St. Francis Xavier Church, Mangalore v. ITO, Mangalore

ITA NO.139/B/09 PAGE - 1 IN THE INCOME-TAX APPELLATE TRIBUNAL BANGALORE BENCH A BEFORE DR. O. K. NARAYANAN VICE PRESIDENT AND SHRI. GEORGE GEORGE K JUDICIAL MEMBER I.T.A.NO.139/BANG/2009 (ASSESSMENT YEAR : NA) ST. FRANCIS XAVIER CHURCH ANEGUDDE VALPADY PO MANGALORE .. APPELLANT V. INCOME-TAX OFFICER WARD -2(1) BANGALORE .. RESPONDENT ASSESSEE BY : SHRI. RUDOLPH M. C. RODRIGUES CHARTE RED ACCOUNTANT REVENUE BY : SHRI. JASON P. BOAZ COMMISSIONER OF I NCOME-TAX-I O R D E R PER DR. O. K. NARAYANAN VICE PRESIDENT : THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE O RDER OF COMMISSIONER OF INCOME-TAX AT MANGALORE DECLINING TO GRANT REGISTRATION U/S.12A OF THE IT ACT 1961. THE ASSESSEE FILED AP PLICATION U/S.12A FOR THE REGISTRATION BUT THE SAME WAS REJECTED BY THE COMMISSIONER ON THE GROUND THAT ASSESSEE IS CARRYING ON BOTH CHARITABLE AND RELIGIOUS ACTIVITIES AND THEREFORE REGISTRATION CANNOT BE GRANTED IN V IEW OF THE LAW STATED IN SECTION 11(1)(A) OF THE INCOME-TAX ACT 1961. ITA NO.139/B/09 PAGE - 2 2. THE VERY SAME ISSUE WAS CONSIDERED BY ITAT COCH IN BENCH IN THE CASE OF THE SOCIETY OF PRESENTATION SISTERS V. ITO (2009) 318 ITR (AT) 287 (TM) AND OTHER SERIES OF CASES. IN THOSE CASE S ALSO THE STAND TAKEN BY THE CONCERNED COMMISSIONER WAS THAT AS THE ASSES SEES ARE CONTEMPLATING BOTH CHARITABLE AND RELIGIOUS ACTIVIT IES THEY ARE NOT ENTITLED FOR REGISTRATION U/S.12A. THE VIEW OF THE COMMISSIONER WAS THAT ASSESSEE SHOULD EITHER INDULGE IN CHARITABLE ACTIVI TIES OR IN RELIGIOUS ACTIVITIES BUT NOT BOTH. 3. THE THIRD MEMBER DECISION IN THE CASE CITED ABOV E HAS REPELLED THE ARGUMENTS OF THE REVENUE AND HAS HELD THAT IN SUCH CIRCUMSTANCES THE ASSESSEES ARE ENTITLED FOR EXEMPTION U/S.11 EVEN IF THEY ARE ENGAGED IN BOTH CHARITABLE AND RELIGIOUS ACTIVITIES. THE EXPR ESSION GIVEN IN THE STATUTE CHARITABLE OR RELIGIOUS HAS BEEN ADJUDI CATED AS CHARITABLE OR RELIGIOUS OR BOTH CHARITABLE AND RELIGIOUS. 4. IN VIEW OF THE ABOVE THIRD MEMBER JUDGEMENT OF T HE ITAT COCHIN BENCH WE HOLD THAT ASSESSEE IS ENTITLED FOR REGISTRATION U/S.12A. 5. ACCORDINGLY ORDER OF THE CIT IS SET ASIDE AND H E IS DIRECTED TO PASS ORDERS GRANTING REGISTRATION TO THE ASSESSEE TRUST. ITA NO.139/B/09 PAGE - 3 6. IN RESULT THIS APPEAL FILED BY THE ASSESSEE IS ALLOWED. MONDAY 26TH APRIL 2010. SD/- SD/- (GEORGE GEORGE K) (DR. O. K. NARAYANAN) JUDICIAL MEMBER VICE PRESIDEN T MCN* COPY TO: 1. THE ASSESSEE 2. THE ASSESSING OFFICER 3. THE COMMISSIONER OF INCOME-TAX 4. COMMISSIONER OF INCOME-TAX(A) 5. DR 6. GF ITAT NEW DELHI 7. GF ITAT BANGALORE BY ORDER ASST.REGISTRAR ITAT BANGALORE