TaxTMI 
TaxTMI 
2025 (8) TMI 1370
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....) of the Income Tax Act, 1961 ("the Act" in short) seeking approval u/s. 80G of the Act. 2. The assessee raised the following grounds of appeal: 1. The order of the Commissioner of Income Tax (Exemptions) [CIT] is against the law, the facts and circumstances of the case and the principles of equity and natural justice. 2. The CIT ought to have given the appellant sufficient opportunity of being heard. The CIT ought to have given an opportunity to the appellant to demonstrate why the case of the appellant falls within the definition of section 2(15). 3. The CIT failed to appreciate that all the particulars called for by him vide his notice dated 25.11.2024 were materials on record. Further details were also file....
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....l. 3. Brief facts are that the assessee, TVS Charities was established on 28.12.1955 for the purpose of providing education, medical assistance and relief to the poor. The assessee states that it had filed an application in Form 10AB under clause (iii) of first proviso to section 80G of the Income Tax Act, 1961 on 29.06.2024 seeking approval under the said section. The assessee states that a show cause notice was issued by the Commissioner of Income Tax (Exemptions) ['CIT(E)'] on 20.09.2024 requiring the assessee to furnish detailed note on the activities actually carried out by the trust. Further in the said notice, the 'CIT(E)' also required the assessee to file certain details/documents as mentioned therein on or before 07.10.2024. Th....
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....ore, he invoked principles of mutuality also and treated the assessee trust as not charitable. Now, the assessee is in appeal before us against the order of the Ld.CIT(E). 5. The Ld. Counsel for the assessee contended regarding utilization of funds for the payment of Income Tax is to be treated as application of its income for the charitable purposes. At the outset, the Ld. Counsel for the assessee relied upon the judgment of the jurisdictional High Court in the case of CIT v. Janaki Animal Ayya Nadar Trust reported in [1985] 23 Taxman 416 (Madras). For the second issue i.e. relating to principles of mutuality, the Ld. Counsel for the assessee referred Page Nos.17 & 18 of the Paper Book which enumerates 'notes on activities of the ....
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....rinciples of mutuality and not charity. 7. Per contra, the CIT-DR, Ms.E. Pavuna Sundari, has relied upon the impugned order especially Para No.4.1 and contended that the impugned order may kindly be upheld and appeal of the assessee be dismissed. 8. We have heard rival submissions and perused the Paper Book and case laws cited by the Ld. Counsel for the assessee. We find that the issue relating to application of entire income for payment of Income Tax is squarely covered by the jurisdictional High Court judgment in the case of CIT v. Janaki Animal Ayya Nadar Trust reported in [1985] 23 Taxman 416 (Madras) which held as under: 11. The income determined for the assessment year was Rs. 69,152. During that year a sum of Rs. 1,21,....
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....es. 10. Regarding the second issue i.e. doctrine of mutuality, we are of the considered view that the Ld.CIT(E) without going into the activities and objects of the trust has made sweeping general remark that the object of the society is for the benefit of a specific group of people and not for general public. We note that the Ld.CIT(E) even didn't see the 'Memorandum of Association of TVS Charities and Rules & regulations of TVS Charities' [Page Nos.24 & 26 of the Paper Book] which reads as under: 3. The Income funds and property of the Society whencesoever derived shall be held as a firm and binding trust for, and applied solely to, charitable purposes and no portion thereof shalt be paid or transferred directly or indirectly ....