Rehoboth Missions, Hyderabad v. DIT, Hyderabad

ITA 352/HYD/2010 | 2010-2011
Pronouncement Date: 26-05-2010 | Result: Allowed

Appeal Details

RSA Number 35222514 RSA 2010
Assessee PAN AAAAR7446Q
Bench Hyderabad
Appeal Number ITA 352/HYD/2010
Duration Of Justice 2 month(s) 23 day(s)
Appellant Rehoboth Missions, Hyderabad
Respondent DIT, Hyderabad
Appeal Type Income Tax Appeal
Pronouncement Date 26-05-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted B
Tribunal Order Date 26-05-2010
Date Of Final Hearing 20-05-2010
Next Hearing Date 20-05-2010
Assessment Year 2010-2011
Appeal Filed On 05-03-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B HYDERABAD BEFORE SHRI G.C. GUPTA VICE PRESIDENT AND SHRI CHANDRA POOJARI ACCOUNTANT MEMBER ITA NO.352/HYD/2010 A.Y. 2010-11 REHOBOTH MISSION HYDERABAD (PAN AAAAR7446Q) VS DIRECTOR OF INCOME TAX (EXEMP) HYADERABAD. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K. CHENNUBOTLU CA RESPONDENT BY : SMT. NIVEDITA BISWAS O R D E R PER CHANDRA POOJARI ACCOUNTANT MEMBER THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDE R OF THE DIRECTOR OF INCOME TAX (EXEMPTIONS) HYDERABAD DT.28- 1-2010. 2. THE GRIEVANCE OF THE ASESSEE IN THIS APPEAL IS WITH R EGARD TO REJECTING THE APPLICATION FOR REGISTRATION U/S12AA OF THE INCOME TAX ACT 1961 (THE ACT) ON THE REASON THAT THE ASSESSEE SOCIETYS OBJ ECTS ARE MIXED ONE AS CHARITABLE AND RELIGIOUS ACTIVITIES. 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE EVI DENCE ON RECORD. THE ASSESSEE SOCIETY APPLIED FOR REGISTRATION U/S 12AA OF THE ACT VIDE APPLICATION IN FORM NO.10A ON 1-7-2009. THE SOCI ETY WAS 2 2 REGISTERED ON 24-2-2009 UNDER THE A.P.SOCIETIES REGISTR ATION ACT. THE OBJECTS OF THE SOCIETY AREA AS FOLLOWS. 1. TO PREACH THE GOOD NEWS OF JESUS CHRIST TO SUPPORT/MAINT AIN CHURCHES IN INDIA. 2. TO ESTABLISH BIBLE SCHOOLS TO TRAIN UP EVANGELISTS/PASTO RS. 3. TO ESTABLISH SCHOOLS AND MEDICAL RELIEF CENTERS IN THE VI LLAGES WHERE NO OR NEGLIGIBLE EDUCATION AND MEDICAL RELIEF CE NTERS ARE AVAILABLE WITHOUT ANY COMMERCIAL ACTIVITY INVOLVED. 4. TO ESTABLISH ORPHANAGES HERMITAGES WOMEN AND CHILD WEL FARE CENTERS AND TECHNICAL TRAINING CENTERS AND TO HELP TH E POOR. 5. TO BE A CHANNEL FOR CARRYING OUT ANY ACT OF CHARITY SUCH AS FAMINE RELIEF MEDICAL AID FLOOR RELIEF IN TIMES OF NATURAL CALAMITIES. 4. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT TH E WHOLE ISSUE REVOLVES AROUND A SINGLE POINT WHETHER A TRUST/SO CIETY WHOSE OBJECTS ARE PARTLY RELIGIOUS AND PARTLY CHARITABLE IS ELIGIBLE FOR REGISTRATION U/S 12AA OF THE ACT. THE LEARNED COUNSEL F OR THE ASSESSEE SUBMITTED THAT THE ASSESSEE TRUST MADE APPLICATION IN THE PRESCRIBED FORM AND IN THE PRESCRIBED MANNER TO THE COMMISSIONER B EFORE THE 1 ST DAY OF JULY 1973 OR BEFORE THE EXPIRY OF A PERIOD OF ONE YEAR FROM THE DATE OF THE CREATION OF THE TRUST OR THE ESTABLISHMENT OF THE INSTITUTION WHICHEVER IS LATER AND SUCH TRUST OR INSTITUTION IS REGIST ERED U/S 12AA. HE SUBMITTED THAT CARRYING OUT OF CHARITABLE AS WELL AS RELIGIOUS ACTIVITIES DO NOT DISENTITLE THE ASSESSEE FOR REGISTRATION U/S 12AA O F THE ACT. HE SUBMITTED THAT THE DIT(E) HYDERABAD WRONGLY OBSERVED THAT THE TRUST WAS COVERED UNDER THE PROVISIONS OF SEC.13(1)(B) OF THE ACT ACCORDING TO WHICH EXEMPTION WILL NOT BE ALLOWED TO THE TRUST E STABLISHED AFTER THE 3 3 COMMENCEMENT OF THE ACT CARRYING ON THE ACTIVITIES OF CHA RITABLE AS WELL AS RELIGIOUS IN NATURE. HE RELIED ON THE FOLLOWING CASE LAW. A) CIT V. JAIPUR CHARITABLE TRUST 81 ITR 1 (DEL) B) ZENITH TIN WORKS CHARITABLE TRUST V. ITO 102 ITR 119 (BOMBAY) C) CIT V. AHMEDABAD RANA CASTE ASSOCIATION 88 IATR 354 ( GUJ) D) CIT V. CHANDRA CHARITABLE TRUST 294 AITR 86 ( GUJ ) E) ADDL.CIT V. A.A.BIBIJIWALA TRUST 100 ITR 516 (GUJ ) F) ACIT V. BARKATE SAIFIYAH SOCIETY 213 ITR 492 (GUJ ) G) GULAM MOIHIUDDIN TRUST V. CIT 248 IATR 587 (J&K) H) CALICUT ISLAMIC CULTURAL SOCIETY V. ACIT 28 SOT 148 5. ON THE OTHER HAND THE LEARNED DEPARTMENTAL REPR ESENTATIVE STRONGLY RELIED ON THE ORDER OF THE DIT(E). 