By TIOL News Service

CHENNAI, DEC 31, 2012: THE issue before the Bench is - Whether welfare of dogs and taking care of sick animals is covered under the meaning of 'Charitable purpose' u/s 2(15). And the answer goes in favour of assessee.

Facts of the case

Assessee is a trust seeking registration u/s 12A for availing various benefits under the Income Tax Act, 1956. The main objects of the Trust was to help the orphan children, to provide free food to the hungry and poor people and o give medical treatment and food to the animals left in the streets, Food for all combines, conducting Animal Birth Control Program and Anti Rabies Vaccination and to carryout Animal Adoptions Rescue Operations, Humane Education Programmes etc. CIT(A) had rejected the assesee's plea on the ground that, the objects of the trust were not in consonence with sec 2(15), 'charitable purpose'. It had filed appeal to ITAT against the order of CIT(A), for granting registration u/s 12A.

In the appeal before ITAT, AR strongly assailing the order of CIT, submitted that the CIT had taken a very narrow interpretation of the term “charitable purpose” defined in Section 2(15). The only reason cited by the CIT for denying registration was that welfare of dogs and taking care of sick animals did not fall under the purview of said Section. According to him, dogs were best friends of man and taking care of dogs and sick animals was definitely charitable and CIT fell in gross error in denying registration.

Having heard the parties, the Tribunal held that,

++ apart from the items mentioned in section 2(15) which are to be invariably considered charitable, there could be other items of charity also, as per the normal connotation. The core characteristic is public benefit. Only organisations with aims that are charitable for public benefit are accorded the charity label;

++ as per the provisions of the Charities Act, 2006, advancement of animal welfare directed towards prevention or suppression of cruelty to animals or prevention or relief of suffering by animals are nothing but charity. Associations promoting kindness and preventing or suppressing cruelty to animals, associations providing veterinary care and treatment, associations concerned with care and rehoming of animals that are abandoned or mistreated or lost, associations doing ferine animal control, are extension of charities. This would definitely, in our opinion, fall within the object of “general public utility”;

++ the CIT fell in error in refusing registration under Section 12A of the Act. Order of the CIT is quashed and he is directed to grant assessee registration sought under Section 12A of the Act.

(See 2012-TIOL-790-ITAT-MAD)