2018 (12) TMI 1148 - HC - Income Tax

Registration u/s 12AA and approval u/s 80G - Held that - Tribunal after analyzing the objectives of the trust found it to be for the purpose of helping others irrespective of caste creed and religion and the object was to provide education and the object was found to be philanthropic. Revenue has not been able to dislodge the finding given by the Tribunal with any admissible material. Therefore we are of the considered view that the order passed by the Tribunal is just and proper and does not call for any interference. Substantial Question of Law is answered against the Revenue.

Summary

Issues:
- Appeal against the order of the Income Tax Appellate Tribunal under Section 260-A of the Income Tax Act, 1961.
- Substantial Question of Law: Whether the Tribunal can direct the appellant to grant registration under Section 12AA and approval under Section 80G and to go beyond the legislation to grant registration?

Analysis:
1. The Tax Case Appeal was filed by the Revenue challenging the order of the Income Tax Appellate Tribunal, Madras 'C' Bench, dated 03.11.2010 in ITA No.1417/Mds/2010 under Section 260-A of the Income Tax Act, 1961. The appeal was admitted based on the Substantial Question of Law regarding the Tribunal's authority to direct registration under Section 12AA and approval under Section 80G beyond the legislation's scope.

2. The Tribunal had set aside the rejection of the respondent's application for registration under Section 12AA of the Act. The appellant contended that the trust's objective clause aimed at profiting a particular religion, making it ineligible for registration under Section 12AA and benefits under Section 80G. Consequently, the application for registration under Section 12AA was rejected, leading to the rejection of the application for exemption under Section 80G.

3. Upon appeal to the Tribunal, it analyzed the trust's objectives and concluded that the trust's purpose was philanthropic, focusing on helping others regardless of caste, creed, or religion. The Tribunal emphasized that the spirit of Christ, as reflected in the trust's activities, was about helping others without regard to religious distinctions. The Tribunal found no admissible material to dispute this conclusion, leading to the dismissal of the Revenue's appeal.

4. The Tribunal's decision was upheld, stating that the order was just and proper, warranting no interference. Consequently, the appeal filed by the Revenue was dismissed, and the Substantial Question of Law was answered against the Revenue. The judgment concluded by dismissing the appeal without costs.

In summary, the High Court upheld the Tribunal's decision, emphasizing the philanthropic nature of the trust's objectives and its alignment with the spirit of helping others without regard to religious affiliations. The Court found no grounds to interfere with the Tribunal's ruling, leading to the dismissal of the Revenue's appeal.