6. WE HAVE GONE THROUGH THE PROVISIONS OF SEC.13(1)(B) OF THE ACT. THERE IS NOTHING IN THE LANGUAGE OF THIS PROVISION TO SUGGEST THAT AN INSTITUTION OF MIXED OBJECTS IS PRECLUDED FROM GETTING R EGISTRATION U/S 12AA OF THE ACT. IT IS ALSO SEEN FROM THE OBJECTS OF TH E TRUST IN QUESTION THAT THE ASSESSEE IS CARRYING ON NO NON-CHARITABLE OR NON- RELIGIOUS ACTIVITIES. WE PLACE RELIANCE ON THE JUDGEMENT OF AC IT V. BARKATE SAIFIYAH SOCIETY 213 ITR 492 (GUJ) AND CIT V. CHANDR A CHARITABLE TRUST 294 AITR 86 ( GUJ) WHEREIN IT WAS HELD THAT A TRUST CAN EITHER BE FOR 4 4 RELIGIOUS PURPOSES OR FOR CHARITABLE PURPOSES OR IT CAN BE FOR BOTH. ONLY A TRUST WHICH IS FOR RELIGIOUS PURPOSE IS EXCLUDED AND DE BARRED FROM REGISTRATION U/S 12AA OF THE ACT. A TRUST WHOSE OBJECT IS CHARITABLE AS WELL AS RELIGIOUS IS NOT DEBARRED FROM REGISTRATION. F URTHER IN THE CASE OF NEW LIFE IN CHRIST EVANGELISTIC ASSOCIATION V. CIT & O THERS 246 ITR 532 (MAD) WHEREIN IT WAS HELD THAT FOR GRANTING OR REFUSING REGISTRATION U/S 12A IN RELATION TO SUCH TRUST THE ONLY CONDITION PR ECEDENT IS THAT AN APPLICATION FOR REGISTRATION SHOULD BE MADE IN TIME AN D THE ACCOUNTS OF THE INSTITUTE SHOULD BE AUDITED. NO ENQUIRY ABOUT OB JECTS OF THE TRUST CAN BE MADE U/S 12A OF THE ACT. WE HAVE GONE THROUGH ALL THE JUDGEMENTS CITED BY THE LEARNED COUNSEL FOR THE ASSESSEE. THE FACTS OF THE CASE IN THE CASE CONSIDERED BY THE GUJARAT HIGH COURT SQUARELY APPLY TO THE FACTS OF THE CASE ON HAND. THE DEPARTMEN T HAS NOT BROUGHT ANY CONTRARY DECISION TO OUR NOTICE. IN OUR OPINION I N THE CIRCUMSTANCES UNDER CONSIDERATION THE DIT(E) SHOULD NOT HAVE REJECTE D THE APPLICATION OF THE ASSESSEE FOR REGISTRATION U/S 12AA OF THE ACT ON TH IS REASON. COMMENTING ON THE HONOURABLE GUJARAT HIGH COURT DECISIO N THE DIT(E) HAS OBSERVED THAT THE HONBLE HIGH COURT HAS INTRODUCED A NEW CONCEPT KNOWN AS CHARITABLE RELIGIOUS TRUST. ACCORDING TO HIM TRUST HAS TO BE EITHER WHOLLY RELIGIOUS OR WHOLLY CHARITABLE. OTHERW ISE IT IS NOT ENTITLED FOR REGISTRATION AND THE HONBLE GUJARAT HIGH COURT DI D NOT CONSIDER THE WORD OR WHICH HAS BEEN EMPLOYED U/S 11(1)(A) AND SEC. 12 OF THE ACT AND THE HONBLE HIGH COURT HAS INTERPRETED SEC.13(1)(B) OF THE ACT. WE 5 5 ARE UNABLE TO AGREE WITH THE DIT(E) AS TO HOW AND W HY THE JUDGEMENT OF THE HONBLE GUJARAT HIGH COURT IS NOT APPLICABLE TO THE FACTS OF THE PRESENT CASE. THERE IS NO SUCH BAR SINCE THERE IS NO JURISDI CTIONAL HIGH COURTS JUDGEMENT ON THIS ISSUE TO THE CONTRARY AND THI S OBSERVATION OF THE DIT(E) IS UNWARRANTED. CONSEQUENTLY WE DIRECT TH E DIT(E) TO GRANT REGISTRATION TO THE ASSESSEE SOCIETY SUBJECT TO FULFILLMENT OF OTHER CONDITIONS IF ANY. 7. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLOWED ORDER PRONOUNCED IN THE OPEN COURT : 26. 5.20 10 SD/- SD/- G.C. GUPTA CHANDRA POOJARI VICE PRESIDENT ACCOUNTANT MEMBER DATED THE 26 TH MAY 2010 *VNR COPY FORWARDED TO: 1. REHOBOTH MISSIONS 22/2RT LIGH QUARTERS PANJAGUTTA HYDERABAD 2. DIT(E) HYDERABAD 3. CIT AP. HYDERABAD. 4. THE D.R. ITAT HYDERABAD.