VIDYA MANDIR TRUST Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This Tax Case (Appeal) by the assessee is directed against the order passed by the Income Tax Appellate Tribunal, Chennai Bench 'D' dated 18.04.2013 in I.T.A.No.501/MDS/2010. The assessee seeks admission of the Tax Case (Appeal) on the following questions of law: - "1. Whether on the facts and circumstance of the case, the Appellate Tribunal is right in law in holding that the respondent Commissioner has the authority u/s.12 AA(3) of the Income Tax Act to cancel the registration granted to the appellant trust u/s.12A of the Income Tax Act during 1973. 2. Whether on the facts and circumstance of the case the order of the Appellate Tribunal confirming the order passed by the Commissioner cancelling the registration granted to the appellant trust is sustainable and justifiable in law."

(2.) The assessee association was originally in the name and style of "Sri Vidya Mandir". The facts which are necessary for the disposal of this appeal are that the association by name Sri Vidya Mandir Association was registered under the provisions of the Societies Registration Act -Act No.21/1860 in S.No.267/1971 dated 30.04.1971 on the file of the Registrar of Assurances, Salem District. The object of the said association was to promote and advance the educational, medical, social and moral welfare of the people in general; to establish, maintain and manage colleges, schools and other educational institutions and libraries for the advancement of knowledge in any subject or language and to establish, maintain and manage any institution for imparting technical knowledge in any handicrafts or industries etc. Subsequently, the assessee association was formed by a deed of trust dated 19.01.1972 registered as Document No.328/1972. The objects of the assessee trust as could be seen from the trust deed was that "donors" were desirous of setting up of a "trust" with the properties mentioned in Schedule A to D for the aim and purposes for which the Sri Vidya Mandir was registered under the Societies Registration Act 21/1860 as S.No.267/1971 and has been formed for the purpose of running educational institutions and other allied institutions mentioned in detail in the Memorandum and Articles of Association of Sri Vidya Mandir and also for the purpose of carrying out the object of Sri Vidya Mandir so as to enable the said Association to carry out its objects according to the direction and wishes of the trust.

(3.) The assessee trust viz., "Sri Vidya Mandir Trust", which was formed in 1972, applied for registration under Section 12A(a) of the Income Tax Act, 1961(hereinafter called as the "Act"). The Commissioner, on being satisfied that the assessee is entitled for such registration, granted registration under the said provision. The Society viz.,"Sri Vidya Mandir", which was registered under the provisions of the Societies Registration Act was converted into Trust called as "Sri Vidya Mandir Association" by a deed dated 07.09.1987. Certain members of the assessee trust were also the members of the newly formed association. In terms of the registered trust deed of Sri Vidya Mandir Association dated 07.09.1987, wherever, the words "Sri Vidya Mandir Association" have occurred in Sri Vidya Mandir Trust or in Sri Vidya Mandir Foundation or in Sri Vidya Mandir Association registered under the Societies Registration Act XXI of 1860 with S.No.267 of 1971 or in any other context shall be known and followed and recognised as Sri Vidya Mandir Association registered under the Trust Deed dated 07.09.1987. That apart all the properties movables and immovables assets and liabilities of the Association registered under the Societies Registration Act XII of 1860 with S.No.267 of 1860 shall vest in Sri Vidya Mandi Association, registered under the Trust deed dated 07.09.1987.