Angel Christian Charitable Foundation India,New v. The Deputy Director Of Income Tax (Exemptions)-Iii,Aayakar Bhawan Annexe

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 10.08.2021 CORAM THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMAND THE HONOURABLE MR.JUSTICE SATHI KUMAR SUKUMARA KURUP T.C.A.NOS.142 & 149 OF 2016 Angel Christian Charitable Foundation India,New No.36, 'H' Block,13[th] Main Road, Anna Nagar,Chennai - 600 040. -Vs- ... Appellant inboth Appeals The Deputy Director of Income Tax (Exemptions)-III,Aayakar Bhawan Annexe,No.121, Mahatma Gandhi Road,Chennai - 600 034.... Respondent inboth Appeals PRAYER:- Appeals under Section 260A of the Income Tax Act, 1961against the order dated 31.07.2015 made in I.T.A.Nos.750 and751/Mds/2015 on the file of the Income Tax Appellate Tribunal'A' Bench, Chennai for the Assessment Year 2010-11 and 2011-12respectively. Against the Order of the Commissioner of Income Tax(Appeals)-17, Chennai – 34, dated 31/12/2014 in I.T.A.No.141/13-147 & 133/2014-2015 in the Assessment Year 2010-2011 &2011-2012 respectively. Against the Assessment Order passed by the Deputy Directorof Income Tax (Exemptions)-III, Chennai – 34, dated 31/03/2014 &20/03/2013, PAN.No. in the Assessent Year 2011-2012 &2010-2011 respectively. For Appellant : Mr.G.Baskar(In both Appeals)For Respondent : Mr.J.Narayanaswamy(In both Appeals) Senior Standing Counsel COMMON JUDGMENT (Delivered by T.S.Sivagnanam, J.) These tax case appeals, by the appellant/assessee, filedunder Section 260A of the Income Tax Act, 1961 (hereinafterreferred to as “the Act”), are directed against the order dated31.07.2015, made in I.T.A.Nos.750 and 751/Mds/2015 on the fileof the Income Tax Appellate Tribunal 'A' Bench, Chennai for theassessment years 2010-11 and 2011-12 respectively. 2. The appeals were admitted on 02.03.2016, on the followingsubstantial question of law:- “Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal is right in law in holdingthat the appellant is not eligible forexemption under Section 11 of the Income Taxact, 1961?” 3. Heard Mr.G.Baskar, learned counsel for the appellant andMr.J.Narayanaswamy, learned Senior Standing Counsel for therespondent. 4. The Tribunal, by the impugned order, confirmed the orderpassed by the Commissioner of Income Tax (Appeals) – VII,Chennai (for brevity “the CIT(A)”) dated 31.12.2014, which werethe appeals filed by the assessee, which were dismissed holdingthat the assessee is not entitled to the benefit of Section 11of the Act. The Tribunal affirmed such order by observing thatthe assessee had admitted that they are a religious organizationand has undertaken religious pilgrimage and other activitiesrelating to religious and they have not incurred any expensesfor the purpose of charitable activity and accordingly, theappeals were dismissed. Challenging the correctness, the taxcase appeals have been filed which were admitted on 02.03.2016,to decide the aforementioned substantial question of law. 5. We need not labour much to resolve the controversy raisedin these tax case appeals on account of subsequentlydevelopment, which had taken place during the pendency of theseappeals. 6. The Commissioner of Income Tax (Exemptions), Chennai byorder dated 22.02.2016 had registered the assessee-Trust as apublic religious Trust under Section 12AA of the Act with effectfrom 20.11.2003. In fact, both the CIT(A) as well as theTribunal in the earlier round had also noted that the appellant https://hcservices.ecourts.gov.in/hcservices/ Trust did not have the benefit of 12AA registration. However,by order dated 22.02.2016, they have been recognised as a publicreligious Trust and taking note of the said registration,assessments for the assessment years 2013-14 to 2016-17 havebeen completed vide assessment orders dated 08.03.2016,25.11.2016, 01.09.2017 and 09.11.2018 respectively. 6. The Commissioner of Income Tax (Exemptions), Chennai byorder dated 22.02.2016 had registered the assessee-Trust as apublic religious Trust under Section 12AA of the Act with effectfrom 20.11.2003. In fact, both the CIT(A) as well as theTribunal in the earlier round had also noted that the appellant https://hcservices.ecourts.gov.in/hcservices/ Trust did not have the benefit of 12AA registration. However,by order dated 22.02.2016, they have been recognised as a publicreligious Trust and taking note of the said registration,assessments for the assessment years 2013-14 to 2016-17 havebeen completed vide assessment orders dated 08.03.2016,25.11.2016, 01.09.2017 and 09.11.2018 respectively. 7. In the light of the registration having been granted infavour of the appellant/assessee with effect from 20.11.2003,the date on which the assessee-Trust was registered, theassessments, which are impugned before us, have to benecessarily redone. 8. For the above reasons, the tax case appeals are allowed,the orders passed by the Tribunal, the CIT(A) as well as theassessment orders dated 20.03.2013 and 31.03.2014, are set asideand the matters are remanded to the Assessing Officer for freshconsideration, who shall redo the assessment, taking note of theregistration granted under Section 12AA vide order dated22.02.2016, with effect from 20.11.2003, after affording anopportunity of personal hearing to the Authorized Representativeof the assessee. Consequently, the substantial question of lawis left open. No costs. Sd/- Assistant Registrar(CS IV) //True Copy// Sub Assistant Registrar abrTo 1.The Deputy Director of Income Tax (Exemptions)-III,Aayakar Bhawan Annexe,No.121, Mahatma Gandhi Road,Chennai - 600 034.2.The Income Tax Appellate Tribunal 'A' Bench, Rajaji Bhavan, Besant Nagar,Chennai.3.The Commissioner of Income Tax Appeals,No.121, Mahatma Gandhi Road,Chennai – 34. 4.The Deputy Director of Income Tax (Exemptions)-III,Chennai – 34.+1cc to Mr.G.Baskar, Advocate, S.R.No.39578 T.C.A.NOS.142 & 149 OF 2016 MG(CO)PBS/14/09/2021