Jeppiaar Remibai Charitable Trust, CHENNAI V. DCIT, CHENNAI

CO 39/CHNY/2013

• Counselvise Citation: [2013] 122 COUNSELVISE.COM (IT) 8456 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 23 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 22-04-2013
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 22-04-2013
• Assessment Year: 2006-2007
• Appeal Filed On: 01-03-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: T BANUSEKAR
• Assessee Lawyers: GURU BASHYAM IRS
• Keywords: Charitable institution; Principle of natural justice; Maximum Marginal Rate

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI BEFORE DR. O.K. NARAYANAN, VICE-PRESIDENT AND SHRI S.S.GODARA , JUDICIAL MEMBER I.T.A.NOS. 84 & 85/MDS/2013 AND C.O.NOS. 38 & 39/MDS/2013 ASSESSMENT YEARS : 2005-06 & 2006-07 THE DEPUTY COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE-I(3), CHENNAI 600 034. VS. M/S. JEPPIAAR REMIBAI CHARITABLE TRUST, NO.12, GANAPATHY STREET, ROYAPETTAH, CHENNAI 14. PAN AABTJ0837D (APPELLANT) (RESPONDENT/CROSS OBJECTOR) APPELLANT BY : SHRI GURU BASHYAM, IRS, JC IT RESPONDENT BY : SHRI T. BANUSEKAR, FCA DATE OF HEARING : 22 ND APRIL, 2013 DATE OF PRONOUNCEMENT : 22 ND APRIL, 2013 O R D E R PER BENCH THESE ARE TWO APPEALS FILED BY THE REVENUE AND TWO CROSS OBJECTIONS BY THE ASSESSEE. THE RELEVANT ASSESSME NT YEARS ARE 2005-06 AND 2006-07. THE APPEALS AND THE CROS S OBJECTIONS ITA 84 & 85 & CO 38 & 39/13 :- 2 -: ARE DIRECTED AGAINST THE COMMON ORDER OF THE COMMIS SIONER OF INCOME-TAX(APPEALS)-I AT CHENNAI, DATED 22.10.2012 . THE APPEALS AND THE CROSS OBJECTIONS ARISE OUT OF THE A SSESSMENTS COMPLETED UNDER SEC. 143(3), READ WITH SEC.147 OF T HE INCOME-TAX ACT, 1961. 2. THE ONLY GROUND RAISED IN THE APPEALS FILED BY T HE REVENUE IS THAT THE COMMISSIONER OF INCOME-TAX(APPEALS) HAS FAILED TO NOTE THAT THE INCOME OF THE ASSESSEE IS DONATION AN D THERE IS NO NEXUS OF EXPENSES TO EARN THIS INCOME AND THE EXPEN DITURE CLAIMED BY THE ASSESSEE IS ONLY AN APPLICATION OF I NCOME AND NOT GENUINE EXPENDITURE INCURRED TO EARN THE INCOME. T HE AMOUNTS FOR THE ASSESSMENT YEAR 2005-06 ARE DONATION OF ` 7,06,000/- AND EXPENSES OF ` 6,71,200/-. THE FIGURES FOR THE NEXT ASSESSMENT YEAR 2006-07 ARE DONATION OF ` 23,48,980/- AND EXPENSES OF ` 22,65,000/-. 3. IT IS SEEN THAT THE ASSESSING OFFICER HAS LEVIED TAX ON THE GROSS RECEIPTS OF THE ASSESSEE AND NOT ON THE TOTAL INCOME. AS RIGHTLY HELD BY THE COMMISSIONER OF INCOME-TAX(APPE ALS), TAX IS CHARGEABLE ON THE TOTAL INCOME OF THE ASSESSEE. IN VIEW OF ITA 84 & 85 & CO 38 & 39/13 :- 3 -: SEC.167A, THE ASSESSEE HAS TO BE ASSESSED IN THE ST ATUS OF AN A.O.P., WHERE SHARES OF THE MEMBERS ARE INDETERMINA TE; I.E. MAXIMUM MARGINAL RATE. THE COMMISSIONER OF INCOME- TAX(APPEALS) HAS GIVEN THE RIGHT DIRECTION TO THE A SSESSING OFFICER TO COMPUTE THE TOTAL INCOME OF THE ASSESSEE AND THE REAFTER LEVY TAX AT THE MAXIMUM MARGINAL RATE. THE COMMISSIONER OF INCOME-TAX(APPEALS) HAS CORRECTLY RECTIFIED THE MIS TAKE COMMITTED BY THE ASSESSING OFFICER IN LEVYING THE TAX ON THE ENTIRE GROSS RECEIPTS OF THE ASSESSEE. 4. WE DO NOT FIND ANY INFIRMITY IN THE ORDER PASSED BY THE COMMISSIONER OF INCOME-TAX(APPEALS). THE ORDER OF THE COMMISSIONER OF INCOME-TAX(APPEALS) IS JUST AND PRO PER IN LAW. 5. IN THE CROSS OBJECTIONS FILED BY THE ASSESSEE, T HE GROUND IS THAT THE COMMISSIONER OF INCOME-TAX(APPEALS) HAS FA ILED TO APPRECIATE THAT THE ORDER OF THE ASSESSING OFFICER IS WITHOUT JURISDICTION, CONTRARY TO FACTS AND LAW AND OPPOSED TO THE PRINCIPLES OF EQUITY, NATURAL JUSTICE AND FAIR PLAY . THESE GROUNDS ARE REJECTED AS NOT PRESSED. ITA 84 & 85 & CO 38 & 39/13 :- 4 -: 6. IN RESULT, THE APPEALS FILED BY THE REVENUE AND THE CROSS OBJECTIONS FILED BY THE ASSESSEE ARE DISMISSED. ORDERS PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON MONDAY, THE 22 ND OF APRIL, 2013 AT CHENNAI. SD/- SD/- (S.S.GODARA) (DR.O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED THE 22 ND APRIL, 2013 MPO* COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR 6. GF.