M/s Luke Paul Intimacy Charitable Trust, Chagallu v. The Commissioner of Income Tax, Rajahmundry

ITA 44/VIZ/2010 | misc
Pronouncement Date: 08-12-2010 | Result: Allowed

Appeal Details

RSA Number 4425314 RSA 2010
Assessee PAN AAATL4923F
Bench Visakhapatnam
Appeal Number ITA 44/VIZ/2010
Duration Of Justice 10 month(s) 7 day(s)
Appellant M/s Luke Paul Intimacy Charitable Trust, Chagallu
Respondent The Commissioner of Income Tax, Rajahmundry
Appeal Type Income Tax Appeal
Pronouncement Date 08-12-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted DB
Tribunal Order Date 08-12-2010
Date Of Final Hearing 06-12-2010
Next Hearing Date 06-12-2010
Assessment Year misc
Appeal Filed On 01-02-2010
Judgment Text
ITA 44/VIZ/2010 LUKE PAUL INTIMACY CHARITABLE TRUST CHAGALLU IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV JUDICIAL MEMBER AND SHRI BR BASKARAN ACCOUNTANT MEMBER ITA NO. 44 /VIZAG/ 20 10 ASSESSMENT YEAR : N.A. M/S. LUKE PAUL INTIMAC Y CHARITABLE TRUST CHAGALLU CIT RAJAHMUNDRY (APPELLANT) VS. (RESPONDENT) PAN NO.AAATL 4923F APPELLANT BY: SHRI G.V.N. HARI CA RESPONDENT BY: SHRI J. SIRI KUMAR DR ORDER PER SHRI S.K. YADAV JUDICIAL MEMBER : - THIS APPEAL IS PREFERRED BY THE A SSESSEE AGAINST THE ORDER OF THE CIT REFUSING THE GRANT OF EXEMPTION U/S 80G AND ALSO THE DIRECTION FOR RECONSIDERATION FOR CANCELLATION OF REGISTRATION U/S 12AA OF THE ACT. 2. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULLY PERUSED THE ORDERS OF THE A UTHORITIES BELOW AND DOCUMENTS PLACED ON RECORD. 3. THE ASSESSEE HAS MOVED AN APPLICATION FOR GRANT OF CERTIFICATE OF EXEMPTION U/S 80G OF THE ACT WHICH WAS INITIALLY REJECTED BY THE CIT VIDE ITS ORDER DATED 7.9.2006 ON THE GROUND THAT CERTAIN RELIGIOUS OBJECTS WERE SHOWN IN THE ORIGINAL TRUST DEED. ASSESSEE FURTHER MOVED AN APPLICATION BEFORE THE CIT SEEKING PERMISSION FOR DELETION OF THOSE RELIGIOUS OBJECTS FROM THE TRUST DEED. BUT IT WAS DENIED BY THE CIT ON THE GROUND THAT NO REVISION IN THE DECISIO N OF THE REJECTION OF CERTIFICATE OF EXEMPTION IS POSSIBLE. THE ASSESSEE AGAIN MOVED AN APPLICATION FOR SEEKING PERMISSION FOR DELETION OF THOSE OBJECTS IN THE TRUST DEED BUT IT WAS AGAIN REJECTED. THERE AFTER THE ASSESSEE MOVED AN APPLICATION FOR SEEKIN G GRANT OF CERTIFICATE OF EXEMPTION U/S 80 G AFTER AMENDING ITS TRUST DEED AND DELETING THE RELIGIOUS OBJECTS WITH THE SUBMISSION THAT AFTER REMOVAL OF THE ERSTWHILE RELIGIOUS OBJECTS THE TRUST HAS BECOME PURELY CHARITABLE IN NATURE AND ACTIVITIES ARE CARR IED OUT IN CONFORMITY WITH THE CHARITABLE OBJECTS THEREFORE ASSESSEE IS ENTITLED FOR GRANT OF CERTIFICATE OF EXEMPTION U/S 80G OF THE ACT. THE CIT DID NOT GRANT THE CERTIFICATE OF EXEMPTION BECAUSE THE ASSESSEE HAS MADE THE AMENDMENT IN ITA 44/VIZ/2010 LUKE PAUL INTIMACY CHARITABLE TRUST CHAGALLU 2 THE TRUST DEED W ITHOUT GETTING AN APPROVAL FROM THE CIT. NOW THE ASSESSEE IS BEFORE US WITH THE SUBMISSION THAT FOR MAKING AN AMENDMENT IN THE TRUST DEED APPROVAL IS REQUIRED ONLY WHEN IT IS REGISTERED UNDER THE ACT . S INCE THE ASSESSEES REQUEST FOR GRANT OF EXEMPTION WAS TURNED DOWN BEFORE ITS REGISTRATION ASSESSEE WAS NOT REQUIRED TO OBTAIN THE APPROVAL FOR MAKING THE NECESSARY AMENDMENT IN THE TRUST DEED. THEREFORE ASSESSEES APPLICATION FOR APPROVAL OF EXEMPTION WAS PROPER AND T HE CIT WAS REQUIRED TO RE - EXAMINE TH E ISSUE IN THE LIGHT OF AMENDED PROVISIONS OF THE TRUST DEED. 4. THE LD. D.R. SIMPLY PLACED A RELIANCE UPON THE ORDER OF THE CIT. HE HAS NOT EMPHATICALLY REFUTED THE CONTENTIONS OF THE ASSESSEE THAT APPROVAL IS ONLY REQUIRED ONCE THE TRUST IS REGISTERE D. 5 . HAVING HEARD THE RIVAL SUBMISSIONS WE ARE OF THE VIEW THAT WHATEVER OBJECTIONS RAISED BY THE CIT WHILE REJECTING THE GRANT OF EXEMPTION U/S 80G ONCE FINALLY REMOVED BY THE ASSESSEE BY AMENDING THE TRUST DEED AND MOVED A FRESH APPLICATION FOR GR ANT OF CERTIFICATE OF EXEMPTION T HE CIT SHOULD HAVE EXAMINED THE CLAIM OF THE ASSESSEES ON MERIT WITHOUT BEING INFLUENCED BY HIS PAST DECISION OF REJECTION AND IF THE ASSESSEE IS ENGAGED IN CHARITABLE ACTIVITIES THE EXEMPTION OUGHT TO HAVE BEEN GRANTED. WE THEREFORE SET ASIDE THE ORDER OF CIT AND RESTORE THE MATTER TO HIS FILE WITH THE DIRECTION TO RE - ADJUDICATE THE ISSUE AFRESH IN THE NATURE OF ACTIVITIES UNDERTAKEN BY THE ASSESSEE. IF THE ASSESSEE SUCCEEDS IN PROVING THAT HE IS ENGAGED IN CHARITABLE ACTIV ITIES AND THERE IS NO VIOLATION OF RELEVANT PROVISIONS OF THE ACT THE EXEMPTION MAY BE GRANTED U/S 80G OF THE ACT. 6 . IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 08.12 .20 10 SD/ - SD / - (BR BASKARAN) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER VG/SPS VISAKHAPATNAM DATED 08 TH DECEMBER 20 10 ITA 44/VIZ/2010 LUKE PAUL INTIMACY CHARITABLE TRUST CHAGALLU 3 COPY TO 1 LUKE PAUL INTIMACY CHARITABLE TRUST MAIN ROAD CHAGALLU - 534 342 WEST GODAVARI DISTRICT. 2 CIT RAJAHMUNDRY RANGE RAJAHMUNDRY 3 THE CI T RAJAHMUNDRY 4 THE CIT (A) RAJAHMUNDRY 5 THE DR ITAT VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM