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2013 (6) TMI 402 - AT - Income TaxRegistration under S.12AA denied - Held that:- It is an undisputed fact that the objects of the assessee society are to run an Annadana Satram, including poor feeding, to run a library, to work for charities for the benefit and upliftment of economically backward and down trodden people and to do social service for improving the living conditions and work for general welfare of the poor irrespective of caste, creed and colour. For carrying on its activities in pursuance of these objects, it is not necessary or imperative for the applicant society to be owner of the land or the building which is constructed on it. Therefore, the first objection of the DIT(Exemption) that the assessee society has merely been permitted to make construction on the land allotted and had no property of its own, is not valid, since ownership over the property does not in any way disturb the otherwise charitable nature of the assessee society. Notwithstanding such a condition stipulated by the devasthanam authorities, when the assessee is carrying on its activities in pursuance of its objects, which undisputedly are charitable in nature, assessee cannot be denied registration. Since the land was allotted by an authority for a specific purpose, certain conditions have been stipulated by the said authority to monitor and regulate the activity of the Society, to ensure that the objects for which land has been allotted are being pursued. Thus the objection of the DIT(E) with regard to control of the Devasthanam over the management and activities of the assessee-society, is also not sustainable. Even with regard to the last objection for rejection that the membership of the assessee-society is limited to Hindus considering relevant clause from the Rules and Regulations of the assessee society, prescribing the qualification to be a member, as extracted by DIT(Exemption) indicates that membership is open to 'a Hindu having full faith in Hindu Dharma, Samskruti and way of life'. Thus nothing wrong in the said clause, which disqualifies the assessee from being eligible to registration under S.12AA Thus no justification in denying registration to the assessee society. In favour of assessee.
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