MIRACLE JESUS MINISTRIES TRUST,CHENNAI vs. DIT, CHENNAI

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ITA 2583/CHNY/2014Status: DisposedITAT Chennai19 January 2015AY 2014-154 pages
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What did the Tribunal hold?

The Tribunal held that the restriction on mixed objects applies to Section 80G recognition, not Section 12AA registration. Following a High Court judgment, the Tribunal found the DIT's objection unsustainable.

What were the facts?

The assessee applied for registration under Section 12AA of the Income-tax Act. The Director of Income Tax (Exemptions) rejected the application citing mixed charitable and religious objects.

What were the issues?

Whether an assessee with mixed charitable and religious objects is eligible for registration under Section 12AA of the Income-tax Act.

Which sections of the Income-tax Act were involved?

Section 12AA,Section 80G,Section 11

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Income Tax Appellate Tribunal, “ C” BENCH, CHENNAI

Before: SHRI B.R. BASKARAN & SHRI VIKAS AWASTHY

For Respondent: Shri A.V. Sreekanth, JCIT
Hearing: 19.01.2015Pronounced: 19.01.2015

आदेश /O R D E R

PER B.R. BASKARAN, ACCOUNTANT MEMBER:

1.

The assessee has filed this appeal challenging the order dated 28.08.2014, passed by Ld. Director of Income Tax (Exemptions), Chennai, rejecting the application filed by the assessee seeking registration under Section 12AA of the Income- tax Act, 1961 (in short 'the Act').

2.

We heard the parties and perused the record. We notice that the assessee had filed an application in Form No.10A on 07.02.2014 before Ld. DIT (Exemptions) seeking registration under Section 12AA of the Act. The Ld. DIT(E) however rejected the application on the ground that the assessee is having mixed objects, i.e. both charitable and religious objects.

3.

The Ld. AR appearing for the assessee submitted that the restriction with regard to mixed objects is applicable only for granting recognition under Section 80G of the Act and for the purpose of granting registration under Section 12AA of the Act, such kind of restriction is not placed in the section. Accordingly, he submitted that the Ld. DIT(E) was not justified in rejecting the application filed by the assessee, by placing reliance on the provisions of Section 12A of the Act for processing the application filed by the assessee seeking registration under Section 12AA of the Act.

4.

On the contrary, the Ld. Departmental Representative strongly supported the order passed by the Ld. Director of Income Tax (Exemptions).

5.

Having heard the rival contentions, we find merit in the submission made by the Ld. A.R. The registration under Section 12AA of the Act is granted in order to enable the assessee to claim exemption under Section 11 of the Act. We find that the Hon’ble Madras High Court has held in the case of Director of Income-tax (Exemptions) v. Seervi Samaj Tambaram Trust (43 taxmann.com 142) that an assessee is entitled for registration under Section 12AA even if it is carrying on both charitable and religious activities. In view of this judgment, the objection of the Director of Income-tax (Exemptions) is not sustainable in law. Hence, we set aside the order of the Ld. DIT(E) and restore the same to his file with the direction to process the application of the assessee in accordance with law.

6.

In the result, the appeal filed by the assessee is treated as allowed. Order pronounced on the 19th day of January, 2015 at Chennai.

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