ITO, Calicut V. Nobert House, Wynad

ITA 467/COCH/2010

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 58273 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 6 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-02-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2000-2001
• Appeal Filed On: 04-08-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIJAYAPRABHA
• Assessee Lawyers: P BALAKRISHNAN
• Keywords: Charitable institution
• Section: 11

Judgement Text

1 ITA NO.467 & 468/COCH/2010 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI N.R.S. GANESAN (JM) AND SHRI B.R. BASKARA N(AM) I.TA NO. 467 & 468/COCH/2010 (ASSESSMENT YEARS 2000-01 & 2001-02) ITO, WD.1(4) VS NOBERT HOUSE CALICUT MANANTHAVADY, WAYANAD PAN : AAATN4291N (APPELLANT) (RESPONDENT) APPELLANT BY : SMT. VIJAYAPRABHA RESPONDENT BY : SHRI P BALAKRISHNAN DATE OF HEARING : 15-02-2012 DATE OF PRONOUNCEMENT : 17-02-2012 O R D E R PER N.R.S. GANESAN (JM) THESE APPEALS OF THE REVENUE ARE DIRECTED AGAINST THE COMMON ORDER OF THE COMMISSIONER OF INCOME-TAX(A)-I, CALICUT DATED 2 5-5-2010 AND PERTAIN TO ASSESSMENT YEARS 2000-01 AND 2001-02. SINCE COMMON I SSUE ARISES FOR CONSIDERATION, FOR THE SAKE OF CONVENIENCE, THESE AP PEALS WERE HEARD TOGETHER AND ARE DISPOSED OF BY THIS COMMON ORDER. 2. THE ONLY ISSUE ARISES FOR CONSIDERATION IS EXEMP TION U/S 11 OF THE INCOME- TAX ACT. 2 ITA NO.467 & 468/COCH/2010 3. SMT. VIJAYAPRABHA, THE LD.DR SUBMITTED THAT THE ASSESSING OFFICER REJECTED THE CLAIM OF EXEMPTION U/S 11 OF THE INCOME-TAX ACT ON THE GROUND THAT THE OBJECT OF THE TRUST WAS CHARITABLE AND RELIGIOUS IN NATURE. ACCORDING TO THE LD.DR, THE ASSESSEE TRUST CANNOT HAVE BOTH OBJECTS. IT HA S TO CONFINE EITHER TO CHARITABLE ACTIVITY OR RELIGIOUS ACTIVITY. THE MIXED OBJECT O F RELIGIOUS AND CHARITABLE NATURE CANNOT BE TREATED AS CHARITABLE TRUST FOR EXEMPTION U/S 11 OF THE INCOME-TAX ACT. REFERRING TO THE ORDER OF THIS TRIBUNAL, THE LD.DR SUBMITTED THAT THE REVENUE HAS ALREADY FILED THE APPEAL BEFORE THE HIGH COURT, THE REFORE, THE COMMISSIONER OF INCOME-TAX(A) IS NOT CORRECT IN PLACING RELIANCE ON THE ORDER OF THIS TRIBUNAL. 4. ON THE CONTRARY, SHRI BALAKRISHNAN, THE LD.COUNSE L FOR THE ASSESSEE SUBMITTED THAT THIS TRIBUNAL IN THE ASSESSEES OWN CASE IN ITA NOS. 40/COCH/2007 AND 327/COCH/2008 FOR THE ASSESSMENT YEARS 2003-04 A ND 199-2000, RESPECTIVELY ORDER DATED 08 TH OCTOBER, 2009 HAS FOUND THAT THE ASESSEE IS ELIGIB LE FOR EXEMPTION EVEN THOUGH THE OBJECT IS BOTH CHARITABLE AND RELIGIOUS IN NATURE. REFERRING TO THE EARLIER ORDER OF THIS TRIBUNAL, TH E LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT IN FACT THE DEPARTMENT FILED APPEAL BEFORE THE HIGH COURT AND THE HIGH COURT HAS ALREADY CONFIRMED THE ORDER OF THIS TRIBUNAL. THEREFORE, IT IS NOT CORRECT TO SAY THAT THE APPEAL OF THE DEPARTMENT IS PENDING BEFORE THE HIGH COURT. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND HAVE ALSO GONE THROUGH THE MATERIAL PLACED BEFORE US. ADMITT EDLY, IN THE ASSESSEES OWN CASE FOR THE ASSESSMENT YEARS 2003-04 AND 1999-2000 T HIS TRIBUNAL EXAMINED THE ISSUE AND FOUND THAT THE ASSESSEE IS ELIGIBLE FOR E XEMPTION U/S 11 EVEN THOUGH THE OBJECT WAS BOTH RELIGIOUS AND CHARITABLE IN NAT URE. ON IDENTICAL SET OF FACTS, THIS TRIBUNAL, IN THE CASE OF OTHER ASSESSEES ALSO FOUND THAT THE ASSESSEE ARE 3 ITA NO.467 & 468/COCH/2010 ELIGIBLE FOR EXEMPTION U/S 11 EVEN THOUGH THEIR OBJ ECTS WERE BOTH RELIGIOUS AND CHARITABLE IN NATURE. IN FACT THE HIGH COURT HAS A LSO CONFIRMED THE ORDER OF THIS TRIBUNAL. THEREFORE, THIS TRIBUNAL IS OF THE OPINI ON THAT THE COMMISSIONER OF INCOME-TAX(A) HAS RIGHTLY FOLLOWED THE ORDER OF THIS 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 CONFIRMED. ACCORDINGLY, BOTH THE APPEALS OF THE REVENUE STAND DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 17 TH DAY OF FEBRUARY, 2012. SD/- SD/- (B.R. BASKARAN) (N.R.S. GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN, DT : 17 TH FEBRUARY, 2012 PK/- COPY TO: 1. ITO, WD.1(4), CALICUT 2. NORBERT HOUSE, MANATHAVADY, WAYANAD 3. THE COMMISSIONER OF INCOME-TAX(A)-I, CALICUT 4. THE C.I.T., CALICUT 5. THE DR (TRUE COPY) BY ORDER ASSTT. REGISTRAR, INCOME-TAX APPELLATE TRIBUNAL, COCHIN BENCH