Commissioner Of Income Tax Salem v. Rural Education And Aids Care Home, No,30/18C, Chennakrishnapuram, Salem 636 007

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 04.09.2019 CORAM THE HON'BLE DR.JUSTICE VINEET KOTHARI AND THE HON'BLE MR.JUSTICE C.SARAVANAN Tax Case Appeal Nos.462 & 463 of 2010 Commissioner of Income TaxSalem. ... Appellant in both TCAs.vs. Rural Education and Aids Care Home,No,30/18C, Chennakrishnapuram,Salem 636 007. ...Respondent in both TCAs. TCA.No.462 of 2010 is filed under Section 260A of the IncomeTax Act, 1961, against the order of the Income Tax AppellateTribunal, Chennai 'C' Bench, Chennai, dated 13.08.2009, made inITA No.520/Mds/2009, against the order of the Commissioner of Income Tax, Salemorder dated 11/03/2009 made in C.No.9755 (64)/SLM/2008-2009. TCA.No.463 of 2010 is filed under Section 260A of the IncomeTax Act, 1961, against the order of the Income Tax AppellateTribunal, Chennai 'C' Bench, Chennai, dated 13.08.2009, made inITA No.521/Mds/2009, against the order of the Commissioner of Income Tax, Salemorder dated 11/03/2009 made in C.No.9755 (64)/SLM/2008-2009.For Appellant : Mr.J.Narayanaswamyin both TCAs. Senior Standing Counsel For Respondent inboth Appeals : Mr.T.Vasudevan for Mr.N.Quadir Houseyn https://hcservices.ecourts.gov.in/hcservices/ (By Dr.Vineet Kothari, J.) Revenue has filed both the Appeals under Section 260-A ofthe Income Tax Act,1969, against the order dated 13.08.2009passed in n ITA No.520/Mds/2009 and ITA No.521/Mds/2009. 2. The relevant portion of the impugned proceedings of theCommissioner of Income Tax, Salem in C.No.9755(64)/ SLM/2008-2009 before us by way of present appeals is quoted before forready reference: 3. The details filed by the AuthorisedRepresentatives are receipts and payments accountsfor the Financial Year ended 31.03.2008 and from01.04.2008 to 31.01.2009. No activities werecarried out during the Financial Years 2007-2008.The accounts for the period 01.04.2008 to31.01.2009 show expenses made in carrying outactivities like ' Food to Poor', Medical Aid toPoor' etc. However, the applicant trust did notfile any verifiable evidences in support of thesealleged activities and the expenses incurredthereon. Subsequently, on 09.03.2009 a letterwas filed by the applicant trust enclosing lettersissued by four organizations, through which thetrust is supposed to have carried out itsactivities. The letter from Sri K.Karunakaran,M.A.,B.L., is dated 03.03.2009 and the letter fromPallava Foundation is dated 06.03.2009. Theletter from shanmuga Medical Research FoundationTrust is undated. Obviously, these letters donot explain that the activities were carried outduring the period for which the accounts have beenfurnished. It is necessary for the Trust toterms of its objects and provide evidence whichcan be verified to ascertain whether theactivities were genuinely carried out. 3. The learned counsel for the Revenue appellant submittedthat the learned Commissioner was justified in rejecting theapplication of respondent Trust by the impugned order dated11.03.2009, stating that the letters produced by the respondenttrust do not explain that the activities were carried out interms of its objects during the period for which the accountshave been furnished. Further, neither the Trust Deed in original and certified copy nor the copies of the accounts ofthe trust along with satisfactory evidence was furnished beforethe learned Commissioner, therefore there was no question ofverifying the activities of Trust being carried out in terms ofthe objects. 4. We have heard the learned counsel for the parties andperused the materials available on record. 3. The learned counsel for the Revenue appellant submittedthat the learned Commissioner was justified in rejecting theapplication of respondent Trust by the impugned order dated11.03.2009, stating that the letters produced by the respondenttrust do not explain that the activities were carried out interms of its objects during the period for which the accountshave been furnished. Further, neither the Trust Deed in original and certified copy nor the copies of the accounts ofthe trust along with satisfactory evidence was furnished beforethe learned Commissioner, therefore there was no question ofverifying the activities of Trust being carried out in terms ofthe objects. 4. We have heard the learned counsel for the parties andperused the materials available on record. 5. The issue to be considered is whether the order of theIncome Tax Appellate Tribunal in remanding the case back to theCommissioner of Income Tax for looking into the objects of thetrust deed is correct or not and further the Assessee isentitled to registration under Section 12AA and recognitionunder Section 80 G of the Income Tax Act, 1961 or not ? 6. The learned Senior Standing counsel submitted thatwhether the respondent-trust had carried out the activities inconsonance of the Trust or not cannot be remanded to CIT forthe purpose of grant of registration Section 12 AA of the Act.Therefore, there is no point in remanding the case back as therespondent Trust had failed to produce necessary evidence beforeCIT in the first instance. 7. We have considered the submissions. We find that thereis no substantial question of law involved. It is for theTribunal to examine the Trust Deed and come to an independentconclusion as to whether the respondent Trust was entitled forSection 12AA Registration or not. We therefore direct thelearned Tribunal to re-examine the objects of the Trust Deed andconsider the relevant evidence to see whether the same fallwithin the ambit and scope of Section 12 AA or not. Since longperiod was already passed, we direct the learned Tribunal topass orders, in accordance with law within a period of sixmonths from today. Further notice to the Assessee forappearance at the first instance on 17.10.2019. 8. Accordingly, these Appeals of the Revenue are disposedof. No costs. //True Copy// Sub Assistant Registrar kkd To 1.The Income Tax Appellate Tribunal, Chennai 'C' Bench, Chennai. Chennai 'C' Bench, Chennai. 2.The Income Tax Officer(Hars), O/o The Commissioner of Income Tax, Salem. O/o The Commissioner of Income Tax, Salem. +1cc to M/s.J.Narayanaswamy ,Advocate Sr.76370+1cc to M/s.T.Varudevan, Advocate Sr.76358 T.C.A.Nos.462 & 463 of 2010 cp[co]srg 11/11/2019