Angel Christian Charitable Foundation of India, Mumbai v. DDIT, CHENNAI

ITA 750/CHNY/2015 | 2010-2011
Pronouncement Date: 31-07-2015

Appeal Details

RSA Number 75021714 RSA 2015
Assessee PAN AADCA9740R
Bench Chennai
Appeal Number ITA 750/CHNY/2015
Duration Of Justice 3 month(s) 21 day(s)
Appellant Angel Christian Charitable Foundation of India, Mumbai
Respondent DDIT, CHENNAI
Appeal Type Income Tax Appeal
Pronouncement Date 31-07-2015
Appeal Filed By Assessee
Bench Allotted A
Assessment Year 2010-2011
Appeal Filed On 09-04-2015
Judgment Text
IN THE INCOME-TAX APPELLATE TRIBUNAL A BENCH CHE NNAI . ! ! ! ! ' ' ' ' #$ #$ #$ #$ BEFORE SHRI CHANDRA POOJARI ACCOUNTANT MEMBER & SHRI V. DURGA RAO JUDICIAL MEMBER I.T.A. NOS. 750 AND 751 /MDS/2015 ASSESSMENT YEARS : 2010-11 AND 2011-12 ANGEL CHRISTIAN CHARITABLE FOUNDATION INDIA NEW NO. 36 H BLOCK 13 TH MAIN ROAD ANNA NAGAR CHENNAI 600 040. [PAN: AADCA9740R] VS. THE DEPUTY DIRECTOR OF INCOME TAX (EXEMPTIONS) III AAYAKAR BHAWAN ANNEXE NO. 121 MAHATMA GANDHI ROAD CHENNAI 600 034. ( %& %& %& %& /APPELLANT ) ( '(%& '(%& '(%& '(%& / RESPONDENT ) %& ) * / APPELLANT BY : SHRI BINU GEORGE FINANCE MANAGER '(%& ) * / RESPONDENT BY : SHRI P. RADHAKRISHNAN JCIT ) + / DATE OF HEARING : 17.07.2015 -. ) + /DATE OF PRONOUNCEMENT : 31.07.2015 / / / / / O R D E R PER V. DURGA RAO JUDICIAL MEMBER : BOTH THE APPEALS FILED BY THE SAME ASSESSEE ARE DIR ECTED AGAINST THE CONSOLIDATED ORDER OF THE LD. COMMISSIONER OF I NCOME TAX (APPEALS) VII CHENNAI DATED 31.12.2014 RELEVANT T O THE ASSESSMENT YEARS 2010-11 AND 2011-12. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE C OMPANY WAS INITIALLY INCORPORATED UNDER SECTION 25 OF THE COMP ANIES ACT ON I.T.A. I.T.A. I.T.A. I.T.A. NO NONO NO. .. .750 & 751 750 & 751 750 & 751 750 & 751/M/1 /M/1 /M/1 /M/15 55 5 2 05.12.2002 VIDE CIN U91990TN2002NPL049996 WITH FOLL OWING OBJECTS: 1. TO UNDERTAKE CHARITABLE ACTIVITIES OF ALL KIND S INCLUDING BUT NOT LIMITED TO PROVIDING MEDICAL AND EDUCATIONAL RE LIEF WORK TOWARDS SOCIAL CAUSES AID IN UPLIFTMENT OF COMMON MAN. 2. TO STRIVE FOR THE RELIEF OF ALL PERSONS WHO ARE IN CONDITIONS OF NEED HARDSHIP AGE OR SICKNESS IN INDIA. 3. TO ESTABLISH INSTITUTIONS FOR THE ADVANCEMENT O F PUBLIC EDUCATION IN INDIA FOR THE DEVELOPMENT AND GROWTH O F SOCIALLY AND ECONOMICALLY BACKWARD SECTIONS OF THE SOCIETY. 4. TO AID AND FURTHER THE OBJECTS OF ASHRAMS HOST ELS BOARDING HOUSES HOSPITALS HOMES FOR THE WEAKER SECTIONS AN D REFUGEES. 3. SUBSEQUENTLY THE APPROVAL BY THE MINISTRY OF C ORPORATE AFFAIRS UNDER SECTION 25(8) OF THE COMPANIES ACT 1956 DATE D 31.10.2003 WAS ACCORDED TO THE COMPANY TO ALTER THE MEMORANDUM OF ASSOCIATION TO INCLUDE THE FIFTH MAIN OBJECT TO BE: 5. TO SPONSOR RELIGIOUS TELEVISION AND RADIO PROG RAMS SPONSOR CONTENTS FOR THE WORLD WIDE WEB AND TO PROFESS RELIGION THROUGH ALL FORMS OF MEDIA. 