All India Overseas Bank Employees union Welfare Charitable and Endowment Trust, CHENNAI V. DDIT, CHENNAI

ITA 2041/CHNY/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 9756 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 8 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-04-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 23-02-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 30-07-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: P RADHAKRISHNAN
• Assessee Lawyers: R VIJAYARAGHAVAN
• Keywords: Charitable institution
• Section: 12AA; 11

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . . . , . !' , $ % BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ ITA NO.2041/MDS/2014 ' (' / ASSESSMENT YEAR : 2010-11 M/S ALL INDIA OVERSEAS BANK EMPLOYEES UNION WELFARE CHARITABLE AND ENDOWMENT TRUST, C/O M/S SUBBARAYA AIYAR PADMANABHAN & RAMAMANI ADVOCATES, NEW NO.75A (OLD NO.105A), DR. RADHAKRISHNAN SALAI, MYLAPORE, CHENNAI - 600 004. PAN : AABTA 7888 F V. THE DEPUTY DIRECTOR OF INCOME TAX (EXEMPTIONS)-III, CHENNAI - 600 034. (*+/ APPELLANT) (,-*+/ RESPONDENT) *+ . / / APPELLANT BY : SH. R. VIJAYARAGHAVAN, ADVOCATE ,-*+ . / / RESPONDENT BY : SH. P. RADHAKRISHNAN, JCIT 0 . 1$ / DATE OF HEARING : 23.02.2016 2!( . 1$ / DATE OF PRONOUNCEMENT : 01.04.2016 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-VII, CHENN AI, DATED 16.05.2014 AND PERTAINS TO ASSESSMENT YEAR 2010-11. 2 I.T.A. NO.2041/MDS/14 2. THE ONLY ISSUE ARISES FOR CONSIDERATION IS WITH REGARD TO CLAIM OF THE ASSESSEE FOR EXEMPTION UNDER SECTION 11 OF T HE INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT'). 3. SH. R. VIJAYARAGHAVAN, THE LD.COUNSEL FOR THE AS SESSEE, SUBMITTED THAT THE ASSESSEE-TRUST WAS REGISTERED UN DER SECTION 12AA OF THE ACT. THE ASSESSEE WAS RUNNING A KALYAN AMANDAPAM AND CLAIMED EXEMPTION IN RESPECT OF THE INCOME GENE RATED FROM THE KALYANAMANDAPAM. HOWEVER, THE ASSESSING OFFICER DI SALLOWED THE CLAIM OF THE ASSESSEE AND THE CIT(APPEALS) HAS ALSO CONFIRMED THE DISALLOWANCE. REFERRING TO THE ORDERS OF THE LOWER AUTHORITIES, THE LD. COUNSEL SUBMITTED THAT RUNNING OF KALYANAMANDAP AM CANNOT BE A REASON FOR NOT ALLOWING THE CLAIM OF THE ASSESSEE . ON A QUERY FROM THE BENCH, THE LD. COUNSEL CLARIFIED THAT THE ASSESSEE TOOK THE KALYANAMANDAPAM ON LEASE AND LET OUT TO PEOPLE AT L ARGE. WITH REGARD TO APPLICATION OF INCOME, THE LD. COUNSEL CL ARIFIED THAT THE PROFIT GENERATED OUT OF THE INCOME EARNED ON LETTIN G OUT OF KALYANAMANDAPAM WAS USED FOR CHARITABLE ACTIVITIES. 4. ON THE CONTRARY, SH. P. RADHAKRISHNAN, THE LD. D EPARTMENTAL REPRESENTATIVE, SUBMITTED THAT THE INCOME OF THE AS SESSEE-TRUST 3 I.T.A. NO.2041/MDS/14 SHALL BE EXEMPTED UNDER SECTION 11 OF THE ACT PROVI DED THE SAME IS UTILIZED FOR CHARITABLE ACTIVITIES. IN THE CASE BE FORE US, NO EXPENDITURE WAS CLAIMED TOWARDS CHARITABLE ACTIVITI ES. IN FACT, NO EXPENDITURE WAS INCURRED. THE ASSESSEE HAS NOT PRO DUCED ANY MATERIAL BEFORE THE AUTHORITIES BELOW FOR INCURRING EXPENDITURE FOR CHARITABLE ACTIVITIES. SINCE THE ASSESSEE IS RUNNIN G KALYANAMANDAPAM, THEREFORE, THE ASSESSEE IS NOT ELI GIBLE FOR EXEMPTION UNDER SECTION 11 OF THE ACT. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. SECTION 11 OF THE ACT PROVIDES FOR EXEMPTION IN RESPECT OF THE INCOME OF THE TRUST WHICH IS APPLIED FOR CHARITABLE PURPOSE. THEREFORE , THE INCOME OF THE TRUST IS EXEMPTED ONLY IF THE SAME IS APPLIED F OR CHARITABLE NATURE. IN THE CASE BEFORE US, THE ASSESSEES CLAI M IS THAT THE KALYANAMANDAPAM WAS TAKEN ON LEASE AND GENERATED IN COME ON LETTING OUT OF THE KALYANAMANDAPAM. THERE IS NO MA TERIAL AVAILABLE ON RECORD TO SUGGEST THAT THE ASSESSEE HAS APPLIED ANY INCOME FOR CARRYING OUT CHARITABLE ACTIVITIES IN FURTHERANCE O F ITS OBJECT. SINCE NO MATERIAL IS AVAILABLE ON RECORD TO SUGGEST THAT ANY PART OF INCOME OF THE ASSESSEE-TRUST WAS UTILIZED FOR CARRYING OUT CHARITABLE 4 I.T.A. NO.2041/MDS/14 ACTIVITIES, THIS TRIBUNAL IS OF THE CONSIDERED OPIN ION THAT THE CIT(APPEALS) HAS RIGHTLY CONFIRMED THE ORDERS OF TH E ASSESSING OFFICER, THEREFORE, THIS TRIBUNAL DO NOT FIND ANY R EASON TO INTERFERE WITH THE ORDER OF THE CIT(APPEALS) AND ACCORDINGLY, THE SAME IS CONFIRMED. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. ORDER PRONOUNCED ON 1 ST APRIL, 2016 AT CHENNAI. SD/- SD/- (. !' ) ( . . . ) (A. MOHAN ALANKAMONY) (N.R.S. GANESAN) $ / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 4 /DATED, THE 1 ST APRIL, 2016. KRI. . ,156 76(1 /COPY TO: 1. *+ /APPELLANT 2. ,-*+ /RESPONDENT 3. 0 81 () /CIT(A)-VII, CHENNAI-34 4. DIT (EXEMPTIONS), CHENNAI 5. 69 ,1 /DR 6. :' ; /GF.