The Director Of Income Tax,Exemption, Chennai - 34 v. United Way Of Chennaipark View, 3Rd Floor,Old

IN THE HIGH COURT OF JUDICATURE AT MADRASDated : 02.01.2019 CORAM: THE HONOURABLE MR. JUSTICE T.S.SIVAGNANAMANDTHE HONOURABLE MR. JUSTICE N. SATHISH KUMAR Tax Case Appeal Nos.310 and 311 of 2011 The Director of Income Tax,Exemption, Chennai - 34. ...Appellant in both Appeals -vs- United Way of ChennaiPark View, 3rd Floor,Old No.85, New No.94,G.N.Chetty Road,T.Nagar, Chennai 17. ...Respondent in both Appeals Tax Case Appeals filed under Section 260A of the Income Tax Act,1961 against the order of the Income Tax Appellate Tribunal 'B'Bench, Chennai dated 12.01.2011 passed in ITA Nos.1993 and1994/Mds/2010 for the assessment year 2009-10, Appeal againstthe order of the Income Tax Appellate Tribunal “B”Bench Chennaidated 12/01/2011 in ITA.NO.1994/mas/2010 Assessment year 2009-2010 and dated 12/01/2011 in ITA.NO.1993/mas/2010 Assessmentyear 2009-2010(PAN.NO.AAAAU26195) For Appellant: Mr.J.NarayanasamyFor Respondent : Mrs.Sree Lakshmivalli Judgment of the Court was delivered by T.S.Sivagnanam, J.] These appeals by the Revenue are filed under Section260A of the Income Tax Act, 1961 (for short the "Act") againstthe order dated 12.01.2011 passed by the Income Tax AppellateTribunal 'B' Bench in ITA Nos.1993 and 1994/Mds/2010 for theassessment year 2009-10. https://hcservices.ecourts.gov.in/hcservices/ 2. These Appeals have been admitted on the followingSubstantial Question of Law:- "Whether on the facts and circumstances ofthe case, the Tribunal was right in finding thatthe assessee is entitled to the benefitsavailable under Section 12AA and Section 80Gcontrary to the proviso of Section 2(15) of theI.T.Act?" 3. Heard Mr.J.Narayanasamy, learned Senior Standing Counselfor the appellant/Revenue and Mrs.Sree Lakshmivalli, learnedcounsel for the respondent. 4. The Tribunal has set aside the order passed by theDirector of Income Tax (Exemptions) (for short, "DIT"), dated30.09.2010 rejecting the claim made by the assessee forregistration under Section 12AA of the Act on the ground thatthe activities of the assessee as contained in the Memorandumcannot be called as charitable in nature as defined underSection 2(15) of the Act. The DIT in the order dated 30.09.2010came to such a conclusion solely based on Clause xvi of theRules and Regulations of the respondent and held that it speaksabout conducting programmes for raising funds or otherwise. TheDIT observed that the term 'otherwise' is vague and cannot becalled as charitable purpose. The Tribunal while deciding thecorrectness of the said order, in our considered view, rightlyheld that the expression 'otherwise' has to be read along withthe objects enumerated in the Rules and Regulations of theAssessee, which was found to be charitable in nature and ofpublic cause. It would be well open to the Assessing Officer totake note of the same while completing the assessment. Thus, inour considered view, the order passed by the Tribunal isperfectly legal and valid. 5. In the result, the appeals filed by the Revenue aredismissed. The substantial question of law is answered againstthe Revenue. No costs. Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar svki To 1.The Income Tax Appellate Tribunal 'B' BenchMadras. 2 The Director of Income Tax(Exemptions)Ayakar Bhawan, Annexe III Floor,NO.121 M.G Road, Nungambakkam, Chennai 600 034. +1cc to Mr.J.Narayanasamy, Advocate sr.no.151+1cc to Mr.N.Muthukumar, Advocate sr.no.229T.C.A.Nos.310 and 311 of 2011nr 19/03/2019