ITO, Calicut V. Darul Falahil Islamiya, Wynad

ITA 402/COCH/2010

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 58292 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 8 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-03-2012
• Appeal Filed By: Department
• Bench Allotted: DB
• Assessment Year: 2000-2001
• Appeal Filed On: 17-06-2010
• Court: TRIBUNAL
• Department Lawyers: VIJAYAPRABHA
• Assessee Lawyers: K B MOHAMMED KUTTY
• Keywords: Charitable institution

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE: SHRI N.R.S.GANESAN, JUDICIAL MEMBER AND SHRI B.R. BASKARAN, ACCOUNTANT MEMBER ITA NOS. 402 & 403/COCH/2010 ASSESSMENT YEAR : 2000-01 & 2001-02 I.T.O., WARD-1(4), CALICUT DARUL FALAHIL ISLAMIYA A L- FALAHIL ISLAMIC COMPLEX, KALPETTA, WAYANAD [PAN: AAAAD 2270N] (APPELLANT) VS. (RESPONDENT) APPELLANT BY: SMT. VIJAYAPRABHA, JR. DR RESPONDENT BY: SHRI K.B. MOHAMMED KUTTY, SR. ADVOCATE DATE OF HEARING: 01/03/2012 DATE OF PRONOUNCEMENT: 02/03/2012 ORDER PER SHRI B.R.BASKARAN, ACCOUNTANT MEMBER:- THESE APPEALS OF THE REVENUE IS DIRECTED AGAINS T THE COMMON ORDER DATED 18- 03-2010 PASSED BY LD. COMMISSIONER OF INCOME-TAX (A )-I, CALICUT AND THEY PERTAIN TO THE ASSESSMENT YEAR 2000-01 & 2001-02. SINCE THE I SSUE URGED IN THESE APPEALS ARE IDENTICAL IN NATURE, FOR THE SAKE OF CONVENIENCE, T HESE APPEALS WERE HEARD TOGETHER AND ARE DISPOSED OF BY THIS COMMON ORDER. 2. THE ONLY ISSUE ARISES FOR CONSIDERATION IS ABOUT THE ELIGIBILITY OF EXEMPTION U/S. 11 OF THE INCOME-TAX ACT TO THE ASSESSEE IN THE FAC TS AND CIRCUMSTANCES OF THE CASE. 3. SMT. VIJAYAPRABHA, THE LD. DR SUBMITTED THAT THE ASSESSING OFFICER REJECTED THE CLAIM OF EXEMPTION U/S. 11 OF THE ACT ON THE GROUND THAT THE OBJECT OF THE TRUST WAS CHARITABLE AND RELIGIOUS IN NATURE. ACCORDING TO T HE LD. DR, THE ASSESSEE-TRUST CANNOT HAVE BOTH OBJECTS. IT HAS TO CONFINE EITHER TO CHA RITABLE ACTIVITY OR RELIGIOUS ACTIVITY. THE TRUST HAVING MIXED OBJECTS OF RELIGIOUS AND CHA RITABLE NATURE CANNOT BE TREATED AS CHARITABLE TRUST FOR EXEMPTION U/S. 11 OF THE ACT. REFERRING TO THE ORDER OF THIS I.T.A. NOS. 402 & 403 /COCH/2010 2 TRIBUNAL, THE LD. DR SUBMITTED THAT THE REVENUE HAS ALREADY FILED THE APPEAL BEFORE THE HIGH COURT, THEREFORE, THE LD. CIT(A) IS NOT CORRECT IN PLACING RELIANCE ON THE ORDER OF THIS TRIBUNAL. 4. ON THE CONTRARY, SHRI K.B. MOHAMMED JKUTTY, THE LD. AR SUBMITTED THAT THE LD. CIT(A) HAS ALLOWED THE CLAIM OF THE ASSESSEE BASED ON THE ORDER OF THIS TRIBUNAL IN THE ASSESSEES OWN CASE IN I.T.A. NO. 384/COCH/2008 DAT ED 14-10-2009 FOR THE ASSESSMENT YEAR 2004-05. THIS TRIBUNAL HAS FOUND THAT THE ASS ESSEE IS ELIGIBLE FOR EXEMPTION U/A 11 EVEN THOUGH THE OBJECT IS BOTH CHARITABLE AND RE LIGIOUS IN NATURE. THE LD. AR FURTHER SUBMITTED THAT THE VIEW OF THE TRIBUNAL HAS ALREADY BEEN CONFIRMED BY THE HONBLE JURSIDICTIONAL KERALA HIGH COURT. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND HAVE ALSO GONE THROUGH THE MATERIAL PLACED BEFORE US. ADMITTEDLY, IN THE ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2004-05, THIS TRIBUNAL EXAMINED THE ISSUE AND FOUND THAT THE ASSESSEE IS ELIGIBLE FOR EXEMPTION U/S. 11 EVEN THOUGH THE O BJECT WAS BOTH RELIGIOUS AND CHARITABLE IN NATURE. ON IDENTICAL SET OF FACTS, T HIS TRIBUNAL HAS, AS IN THE CASE OF OTHER ASSESSES ALSO FOUND THAT THE ASSESSEE IS ELIGIBLE F OR EXEMPTION U/S. 11 EVEN THOUGH THEIR OBJECTS WERE BOTH RELIGIOUS AND CHARITABLE IN NATURE. IN FACT THE HIGH COURT HAS ALSO CONFIRMED THE ORDER OF THIS TRIBUNAL. THEREFO RE, THIS TRIBUNAL IS OF THE OPINION THAT THE LD. CIT(A) HAS RIGHTLY FOLLOWED THE ORDER OF TH IS TRIBUNAL WHILE DIRECTING THE ASSESSING OFFICER TO GRANT EXEMPTION U/S. 11 OF THE ACT. WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LOWER AUTHORITY. THE SAME IS CONF IRMED. 6. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE A RE DISMISSED. PRONOUNCED ON 02-03-2012 SD/- SD/- (N.R.S.GANESAN) (BR BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE: KOCHI DATED: 2 ND MARCH, 2012 I.T.A. NOS. 402 & 403 /COCH/2010 3 GJ COPY TO 1 DARUL FALAHIL ISLAMIYA AL-FALAHIL ISLAMIC COMPLEX , KALPETTA, WAYANAD. 2 THE INCOME-TAX OFFICER, WARD-1(4), CALICUT 3 THE COMMISSIONER OF INCOME-TAX(APPEALS)-I, CALICU T. 4 THE COMMISSIONER OF INCOME-TAX, CALICUT. 5. THE DR, ITAT, COCHIN BENCH. 6 GUARD FILE. BY ORDER A SSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH