Income Tax Appellate Tribunal - Chennai
Indomer Ananthi Chandramohan ... vs Assessee on 15 March, 2012
IN THE INCOME TAX APPELLATE TRIBUNAL
'B' BENCH, CHENNAI
BEFORE SHRI N.S. SAINI, ACCOUNTANT MEMBER AND
SHRI GEORGE MATHAN, JUDICIAL MEMBER
I.T.A. No. 55/Mds/2012
Indomer Ananthi Vs. Director of Income-tax
Chandramohan [Exemptions]
Charitable Trust Chennai 600 034.
Plot 115, Alwar
Thirunagar Annexe
Chennai 600 087.
(Appellant) (Respondent)
Assessee by : Shri T. Vasudevan, Advocate
Department by : Shri M.N. Moorthy Naik, JCIT, DR
Date of Hearing : 15.03.2012
Date of Pronouncement : 15.03.2012
O R D E R
PER GEORGE MATHAN, JUDICIAL MEMBER :
ITA No. 55/Mds/2012 is an appeal filed by the assessee against
the order of Director of Income-tax Exemptions, Chennai in appeal No. DIT(E) No. 2(119)/11-12 dated 30.11.2011.
2 ITA No 55/Mds/2012
2. Shri T. Vasudevan, Advocate, represented on behalf of the assessee and Shri M.N. Moorthy Naik, JCIT, D.R. represented on behalf of the Revenue.
3. It was submitted by the ld. A.R. that the issue in this appeal was against the action of the DIT in holding that the assessee was not eligible for registration u/s 12AA of the Act on the ground that one of the objects of the assessee speaks about developing and maintenance of places of worship as also promoting god consciousness. It was the submission that the issue was squarely covered by the decision of the Hon'ble jurisdictional High Court of Madras in the case of Arulmigu Kamakshi Amman Trust in Tax Appeal No. 643/11 dated 25.01.2012 wherein the Hon'ble jurisdictional High Court has held as follows:
"We have carefully considered the above submission. For the purpose of making an application u/s 12AA, the applicant must apply in Form 10. The said Form prescribes the format of the notice of accumulation of income to be given by charitable and religious trusts u/s 11(2) of the Act. For the 3 ITA No 55/Mds/2012 purpose of availing the benefit of section 11, registration is required. Section 11(1) reads as under:
11(1). Subject to the provisions of sections 60 to 63, the following income shall not be included in the total income of the previous year of the person in receipt of the income:
(a) Income derived from property held under trust wholly for charitable or religious purposes, to the extent to which such income is applied to such purposes in India; and where any such income is accumulated or set apart for application to such purposes in India, to the extent to which the income so accumulated or set apart is not in excess of fifteen percent of the income from such property:
6. From a reading of the above, it is clear that the income derived from the property held under trust wholly for charitable or religious purposes shall not be included in the total income of the trust. Therefore, the said provision would be applicable to both the trusts established with the object of charitable as well as religious purposes. Therefore, section 12AA of the Act
4 ITA No 55/Mds/2012 does not make any difference between the trusts created with the object of charitable and religious purposes and even if the trust is not created with both the objects, law does not make any disqualification for the trust to make an application for registration. Therefore, the Tribunal has correctly applied the provision of law and allowed the appeal, which finding is based on valid material evidence. The finding of the Tribunal is not perverse and it is a question of fact. Therefore, we find no ground to cause our interference into the order passed by the Tribunal. Accordingly, the order passed by the Tribunal is confirmed and both the substantial questions of law raised herein are answered against the Revenue."
It was the further submission that in view of the decision of the Hon'ble jurisdictional High Court the assessee was entitled to be registered u/s 12AA of the Act
4. In reply, the ld. D.R. vehemently supported the order of the DIT. It was the submission that the assessee trust had religious clauses in its objects and consequently was not entitled to registration u/s 12AA of the Act.
5 ITA No 55/Mds/2012
5. We have heard the rival submissions. As it is noticed that the issue in this appeal is squarely covered by the decision of the Hon'ble jurisdictional High Court in the case of Arulmigu Kamakshi Amman Trust [supra], the DIT is directed to grant registration u/s 12AA of the Act.
6. In the result, the appeal filed by the assessee is allowed.
Order pronounced in the open court after conclusion of hearing on 15th March, 2012.
Sd/- Sd/-
(N.S. Saini) (George Mathan)
Accountant Member Judicial Member
Chennai,
Dated the 15th March, 2012.
VL
Copy to: (1) Appellant
(2) Respondent
(3) CIT(A), Chennai
(4) CIT, Chennai
(5) D.R.
(6) Guard file