FROM SUCH ACTIVITY:] '[PROVIDED FURTHER THAT THE FIRST PROVISO SHALL NOT APPLY IF THE AGGREGATE VALUE OF THE RECEIPTS FROM THE ACTIVITIES REFERRED TO THEREIN IS '[TWENTY-FIVE LAKH RUPEES] OR LESS IN THE PREVIOUS YEAR;] 17 12. IN THIS CASE THE GENUINENESS OF THE ACTIVITIES OF THE ASSESSEE HAVE NOT BEEN DOUBTED BECAUSE IT IS ADMITTED FACT THAT ASSESSEE SOCIETY HAS ORGANIZED WORKSHOP/VARIOUS COURSES IN ITS INSTITUTE FOR IMPAR TING TRAINING TO THE OFFICIALS LARGE IN NUMBER IN MANY YEARS. ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY ARE VERY WIDE WORDS. THEIR EXACT SCOPE HAS NOT BEEN AND PERHAPS CANNOT BE DEFINED. THE FACTS AND CIRCUMSTANCES OF THE CASE SHALL HAVE TO BE CONSIDERED IN DETAIL. WHETHE R AN OBJECT IS OF GENERAL PUBLIC UTILITY MUST BE DETERMI NED HAVING REGARD TO THE PARTICULAR CIRCUMSTANCES THAT EMERGE UNDER CONDITIONS OF INDIAN LIFE AND THE STA NDARD OF CUSTOMARY LAW AND COMMON OPINION AMONGST THE COMMUNITY. AN OBJECT WOULD BE OF GENERAL PUBLIC UTI LITY IF IT DEFINES A SECTION OF PUBLIC OR THE INHABITANT S OF A PARTICULAR LOCALITY PROVIDED THE CLASS OF BENEFICI ARIES IS WELL DEFINED. IN CIT V SURAT ART SILK CLOTH MANUFACTURING ASSOCIATION 122 ITR 1 LARGER BENCH O F THE HON'BLE SUPREME COURT RE-AFFIRMED THE RATIO OF ANDHRA CHAMBER OF COMMERCE AND HELD THAT A SIMILAR COMPANY FORMED TO PROMOTE TRADE AND COMMERCE IN CLO TH AND YARN TO BE ENTITLED FOR EXEMPTION AS SERVING AN OBJECT OF GENERAL PUBLIC UTILITY. 13. TO BETTER UNDERSTAND THE NATURE OF FUNCTIONS AN D THE OBJECTIVES OF THE INSTITUTE OF CORRECTIONAL ADMINISTRATION IT IS IMPERATIVE IN THE FIRST PLACE TO UNDERSTAND THE MEANING OF THE TERM CORRECTIONAL. AS 18 PER WIKIPEDIA CORRECTION CORRECTIONS AND CORRECTIONAL ARE UMBRELLA TERMS USED IN CRIMINAL JUSTICE TO DESCRIBE A VARIETY OF FUNCTIONS TYPICALL Y CARRIED OUT BY GOVERNMENT AGENCIES INVOLVING THE PUNISHMENT TREATMENT AND SUPERVISION OF PRISONERS WHO HAVE BEEN CONVICTED OF CRIMES. ITS FUNCTIONS COMMO NLY INCLUDE IMPRISONMENT PAROLE AND PROBATION. A TYPI CAL CORRECTIONAL INSTITUTE IS A PRISON. A CORRECTIONAL SYSTEM THUS REFERS TO A NETWORK OF AGENCIES THAT ADMINISTE R THE JURISDICTION OF PRISON AND COMMUNITY-BASED A PROGRA M LIKE PAROLE AND PROBATION BOARD. THIS SYSTEM IS PA RT OF THE LARGER CRIMINAL JUSTICE SYSTEM WHICH ADDITIONAL LY INCLUDES POLICE PROSECUTION AND PRISON. IN NUTSHE LL CORRECTIONAL ADMINISTRATION REFERS TO TREATMENT MET ED OUT TO PRISONERS BY GOVERNMENT AGENCIES AS PART OF THE CRIMINAL JUSTICE SYSTEM. 