ITo, Thrissur V. YOungmen's Christian Association, Trichur

CO 17/COCH/2009

• Counselvise Citation: [2012] 122 COUNSELVISE.COM (IT) 6829 (ITAT-COCHIN)
• Duration Of Justice: 2 year(s) 9 month(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 06-01-2012
• Appeal Filed By: Department
• Bench Allotted: DB
• Assessment Year: 2004-2005
• Appeal Filed On: 06-04-2009
• Court: TRIBUNAL
• Department Lawyers: S VIJAYAPRABHA
• Assessee Lawyers: C V VARGHESE F
• Keywords: Charitable institution
• Section: 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI N.R.S.GANESAN, JM AND B.R.BASKAR AN, AM I.T.A NO. 67/COCH/2009 ASSESSMENT YEAR: 2004-05 I.T.O., WARD-2(3), THRISSUR VS. YOUNG MENS CHRISTIAN ASSOCIATION, TOWN HALL ROAD, TRICHUR-20 [PAN: AAAAY 0519K] (REVENUE-APPELLANT) (ASSESSEE - RESPONDENT) C.O. NO. 17/COCH/2009 & C.O. NO. 11/COCH/2011 (ASRG. OUT OF I.T.A. NO. 67/COCH/2009) ASSESSMENT YEAR: 2004-05 YOUNG MENS CHRISTIAN ASSOCIATION, TOWN HALL ROAD, TRICHUR-20 [PAN: AAAAY 0519K] VS. I.T.O., WARD-2(3), THRISSUR (ASSESSEE -APPELLANT) (REVENUE - RESPONDENT) REVENUE BY MS.S. VIJAYAPRABHA, JR. DR ASSESSEE BY SHRI C.V. VARGHESE, F.C.A. DATE OF HEARING 03/01/2012 DATE OF PRONOUNCEMENT 6/01/2012 O R D E R PER B.R.BASKARAN, ACCOUNTANT MEMBER: THE APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 31-10-2008 PASSED BY LD CIT(A)-V, KOCHI AND IT RELATES TO THE ASSESSMENT YEAR 2004-05. THE ASSESSEE HAS FILED TWO CROSS OBJECTIONS, AS CITED IN THE CAUSE T ITLE, SUPPORTING THE ORDER PASSED BY LD CIT(A). HOWEVER, BY ITS LETTER DATED 09.7.2011, TH E ASSESSEE HAS WITHDRAWN THE CROSS OBJECTION NUMBERED AS CO-11/COCH/11. ACCORDINGLY T HE SAID CROSS OBJECTION IS DISMISSED AS WITHDRAWN. I.T.A. 67/COCH/2009 2 2. IN ITS APPEAL, THE REVENUE IS ASSAILING THE DECISION OF LD CIT(A) IN HOLDING THAT THE ASSESSEE IS ENTITLED FOR EXEMPTION U/S 11 EVEN THOU GH IT IS HAVING MIXED OBJECTS, I.E., OBJECTS WHICH ARE BOTH CHARITABLE AND RELIGIOUS IN NATURE. THE REVENUE HAS ALSO FILED ADDITIONAL GROUNDS OF APPEAL, IN WHICH IT IS STATED THAT THE LD CIT(A) SHOULD HAVE OFFERED OPPORTUNITY TO THE ASSESSING OFFICER TO EXAMINE THE APPLICABILITY OF THE PROVISIONS OF SECTIONS 11 TO 13 IN THE YEAR UNDER CONSIDERATION I N THE HANDS OF THE ASSESSEE. 3. WITH REGARD TO THE APPLICABILITY OF PROVISIO NS OF SEC. 11 TO A TRUST/SOCIETY HAVING OBJECTS WHICH ARE CHARITABLE AND ALSO RELIGIOUS, TH E HONBLE JURISDICTIONAL KERALA HIGH COURT, VIDE ITS ORDER DATED 02-08-2010 IN ITA NO.11 6 OF 2010 IN THE CASE OF CIT VS. M/S MUSLIM SERVICE SOCIETY HAS HELD THAT THE EXEMPTION U/S 11 CANNOT BE DECLINED TO A TRUST/SOCIETY HAVING OBJECTS WHICH ARE CHARITABLE A ND ALSO RELIGIOUS IN NATURE. FOR THE SAKE OF CONVENIENCE, WE REPRODUCE BELOW