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TMI Blog2013 (6) TMI 402X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egistration under S.12AA. A detailed questionnaire was issued vide letter dated 27.3.2012 to the assessee Society requesting to furnish details on specific points and to produce books of account, details and vouchers for different accounting years for verification. At the time of hearing before the Director of Income-tax(Exemption), it was submitted by the Authorised Representative that the objectives of the society are to run Annadana Sathram, 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 the social service for improving the living conditions and work for general welfare of the poor irrespective of caste, creed and colour. It was fur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee- society has no control over the building constructed by them on that land over which the actual control lies with Devasthanam and moreover, they are also accountable for their receipts etc. to the Devasthanam authorities. The Director of Income-tax(Exemption) further noted that as per clause 4 of the agreement, the President shall comply with the directions or orders given by the Executive Officer or Officers of Endowment Department having jurisdiction, regarding the details of management such as collection of charges from pilgrims, etc. In short, the Director of Income-tax(Exemption) was of the view that the entire control and management of the building constructed by the assessee was with the Devasthanam authorities, and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her hand, strongly relied on the order of the Director of Income-tax(Exemption). 7. We heard both sides. In our considered view, the rejection of assessee's application for registration under S.12AA is misconceived. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uthority under the Endowments Department of the State Government, having control over the land and activities in the area, which has allotted the land to the assessee-society to pursue it activities which are of charitable nature, for the facility of the pilgrims and general public. 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. In the circumstances of the case, the objection of the Director of Income-tax(Exemption) with regard to control of the Devasthanam over the management and activities of the assessee-society, is also not s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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