The Commissioner Of Income-Tax-I,Madurai v. Elshadai Charitable Trust,Plot

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 05.12.2018 CORAM : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MR.JUSTICE N.SATHISH KUMAR Tax Case (Appeal) No.463 of 2011 The Commissioner of Income-tax-I,Madurai. ... Appellant/Respondent -vs- Elshadai Charitable Trust,Plot No.11, Kaliamman Kovil East Street, Vagaikulam(Utkadai),Ramanathapuram, Madurai – 625 018. ... Respondent/Appellant Tax Case (Appeal) filed under Section 260-A of the IncomeTax Act, 1961 against the order of the Income Tax AppellateTribunal Chennai 'B' Bench, Chennai, dated 29.04.2011 in ITANo.1756/Mds/2010 for the assessment year Nil as against theorder of the Commissioner of Income Tax-I, dated 25.02.2010 inC.No.464/171/2006-07/CIT-I. For Appellant: Mr.Karthik Ranganathan,Standing Counsel For Respondent : No appearance JUDGMENT (Delivered by T.S.Sivagnanam, J.) This Tax Case Appeal, filed by the Revenue under Section260-A of the Income Tax Act, 1961, (hereinafter referred to as“the Act”) is directed against the order passed by the IncomeTax Appellate Tribunal Chennai 'B' Bench, Chennai, (“theTribunal”forbrevity)dated29.04.2011,inITANo.1756/Mds/2010, for the assessment year Nil. https://hcservices.ecourts.gov.in/hcservices/ 2.Heard Mr.Karthik Ranganathan, learned Standing Counsel,for the appellant. 3.This appeal has been admitted on 03.01.2012, on thefollowing substantial question of law: "(i) Whether, on the facts andcircumstances of the case, the Income TaxAppellate Tribunal was right in holding thatthe trust is carrying on Charitable activitiesfor running a home for Orphans and Widowswithout producing a Certificate issued by theOrphanages and other Charitable Homes(Supervision and Control) Act, 1960, is valid?” 4.The Commissioner of Income Tax-I, Madurai, by order dated25.02.2010, rejected an application filed by the assessee forrenewal of approval under Section 80G of the Act against which,the assessee filed appeal before the Tribunal, which wasallowed. 5.The Revenue is on appeal before us challenging the saidorder of the Tribunal. Admittedly, the respondent/Trust wasgranted registration under Section 12AA of the Act on16.03.2007, and also approval under Section 80G of the Act onthe very same day, which was valid till 31.03.2008. When theyapplied for renewal, the same has been rejected. The remandreport, which was called for from the Assessing Officer mentionsabout the objects of the Trust. There was no material to showthat the trust was not carrying on charitable activity, but therenewal application was rejected on the technical ground thatregistration had not been obtained under the provisions of theOrphanages and other Charitable Homes (Supervision and Control)Act, 1960. 6.In our considered view, merely because registration wasnot obtained under the Orphanages and Other Charitable Homes(Supervision and Control) Act, 1960 will not ipso facto resultin a conclusion that the assessee is not carrying on charitableactivity. Therefore, we find no error in the order passed bythe Tribunal. https://hcservices.ecourts.gov.in/hcservices/ Revenue is dismissed and the substantial question of law isanswered against the Revenue. No costs. Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar mrm/abr To1. The Income Tax Appellate Tribunal Chennai 'B' Bench.2. The Commissioner of Income Tax-I, Madurai.+1 cc to Mr.Karthik Ranganathan, Advocate Sr.No.84150T.C.A.No.463 of 2011 SVI(CO)CSL/09.01.2019