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Income Tax Appellate Tribunal - Panji

Sri Sampath Vinayagar Temple Trust,, ... vs The Cit, (Exemptions),, Hyderabad on 29 November, 2017

         आयकर अपीलीय अधधकरण, धिशाखापटणम पीठ, धिशाखापटणम

              IN THE INCOME TAX APPELLATE TRIBUNAL,
              VISAKHAPATNAM BENCH, VISAKHAPATNAM

                       श्री िी. दुगाा राि,न्याधयक सदस्य एिं
                  श्री धड.एस. सुन्दर ससह, लेखा सदस्य के समक्ष

            BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER&
            SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER
                आयकर अपीलसं./I.T.A.No.282/Viz/2015
                 (धनधाारणिर्ा/Assessment Year: NA)

Sri SampathVinayagar                              The Commissioner of
Temple Trust                                      Income Tax (Exemptions)
D.No.10-1-33, CBM Compound                        Hyderabad
Visakhapatnam
[PAN : AABTS1377B]

(अपीलार्थी/ Appellant)                            (प्रत्यर्थी/ Respondent)

अपीलाथी की ओर से/ Appellant by                 : Shri C.V.S.Murthy, AR
प्रत्याथी की ओर से / Respondent by             : Smt. Madhuvani, DR,
                                                 Shri M.N.Murthy Naik, DR

सुनिाई की तारीख / Date of Hearing              : 22.11.2017
घोषणा की तारीख/Date of Pronouncement           : 29.11.2017


                              आदेश /O R D E R


Per Bench


1.   This appeal is filed by the assessee against the rejection of

application seeking registration u/s 12AA of I.T.Act vide order of the

Commissioner of Income Tax [Exemptions] [CIT), Hyderabad, in

F.No.CIT(E)/Hyd/77(10)/12A/2014-15 dated 30.04.2015.
                                       2

                                                                      ITA No.282/Viz/205
                                     Sri Sampath Vinayagar Temple Trust, Visakhapatnam




2.    The assessee is a Trust filed application in Form No.10A on

27.10.2014 seeking registration u/s 12AA of I.T.Act. The CIT issued the

notice calling for various details and clarifications which were furnished by

the assessee.   After verification of the clarifications furnished by the

assessee, the CIT rejected the registration sought by the assessee. The Ld.

CIT observed that the assessee filed original trust deed dt. 19.09.1975 and

submitted the supplementary deed dt. 16.03.1996 referring the original

trust deed. Combined reading of the original trust deed and supplementary

trust deed shows that the objects in the case of the assessee are not

verifiable. The CIT was of the view that the objects of the trust deed

appears to be not charitable. The assessee mentioned the name of the trust

as "Sri SampathVinayagar Temple in the supplementary trust deed and in

application in Form 10A, the name of the Trust was mentioned as "Sri

SampathVinayagar Temple Trust" which is different. Hence, the CIT is of

the view that there was no clarification from the assessee regarding the

nature and the objects and also the number of existing objects. Having

regard to the provisions u/s 12AA(1)(b) read with clauses (i) & (ii), the CIT

rejected the application filed by the assessee Trust in Form 10A seeking

registration. Aggrieved by the order of the CIT, the assessee is in appeal

before us.
                                       3

                                                                      ITA No.282/Viz/205
                                     Sri Sampath Vinayagar Temple Trust, Visakhapatnam




3.    We heard both the parties and perused the material placed before us.

During the appeal hearing, the Ld.AR argued that the Ld.CIT while rejecting

the registration u/s 12AA of the Act, has not properly appreciated the facts

and the submissions made by the assessee Trust.                The assessee is a

religious charitable trust created for carrying out charitable activities

besides the regular religious activities. Ld.AR further argued that the Trust

was originally a religious Trust and subsequently in order to extend the

benefits to the public at large by making donations to poor students for

payment of fees to arrange for poor feeding and or taking care of destitute

besides the original objects of worship of deity and conduction of religious

festivals etc. amended the objects.       The assessee's case is that the

supplementary objects were included to enable the trust to carry out the

charitable activities as discussed by the Ld.CIT in para No.3.3. Though the

CIT has stated that the objects of the Trust appear to be not charitable,

plain reading of the objects mentioned in para no.3.3. of the CIT's order and

para No.4 and 5 of the Trust deed dated 16.03.1996 establish the nature of

charitable purposes. Further the defects mentioned by the Ld.CIT with

regard to the verification of final number of objects and mistake of name

mentioned by the assessee in the Trust deed and the application are
                                       4

                                                                       ITA No.282/Viz/205
                                      Sri Sampath Vinayagar Temple Trust, Visakhapatnam



curable defects by submitting the necessary information/clarifications. We

also understand that the CIT has not given any opportunity for rectification

of the mistakes or defects raised by the CIT.           With regard to the final

objects, the assessee may be permitted to compile the final objects and

submit before CIT evidencing the trust deeds registered. Therefore, we are

of the considered opinion that the issue should be remitted back to the file

of the CIT to give one more opportunity to rectify the defects and to decide

the issue afresh on merits. Accordingly, the issue of Registration u/s 12AA

is remitted back to the CIT for fresh consideration.



4.    In the result, appeal of the assessee is allowed for statistical

purposes.



      The above order was pronounced in the open court on

29th Nov'2017.



                 Sd/-                         Sd/-
         (धड.एस. सुन्दर ससह)              (िी.दुगााराि)
      (D.S. SUNDER SINGH)             (V. DURGA RAO)
लेखा सदस्य/ACCOUNTANT MEMBER न्याधयक सदस्य/JUDICIAL MEMBER
धिशाखापटणम /Visakhapatnam
ददनांक /Dated : 29.11.2017

L. Rama, SPS
                                         5

                                                                         ITA No.282/Viz/205
                                        Sri Sampath Vinayagar Temple Trust, Visakhapatnam




आदेश की प्रधतधलधप अग्रेधर्त / Copy of the order forwarded to:-

1. अपीलाथी / The Appellant- Sri Sampath Vinayagar Temple Trust, D.No.10-
1-33, CBM Compound, Visakhapatnam
2. प्रत्याथी / The Respondent- The Commissioner of Income Tax (Exemptions)
Hyderabad
3. The ITO (Exemptions), Ward, Visakhapatnam
4. धिभागीयप्रधतधनधध, आयकरअपीलीयअधधकरण, धिशाखापटणम /DR, ITAT, Visakhapatnam
5. गाडाफ़ाईल / Guard file

                                                                आदेशानुसार / BY ORDER

// True Copy // Sr. Private Secretary ITAT, VISAKHAPATNAM