The Commissioner Of Income Tax, Chennai v. M/S.rajasthan Rajput Samajchennai, Chennai-3

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 21.8.2019 CORAM : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMANDTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN TAX CASE APPEAL NO.807 OF 2013 The Commissioner of Income Tax, Chennai...Appellant/Respondent Vs M/s.Rajasthan Rajput SamajChennai, Chennai-3....Respondent/AppellantAPPEAL under Section 260-A of the Income Tax Act, 1961against the order dated 23.12.2011 made in ITA.No.2011/Mds/2010on the file of the Income Tax Appellate Tribunal Chennai 'A'Bench against the Order of the Director of Income Tax(Exemption), Chennai - 600 034 dated 29.09.2010 and made in DIT(E) No.2(1246) 09-10. For Appellant :Mr.J.Narayanasamy, SSCFor Respondent:Served and no appearance Judgment was delivered by T.S.Sivagnanam,J This appeal, filed by the Revenue under Section 260A of theIncome Tax Act, 1961 (for brevity, the Act) is directed againstthe order dated 23.12.2011 made in ITA.No.2011/Mds/2010 on thefile of the Income Tax Appellate Tribunal Chennai 'A' Bench (forshort, the Tribunal). 2. The appeal was admitted on 15.7.2014 on the followingsubstantial questions of law: “i. Whether, on the facts andcircumstances of the case, the Income TaxAppellate Tribunal was right in holding thatthe assessee is eligible for registrationunder Section 12A ? ii. Whether, on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in holding thathaving religious objects by itself does notbar the trust from being recognized aspublic charitable trust? And iii. Whether, on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in holding that the provisions of Section 80G itselfstipulate that 5% of the total receipt is tobe held to be permissible towards religiousactivities as per Explanation of Section 80G(5B) would validate the claim ofregistration under Section 12AA when theobject clause of the trust provides forpromotion of religion?” 3. We have heard Mr.J.Narayanasamy, learned Senior StandingCounsel appearing for the appellant. Though the respondent wasserved and their name printed in the cause list, they did notchoose to appear through a counsel. 4. After careful perusal of the order passed by theTribunal, we find that the Tribunal adjudicated the factualissue and took note of the resolution by the respondent trust indeleting the clause in respect of short tours for the benefit ofthe society members and also acknowledgement for having filedthe said amended resolution before the Registrar of Societies.Furthermore, the Tribunal also specifically stated that havingreligious objects by itself does not bar the trust from beingrecognized as a public charitable trust, as, under theprovisions of Section 80G of the Act, 5% of the total receiptsis held to be permissible for expenditure towards religiousactivities. In the light of the said finding rendered by theTribunal, we are of the view that no substantial question of lawarises for consideration in this appeal. To1. The Income Tax Appellate Tribunal, Chennai 'A' Bench, Chennai. 2.The Director of Income Tax (Exemptions), Ayankar Bhawan, Annexe, III Floor,No.121, MG.Road, Nungambakkam,Chennai - 600 034 Kak(14/10/2019)