Yelchur Venkata Kotiah Charities, CHENNAI V. ACIT, CHENNAI

ITA 1340/CHNY/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 96032 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 3 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-09-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2008-2009
• Appeal Filed On: 15-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A B KOLI
• Assessee Lawyers: J PRABHAKAR
• Keywords: Charitable institution
• Section: 12A; 12AA; 12

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , D B ENCH, CHENNAI . , ' $ % , & ' BEFORE SHRI A.MOHAN ALANKAMONY ACCOUNTANT MEMBER AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER ./ I.T.A.NOS.1340 & 1341/MDS/2014 ( / ASSESSMENT YEARS: 2008-09 & 2009-10) M/S. YELCHUR VENKATA KOTIAH CHARITIES, 1, AUDIAPPA NAICKEN STREET, CHENNAI-600 001. VS JOINT COMMISSIONER OF INCOME TAX,(OSD) (EXEMPTIONS)-II CHENNAI. PAN:AAATY0056C ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR. J.PRABHAKAR, C.A /RESPONDENT BY : MR A.B.KOLI, JCIT /DATE OF HEARING : 27 TH JULY, 2015 /DATE OF PRONOUNCEMENT : 11 TH SEPTEMBER, 2015 / O R D E R PER CHALLA NAGENDRA PRASAD, JM: THESE TWO APPEALS ARE FILED BY THE ASSESSEE AGAINST THE COMMON ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) VII, CHENNAI DATED 11.3.2014 FOR THE ASS ESSMENT YEARS 2008-09 AND 2009-10. 2. THOUGH THE ASSESSEE HAS RAISED SEVERAL GROUNDS O F APPEAL, THE CRUX OF THE ISSUE IS WHETHER THE ASSESS EE IS A REGISTERED TRUST / SOCIETY UNDER SECTION 12AA OF TH E ACT AND WHETHER THE COMMISSIONER OF INCOME TAX IS JUSTIFIED IN DENYING THE BENEFITS UNDER SECTION 11 & 12 OF THE A CT. 2 ITA NO.1340 & 1341/MDS/2014 3. AS FAR AS THE REGISTRATION UNDER SECTION 12AA IS CONCERNED, COUNSEL FOR THE ASSESSEE SUBMITS THAT TH E CO- ORDINATE BENCH OF THE TRIBUNAL ALREADY DECIDED THE ISSUE FOR THE ASSESSMENT YEARS 2002-03, 2007-08 AND 2010-11 B Y ORDER DATED 24.02.2014 IN ITA NOS. 1902 TO 1904/MDS /2013 UNDER SECTION 12A OF THE ACT HOLDING THAT ASSESSEE IS A REGISTERED TRUST AND ENTITLED FOR BENEFITS UNDER SE CTION 11 OF THE ACT. 4. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF LOWER AUTHORITIES. 5. HEARD BOTH THE PARTIES. PERUSED THE ORDERS OF L OWER AUTHORITIES AND THE DECISION RELIED ON. THE CO-ORDI NATE BENCH OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE EARL IER ASSESSMENT YEARS IN ITA NOS.1902 TO 1904/MDS/2013 DATED 24.02.2014 CONSIDERED AS TO WHETHER THE ASSES SEE IS A REGISTERED TRUST ENTITLED TO EXEMPTION UNDER SECTIO N 11 OR NOT AND CO-ORDINATE BENCH HAS HELD THAT ASSESSEE IS A R EGISTERED TRUST AND ENTITLED FOR BENEFITS UNDER SECTION 11 O F THE ACT OBSERVING AS UNDER:- 3 ITA NO.1340 & 1341/MDS/2014 8. WE HAVE HEARD BOTH PARTIES AND GONE THRO UGH THE CASE FILE. AT THE COST OF REPETITION, WE RE-NARRATE THE FACTS. THE