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2015 (10) TMI 15 - ITAT CHENNAI

2015 (10) TMI 15 - ITAT CHENNAI - [2015] 42 ITR (Trib) 454 (ITAT [Chen]) - Eligibility for claiming exemption under section 11 - it was submitted that the assessee is carrying religious activities - religious activities v/s charitable activities - Held that:- The assessee has not carried any activity relating to the objects as enumerated for the purpose of which the assessee is incorporated. The assessee has not incurred single paise for the purpose of charitable activities. The assessee itself .....

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equently, on 13.03.2014, the assessee has corrected the mistake in the amended fifth clause and submitted before the ld. DIT(E), Chennai. However, we have not find any reference with regard to the correct fifth clause either from the assessment order or from the order of the ld. CIT(A). Even before us, the assessee has not filed any revised order passed by the ld. DIT(E). As on the date, as per the certificate dated 30.07.2004 vide DIT(E) No. 2(845)/03-04 issued by the ld. DIT(E), the assessee i .....

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the order passed by the ld. CIT(A).

In the present case, the assessee is registered as a public charitable trust and the assessee carried only religious activities and no charitable activities are carried out. Therefore, having registered under section 12AA of the Income Tax Act, 1961 as a Public Charitable Trust, the assessee cannot claim benefit under section 11 carrying any charitable activities. For the religious activities carried by the assessee, no approval from the DIT(E) has .....

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and 2011-12. 2. Brief facts of the case are that the assessee company was initially incorporated under section 25 of the Companies Act on 05.12.2002 vide CIN U91990TN2002NPL049996 with following objects: 1. To undertake charitable activities of all kinds including but not limited to providing medical and educational relief, work towards social causes, aid in upliftment of common man. 2. To strive for the relief of all persons who are in conditions of need, hardship, age or sickness in India. 3. .....

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clude the fifth main object to be: 5. To sponsor religious television and radio programs, sponsor contents for the World Wide Web and to profess religion through all forms of media. 4. Thereafter, the assessee filed an application before the ld. DIT (Exemptions) as per the MoA along with Form No. 10A dated 12.02.2004 with the following objects: 1. To undertake charitable activities of all kinds including but not limited to providing medical and educational relief, work towards social causes, aid .....

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for the world wide web through all forms of media. 5. The ld. DIT(E), by considering the objects of the assessee, issued a certificate dated 30.07.2004 vide DIT(E) No. 2(845)/03-04 as the assessee company is registered as Public Charitable Trust to be charitable trust under section 12AA of the Income Tax Act, 1961. 6. For the year under consideration, the assessee has claimed exemption under section 11 of the Act, 1961. The Assessing Officer denied the claim of the assessee on the ground that t .....

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eligious aspect and obtained registration under section 12A of the Act, he computed the total taxable income of _.1,14,49,605/- by denying the claim of the assessee under section 11 of the Income Tax Act, 1961. 7. The assessee carried the matter in appeal before the ld. CIT(A). Before the ld. CIT(A), it was submitted that the assessee is carrying religious activities and eligible for claiming exemption under section 11 of the Act. The ld. CIT(A) has asked the assessee to explain the nature of ac .....

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fully and exclusively engaged in propagating activities and faith of Christianity. The ld. CIT(A) has also observed that the assessee is squarely fitting within the striking zone of section 13(1)(b) of the Income Tax Act and held that the assessee is not eligible for claiming exemption under section 11 of the Act. 8. On being aggrieved, the assessee carried the matter in appeal before the Tribunal. 9. The ld. Counsel for the assessee has submitted that the assessee is a religious organization a .....

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ganization. Therefore, the assessee cannot claim now as a religious organization eligible for exemption under section 11 of the Act. 11. We have heard both sides, perused the materials on record and gone through the orders of authorities below. The assessee Angel Christian Charitable Foundation India originally incorporated as a company under section 25 of the Companies Act on 05.12.2002 with following four objects: 1. To undertake charitable activities of all kinds including but not limited to .....

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d refugees. Subsequently, the assessee got approval from the Ministry of Corporate Affairs under section 25(8) of the Companies Act, 1956 dated 31.10.2003 by including fifth clause as under: 5. To sponsor religious television and radio programs, sponsor contents for the World Wide Web and to profess religion through all forms of media. The assessee has filed an application before the ld. DIT (Exemptions) as per the MoA along with Form No. 10A dated 12.02.2004 with the following objects: 1. To un .....

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s, hostels, boarding houses, hospitals, homes for the weaker sections and refugees. 5. To sponsor television and radio programs, sponsor contents for the world wide web through all forms of media. The ld. DIT(E), by considering the above objects, issued a certificate by order dated 30.07.2004 as the assessee company is registered as a public charitable trust under section 12AA of the Act. 12. After careful consideration of the assessment order, we find that the assessee has not carried any activ .....

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tion under section 11 of the Act. The assessee, in his written submission, has submitted that there was a mistake occur while filing MoA along with Form No. 10A before the ld. DIT(E) on 12.02.2004. Subsequently, on 13.03.2014, the assessee has corrected the mistake in the amended fifth clause and submitted before the ld. DIT(E), Chennai. However, we have not find any reference with regard to the correct fifth clause either from the assessment order or from the order of the ld. CIT(A). Even befor .....

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