THE ORDER P ASSED BY THE HONBLE HIGH COURT IN THE ABOVE CITED CASE. THE QUESTION RAISED IS WHETHER THE TRIBUNAL WAS RI GHT IN GRANTING EXEMPTION TO THE RESPONDENT-ASSESSEE WHICH IS A CHARITABLE SOCI ETY ENGAGED IN VARIOUS RELIGIOUS ACTIVITIES AS WELL. THE APPELLANT-REVENUE HAS NO DISPUTE THAT RESPONDENT IS ENGAGED IN CHARITABLE ACTIVITIES. HOWEVER, THE RE ASON FOR DENYING EXEMPTION U/S. 11(A) OF THE I.T. ACT IS ON THE GROUND THAT THE RE SPONDENT IS ALSO ENGAGED IN RELIGIOUS ACTIVITIES. ADMITTEDLY INCOME EARNED BY A TRUST ENGAGED IN RELIGIOUS OR CHARITABLE PURPOSE ENJOYS EXEMPTION. IF EXEMPTION IS AVAILABLE TO BOTH THESE ACTIVITIES INDEPENDENTLY WE SEE NO REASON HOW THE EXEMPTION CAN BE DECLINED TO AN INSTITUTION ENGAGED IN BOTH THE RELIGIOUS AND CHAR ITABLE ACTIVITIES. DEPARTMENT HAS NO CASE THAT INCOME OF THE TRUST IS UTILIZED FOR A NY PERSONAL BENEFITS OF THOSE IN CONTROL OF THE TRUST. IN OTHER WORDS, INCOME IS AD MITTEDLY USED FOR RELIGIOUS AS WELL AS CHARITABLE PURPOSES SO MUCH SO, WE FIND NO MERIT IN THE APPEALS FILED BY THE REVENUE AND CONSEQUENTLY ALL THE APPEALS ARE D ISMISSED. I.T.A. 67/COCH/2009 3 SINCE THE DECISION RENDERED BY LD CIT(A) IS IN ACCO RDANCE WITH THE DECISION OF JURISDICTIONAL HIGH COURT, WE DO NOT FIND ANY REASO N TO INTERFERE WITH THE SAME. 4. FROM THE ORDER OF LD CIT(A), WE NOTICE THAT THE FIRST APPELLATE AUTHORITY HAS ONLY SET ASIDE THE MATTER TO THE FILE OF THE ASSESSING OFFIC ER WITH A DIRECTION TO RECOMPUTE THE INCOME AS PER SECTION 11 R.W. SECTION 13 OF THE ACT . WE ALSO NOTICE THAT THE ASSESSEE HAS FAILED TO PRODUCE THE BOOKS OF ACCOUNTS BEFORE THE ASSESSING OFFICER. HENCE, IMPLIEDLY THE ASSESSING OFFICER WAS DIRECTED TO EXAMINE THE A PPLICABILITY OF ALL THE PROVISIONS OF SEC. 11 TO 13 OF THE ACT AND ACCORDINGLY DETERMINE THE T OTAL INCOME OF THE ASSESSEE. HENCE WE DO NOT FIND ANY REASON FOR RAISING ADDITIONAL GROUN DS. THE ADDITIONAL GROUNDS RAISED BY THE REVENUE ARE ACCORDINGLY DISPOSED OF. 5. THE CROSS OBJECTION FILED BY THE ASSESSEE IS ONLY IN SUPPORT OF THE ORDER PASSED BY LD CIT(A). SINCE WE HAVE UPHELD THE ORDER OF LD. CIT( A), THE C.O OF THE ASSESSEE DOES NOT REQUIRE ANY ADJUDICATION. 6. IN THE RESULT, THE APPEAL OF THE REVENUE AND THE CROSS OBJECTIONS FILED BY THE ASSESSEE ARE DISMISSED. PRONOUNCED ACCORDINGLY ON 6TH JANUARY, 2012 SD/- SD/- (N.R.S.GANESAN) (B.R.BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE: ERNAKULAM DATED: 6TH JANUARY, 2012 GJ COPY TO: 1. YOUNG MENS CHRISTIAN ASSOCIATION, TOWN HALL ROA D, THRISSUR-20. 2. THE INCOME TAX OFFICER, WARD-2(3), TRICHUR. 3. THE COMMISSIONER OF INCOME-TAX (APPEALS)-V, KOCH I. 4. THE COMMISSIONER OF INCOME-TAX, TRICHUR 5. D.R., I.T.A.T., COCHIN BENCH, COCHIN. 6. GUARD FILE .