Commissioner of Income-tax, Chennai v. M/s. Desperate for Him Ministries
[Citation -2015-LL-0105-13]

Citation 2015-LL-0105-13
Appellant Name Commissioner of Income-tax, Chennai
Respondent Name M/s. Desperate for Him Ministries
Court HIGH COURT OF MADRAS
Relevant Act Income-tax
Date of Order 05/01/2015
Judgment View Judgment
Keyword Tags continuance of registration • grant of registration
Bot Summary: For Appellant : Mr.J.Narayanasamy Standing counsel for Income Tax For Respondent: Mr.S.Sridhar JUDGMENT This Tax Case is filed by the Revenue as against the order of the Income Tax Appellate Tribunal raising the following substantial question of law: Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in holding 2 that the assessee trust is entitled for registration under Section 12AA of the Act 2. In the present case also, the Revenue only questions the trust not having commenced its activity for the grant of registration. The provision under Section 12AA of the Income Tax Act does not stipulate such a condition for grant of registration. In so considering the application, the Commissioner has to give an opportunity to the assessee as provided for under proviso to sub-section of Section 12AA. Under sub-section of Section 12AA, the Commissioner is given power to cancel the registration, if he satisfies that the objects of such trust are not genuine or not being carried on in accordance with the objects of the trust. When such an authority is vested with the Commissioner to cancel the registration in the event of the trust not being carried on in accordance with the objects of the trust, we do not find any ground to say that merely on the date of the application, the assessee trust had not commenced its activities, 3 hence, registration could not be granted. Considering the fact that the continuance of registration is further a subject matter of scrutiny by the Commissioner as contemplated under Section 12AA(3) of the Income Tax Act, we do not think that the Revenue would be justified in refusing the registration at the threshold. The Tribunal had followed the decision of the Gujarat High Court in the case of CIT V. Kutchi Dasa Oswal Moto Pariwar Ambama Trust reported in 29 Taxman 228.


In High Court of Judicature at Madras Dated: 05.01.2015 Coram Honourable Mr.JUSTICE R.SUDHAKAR and Honourable Mr.JUSTICE R.KARUPPIAH Tax Case (Appeal) No.319 of 2012 Commissioner of Income Tax Chennai. Appellant Vs. M/s.Desperate for Him Ministries, 94/95, Avalkara Street, Kosapet, Vellore - 632 001. Respondent APPEAL under Section 260A of Income Tax Act against order dated 29.5.2012 made in I.T.A.No.690/Mds/2012 on file of Income Tax Appellate Tribunal 'A' Bench, Chennai. For Appellant : Mr.J.Narayanasamy Standing counsel for Income Tax For Respondent: Mr.S.Sridhar JUDGMENT (Delivered by R.SUDHAKAR,J.) This Tax Case (Appeal) is filed by Revenue as against order of Income Tax Appellate Tribunal raising following substantial question of law: "Whether on facts and in circumstances of case, Income Tax Appellate Tribunal was right in holding 2 that assessee trust is entitled for registration under Section 12AA of Act?" 2. Learned counsel appearing for Revenue fairly submits that issue involved in this appeal is covered by decision of this Court in T.C.(A)No.579 of 2013 dated 27.01.2014, wherein this Court, following decision of this Court reported in (2012) 206 Taxman 69 (CIT V. Arulmighu Sri Kamatchi Amman Trust), dismissed appeal filed by Revenue holding that Revenue would not be justified in refusing grant of registration at threshold. For better clarity, relevant portion of decision of this Court reads as follows: "9. In present case also, Revenue only questions trust not having commenced its activity for grant of registration. provision under Section 12AA of Income Tax Act does not stipulate such condition for grant of registration. On other hand, Section 12AA (1) contemplates satisfaction of Commissioner about objects of Trust and genuineness of activities and make such enquiry as may be necessary for purpose of grant of registration. In so considering application, Commissioner has to give opportunity to assessee as provided for under proviso to sub-section (1) of Section 12AA. Under sub-section (3) of Section 12AA, Commissioner is given power to cancel registration, if he satisfies that objects of such trust are not genuine or not being carried on in accordance with objects of trust. When such authority is vested with Commissioner to cancel registration in event of trust not being carried on in accordance with objects of trust, we do not find any ground to say that merely on date of application, assessee trust had not commenced its activities, 3 hence, registration could not be granted. It is not denied by assessee that on date of application under Section 12AA, it was yet to commence its operation. But nevertheless genuineness of objects of trust were not questioned by Commissioner. Considering fact that continuance of registration is further subject matter of scrutiny by Commissioner as contemplated under Section 12AA(3) of Income Tax Act, we do not think that Revenue would be justified in refusing registration at threshold. Tribunal had followed decision of Gujarat High Court in case of CIT V. Kutchi Dasa Oswal Moto Pariwar Ambama Trust reported in 29 Taxman 228. We respectfully agree with decision of Gujarat High Court." 3. above-said view was followed by this Court, in which one of us was party (R.Sudhakar,J) in T.C.(A)No.261 of 2014 dated 22.8.2014. 4. Accordingly, following decision of this Court in T.C.(A)No.579 of 2013 dated 27.01.2014, this Tax Case (Appeal) stands dismissed. question of law is answered against Revenue. No costs. Index :Yes/No (R.S.,J) (R.S.,J) Internet:Yes/No 05.01.2015 sl To 1. Income Tax Appellate Tribunal 'B' Bench, Chennai 2. Commissioner of Income Tax, Chennai. R.SUDHAKAR,J. 4 AND R.KARUPPIAH,J. sl Tax Case (Appeal) No.319 of 2012 05.01.2015 Commissioner of Income-tax, Chennai v. M/s. Desperate for Him Ministrie
Report Error