Case Law Details
Our Lady of Hope Church Vs CIT (ITAT Pune)
In the case of Our Lady of Hope Church versus CIT (ITAT Pune), the Income Tax Appellate Tribunal (ITAT) Pune considered the rejection of the application for registration under Section 12AB of the Income Tax Act and the cancellation of provisional registration granted to the applicant trust by the Commissioner of Income Tax (Exemptions) [CIT(E)]. The tribunal observed that while the CIT(E) had highlighted specific clauses of the trust deed that seemed to benefit a particular community or religion, the entire trust deed needed to be considered comprehensively. It was noted that although certain clauses appeared to cater to the Christian community, others indicated a broader scope of charitable activities aimed at the entire target group of Ghormal District of Maharashtra, irrespective of caste, religion, or creed.
The tribunal emphasized that the CIT(E) should have evaluated the entire trust deed in conjunction with the actual charitable activities conducted by the trust to determine whether it solely served the Christian community or provided benefits to the broader community. Additionally, the tribunal addressed concerns raised by the trust regarding the administrative control of the Archbishop of Mumbai, clarifying that such control pertained to the internal administrative framework and did not negate the trust’s charitable activities benefiting society at large.
Regarding rental income earned by the trust, the tribunal noted that the CIT(E) had merely mentioned it appeared to be of a commercial nature without further elaboration. The tribunal emphasized that the CIT(E) must assess the genuineness of the trust’s activities and compliance with applicable laws at the time of assessment, rather than at the time of granting registration.
Ultimately, the tribunal set aside the order of the CIT(E) and remanded the matter for further examination to ensure adequate evaluation of the trust’s charitable activities and compliance with relevant laws. The trust was directed to provide all necessary documents and comply with hearing notices, and the CIT(E) was instructed to conduct a fresh adjudication in accordance with the principles of natural justice. The appeal of the assessee was allowed for statistical purposes.
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