ITO, Calicut V. M/s Islamic Service Trust, Calicut

ITA 176/COCH/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 65024 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 9 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-12-2012
• Appeal Filed By: Department
• Bench Allotted: DB
• Next Hearing Date: 12-12-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 11-03-2011
• Court: TRIBUNAL
• Department Lawyers: S VIJAYAPRABHA
• Assessee Lawyers: K M V
• 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. NOS. 175 & 176/COCH/2011 ASSESSMENT YEARS : 2002-03 & 2007-08 THE I.T.O., WARD-1(1), CALICUT. VS. M/S. ISLAMIC SERVICE TRUST, VELLIMADUKUNNU, CALICUT-17. [PAN: AAATI 3175J] (REVENUE-APPELLANT) (ASSESSEE -R ESPONDENT) REVENUE BY SMT. S. VIJAYAPRABHA, JR. DR ASSESSEE BY SHRI K.M.V. PANDALAI, ADV. DATE OF HEARING 12/12/2012 DATE OF PRONOUNCEMENT 14/12/2012 O R D E R PER B.R.BASKARAN, ACCOUNTANT MEMBER: BOTH THE APPEALS OF THE REVENUE ARE DIRECTED A GAINST THE COMMON ORDER DATED 21- 12-2010 PASSED BY LD CIT(A)-I, CALICUT AND THEY REL ATE TO THE ASSESSMENT YEARS 2002- 03 AND 2007-08. SINCE THE ISSUE URGED IN THESE APP EALS ARE IDENTICAL IN NATURE, THEY WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY TH IS COMMON ORDER. 2. IN ITS APPEALS, THE REVENUE IS ASSAILING THE DECISION OF LD CIT(A) IN HOLDING THAT THE ASSESSEE IS ENTITLED FOR EXEMPTION U/S 11 EVEN THOUGH IT IS HAVING MIXED OBJECTS, I.E., OBJECTS WHICH ARE BOTH CHARITABLE AND RELIGIO US IN NATURE. 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.1 16 OF 2010 IN THE CASE OF CIT VS. M/S MUSLIM SERVICE SOCIETY HAS HELD THAT THE EXEMPT ION U/S 11 CANNOT BE DECLINED TO A I.T.A. NOS. 175 & 176/COCH/2011 2 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. 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. 5. IN THE RESULT, THE APPEALS OF THE REVENUE AR E DISMISSED. PRONOUNCED ACCORDINGLY ON 14-12-2012 SD/- SD/- (N.R.S.GANESAN) (B.R.BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE: KOCHI DATED: 14TH DECEMBER, 2012 I.T.A. NOS. 175 & 176/COCH/2011 3 GJ COPY TO: 1. M/S. ISLAMIC SERVICE TRUST, VELLIMADUKUNNU, CALI CUT-17. 2.THE INCOME TAX OFFICER, WARD- 1(1), CALICUT. 3.THE COMMISSIONER OF INCOME-TAX (APPEALS)-I, CALIC UT. 4.THE COMMISSIONER OF INCOME-TAX, CALICUT. 5. D.R., I.T.A.T., COCHIN BENCH, COCHIN. 6. GUARD FILE. BY ORDER (ASSISTANT REGISTRAR) I.T.A.T, COCHIN