4. THEREAFTER THE ASSESSEE FILED AN APPLICATION B EFORE THE LD. DIT (EXEMPTIONS) AS PER THE MOA ALONG WITH FORM NO. 10A DATED 12.02.2004 WITH THE FOLLOWING OBJECTS: 1. TO UNDERTAKE CHARITABLE ACTIVITIES OF ALL KIND S INCLUDING BUT NOT LIMITED TO PROVIDING MEDICAL AND EDUCATIONAL RE LIEF WORK TOWARDS SOCIAL CAUSES AID IN UPLIFTMENT OF COMMON MAN. I.T.A. I.T.A. I.T.A. I.T.A. NO NONO NO. .. .750 & 751 750 & 751 750 & 751 750 & 751/M/1 /M/1 /M/1 /M/15 55 5 3 2. TO STRIVE FOR THE RELIEF OF ALL PERSONS WHO ARE IN CONDITIONS OF NEED HARDSHIP AGE OR SICKNESS IN INDIA. 3. TO ESTABLISH INSTITUTIONS FOR THE ADVANCEMENT O F PUBLIC EDUCATION IN INDIA FOR THE DEVELOPMENT AND GROWTH O F SOCIALLY AND ECONOMICALLY BACKWARD SECTIONS OF THE SOCIETY. 4. TO AID AND FURTHER THE OBJECTS OF ASHRAMS HOST ELS BOARDING HOUSES HOSPITALS HOMES FOR THE WEAKER SECTIONS AN D REFUGEES. 5. TO SPONSOR TELEVISION AND RADIO PROGRAMS SPONSO R CONTENTS FOR THE WORLD WIDE WEB THROUGH ALL FORMS O F MEDIA . 5. THE LD. DIT(E) BY CONSIDERING THE OBJECTS OF T HE ASSESSEE ISSUED A CERTIFICATE DATED 30.07.2004 VIDE DIT(E) N O. 2(845)/03-04 AS THE ASSESSEE COMPANY IS REGISTERED AS PUBLIC CHARIT ABLE TRUST TO BE CHARITABLE TRUST UNDER SECTION 12AA OF THE INCOME T AX ACT 1961. 6. FOR THE YEAR UNDER CONSIDERATION THE ASSESSEE HAS CLAIMED EXEMPTION UNDER SECTION 11 OF THE ACT 1961. THE AS SESSING OFFICER DENIED THE CLAIM OF THE ASSESSEE ON THE GROUND THAT THE ASSESSEE GOT APPROVAL FROM THE LD. DIT(E) BY CONCEALING RELEVANT FACTS I.E. CLAUSE (5) OF THE OBJECT WHILE MAKING APPLICATION FOR REGISTRA TION UNDER SECTION 12AA OF THE ACT. ACCORDING TO THE ASSESSING OFFICER THE ASSESSEE HAS BEEN INCORPORATED UNDER SECTION 25(8) OF THE COMPAN IES ACT AND ALSO OBSERVED THAT THE NATURE OF ACTIVITY AS PER THE INC OME AND EXPENDITURE I.T.A. I.T.A. I.T.A. I.T.A. NO NONO NO. .. .750 & 751 750 & 751 750 & 751 750 & 751/M/1 /M/1 /M/1 /M/15 55 5 4 ACCOUNT IS CLEARLY RELIGIOUS IN NATURE. THE ASSESSI NG OFFICER CAME TO A CONCLUSION THAT SINCE THE ASSESSEE SUPPRESSED THE F ACT OF RELIGIOUS ASPECT AND OBTAINED REGISTRATION UNDER SECTION 12A OF THE ACT HE COMPUTED THE TOTAL TAXABLE INCOME OF .1 14 49 605/- BY DENYING THE CLAIM OF THE ASSESSEE UNDER SECTION 11 OF THE INCOM E TAX ACT 1961. 7. