YOUNG MEN's CHRISTIAN ASSOCIATION, SALEM V. ITO, EXEMPTIONS WARD, SALEM

ITA 2209/CHNY/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 4113 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-02-2020
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2015-2016
• Appeal Filed On: 29-07-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: J.PAVITHRAN KUMAR
• Keywords: Rectification of order; Charitable institution

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI , , ! '# BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER /. I.T.A. NOS. 2209 & 2210/CHNY/2019 / ASSESSMENT YEARS : 2015-16 & 2016-17 M/S. YOUNG MENS CHRISTIAN ASSOCIATION, 123, BRETTS ROAD, SALEM 636 001. [PAN: AAAAY 0848D] VS. THE INCOME TAX OFFICER, EXEMPTIONS WARD, SALEM 636 007. ( / APPELLANT) ( $%&' /RESPONDENT ) &' ( ) / APPELLANT BY : SHRI. G. BASKAR, ADVOCATE $%&' ( ) / RESPONDENT BY : SHRI. J. PAVITHRAN KUMAR, JCIT + ( ,! /DATE OF HEARING : 13.02.2020 -./ ( ,! /DATE OF PRONOUNCEMENT : 14.02.2020 / O R D E R PER S. JAYARAMAN, ACCOUNTANT MEMBER : THE ASSESSEE FILED THESE APPEALS AGAINST THE ORDERS OF THE COMMISSIONER OF INCOME TAX (APPEALS), SALEM IN ITA NO. 50/2018-19 AND ITA NO.49/2018-19, BOTH DATED 30.05.2019 FOR TH E ASSESSMENT YEARS 2015-16 AND 2016-17, RESPECTIVELY, WHEREIN THE ASSE SSEES APPEALS :-2-: ITA NOS.2209 & 2210/CHNY/201 9 AGAINST THE ORDERS PASSED U/S.154 OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) WAS DISMISSED. 2. THE LD.AR SUBMITTED THAT THE ASSESSEE HAS FILE D VARIOUS GROUNDS IN ITS APPEALS. THE MAIN ISSUE IS THAT THE LD.CIT( A) IS NOT JUSTIFIED IN REFUSING TO ALLOW DEDUCTION U/S.24(A) AT THE RATE O F 30% OF THE RENTAL INCOME OF THE ASSESSEE, WHICH IS REGISTERED U/S.12A A OF THE ACT, IN THE RESPECTIVE ASSESSMENT YEARS AND ARGUED ON THIS ISSU E ALONE. 3. PER CONTRA, THE LD.DR SUBMITTED THAT THE CENTRAL IZED PROCESSING CENTRE, PROCESSED THE CASES U/S.143(1)(A) OF THE AC T, ON WHICH THE RECTIFICATION ORDERS WERE PASSED. THEREFORE, THE A SSESSEES CLAIM IS PRIMA FACIE IS NOT ALLOWED U/S.154 OF THE ACT. FURTHER, HE SUBMITTED THAT AS CONCEDED FAIRLY BY THE LD. AR THAT AS PER THE JURIS DICTIONAL HIGH COURTS DECISION IN THE CASE OF CIT V. RAO BAHADUR CALAVALA CUNNAN CHELTY CHARITIES IN 135 ITR 485, PARTICULARLY IN PAGE NO. 495, THE INCOME IN THE CASE OF A TRUST HAS TO BE ARRIVED AT IN THE NORMAL COMMERCIAL MANNER WITHOUT REFERENCE TO THE PROVISIONS WHICH ARE ATTRA CTED BY SECTION 14 OF THE ACT. THEREFORE, THERE IS NO MERIT IN THE ASSES SEES CASE. 4. WE HEARD THE RIVAL SUBMISSIONS. SINCE THE ASSES SEE IS REGISTERED U/S.12AA OF THE ACT AND CLAIMED TO BE A CHARITABLE TRUST, ITS INCOME HAS :-3-: ITA NOS.2209 & 2210/CHNY/201 9 TO BE COMPUTED IN ACCORDANCE WITH NORMAL COMMERCIAL MANNER AND NOT U/S.14 OF THE ACT. THEREFORE, THE ASSESSEES CLAIM THAT IT IS ENTITLED FOR A DEDUCTION U/S. 24(A) OF THE ACT AT THE RATE OF 30% ON THE RENTAL INCOME IS NOT CORRECT AND HENCE, WE DO NOT FIND ANY MERIT IN THE GROUNDS OF THE APPEALS FILED BY THE ASSESSEE. 5. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED ON FRIDAY, 14 TH FEBRUARY, 2020 AT CHENNAI. SD/- ( ) (MAHAVIR SINGH) !' /VICE PRESIDENT SD/- ( # $ ) (S. JAYARAMAN) % & /ACCOUNTANT MEMBER /CHENNAI, 0' /DATED: 14TH FEBRUARY, 2020 RSR '1 ( $2,3 43/, /COPY TO: 1. &' / APPELLANT 2. $%&' /RESPONDENT 3. + 5, ) ( /CIT(A) 4. + 5, /CIT 5. 367 $2,2 /DR 6. 789 : /GF