Asst.Director of Income-tax (Exemptions)-II (I/c), Hyderabad V. Smt.Saroj Shukla Memorial Trust, Hyderabad

ITA 1622/HYD/2013

• Counselvise Citation: 162222514 RSA 2013
• Duration Of Justice: 4 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-04-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2000-2001
• Appeal Filed On: 28-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution
• Section: 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI B.RAMAKOTAIAH, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER ITA NO.1 622 /HYD/13 : ASSESSMENT YEAR 200 0 - 0 1 ASSTT . DIRECTOR OF INCOME - TAX(EXEMPTION) II, HYDERABAD V/S. SMT. SAROJ SHUKLA MEMORIAL TRUST, HYDERABAD. ( PAN - AAC TS 0690 S ) (APPELLANT) (RESPONDENT) APPELLANT BY : S MT. K. HARITHA RESPONDENT BY : NONE DATE OF HEARING 02 . 04 .2014 DATE OF PRONOUNCEMENT 02.04.2014 O R D E R PER SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME - TAX(APPEALS) - I V , HYDERABAD DATED 1. 10 .201 3 , FOR THE ASSESSMENT YEAR 200 0 - 0 1 . 2. AT THE TIME OF HEARING, NONE APPEARED ON BEHALF OF THE ASSESSEE DESPITE SERVICE OF NOTICE OF HEARING ON THE RESPONDENT ASSESSEE. NOT EVEN AN ADJOURNMENT PETITION HAS BEEN RECEIVED. HENCE, WE PROCEED TO DISPOSE OF THIS APPEAL EX - PARTE QUA THE ASSESSEE RE SPONDENT - ON THE BASIS OF MATERIAL AVAILABLE ON RECORD. 3. EFFECTIVE G R OUNDS OF THE REVENUE IN THIS APPEAL READ AS FOLLOWS - 1. THE ORDER OF THE LD. CIT(APPEALS) IS ERRONEOUS IN LAW. 2. THE LEARNED. CIT(A PPEALS ) ERRED IN DIRECTING FOR EXEMPTION U / S. 1 0(33) OF THE I.T. ACT, 1961, WHEN TH E ASSESSEE HAS SIMULTANEOUSLY CLAIMED EXEMPTION U/S. 11 OF THE I.T. ACT, 1961. ITA NO. 1 6 22/ HYD/20 13 SMT. SAROJ SHUKLA MEMORIAL TRUST, HYDERABAD. 2 3. ON THE FACTS AND IN THE CIRCUM S TANCES OF THE C A S E, WHEN TH E ASSESSEE HAS CLAIMED EX E MPTION BOTH UNDER SECTION 10 AND SECTION 11 OF THE I. T. ACT, 1961, EVEN THOUGH THE INCOME O F THE ASSESSEE WOULD BE EXEMPT U/S. 10(33) OF THE I.T. ACT, 1961, ELIGIBILITY FOR EXEMPTION OF INCOME IN TH E CA S E OF THE ASSESSEE TRUST HAS TO B E CONSIDERED, HAVING REGARD TO THE P R O VI SION S OF SECTION 11(1)(A) OF THE I.T. ACT, 1961, AP P L I CABLE TO TH E ASSESSEE T R UST. 4. ON TH E FACTS AND IN THE CIR C UMSTAN C ES OF THE CA S E, WHEN THE ASSESSEE HA S NO T APPLIED ITS IN C OM E AS PER PROVI SI ON S OF SE C TION 11(1)(A) OF THE I.T. ACT, 1961 AND ALSO HAS NO T APPLIED FOR ACCUMU L A TION AS REQUIR E D U/S. 11(2) OF THE I.T. ACT, 1961, UN D ER THAT C IRCUM S TANCE, TH E ASSESSEE TRUST WOULD NO T ELIGIBLE FOR EX E MP T ION O F THE INCOME EARNED DURING THE Y E AR. 5. .. 