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFOR E THE LD. CIT(A). BEFORE THE LD. CIT(A) IT WAS SUBMITTED THAT THE AS SESSEE IS CARRYING RELIGIOUS ACTIVITIES AND ELIGIBLE FOR CLAIMING EXEM PTION UNDER SECTION 11 OF THE ACT. THE LD. CIT(A) HAS ASKED THE ASSESSEE T O EXPLAIN THE NATURE OF ACTIVITIES CARRIED OUT THE ASSESSEE HAS SUBMITT ED THAT THE ASSESSEE MAINTAINS A TV CHANNEL CALLED GOD TV WHICH INVAR IABLY AIRS PROGRAMMES CONTAINING CHRISTIAN MISSIONARY STUFF. T HE ASSESSEE ALSO SUBMITTED THAT OURS IS A RELIGIOUS ORGANIZATION. BASED ON THE ABOVE THE LD. CIT(A) CAME TO A CONCLUSION THAT THE ANGEL CHRISTIAN CHARITABLE FOUNDATION INDIA HAS BEEN CREATED PARTICULARLY AND EXCLUSIVELY FOR THE BENEFIT OF PARTICULARLY CHRISTIAN RELIGIOUS COMMUNI TY AND THE ASSESSEE INSTITUTION HAS BEEN FULLY AND EXCLUSIVELY ENGAGED IN PROPAGATING ACTIVITIES AND FAITH OF CHRISTIANITY. THE LD. CIT(A ) HAS ALSO OBSERVED THAT THE ASSESSEE IS SQUARELY FITTING WITHIN THE STRIKIN G ZONE OF SECTION I.T.A. I.T.A. I.T.A. I.T.A. NO NONO NO. .. .750 & 751 750 & 751 750 & 751 750 & 751/M/1 /M/1 /M/1 /M/15 55 5 5 13(1)(B) OF THE INCOME TAX ACT AND HELD THAT THE AS SESSEE IS NOT ELIGIBLE FOR CLAIMING EXEMPTION UNDER SECTION 11 OF THE ACT. 8. ON BEING AGGRIEVED THE ASSESSEE CARRIED THE MA TTER IN APPEAL BEFORE THE TRIBUNAL. 9. THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE ASSESSEE IS A RELIGIOUS ORGANIZATION AND RUNNING A TV CHANNEL CALLED GOD TV AND ALSO SUBMITTED THAT IT IS NOT RUNNING PARTICULARLY FOR THE BENEFIT OF ANY PARTICULAR RELIGION. THEREFORE SECT ION 13(1)(B) HAS NO APPLICATION AND THE ASSESS IS ENTITLED FOR EXEMPTIO N UNDER SECTION 11 OF THE ACT. HE RELIED ON THE DECISION IN THE CASE OF C IT V. DAWOODI BOHRA JAMAT [2014] 364 ITR 31(SC). 10. ON THE OTHER HAND THE LD. DR HAS SUBMITTED TH AT THE ASSESSEE BY FILING ITS OBJECTS ALONG WITH FORM NO. 10A OBTA INED A CERTIFICATE AS A CHARITABLE ORGANIZATION. THEREFORE THE ASSESSEE CA NNOT CLAIM NOW AS A RELIGIOUS ORGANIZATION ELIGIBLE FOR EXEMPTION UND ER SECTION 11 OF THE ACT. 11. WE HAVE HEARD BOTH SIDES PERUSED THE MATERIAL S ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. THE A SSESSEE ANGEL I.T.A. I.T.A. I.T.A. I.T.A. NO NONO NO. .. .750 & 751 750 & 751 750 & 751 750 & 751/M/1 /M/1 /M/1 /M/15 55 5 6 CHRISTIAN CHARITABLE FOUNDATION INDIA ORIGINALLY IN CORPORATED AS A COMPANY UNDER SECTION 25 OF THE COMPANIES ACT ON 05 .12.2002 WITH FOLLOWING FOUR OBJECTS: 1. TO UNDERTAKE CHARITABLE ACTIVITIES OF ALL KIND S INCLUDING BUT NOT LIMITED TO PROVIDING MEDICAL AND EDUCATIONAL RE LIEF WORK TOWARDS SOCIAL CAUSES AID IN UPLIFTMENT OF COMMON MAN. 2. TO STRIVE FOR THE RELIEF OF ALL PERSONS WHO ARE IN CONDITIONS OF NEED HARDSHIP AGE OR SICKNESS IN INDIA. 3. TO ESTABLISH INSTITUTIONS FOR THE ADVANCEMENT O F PUBLIC EDUCATION IN INDIA FOR THE DEVELOPMENT AND GROWTH O F SOCIALLY AND ECONOMICALLY BACKWARD SECTIONS OF THE SOCIETY. 