TMI Blog2010 (11) TMI 478X X X X Extracts X X X X X X X X Extracts X X X X ..... eligible for the benefit of section 11 of the Act - Decided in the favour of the assessee by way remand - IT APPEAL NO. 336 (HYD.) OF 2009 - - - Dated:- 26-11-2010 - G.C. GUPTA, CHANDRA POOJARI, JJ. S. Rama Rao for the Appellant. Smt. Vasundhara Sinha and Amlan Tripathi for the Respondent. ORDER G.C. Gupta, Vice President. This appeal by the assessee is directed against the order of the Commissioner of Income-tax, Tirupati, refusing registration under section 12A of the Income-tax Act, 1961 to the assessee. 2. Grounds of appeal of the assessee in this appeal are as under- "(1) The order of the Commissioner of Income-tax Tirupati is bad in law and against all cannons of equity and natural justice. (2) The l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, if the other conditions for grant of exemption are satisfied. He referred to the provisions of section 12A of the Act, which applies to income of any trust or institution and conditions laid down therein refer to any 'person' who was in receipt of income, who can make an application for registration of the trust or institution in the prescribed form to the Commissioner of Income-tax before the specified date. He submitted that there is no provision in law to restrict the benefit of section 11 to a 'Trust' only. The learned counsel for the assessee submitted that various assessees formed as companies have been allowed registration under section 12A of the Act, namely, Hyderabad Race Club, A.P. State Civil Supplies Corporation and A.P. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... competent authority dated 19-9-2008. The assessee company applied for registration under section 12A of the Act, with Commissioner of Income-tax, Tirupati. The application of the assessee company for registration under section 12A of the Act was rejected by the Commissioner of Income-tax, Tirupati. We find that the only reason advanced by the Commissioner of Income-tax while refusing registration under section 11 of the Act was that the assessee was a private limited company incorporated for producing religious feature films, serials, etc. for Tirumala Tirupati Devasthanam and therefore, the assessee does not qualify for registration under section 12A of the Act. We find that there is no provision in the Income-tax Act or Rules made thereu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not apply in relation to the income of any trust or institution, unless the assessee fulfils the conditions provided therein for registration under section 12A of the Act. The provision of section 12AA of the Act provide for procedure for registration under section 12A of the Act. The word 'institution' has not been defined anywhere in the Income-tax Act, 1961. Hence, we have to go by the general meaning of the same. As per Oxford Dictionary (online), the word 'institution' has been explained to mean- "institution Pronunciation:/insti'tju:(()n/noun l 1 an organization founded for a religious, educational, professional, or social purpose l an organization providing residential care for people with special needs: about 5 per c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ose" includes relief of the poor, education, medical relief, and the advancement of any other object of general public utility ; 6. Thus the test whether an assessee could be registered under section 12A of the Act is not the status of the 'person', but whether the person (assessee) was established for charitable or religious purpose. The 'company', being a person in accordance with the Scheme of the Act is entitled to the benefit of section 12A of the Act, with regard to exemption of its income and the registration under section 12A of the Act being a pre-condition to avail the benefit of exemption provided under section 11 of the Act, harmonious interpretation would be that the company is also entitled to registration under the provisio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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