Commissioner of Incometax v. Sarvodaya Ilakkiya Pannai

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The Tax Publishers2012 TaxPub(DT) 1817 (Mad-HC) : (2012) 343 ITR 0300 : (2012) 206 TAXMAN 0115 IN THE MADRAS HIGH COURT D. MURUGESAN & P.P.S. JANARTHANA RAJA, JJ. CIT v. Sarvodaya Ilakkiya Pannai Tax Case Appeal No. 641 of 2011 A.Ys. 2008-09 to 2010-11 25 January, 2012 Once Commissioner grants registration to a trust under section 12AA(1)(b)(ii) after satisfying himself about activities of trust, such a registration cannot be cancelled by following very same provision of section 12AA(1)(b) to go into genuineness of activities of trust Section 12AA of the Income-tax Act, 1961 - Charitable or religious trust - Registration procedure - Assessment years 2008-09 to 2010-11 Appellant by : T. Ravi Kumar, JUDGMENT *D. Murugesan, J.* This Tax Case Appeal is at the instance of the Commissioner of Income Tax, Madurai, questioning the order dated 30-6-2011 passed by the Income Tax Appellate Tribunal in I.T.A.No.594/MDS/2011, by raising the following substantial questions of law. (i) Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in holding that the registration granted to the assessee under section 12A(a) would hold good, even though the assessees main object in publication, purchase and sale of books which are not definitely charitable activity and the activities are purely a commercial venture with profit motive is valid? (ii) Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in not considering the aggregate value of the receipts for the assessment years 2008-09, 2009-10 and 2010-11 exceeds the limit specified in Second proviso and hence first proviso does not apply to the facts of the case is valid? 2. The respondent Sarvodaya Ilakkiya Pannai is a Society and was granted registration by the Commissioner of Income Tax, Madurai vide his order dated 6-11-1989 under section 12A(a) of the Income Tax Act. The object for which the Trust was registered was to effect publication and sale of Sarvodaya Literature as also the Gandhian and Sarvodaya ideoloigies. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2012 TaxPub(DT) 1817 (Mad-HC) : (2012) 343 ITR 0300 : (2012) 206 TAXMAN 0115

IN THE MADRAS HIGH COURT

D. MURUGESAN & P.P.S. JANARTHANA RAJA, JJ.

CIT v. Sarvodaya Ilakkiya Pannai

Tax Case Appeal No. 641 of 2011

A.Ys. 2008-09 to 2010-11

25 January, 2012

Once Commissioner grants registration to a trust under section 12AA(1)(b)(ii) after satisfying himself about activities of trust, such a registration cannot be cancelled by following very same provision of section 12AA(1)(b) to go into genuineness of activities of trust

Section 12AA of the Income-tax Act, 1961 - Charitable or religious trust - Registration procedure - Assessment years 2008-09 to 2010-11

Appellant by : T. Ravi Kumar,

JUDGMENT

D. Murugesan, J.

This Tax Case Appeal is at the instance of the Commissioner of Income Tax, Madurai, questioning the order dated 30-6-2011 passed by the Income Tax Appellate Tribunal in I.T.A.No.594/MDS/2011, by raising the following substantial questions of law.

(i) Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in holding that the registration granted to the assessee under section 12A(a) would hold good, even though the assessees main object in publication, purchase and sale of books which are not definitely charitable activity and the activities are purely a commercial venture with profit motive is valid?

(ii) Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in not considering the aggregate value of the receipts for the assessment years 2008-09, 2009-10 and 2010-11 exceeds the limit specified in Second proviso and hence first proviso does not apply to the facts of the case is valid?

2. The respondent Sarvodaya Ilakkiya Pannai is a Society and was granted registration by the Commissioner of Income Tax, Madurai vide his order dated 6-11-1989 under section 12A(a) of the Income Tax Act. The object for which the Trust was registered was to effect publication and sale of Sarvodaya Literature as also the Gandhian and Sarvodaya ideoloigies.