The Commissioner Of Income Tax, Salem v. M/S.jairam Educational Trust

In the High Court of Judicature at Madras Coram : The Honourable Mr.Justice T.S.SIVAGNANAM and The Honourable Mr.Justice N.SATHISH KUMAR Tax Case Appeal No.273 of 2011 The Commissioner of Income Tax, Salem Vs M/s.Jairam Educational Trust, Salem-2 ...Appellant ...Respondent APPEAL under Section 260A of the Income Tax Act, 1961against the order dated 26.11.2010 in ITA No.571/Mds/2010 on thefile of the Income Tax Appellate Tribunal, Chennai 'A' Benchagainst the Commissioner of Income Tax, Salem in C.No.9755(3)/SLM/2006-07, order dated 26.02.2010. For Appellant : Mr.J.Narayanasamy, SSCFor Respondent :M/s.Pass Associates Judgment was delivered by T.S.SIVAGNANAM,J This appeal by the Revenue under Section 260A of the IncomeTax Act, 1961 (for short, the Act) is directed against the orderdated 26.11.2010 in ITA No.571/Mds/2010 on the file of theIncome Tax Appellate Tribunal Chennai 'A' Bench (for brevity,the Tribunal). 2. This appeal was admitted on 01.8.2011 on the followingsubstantial questions of law :“i. Whether, on the facts andcircumstances of the case, the Income TaxAppellate Tribunal was right in holding thatif registration under Section 12AA wasgranted to the applicant trust, approvalunder Section 80G of the Income Tax Actcould not be denied, overlooking the clear https://hcservices.ecourts.gov.in/hcservices/ provisions of Clause (ii) of Sub-Section (5)of Section 80G of the Income Tax Act ?ii. Whether, on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in holding thatifregistrationunderSection12AAcontinued, approval under Section 80G couldbe granted without appreciating that bothwere independent proceedings under theIncome Tax Act, 1961 ? and iii. Whether, on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal was right in not applyingthe ratio of the Supreme Court's decision inthe case of Upper Ganges Sugar Mills Ltd.Vs. CIT [reported in 227 ITR 578], which isbinding law under Article 141 of TheConstitution of India?” 3. We have heard the learned Senior Standing Counselappearing for the Revenue and the learned counsel for therespondent. 4. The assessee filed an appeal before the Tribunalquestioning the order of the Commissioner of Income Tax(Appeals) refusing to recommend renewal of exemption underSection 80G of the Act on the alleged ground that the objects ofthe assessee trust, as could be seen from the trust deed dated26.3.1999, were not found to be charitable in nature. TheTribunal considered the objects of the trust and noted that thetrust continued to be registered under Section 12AA of the Actand rightly held that only if the objects are charitable innature, they can be continued to be registered under Section12AA of the Act and therefore, found that there was no validreason to deny approval under Section 80G of the Act. We findthe reasons assigned by the Tribunal, considering the facts andcircumstances of the case, to be just and proper. No substantialquestion of law arises for consideration in this appeal. 5. Accordingly, the above tax case appeal is dismissed. Nocosts. Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar To 1. The Income Tax Appellate Tribunal, Chennai 'A' Bench. 2. The Commissioner of Income Tax, Salem. +1 cc to Mr.J.Narayanaswamy, Advocate Sr.No.143 TCA.No.273 of 2011 SS(CO)CSL/26.02.2019