3. WE HEARD THE LEARNED DEPARTMENTAL REPRESENTATIVE AND PERUSED THE IMPUGNED ORDERS OF THE REVENUE AUTHORITIES AND OTHER MATERIAL AVAILABLE ON RECORD. THE GRIEVANCE OF THE REVENUE IS AGAINST THE DIRECTION OF THE CIT(A) TO GRANT EXEMPTION IN RESPECT OF INCOME OF THE ASSESSEE TRUST UNDER S.10(33) OF THE ACT, WHEN THE ASSESSEE HAS SIMULTANEOUSLY CLAIMED SUCH EXEMPTION UNDER S.11 OF THE ACT. ASSESSEE IS A TRUST REGISTERED UNDER S.12A OF THE ACT. THE ASSESSEE FILED RETURN OF IN C OM E FOR THE YEAR UNDER APPEAL, DI SCLOSING NIL INCOME, CLAIMING ITS INCOME AS EXEMPT UNDER S.10(3 3 ) AS WELL AS UNDER S.11 OF THE ACT. IN THE SCRUTINY ASSESSMENT THAT FOLLOWED, THE ASSESSING OFFICER HELD THAT SINCE THE ASSESSEE HAD NEITHER APPLIED ITS INCOME FOR CHARITABLE PURPOSES NOR A PPLIED IN FORM 10 FOR ACCUMULATION OF INCOME , IT WAS NOT ELIGIBLE FOR EXEMPTION U/S. 11 OF THE ACT. THE ASSESSING OFFICER THEREFORE , DENYING EXEMPTION UNDER S.11 OF THE ACT, BROUGHT TO TAX THE SUM OF R S .1,29,823 , REPRESENTING THE INCOME DERIVED BY THE ASSE SSEE DURING THE YEAR, TO TAX AS THE TOTAL INCOME O F THE ASSESSEE. ON APPEAL, THE CIT(A), OBSERVING THAT ASSESSEES ALTERNATIVE CLAIM FOR EXEMPTION UNDER S.10(33) OF THE ACT CANNOT BE DENIED MERELY BECAUSE IT WAS REGISTERED UNDER S.12A OF THE ACT, ACCEPTE D THE CLAIM OF THE ASSESSEE AND DIRECTED THE ASSESSING OFFICER ACCORDINGLY. WE AGREE WITH THE DIRECTIONS OF THE CIT(A) IN THIS BEHALF. WHEN THE ASSESSEE IS FOUND TO BE INELIGIBLE FOR EXEMPTION UNDER S.11 OF THE ACT, ITS ALTERNATIVE CLAIM FOR ITA NO. 1 6 22/ HYD/20 13 SMT. SAROJ SHUKLA MEMORIAL TRUST, HYDERABAD. 3 EXEMPTION UN DER S.10(33) OF THE ACT HAS TO BE CONSIDERED AND ALLOWED SUBJECT TO FULFILLMENT OF OTHER CONDITIONS. WE DO NOT FIND ANY INFIRMITY IN THE IMPUGNED ORDER OF THE CIT(A). WE ACCORDINGLY UPHOLD THE SAME AND REJECT THE GROUNDS OF THE REVENUE IN THIS APPEAL. 4. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 2 .4.2014 SD/ - SD/ - (B.RAMAKOTAIAH) (ASHA VIJAYARAGHAVAN) ACCOUNTANT MEMBER JUDICIAL MEMBER DT/ - 2 ND APRIL, 2014 COPY FORWARDED TO: 1. SMT. SAROJ SHUKLA MEMORIAL TRUST, PLOT NO.57, SRINAGAR COLONY, HYDERABAD. 2. ASST DIRECTOR OF INCOME - TAX(EXEMPTION) II, HYDERABAD 3. 4. COMMISSIONER OF INCOME - TAX(APPEALS) IV , HYDERABAD COMMISSIONER OF INCOME - TAX I I I HYDERABAD 5. DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S