4. TO AID AND FURTHER THE OBJECTS OF ASHRAMS HOST ELS BOARDING HOUSES HOSPITALS HOMES FOR THE WEAKER SECTIONS AN D REFUGEES. SUBSEQUENTLY THE ASSESSEE GOT APPROVAL FROM THE MI NISTRY OF CORPORATE AFFAIRS UNDER SECTION 25(8) OF THE COMPAN IES ACT 1956 DATED 31.10.2003 BY INCLUDING FIFTH CLAUSE AS UNDER : 5. TO SPONSOR RELIGIOUS TELEVISION AND RADIO PROG RAMS SPONSOR CONTENTS FOR THE WORLD WIDE WEB AND TO PROFESS RELIGION THROUGH ALL FORMS OF MEDIA. THE ASSESSEE HAS FILED AN APPLICATION BEFORE THE LD. DIT (EXEMPTIONS) AS PER THE MOA ALONG WITH FORM NO. 10A DATED 12.02.2004 WITH THE FOLLOWING OBJECTS: 1. TO UNDERTAKE CHARITABLE ACTIVITIES OF ALL KIND S INCLUDING BUT NOT LIMITED TO PROVIDING MEDICAL AND EDUCATIONAL RE LIEF WORK TOWARDS SOCIAL CAUSES AID IN UPLIFTMENT OF COMMON MAN. I.T.A. I.T.A. I.T.A. I.T.A. NO NONO NO. .. .750 & 751 750 & 751 750 & 751 750 & 751/M/1 /M/1 /M/1 /M/15 55 5 7 2. TO STRIVE FOR THE RELIEF OF ALL PERSONS WHO ARE IN CONDITIONS OF NEED HARDSHIP AGE OR SICKNESS IN INDIA. 3. TO ESTABLISH INSTITUTIONS FOR THE ADVANCEMENT O F PUBLIC EDUCATION IN INDIA FOR THE DEVELOPMENT AND GROWTH O F SOCIALLY AND ECONOMICALLY BACKWARD SECTIONS OF THE SOCIETY. 4. TO AID AND FURTHER THE OBJECTS OF ASHRAMS HOST ELS BOARDING HOUSES HOSPITALS HOMES FOR THE WEAKER SECTIONS AN D REFUGEES. 5. TO SPONSOR TELEVISION AND RADIO PROGRAMS SPONSO R CONTENTS FOR THE WORLD WIDE WEB THROUGH ALL FORMS O F MEDIA. THE LD. DIT(E) BY CONSIDERING THE ABOVE OBJECTS I SSUED A CERTIFICATE BY ORDER DATED 30.07.2004 AS THE ASSESS EE COMPANY IS REGISTERED AS A PUBLIC CHARITABLE TRUST UNDER SECTI ON 12AA OF THE ACT. 12. AFTER CAREFUL CONSIDERATION OF THE ASSESSMENT ORDER WE FIND THAT THE ASSESSEE HAS NOT CARRIED ANY ACTIVITY RELATING TO THE OBJECTS AS ENUMERATED FOR THE PURPOSE OF WHICH THE ASSESSEE IS INCORPORATED. THE ASSESSEE HAS NOT INCURRED SINGLE PAISE FOR THE PURPOSE OF CHARITABLE ACTIVITIES. THE ASSESSEE ITSELF HAS ADMI TTED BEFORE THE LD. CIT(A) THAT THE IT IS A RELIGIOUS ORGANIZATION AND THE ASSESSEE ORGANIZATION HAS UNDERTAKEN RELIGIOUS PILGRIMAGE AN D OTHER ACTIVITIES RELATING TO THE RELIGIOUS. UNDER THESE FACTS AND CI RCUMSTANCES OF THE I.T.A. I.T.A. I.T.A. I.T.A. NO NONO NO. .. .750 & 751 750 & 751 750 & 751 750 & 751/M/1 /M/1 /M/1 /M/15 55 5 8 CASE WE FIND THAT THE ASSESSEE IS NOT ENTITLED FOR CLAIMING EXEMPTION UNDER SECTION 11 OF THE ACT. THE ASSESSEE IN HIS W RITTEN SUBMISSION HAS SUBMITTED THAT THERE WAS A MISTAKE OCCUR WHILE FILING MOA ALONG WITH FORM NO. 10A BEFORE THE LD. DIT(E) ON 12.02.20 04. SUBSEQUENTLY ON 13.03.2014 THE ASSESSEE HAS CORRECTED THE MISTA KE IN THE AMENDED FIFTH CLAUSE AND