2012 (6) TMI 240 - AT - Income Tax

Registration u/s 12A - denial on ground that welfare of dogs and taking care of sick animals do not fall under the purview of Section 2(15) - Held that - Whilst the charitable sector is enormous and very diverse, the aims of each and every charity, whatever their size, must be for public benefit. Public benefit is therefore central to the work of all charities. Thus, advancement of animal welfare directed towards prevention or suppression of cruelty to animals or prevention or relief of suffering by animals are nothing but charity. This would definitely, fall within the object of general public utility . Order of the CIT is quashed and he is directed to grant assessee registration sought u/s 12A - Decided in favor of assessee.

Summary

Issues:
Denial of registration under Section 12A of the Income-tax Act, 1961 by the Commissioner of Income Tax-I, Coimbatore based on the charitable purpose of the Trust related to welfare of dogs and taking care of sick animals.

Analysis:
The assessee-Trust applied for registration under Section 12A of the Act, with the main objects focusing on helping orphan children, providing free food to the hungry and poor, offering medical treatment and food to animals, and various other charitable activities. The Commissioner of Income Tax-I, Coimbatore, denied registration citing that the welfare of dogs and care for sick animals did not align with the charitable purpose as defined in Section 2(15) of the Act. The CIT's narrow interpretation led to the refusal of registration based on the specific objects related to animals in the Trust's deed.

The appeal before the Appellate Tribunal challenged the CIT's decision, arguing that the welfare of dogs and care for sick animals should be considered charitable under Section 2(15) of the Act. The Tribunal examined the broader concept of "charitable purpose," emphasizing that charities must serve the public benefit and that public benefit is central to charitable work. The Tribunal highlighted the importance of public benefit in determining charitable status and the special nature of charities in society.

The Tribunal referred to the Charities Act, 2006 of the United Kingdom, which includes the advancement of animal welfare as a charitable purpose. It emphasized that activities directed towards preventing cruelty to animals or relieving their suffering are considered charitable. Associations promoting kindness, providing veterinary care, and re-homing mistreated animals are extensions of charities serving general public utility. Therefore, the Tribunal concluded that the Trust's objects related to animal welfare fell within the scope of "general public utility" and should be considered charitable under Section 2(15) of the Act.

As a result, the Tribunal set aside the CIT's order and directed the grant of registration sought by the assessee-Trust under Section 12A of the Income-tax Act, 1961. The appeal filed by the assessee was allowed, overturning the denial of registration based on the charitable purpose related to animal welfare activities.