13(I) FOR THE EFFECTIVE FUNCTIONING OF THE INDIA N LAW AND JUSTICE SYSTEM CORRECTIONAL SYSTEM PLAYS A VERY IMPORTANT ROLE. THE BASIC PRINCIPLES GUIDING CORRECTIONAL SYSTEM HAS BEEN LAID DOWN BY THE HON'B LE SUPREME COURT OF INDIA IN ITS JUDGMENT ON VARIOUS ASPECTS OF PRISON ADMINISTRATION WHICH ARE FIRSTLY A PERSON IN PRISON DOES NOT BECOME A NON-PERSON. SECONDLY A PERSON IN PRISON IS ENTITLED TO ALL HUM AN RIGHTS WITHIN THE LIMITATIONS OF IMPRISONMENT. THI RDLY THERE IS NO JUSTIFICATION FOR AGGRAVATING THE SUFFE RING ALREADY INHERENT IN THE PROCESS INCARCERATION. WHA T 19 EMERGES FROM THE ABOVE IS THAT THE CORRECTIONAL SYS TEM AIMS AT ENSURING THAT SOCIETY AT LARGE IS KEPT SAFE BY SEPARATING THEM FROM INDIVIDUALS WHO HAVE COMMITTED CRIME WITHOUT INVOLVING ANY HUMAN RIGHTS VIOLATION OF THE CRIMINAL IN THE PROCESS. THERE ARE SEVERAL ASP ECTS OF THE CORRECTIONAL SYSTEM. PUNISHMENT OF WRONG DO ERS TO ENSURE THEY PAY A PRICE FOR THE CRIME COMMITTED AS ALSO TO DETER THEM FROM COMMITTING THE SAME IN FUTU RE IS ONE OF THE ASPECTS. REHABILITATION OF PERSONS IS A NOTHER ASPECT. THE PURPOSE OF REHABILITATION BEING TO GIV E PRISONER A SECOND CHANCE TO BECOME CONTRIBUTING MEMBER OF SOCIETY AND AVOID BECOME REPEAT OFFENCE THUS WEEDING OUT AND ELIMINATING BAD ELEMENTS IN THE SOCIETY. 14. THERE ARE INSTANCES OF MIS-BEHAVIOUR TORTURE A ND MALTREATMENT IN CORRECTIONAL HOMES/PRISONS BY AUTHORITIES OF PRISON AND EVEN BY OTHER INMATES. T HE CONVICTS ALREADY HAVING CRIMINAL MIND MAY NOT IMPR OVE THEIR ATTITUDE AND BEHAVIOUR IN SUCH CIRCUMSTANCES EVEN WHEN THEY ARE SERVING THE SENTENCE IN CRIMINAL CASE . IT IS A KNOWN FACT THAT IN CRIMINAL CASES VARIOUS TYP ES OF PUNISHMENTS HAVE BEEN PROVIDED I.E. FOR PETTY OFFEN CE TO HEINOUS OFFENCE. IN CRIMINAL CASES THE INTENTION OF THE OFFENDER AND MENS-REA ARE CONSIDERED WHILE DEALING WITH THE CRIMINAL CASES AND MANY TIMES OFFENDERS ARE FO UND HABITUAL IN COMMITTING CRIMES AND MANY TIMES IT IS SEEN THAT THE CRIMINALS COMMIT THE CRIME BY THEIR NATURE . 20 HOW THEY ARE TREATED IN CORRECTIONAL HOME/PRISON A RE MOST IMPORTANT RELEVANT AND NECESSARY FACT TO IMPR OVE THEM BECAUSE IF THEY ARE CORRECTED AND IMPROVED IN THEIR ATTITUDE AND BEHAVIOUR ULTIMATELY IT WOULD IMPROVE THE STANDARD OF SOCIETY BECAUSE AFTER COMPLETION OF THE IR SENTENCE THEY WOULD AGAIN BE RE-HABILITATED IN CIV IL SOCIETY. OTHERWISE IF THEIR ATTITUDE AND BEHAVIOU R REMAINED WITH CRIMINALITY THEIR PRESENCE IN THE SO CIETY WOULD BE DANGEROUS TO THE PUBLIC AT LARGE. 