SUBMITTED BEFORE THE LD. D IT(E) CHENNAI. HOWEVER WE HAVE NOT FIND ANY REFERENCE WITH REGARD TO THE CORRECT FIFTH CLAUSE EITHER FROM THE ASSESSMENT ORDER OR FROM THE ORDER OF THE LD. CIT(A). EVEN BEFORE US THE ASSESSEE HAS NOT FILED ANY REVISED ORDER PASSED BY THE LD. DIT(E). AS ON THE DATE AS PER T HE CERTIFICATE DATED 30.07.2004 VIDE DIT(E) NO. 2(845)/03-04 ISSUED BY T HE LD. DIT(E) THE ASSESSEE IS A PUBLIC CHARITABLE TRUST UNDER SECTION 12AA OF THE INCOME TAX ACT 1961. THE ACTIVITIES CARRIED BY THE ASSESSEE ARE ONLY RELIGIOUS ACTIVITIES. THE ASSESSEE HAS NOT OBTAINED ANY CERTIFICATE FROM THE DIT(E) TO TREAT THE ASSESSEE AS A RELIGIOUS TRU ST. UNDER THESE FACTS AND CIRCUMSTANCES OF THE CASE WE HOLD THAT THE ASS ESSEE IS A PUBLIC CHARITABLE TRUST AND THEREFORE THE ACTIVITIES REL ATING TO RELIGIOUS ARE NOT ELIGIBLE FOR EXEMPTION UNDER SECTION 11 OF THE ACT. THUS WE FIND NO INFIRMITY IN THE ORDER PASSED BY THE LD. CIT(A). I.T.A. I.T.A. I.T.A. I.T.A. NO NONO NO. .. .750 & 751 750 & 751 750 & 751 750 & 751/M/1 /M/1 /M/1 /M/15 55 5 9 13. IN SO FAR AS CASE LAW RELIED ON BY THE LD. COU NSEL FOR THE ASSESSEE IN THE CASE OF CIT V. DAWOODI BOHRA JAMAT [2014] 364 ITR 31(SC) IN THE ABOVE CASE THE ASSESSEE IS REGISTER ED AS A PUBLIC RELIGIOUS TRUST. IN THE PRESENT CASE THE ASSESSEE IS REGISTERED AS A PUBLIC CHARITABLE TRUST AND THE ASSESSEE CARRIED ON LY RELIGIOUS ACTIVITIES AND NO CHARITABLE ACTIVITIES ARE CARRIED OUT. THERE FORE HAVING REGISTERED UNDER SECTION 12AA OF THE INCOME TAX ACT 1961 AS A PUBLIC CHARITABLE TRUST THE ASSESSEE CANNOT CLAIM BENEFIT UNDER SECTION 11 CARRYING ANY CHARITABLE ACTIVITIES. FOR THE RELIGIO US ACTIVITIES CARRIED BY THE ASSESSEE NO APPROVAL FROM THE DIT(E) HAS BEEN OBTAINED. THEREFORE THE CASE LAW RELIED ON BY THE ASSESSEE H AS NO APPLICATION TO THE FACTS OF THE PRESENT CASE. 14. IN VIEW OF THE ABOVE THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. I.T.A. I.T.A. I.T.A. I.T.A. NO NONO NO. .. .750 & 751 750 & 751 750 & 751 750 & 751/M/1 /M/1 /M/1 /M/15 55 5 10 15. IN SO FAR AS ASSESSMENT YEAR 2011-12 IS CONCER NED THE ISSUE RAISED BY THE ASSESSEE IS SIMILAR ON IDENTICAL FACTS. THER EFORE BY FOLLOWING THE ABOVE DECISION FOR THE ASSESSMENT YEAR 2010-11 WE DISMISS THE APPEAL FILED BY THE ASSESSEE FOR THE ASSESSMENT YEAR 2011- 12 ALSO. 16. IN THE RESULT BOTH THE APPEALS FILED BY THE A SSESSEE ARE DISMISSED. ORDER PRONOUNCED ON FRIDAY THE 31 ST OF JULY 2015 AT CHENNAI. SD/- SD/- (CHANDRA POOJARI) ACCOUNTANT MEMBER (V. DURGA RAO) JUDICIAL MEMBER CHENNAI DATED THE 31.07.2015 VM/- / ) ''+01 21.+ /COPY TO: 1. %& / APPELLANT 2. '(%& / RESPONDENT 3. 3 ( ) /CIT(A) 4. 3 /CIT 5. 14 ''+' /DR & 6. 5! 6 /GF.