GOWRI ASHRAM Vs. DIRECTOR OF INCOME-TAX

JUDGEMENT

(1.) Being aggrieved by the order of Tribunal in I.T.A.No.1504/Mds/2012 dated 09.10.2012, the assessee has filed this appeal raising the following question of law:-

(2.) The assessee Gowri Ashram, Tiruvottiyur, Chennai is a society, registered under Tamil Nadu Societies Registration Act, 1975. The assessee society is governed by a Scheme Award framed by the District Court, Tiruvallur. The assessee Trust filed an application for registration under Section 12AA of the Act. In the said proceedings, the Director of Income-tax (Exemptions) noticed from the assessee's income and expenditure account that it had offered income under the head rental income from the shops let out as well as it got certain collections from the Kalyana Mandapam owned by it. Before the DIT (Exemptions), the assessee claimed that the main object of the Society is to provide accommodation and facilities to poor and needy for the performance of functions and ceremonies and for temporary sheltering. Rejecting the contentions of the assessee, DIT(Exemptions) held that the assessee Trust is maintaining Kalyana Mandapam, which is definitely a commercial venture. DIT(Exemptions) also held that the receipt of rental income from the Kalyana Mandapam and from 21 shops, which are situated in the ground floor of the Kalyana Mandapam has been confirmed by the assessee and that all the income and expenditure are relatable to the maintenance of Kalyana Mandapam and shops and that the shops and activities are not in conformity with the definition of charitable objects under Section 2(15) and rejected the application filed for registration under Section 12AA.

(3.) Being aggrieved by the rejection of the application, the assessee preferred appeal before the Appellate Tribunal. Referring to the objects in the Scheme Award, Tribunal held that the assessee Society has to provide accommodation and facilities for performance of marriages and all other auspicious functions of members of a particular community, viz., Telugu Beri Vysia Community, primarily and also for performance of similar functions by a religious group and that the objects of the Society do not come under the purview of Section 2(15) of the Act and dismissed the appeal of assessee.