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Income Tax Appellate Tribunal, “C” BENCH : BANGALORE
Before: SMT. ASHA VIJAYARAGHAVAN & SHRI INTURI RAMA RAO
Per Inturi Rama Rao, Accountant Member
This is an appeal filed by the appellant trust directed against the order of the ld. Director of Income Tax (Exemption) [DIT(E)], Bangalore dated 29.5.2015 passed u/s. 12AA(1)(b)(ii) of the Income-tax Act, 1961 ["the Act"].
The appellant trust has raised the following grounds of appeal:-
“1. Order of the Learned DIT(E) in refusing registration to the appellant u/s.12A.A of the I.T. Act is opposed to law and facts.
2. The Learned DIT(E) erred in holding that since the benefit is restricted to one particular community and thus it will not fall within the purview of “General public utility” as defined u/s.2(15) of the Act.
3. The Learned DIT(E) erred in giving a narrow definition to the word “General public utility” in the appellant’s case and which is opposed to law.
4. The Learned DIT(E) failed to appreciate that the benefit is not provided to particular community person but is provided to a poor person who falls under that community. The Learned DIT(E) erred in holding the institution is created for the benefit of GBS community but it is created to help the poor people of the community.
5. The decision of the (this) Hon’ble Court in the case of Ganjam Nagappa and son Trust vs. DIT(E) 269 ITR 59 relied upon by the Learned DIT(E) is not applicable to the facts of the appellant’s case.”
Briefly the facts are that he appellant trust was created on 17.12.1988 with the following objects:-
“(a) To organize women and children of Gowda Saraswath Community in Bangalore in particular and in the whole of India in general for constructive purposes of development of the community in the fields of education, religion, culture and Konkani language and the welfare of women and children of the community, personality development, family development, economic upliftment and cultural fulfillment; (b) To encourage and promote friendly relationship and co- operation among Gowda Saraswaths of all denominations, Mutts etc.;
(c) To promote and achieve a healthy growth of; and rejuvenate the culture of the community in both the religious and social fields; to revive and develop the folk arts music and poetry of the community; (d) To organise activities and training programmes, conferences to develop and strengthen woman and child, power and cohesive family bonds; (e) To organize lectures, conferences and training camps in the field of health and hygiene, child development, education. And other fields; (f) To organise programmes of counselling in premarital. post- marital, family, emotional, youth and student counselling (g) To enlighten and organise women to eradicate the menace of dowry. marriage, alchoholism, smoking abuse etc., etc.; (h) To bring about religious discipline among women and children. To enlighten on the meaning and significance of Hindu customs and traditions; (i) To organise training programmes in music, dance, drama, bhajans, puja-vidhi, Geetha recitation, Hari-katha debate, Quiz programmes, sports, physical fitness, self-defence, housekeeping, cooking, gardening, home management etc; (j) To promote educational institutions, womens’ hostels and medical clinics; (k) Training women and children in social work by organising camps in villages to render medical, surgical, health education, sports and other services; (1) To print and publish literary works journals and periodicals Konkani and cultural activities as producing audio and video cassettes (m) To establish research organisations; (n) And generally to try to do all that may be necessary for the furtherence and realisation of these objects and protect and preserve the rights and interest of the members of the association.”
The appellant trust was duly registered with Registrar of Societies , Bangalore on 17.12.1988 and filed application in Form 10A for registration u/s 12A of the Act before the DIT(E) ON 19.12.2013. The ld. DIT(E) after calling for certain details from the appellant trust had held that the trust was created wholly for the objection of benefit of a particular caste people i.e., Gowda Saraswath community and therefore held that the objects of the trust are hit by provisions of section 13(1)(b) of the Act. The ld. DIT(E) also gave a categorical finding that the Gowda Saraswath community is not a backward community and therefore denied the exemption u/s. 12A of the Act. He also placed reliance on the decision of the Hon’ble jurisdictional High Court in the case of Ganjam Nagappa and Son Trust v. DIT(E), 269 ITR 59 wherein it was held that grant of exemption is not an automatic one, it is subject to satisfaction of authority with regard to charitable character.
Being aggrieved, by the appellant trust is before us in the present appeal.
The ld. counsel for the assessee submitted that though trust was created for the benefit of Gowda Saraswath community, since it is a backward community it is covered by the exceptions carved out in the provisions of section 13(1)(b) of the Act. Therefore, he contended that the ld. DIT(E) was not justified in denying registration u/s. 12A of the Act.
On the other hand, the ld. CIT(DR) supported the orders of the DIT(E) denying registration u/s. 12A of the Act.
We have heard the rival submissions, perused the material on record. It is an undisputed fact that the appellant’s trust was created for the benefit of Gowda Saraswath community. The ld. DIT(E) had given a categorical finding that it is not a backward community. The appellant rust had not filed any evidence controverting this finding. Therefore, this finding remains uncontroverted. Therefore the contention of the applicant trust that it is for the benefit of backward community cannot be accepted and no relief can be granted based on mere bald assertions without evidence. Hence, we hold that the order passed by the ld. DIT(E) denying registration u/s. 12A of the Act is valid in law.
In the result, the appeal of the appellant trust is dismissed.
Pronounced in the open court on this 20th day of January, 2016.