14(I) IN THE ABOVE BACKDROP THE OBJECTIVE OF THE ASSESSEE INSTITUTE OF IMPARTING CORRECTIONAL ADMINISTRATION TRAINING ONLY SERVES TO STRENGTHEN THE CRIMINAL JUSTICE SYSTEM IN THE COUNTRY AND MAKE IT MORE EFFECTIVE. BY IMPARTING TRAINING TO CONCERNED OFFI CERS IN CORRECT ADMINISTRATION IT ENSURES BESIDES OTHER TH ING THAT CONVICTS WHEN RELEASED ARE EQUIPPED TO MERGE THEMSELVES IN THE MAIN STREAM OF THE SOCIETY AND BECOME CONTRIBUTING MEMBERS RATHER THAN DISTURBING ELEMENTS. THIS FOR ALL PURPOSE SERVES THE LARGER I NTEREST OF THE SOCIETY/GENERAL PUBLIC AND CAN BE NOTHING EL SE BUT A PUBLIC UTILITY SERVICE. THE FACT THAT PEOPLE HAVE BEEN AWARDED THE RAMON MAGSAYSAY AWARD FOR GOVERNMENT SERVICE INCLUDING HUMAN PRISON REFORMS OUTLINES THE PUBLIC UTILITY OF CORRECTIONAL SYSTEM. THE ASSESSEE THEREFORE RIGHTLY CONTENDED THAT THE HOL ISTIC INTERVENTION IMPLIES COMPREHENSIVE UNDERSTANDING OF THE ROOT CAUSE OF CRIMINALITY AND CORRESPONDING MODE OF 21 TREATMENT LEADING TO PROVISION OF AFTER CARE FOR REHABILITATION. THE PRISONER COMING TO MAIN STREAM OF SOCIETY IS RELEVANT AND BENEFIT OF GENERAL PUBLIC A ND SOCIETY. 15. THE BENEFIT TO THE SOCIETY/COMMUNITY IS OF THE ESSENSE OF A VALID CHARITY. RE-HABILITATION OF CONVICTS/CRIMINALS IN SOCIETY AFTER SERVING THEIR SENTENCE WITHOUT PROFIT MOTIVE IS ALSO OBJECT OF GE NERAL PUBLIC UTILITY SINCE IT PROMOTES INTEREST OF CIVIL SOCIETY. WHEN THE PRIMARY PURPOSE AND PREDOMINANT OBJECT ARE TO PROMOTE THE WELFARE OF GENERAL PUBLIC THE PURPO SE WOULD BE CHARITABLE PURPOSE. 15(I). THE IMPARTING OF TRAINING IN CORRECTIONAL ADMINISTRATION TO ALL OFFICIALS OF PRISON/POLICE/JU DICIAL DEPARTMENT WOULD ULTIMATELY BENEFIT THE PRISONERS T O CHANGE THEIR ATTITUDE AND BEHAVIOUR SO THAT THEY CA N BE RE-HABILITATED IN SOCIETY ON COMPLETION OF THEIR SE NTENCE. ULTIMATELY THE CONSUMER OF THIS TRAINING PROVIDED TO THE OFFICERS OF CORRECTIONAL ADMINISTRATION WOULD BE IN ITIALLY THE PRISONERS WHO ARE PART OF THE SOCIETY AND ULTIM ATELY GENERAL PUBLIC OF SOCIETY. THE TRAINING WOULD PROM OTE THE WELFARE OF GENERAL PUBLIC. THE OBJECTS OF THE ASSESSEE ARE TO PROMOTE WELFARE OF GENERAL PUBLIC W HICH WOULD BE CHARITABLE IN NATURE. THEREFORE THE PRIM ARY PURPOSE AND THE PREDOMINANT OBJECT OF ASSESSEE SOCI ETY ARE TO PROMOTE THE WELFARE OF GENERAL PUBLIC THE PURPOSE WOULD BE CHARITABLE PURPOSE. THE LD. CIT-I I 22 CHANDIGARH ALSO GRANTED REGISTRATION UNDER SECTION 12A/12AA OF THE ACT TO TECHNICAL TEACHERS TRAINING INSTITUTE (SUPRA) IN SIMILAR CIRCUMSTANCES. 16. THE RECORD REVEALED ASSESSEE MOVED FOR CONDONATION OF DELAY IN FILING THE REGISTRATION APPLICATION UNDER SECTION 12A BUT SUCH PROVISIONS WOULD NOT BE APPLICABLE FROM 01.06.2007 BECAUSE ASSESSEE SOCIETY FILED APPLICATION ON 01.04.2013. 