Kamaraj Educational Trust, Krishnagiri V. Chief CIT, Trichy

ITA 2009/CHNY/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 96398 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 18-09-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: DR U ANJANEYULU
• Assessee Lawyers: S SRIDHAR

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , A B ENCH, CHENNAI . , ! # , $ & BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER ./ I.T.A.NO.2009/MDS/2015 ( / ASSESSMENT YEAR: 2014-15) KAMARAJ EDUCATIONAL TRUST KAKANKARI ROAD, M.SAVALUR, KAVERIPATTINAM P.O. KRISHNAGIRI-635 112. VS. CHIEF COMMISSIONER OF INCOME TAX, 44, WILLIAMS ROAD, CANTONMENT, TRICHY. PAN: AABTK6137B ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR.S.SRIDHAR, ADVOCATE /RESPONDENT BY : DR.U.ANJANEYULU, CIT DR /DATE OF HEARING : 11 TH NOVEMBER, 2015 /DATE OF PRONOUNCEMENT : 27 TH NOVEMBER, 2015 / O R D E R PER CHALLA NAGENDRA PRASAD, JM: THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE O RDER OF THE CHIEF COMMISSIONER OF INCOME TAX, TIRUCHIRAPPAL LI DATED 10.08.2015 FOR THE ASSESSMENT YEAR 2014-15 IN DENY ING EXEMPTION UNDER SECTION 10(23C)(VI) OF THE ACT. 2. COUNSEL FOR THE ASSESSEE SUBMITS THAT CHIEF COMMISSIONER IS NOT JUSTIFIED IN REJECTING THE APPL ICATION FOR EXEMPTION UNDER SECTION 10(23C)(VI) OF THE ACT. COU NSEL SUBMITS THAT ASSESSEE TRUST IS SOLELY ENGAGED FOR E DUCATIONAL PURPOSES AND THUS THERE IS NO JUSTIFICATION IN DENY ING 2 ITA NO.2009/MDS/2015 EXEMPTION UNDER SECTION 10(23C)(VI) OF THE ACT, TH OUGH THE TRUST DEED WAS AMENDED SUBSEQUENTLY BY THE ASSESSE E. 3. DEPARTMENTAL REPRESENTATIVE VEHEMENTLY SUPPORTS THE ORDER OF THE CHIEF COMMISSIONER AND SUBMITS THAT OB JECTS OF THE TRUST SHOW THAT TRUST IS NOT ESTABLISHED SOLELY FOR THE PURPOSE OF EDUCATIONAL ACTIVITIES BUT ALSO SUGGEST THAT IT IS ESTABLISHED TO PROMOTE FINANCIAL ACTIVITIES, HOSPIT ALS, DISPENSARIES ETC. THEREFORE, DEPARTMENTAL REPRESENT ATIVE VEHEMENTLY SUBMITS THAT SINCE THE ASSESSEE HAS NOT ESTABLISHED SOLELY FOR EDUCATIONAL PURPOSES EXEMPTI ON UNDER SECTION 10(23C)(VI) OF THE ACT WAS RIGHTLY DENIED B Y THE CHIEF COMMISSIONER. 4. HEARD BOTH SIDES. PERUSED THE ORDER OF THE CHIE F COMMISSIONER. ON A PERUSAL OF THE OBJECT CLAUSES OF THE TRUST DEED, WE FIND THAT THE ASSESSEE IS ESTABLISHED NOT ONLY FOR MANAGING ALL TYPES OF EDUCATIONAL INSTITUTIONS BUT ALSO TO PROMOTE FINANCE, HOSPITALS, RESEARCH CENTERS IN MED ICAL SCIENCE. ON A PERUSAL OF THE PROFIT AND LOSS ACCOU NT AND INCOME & EXPENDITURE ACCOUNT OF THE ASSESSEE, WE FI ND THAT THE ASSESSEE INCURRED CERTAIN EXPENDITURE TOWARDS 3 ITA NO.2009/MDS/2015 AWARENESS ON AGRICULTURE, AWARENESS ON SCIENTIFIC RESEARCH PROGRAMME AND BLOOD DONOR CAMP EXPENSES, MEDICAL TREATMENT EXPENSES, FREE EYE CAMP ACTIVITY WHICH G OES TO SHOW THAT ASSESSEES ACTIVITIES ARE NOT CONFINED ON LY TO THE EDUCATION DURING THE YEAR ENDED 31.03.2014. THE CHI EF COMMISSIONER ALSO OBSERVED THAT ASSESSEE TRUST AMEN DED ITS DEED ONLY ON 29.07.2015 WHICH IS BEYOND THE YEAR EN DED 31.03.2014, THEREFORE NOT RELEVANT FOR THE ASSESSME NT YEAR 2014-15 AND HE DENIED EXEMPTION HOLDING THAT ASSESS EE TRUST IS EXISTING NOT ONLY FOR EDUCATION BUT ALSO F OR OTHER ACTIVITIES. WE DO NOT FIND ANY INFIRMITY IN COMING TO THE CONCLUSION BY THE CHIEF COMMISSIONER IN REJECTING T HE APPLICATION FOR EXEMPTION UNDER SECTION 10(23C)(VI) OF THE ACT. THUS, WE REJECT THE GROUNDS RAISED BY THE ASSE SSEE AND SUSTAIN THE ORDER OF THE CHIEF COMMISSIONER OF INCO ME TAX. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON 27 TH NOVEMBER, 2015. SD/- SD/- ( # ) ( & (# ) ( CHANDRA POOJARI ) ( CHALLA NAG ENDRA PRASAD ) * / ACCOUNTANT MEMBER ( * / JUDICIAL MEMBER ( /CHENNAI, , /DATED 27 TH NOVEMBER, 2015 SOMU 4 ITA NO.2009/MDS/2015 ./ 0/ /COPY TO: 1. APPELLANT 2.RESPONDENT 3. 1 () /CIT(A) 4. 1 /CIT 5. / 5 /DR 6. /GF .