M/s. Zion Parvatham, CHENNAI v. ITO, Tuticorin

ITA 1997/CHNY/2010 | misc
Pronouncement Date: 12-01-2011 | Result: Allowed

Appeal Details

RSA Number 199721714 RSA 2010
Bench Chennai
Appeal Number ITA 1997/CHNY/2010
Duration Of Justice 1 month(s) 19 day(s)
Appellant M/s. Zion Parvatham, CHENNAI
Respondent ITO, Tuticorin
Appeal Type Income Tax Appeal
Pronouncement Date 12-01-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted B
Tribunal Order Date 12-01-2011
Date Of Final Hearing 12-01-2011
Next Hearing Date 12-01-2011
Assessment Year misc
Appeal Filed On 23-11-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL CHENNAI BENCH B : CHENNAI [BEFORE DR. O.K. NARAYANAN VICE-PRESIDENT AND SHRI HARI OM MARATHA JUDICIAL MEMBER] I.T.A NOS. 1996 & 1997/MDS/2010 ASSESSMENT YEAR : N.A M/S ZION PARVATHAM C/O S. SRIDHAR ADVOCATE NEW NO.14 OLD NO.82 FLAT NO.5 1 ST AVENUE INDIRA NAGAR ADYAR CHENNAI 600 020 VS THE ITO WARD I(1) TUTICORIN (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI S. SRIDHAR RESPONDENT BY : SHRI P.B SEKARAN O R D E R PER HARI OM MARATHA JUDICIAL MEMBER: THESE APPEALS FILED BY THE ASSESSEE-TRUST ARE DIRECTED AGAINST SEPARATE ORDER OF THE LD. CIT-I MADURAI BUT DATED 22.10.2009 BY WHICH HE HAS REFUSED TO GRANT REGISTRATION U/S 12AA AND ALSO APPROVAL U/S 80G OF THE INCOME-TAX ACT 1961 (HEREI NAFTER REFERRED TO AS 'THE ACT' FOR SHORT). ITA 1996 & 1997/10 :- 2 -: 2. THE MAIN REASONS GIVEN TO DENY THE ABOVE CLAIM O F THE ASSESSEE-TRUST ARE THAT IT WAS CREATED ON 11.8.2000 BY PASTOR P. BENJAMIN SELVARAJ AND SMT. B. THANKAMALAR W/O SHRI BENJAMIN WHO WERE DECLARED AS THE CHAIRMAN-CUM-TREASURER AND SEC RETARY OF THE TRUST RESPECTIVELY. ALTHOUGH THE OBJECTS OF THE TR UST ARE DEFINITELY CHARITABLE IN NATURE BEING PREDOMINANTAL AS PREACH ING AND PROPAGATING CHRISTIAN RELIGION AND ALSO RUNNING EDU CATIONAL INSTITUTIONS HOSPITALS ETC. THE TRUST PROPERTY WAS FOUND TO BE ONLY OF ` 1 000/- AND THE TRUSTEES WERE HAVING VERY LOW INCOME. IT W AS OBSERVED THAT THE TRUSTEES WERE NOT HIGHLY QUALIFIED AND THUS DID NOT POSSESS COMPETENCE TO RUN ANY CHARITABLE ORGANIZATION. AFT ER ACCEPTING THAT THE OBJECTIVE OF THE TRUST HAS BEEN SHOWN AS RELIG IOUS BUT HAS SOUGHT REGISTRATION AS A PUBLIC CHARITABLE TRUST AND AS SU CH THE APPLICANT IS NOT CLEAR ABOUT ITS OWN STAND. THEREFORE AFTER RE FERRING TO THE TERM ZION USED IN THE NAME OF THE TRUST WHICH MEAN CI TY OF JERUSALEM OR HOLY LAND OF ISRAEL THE LD. CIT HAS CONCLUDED TH AT BOTH ON FACTS AS WELL AS IN LAW THE TRUST DOES NOT EXIST EITHER AS A CHARITABLE OR AS A RELIGIOUS ONE. HE REFUSED REGISTRATION U/S 12AA A ND ALSO DID NOT GRANT APPROVAL U/S 80G OF THE ACT TO THE ASSESSEE-TRUST. THE ASSESSEE IS AGGRIEVED. ITA 1996 & 1997/10 :- 3 -: 3. AFTER HEARING BOTH SIDES WE HAVE FOUND THAT THE OB JECTS OF THE TRUST ARE CHARITABLE IN NATURE. WE DO NOT DISPUTE THAT THE POWERS OF THE LD. CIT TO CONDUCT ENQUIRIES TO ASCERTAIN THE G ENUINENESS OF THE TRUST. BUT IN THIS CASE WE ARE AFRAID THAT THERE IS NO SUCH REASON TO COME TO A CONCLUSION THAT THE TRUST IN QUESTION IS NOT HAVING THE CHARITABLE OBJECTS. THE USE OF A TERM IN THE NAME OF THE TRUST CANNOT BE A FACTOR FOR GRANT OF REGISTRATION. THE NAME IS NAME AND IT CANNOT BE GIVEN ANY DIFFERENT CONNOTATION UNLESS OTHERWISE REVEALED AND MENTIONED IN THE DEED ITSELF. IN SO FAR AS MEAGE R INCOME OF THE TRUST AND MEAGER PROPERTY OR FUND OF THE TRUST ARE CONC ERNED THESE ARE ALSO NOT HINDRANCES IN THE WAY OF GRANTING REGISTRA TION AND FOR THAT MATTER GRANTING OF APPROVAL U/S 80G OF THE ACT. AS WAS CORRECTLY POINTED BY THE LD.AR THAT THE TRUST WAS AIMING TO CARRY OUT ITS CHARITABLE OBJECTS. SINCE THE TRUSTS OBJECTS ARE CHARITABLE IN NATURE AND THE ACTIVITIES OF THE TRUST ARE NOT FOUND TO BE IN VIOLATION OF ITS OBJECTS WE DO NOT THINK THAT THE TRUST IS NOT ENTI TLED TO REGISTRATION U/S 12AA OF THE ACT. CONSEQUENTLY WE DIRECT THE LD. C IT TO GRANT REGISTRATION TO THE TRUST U/S 12AA OF THE ACT AS PE R LAW AND ALSO GRANT APPROVAL U/S 80G OF THE ACT. ITA 1996 & 1997/10 :- 4 -: 4. IN THE RESULT BOTH THE APPEALS OF THE ASSESSE E ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 1 2.1.2011. SD/- SD/- (DR. O.K. NARAYANAN) VICE-PRESIDENT (HARI OM MARATHA) JUDICIAL MEMBER DATED: 12 TH JANUARY 2011 RD COPY TO: APPELLANT/RESPONDENT/CIT(A)/CIT/DR