17. CONSIDERING THE TOTALITY OF THE FACTS AND CIRCUMSTANCES AND ABOVE DISCUSSION WE ARE OF THE V IEW THAT OBJECTS OF THE ASSESSEE SOCIETY ARE CHARITABLE IN NATURE AND FOR ADVANCEMENT OF ANY OTHER OBJECTS OF GENERAL PUBLIC UTILITY AS DEFINED UNDER SECTION 2( 15) OF THE ACT. THE GENUINENESS OF THE ACTIVITIES OF THE ASSESSEE HAS NOT BEEN DOUBTED BY THE LD. CIT. THEREFORE ASSESSEE IS ENTITLED FOR REGISTRATION UN DER SECTION 12AA OF THE ACT. 18. IN THIS VIEW OF THE MATTER WE SET ASIDE THE IMPUGNED ORDER AND DIRECT THE LD. CIT TO GRANT REGISTRATION TO THE ASSESSEE UNDER SECTION 12A/12AA FROM THE DAY WHEN APPLICATION FOR REGISTRATION WAS FILED OR ANY OTHER EARLIER DATE AS PER LAW. THE LD. CIT SHALL GRANT REGISTRATION CERTIFICATE WITHIN ONE MONTH FRO M THE DATE OF THE ORDER. 19. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWE D. 23 ITA 1105/2014 ( A.Y. 2010-11) 20. THIS APPEAL BY ASSESSEE HAS BEEN DIRECTED AGAIN ST THE ORDER OF LD. CIT(APPEALS) CHANDIGARH DATED 17.09.2014 FOR ASSESSMENT YEAR 2010-11 ON THE FOLLOWING GROUNDS : L. THAT THE ORDER PASSED BY THE COMMISSIONER OF IN COME TAX (APPEALS) CHANDIGARH IN APPEAL NO. 168/13-14 DATED 17.09.2014 IS BAD IN LAW AND CONTRARY TO LAW AND FACTS IN THE CORRECT MANNER AND IN ACCORDANCE WITH THE STATUTE. 2. THAT THE ID. COMMISSIONER OF INCOME TAX (APPEAL S) CHANDIGARH GRAVELLY ERRED IN UPHOLDING THE ORDER OF THE ID. AS SESSING OFFICER IN WHICH HE HAS GRAVELLY ERRED IN IGNORING THE FACT TH AT THE GRANT PROVIDED BY THE MHA (CENTRAL GOVT.) IS NOT A VOLUNTARY CONTR IBUTION BUT IS IN RESPECT OF AMOUNT FOR WHICH THE APPELLANT IS A NODA L AGENCY AND THE SAME IS PROVIDED IN THE PLANNED BUDGET. AS SUCH IS NOT THE INCOME OF THE APPELLANT. 3 THAT THE ID. COMMISSIONER OF INCOME TAX (APPEAL S) CHANDIGARH GRAVELLY ERRED IN UPHOLDING THE ORDER OF THE ID. AS SESSING OFFICER IN WHICH HE HAS GRAVELLY ERRED IN IGNORING THE FACT TH AT THE APPELLANT IS ACTING AS NODAL AGENCY FOR CARRYING OUT THE PROJECT S FOR WHICH IT WAS GIVEN THE GRANTS I.E. TRAINING COURSES ON HUMAN RIG HTS IN PRISON MANAGEMENT PRISON SECURITY MANAGEMENT PERSONALITY DEVELOPMENT AND DEVELOPMENT OF PRISON PERSONNEL GENDER SENSITI ZATION ETC. AND WORKSHOPS ON JUVENILE JUSTICE AND ANTI-HUMAN TRAFFI CKING ETC. 21. THIS APPEAL WAS ALSO DISMISSED IN DEFAULT EARLI ER WHICH HAVE BEEN RESTORED ON FILING MISCELLANEOUS APPLICATION BY THE ASSESSEE AND EARLIER ORDER WAS 24 RECALLED AND APPEAL WAS RE-FIXED FOR HEARING ON MER ITS. THE LD. CIT(APPEALS) NOTED IN THE IMPUGNED ORDER TH AT ASSESSING OFFICER HAS ASSESSED INCOME AT RS. 1 04 78 183/- AS AGAINST RS. 38 33 687/- AS PER INC OME & EXPENDITURE ACCOUNT. IT HAS BEEN CONTENDED BY TH E ASSESSEE THAT WHILE THE AMOUNT RECEIVED BY WAY OF GRANTS FROM MINISTRY OF HOME AFFAIRS ARE SHOWN AS REVENUE RECEIPT IN THE INCOME & EXPENDITURE ACCOUNT THE EXPENSES INCURRED FOR VARIOUS PROJECTS FOR WHIC H THE GRANTS WERE RECEIVED SHOULD HAVE BEEN ALLOWED AS DEDUCTION. THE LD. CIT(APPEALS) ACCEPTED