ASSESSEE; AN AOP/A CHARITABLE TRUST CAME INTO BEI NG ON 15.4.1954. THERE IS NO QUARREL BETWEEN THE PARTIES ABOUT THE FACTUAL POSITION EMANATING FROM THE RECORD THAT IT HAS BEEN FILING ITS RETURNS IN EVERY ASSESSMENT YEAR AS COMPLIANC E OF THE ACT AS A REGISTERED CHARITABLE TRUST. IN SUPPORT, WE RELY UPON THE PAPER BOOK FILED BY THE ASSESSEE AND THE FACTUAL POSITIO N TAKEN NOTICE OF BY THE TRIBUNAL (SUPRA) WHEREIN IT WAS FOUND THA T IN EARLIER ASSESSMENT YEARS, REGULAR ASSESSMENTS HAD BEEN FR AMED BY THE ASSESSING OFFICER AFTER FINDING THAT THE EXEMPTION CLAIMED AND NIL INCOME AS A RESULT THEREOF WAS IN ORDER. IN THIS REGARD, WE REFER TO ASSESSMENT ORDERS OF ASSESSMENT YEARS 1987 -88, 1988- 89, 1979-80 TO NAME A FEW. THE ISSUE IN HAND OF RE GISTRATION SEEMS TO HAVE CROPPED UP ONLY IN THE IMPUGNED ASSES SMENT YEAR FOR THE FIRST TIME AS THE ASSESSEE HAS FAILED TO P RODUCE ON RECORD THE REGISTRATION CERTIFICATE. THE FACTUAL POSITION REMAINS THAT THE AUTHORITIES BELOW ALSO DO NOT QUOTE ANY EVIDENCE SO AS TO COME TO THE CONCLUSION THAT THE ASSESSEE WAS NOT A REGISTE RED CHARITABLE TRUST U/S 12AA OF THE ACT. FACED WITH THIS SITUAT ION, WE DEEM IT APPROPRIATE TO DRAW AN INFERENCE IN FAVOUR OF THE ASSESSEE THAT THE FACTUAL POSITION WHICH CONTAINED IN ASSESSMENT YEARS 1987-88 AND OTHER ASSESSMENT YEARS STATED HEREINABOVE TREAT ING IT A REGISTERED CHARITABLE TRUST CONTINUES UPTO THE IMPU GNED ASSESSMENT YEAR AS WELL AS THERE IS NO ORDER FORTHC OMING CANCELLING ITS REGISTRATION. BASED ON THIS INFERENC E AND PLACING RELIANCE ON THE ORDER OF THE TRIBUNAL IN THE FIRS T ROUND OF APPEAL, WE HOLD IT TO BE A REGISTERED TRUST. THAT BEING TH E CASE, THE ASSESSEE IS HELD ENTITLED FOR THE BENEFITS U/S 11 OF THE ACT IN ABSENCE OF ANY EVIDENCE TO THE CONTRARY. THE ASSE SSEES APPEAL I.T.A.NO.1902/MDS/2013 IS ALLOWED. 6. RESPECTFULLY FOLLOWING THE SAID DECISION, WE HOL D THAT ASSESSEE IS A REGISTERED TRUST AND ENTITLED FOR BEN EFITS UNDER SECTION 11 OF THE ACT. 7. THESE TWO ASSESSMENTS HAVE BEEN COMPLETED WITHOU T CONSIDERING THE ASSESSEE AS A REGISTERED TRUST UNDE R SECTION 12AA AND ELIGIBLE FOR EXEMPTION UNDER SECTION 11 & 12 OF THE ACT. SINCE WE HAVE HELD THAT ASSESSEE IS A REGISTER ED TRUST 4 ITA NO.1340 & 1341/MDS/2014 UNDER SECTION 12AA OF THE ACT AND ENTITLED FOR EXEM PTION UNDER SECTION 11, WE RESTORE THE MATTER TO THE FILE OF THE ASSESSING OFFICER FOR DE NOVO ASSESSMENTS IN ACCORD ANCE WITH LAW, AFTER PROVIDING SUFFICIENT OPPORTUNITY TO THE ASSESSEE. 8. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH SEPTEMBER, 2015. SD/- SD/- ( . ) ( ( *+ ) ( A.MOHAN ALANKAMONY ) ( CHALLA NAGENDRA PRASAD ) - / ACCOUNTANT MEMBER * - / JUDICIAL MEMBER * /CHENNAI, / /DATED 11 TH SEPTEMBER, 2015 SOMU 12 32 /COPY TO: 1. APPELLANT 2. RESPONDENT 3. 4 () /CIT(A) 4. 4 /CIT 5. 2 7 /DR 6. /GF .