ACIT EXEMPTIONS, COIMBATORE V. M/S THE INSTITUTE OF FRANCISCAN MISSIONARIES OF MARY SOCIETY , NILGIRIS

ITA 1561/CHNY/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 1291 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 3 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-09-2019
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2014-2015
• Appeal Filed On: 09-05-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R ANITHA
• Keywords: Set aside

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI . . . , ! ' # , % #& BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ./ ITA NO.1561/CHNY/2018 ) *) / ASSESSMENT YEAR : 2014-15 THE ASSISTANT COMMISSIONER OF INCOME TAX (EXEMPTIONS), 1510, MAY FLOWER MID CITY BUILDING, TRICHY ROAD, COIMBATORE 18. V. M/S THE INSTITUTE OF THE FRANCISCAN MISSIONARIES OF MARY SOCIETY, NO.14, NAZARETH CONVENT, ST. MARYS HILL, UDHAGAMANDALAM, NILGIRIS 643 001. PAN : AAAAT 3435 B (,-/ APPELLANT) (./,-/ RESPONDENT) ,- 0 1 / APPELLANT BY : MS. R. ANITHA, JCIT ./,- 0 1 / RESPONDENT BY : NONE 2 0 3% / DATE OF HEARING : 27.08.2019 45* 0 3% / DATE OF PRONOUNCEMENT : 05.09.2019 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER : THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -2, COIMBA TORE, DATED 15.02.2018 AND PERTAINS TO ASSESSMENT YEAR 2014-15. 2. NO ONE APPEARED FOR THE ASSESSEE INSPITE OF SERV ICE OF NOTICE BY RPAD. THE REGISTRY HAS PLACED ON RECORD THE POSTAL 2 I.T.A. NO.1561/CHNY/18 ACKNOWLEDGEMENT AS PROOF OF SERVICE OF NOTICE. THE REFORE, WE HEARD THE LD. DEPARTMENTAL REPRESENTATIVE AND PROCE EDED TO DISPOSE THE APPEAL ON MERIT. 3. MS. R. ANITHA, THE LD. DEPARTMENTAL REPRESENTATI VE, SUBMITTED THAT THE ASSESSEE CLAIMS THAT EXCESS FUND S WERE APPLIED FOR CHARITABLE ACTIVITY WHICH IS TO BE BROUGHT FORW ARD AND SET OFF IN THE SUBSEQUENT YEAR. HOWEVER, ACCORDING TO THE LD. D.R., THERE WAS NO DISCUSSION ABOUT THE SOURCE OF EXCESS MONEY, HOW THE ASSESSEE GENERATED FUNDS OVER AND ABOVE THE INCOME AND HOW IT WAS APPLIED ARE NOT AVAILABLE IN THE ASSESSMENT ORD ER OR IN THE CIT(APPEALS) ORDER. ACCORDING TO THE LD. D.R., THE CIT(APPEALS) HAS SIMPLY REFERRED THE JUDGMENT OF MADRAS HIGH COU RT AND ALLOWED THE CLAIM OF THE ASSESSEE. 4. WE HEARD THE LD. D.R. AND PERUSED THE RELEVANT M ATERIAL AVAILABLE ON RECORD. AS RIGHTLY SUBMITTED BY THE L D. D.R., IT IS NOT KNOWN HOW THE EXCESS FUNDS WERE GENERATED BY THE AS SESSEE OVER AND ABOVE THE INCOME AND HOW THE FUNDS WERE APPLIED FOR CHARITABLE ACTIVITY. WHEN THE EXCESS FUNDS WERE AP PLIED FOR CHARITABLE ACTIVITY OVER AND ABOVE THE INCOME OF TH E ASSESSEE-TRUST ITSELF, THESE DETAILS WERE REQUIRED FOR ASCERTAININ G WHETHER, IN FACT, 3 I.T.A. NO.1561/CHNY/18 THE ASSESSEE APPLIED THE FUNDS FOR CHARITABLE ACTIV ITY OR NOT. AS RIGHTLY SUBMITTED BY THE LD. D.R., THESE DETAILS WE RE NOT BROUGHT ON RECORD EITHER BY THE ASSESSING OFFICER OR BY THE CO MMISSIONER OF INCOME TAX (APPEALS). THEREFORE, THE MATTER NEEDS TO BE RE- EXAMINED BY THE ASSESSING OFFICER. ACCORDINGLY, OR DERS OF BOTH THE AUTHORITIES BELOW ARE SET ASIDE AND THE ENTIRE ISSU E IS REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER. THE ASSESSIN G OFFICER SHALL RE- EXAMINE THE MATTER AND BRING ON RECORD THE SOURCE O F INCOME OF THE ASSESSEE, QUANTUM OF INCOME AND SOURCE FOR EXCESS I NCOME, WHICH WAS SAID TO BE GENERATED BY THE ASSESSEE AND HOW AL L SUCH INCOME WERE APPLIED BY THE ASSESSEE TO THE CHARITABLE ACTI VITY AND THEREAFTER DECIDE THE ISSUE AFRESH IN ACCORDANCE WI TH LAW, AFTER GIVING A REASONABLE OPPORTUNITY TO THE ASSESSEE. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 5 TH SEPTEMBER, 2019 AT CHENNAI. SD/- SD/- ( ! ' # ) ( . . . ) (INTURI RAMA RAO) (N.R.S. GANESAN) % / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 7 /DATED, THE 5 TH SEPTEMBER, 2019. KRI. 4 I.T.A. NO.1561/CHNY/18 0 .389 :9*3 /COPY TO: 1. ,- /APPELLANT 2. ./,- /RESPONDENT 3. 2 ;3 () /CIT(A)-2, COIMBATORE 4. CIT (EXEMPTIONS), CHENNAI 5. 9< .3 /DR 6. ) = /GF.