THE CONTE NTION OF THE ASSESSEE AND HELD THAT WHAT IS ASSESSABLE IS THE EXCESS AMOUNT OF INCOME OVER THE EXPENDITURE SO TH E ASSESSING OFFICER SHOULD HAVE ASSESSED THE INCOME O F RS. 38 33 687/- AND NOT THE RECEIPT OF RS. 1.04 CRO RE. THE APPEAL OF THE ASSESSEE WAS ACCORDINGLY ALLOWE D. 22. AFTER HEARING THE RIVAL CONTENTIONS WE ARE OF THE VIEW THE MATTER REQUIRES RE-CONSIDERATION AT THE LE VEL OF THE ASSESSING OFFICER. WHEN THE MATTER WAS TAKEN U P FOR ASSESSMENT THE ASSESSEE MADE A CLAIM OF EXEMPT ION UNDER SECTION 11 OF THE INCOME TAX ACT. HOWEVER ASSESSEE COULD NOT PRODUCE THE REGISTRATION CERTIFI CATE UNDER SECTION 12AA OF THE ACT. IN FACT THERE WAS NO REGISTRATION EFFECTIVE IN FAVOUR OF THE ASSESSEE FO R ASSESSMENT YEAR UNDER APPEAL. THE ASSESSING OFFICER THEREFORE DETERMINING THE INCOME OF THE ASSESS EE AT 25 RS. 1.04 CRORES DID NOT GRANT EXEMPTION UNDER SECT ION 11 OF THE INCOME TAX ACT. THE ASSESSEE RAISED THE GROUNDS OF APPEAL BEFORE LD. CIT(APPEALS) THAT SINC E ASSESSEE SOCIETY IS A NODAL AGENCY THEREFORE IT I S NOT INCOME OF THE ASSESSEE. THIS POINT HAS NOT BEEN DE CIDED BY THE LD. CIT(APPEALS). THE ASSESSEE HAS RAISED T HE SIMILAR GROUND OF APPEAL BEFORE THE TRIBUNAL. SINC E APPEAL FOR GRANT OF REGISTRATION HAVE BEEN ALLOWED UNDER SECTION 12AA OF THE ACT IN ITA 1049/2013 (SUPRA) AN D REGISTRATION APPLICATION WAS FILED ONLY ON 01.04.20 13 THEREFORE THE REGISTRATION UNDER SECTION 12AA AS GRANTED MAY NOT APPLY TO ASSESSMENT YEAR UNDER APPE AL I.E. 2010-11 BECAUSE OF THE AMENDMENT IN SECTION 12 A OF THE INCOME TAX ACT. THEREFORE THIS MATTER REQU IRES RE-CONSIDERATION AT THE LEVEL OF THE ASSESSING OFFI CER ON THE POINT AS RAISED BEFORE LD. CIT(APPEALS) AS WELL AS IN THE GROUNDS OF APPEAL BEFORE THE TRIBUNAL. 23. WE THEREFORE SET ASIDE THE ORDERS OF AUTHORIT IES BELOW TO THE ABOVE EXTENT ON GROUNDS RAISED ABOVE A ND RESTORE THE MATTER IN ISSUE TO THE FILE OF ASSESSIN G OFFICER WITH DIRECTION TO RE-DECIDE THE GROUNDS RAI SED BY THE ASSESSEE BEFORE LD. CIT(APPEALS) AS WELL AS BEF ORE THE TRIBUNAL. THE ASSESSING OFFICER SHALL GIVE REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESS EE. WE MAKE IT CLEAR THAT WHATEVER RELIEF HAS BEEN GRAN TED 26 BY LD. CIT(APPEALS) SHALL NOT BE SUBJECT MATTER BE FORE ASSESSING OFFICER IN REMAND PROCEEDINGS. 24. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. 25. ITA 1049/2013 IS ALLOWED. ITA 1105/2014 IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (ANNAPURNA GUPTA) (BHAVNESH SA INI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 18 TH OCTOBER 2016. POONAM COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. THE CIT DR ASSISTANT REGISTRAR ITAT/CHD