ITA No. 1113/Hyd./13. Case: St. Joseph Academy Vs Director of Income Tax. ITAT (Income Tax Appellate Tribunal)
| Case Number | ITA No. 1113/Hyd./13 |
| Counsel | For Appellant: S. Rama Rao and For Respondents: P. Soma Sekhar Reddy, DR |
| Judges | P.M. Jagtap, Member (A) and Saktijit Dey, Member (J) |
| Issue | Income Tax Act, 1961 - Sections 11, 12, 12A, 12AA, 13, 13(1), 13(1)(b), 2(15) |
| Judgement Date | August 27, 2014 |
| Court | ITAT (Income Tax Appellate Tribunal) |
Order:
P.M. Jagtap, Member (A), (ITAT Hyderabad 'A' Bench)
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This appeal filed by the assessee is directed against the order of the learned Director of Income-tax(Exemption) Hyderabad dated 19.3.2013, whereby he rejected the application filed by the assessee for registration under S. 12AA of the Income Tax Act, 1961.
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The assessee in the present case is a society which filed application for registration under S. 12AA of the Act to the learned Director of Income-tax(Exemption) on 20.9.2012 in the prescribed form, viz. Form No. 10A. On perusal of the details furnished by the assessee in support of the said application, the learned Director of Income-tax(Exemption) found that one of the main aims and objects of the assessee society was as under-
"1. To organize and to establish schools, College Training institutions, Hospitals, Orphanages, Hostels and boarding house for the promotion of elementary education, higher education, Technical, Vocational, Professional education for the benefit of Christian minority community in particular and others in general."
According to the learned Director of Income-tax(Exemption), going by the specific emphasis laid on a particular community in the last part of the aforesaid object clause, the assessee society was established mainly for the benefit of that particular community and the same therefore, could not be considered as a public charitable institution, as held by the Hon'ble Supreme Court in the case of Kamala Town Trust (217 ITR 699), He also noted from the relevant rules and regulations of the assessee society that the Principal of the school run by the assessee society was to be appointed only from Christian community. He held that such specific stipulation made in the relevant rules and regulations for appointing the Principal only from a particular community again was sufficient to show that the assessee society was established for the benefit of a particular community and it, therefore, could not be considered as a public charitable institution eligible for registration under S. 12AA of the Act. Accordingly, the application filed by the assessee for such registration was rejected by the learned Director of Income-tax(Exemption).
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Aggrieved by the order of the learned Director of Income-tax(Exemption), assessee has preferred this appeal before the Tribunal.
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As noted at the outset, there is a delay of 72 days on the part of the assessee in filing this appeal before the Tribunal. In this regard, an application has been filed by the assessee alongwith an affidavit of its President seeking condonation of the said delay. Keeping in view the reasons stated therein, we are satisfied that the delay of 72 days on the part of the assessee in filing this appeal is for sufficient cause. Even the learned Departmental Representative has not raised any objection in this regard. The said delay is, therefore, condoned and the appeal of the assessee is being disposed of on merits.
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On merits, the learned counsel for the assessee submitted that the assessee society was established not only for the benefit of the Christian minority...
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