DDIT, Hyderabad V. M/s Nalgonda Diocese Society, Nalgonda

ITA 509/HYD/2009

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 7504 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 8 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-01-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 25-05-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 17-04-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V SRINIVAS
• Keywords: Charitable institution
• Section: 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER ITA NO.298/HYD/2009 ASSESSMENT YEAR: 2005-06 DY. DIRECTOR OF IT (EXEMPTIONS) VS. WARANGA L HYDERABAD. DIOCESAN SOCIETY, WARANGAL. (PAN:AAAAW0076D) ITA NO.509/HYD/2009 ASSTT. YEAR: 2005-06 DY.DIRECTOR (EXEMPTIONS) -VS- NALGOND A DIOCESE HYDERABAD. SOCIETY,NALGONDA. (PAN:AAANI 189R) (APPELLANT) (RESPONDENTS) APPELLANT BY : SHRI V.SRINIVAS RESPONDENTS BY: SHRIK.V.CHALAMAIH &E.S.RANGANATH DATE OF HEARING : 03-01-2012 DATE OF PRONOUNCEMENT : 03-01-2012 ORDER PER CHANDRA POOJARI, A.M. THESE TWO APPEALS PREFERRED BY THE REVENUE IN THE CASES OF TWO DIFFERENT ASSESSEE-RESPONDENTS BOTH PE RTAIN TO THE ASSESSMENT YEAR 2005-06. SINCE COMMON ISSUES AR E INVOLVED IN THESE APPEALS, THESE ARE CLUBBED TOGETH ER AND DISPOSED OF BY THIS COMBINED ORDER FOR THE SAKE OF CONVENIENCE. ITA NOS.298 & 509/H/2009 WARANGAL DIOCESAN & OTHERS,WARANGAL. =============================== 2 2. THE COMMON GROUNDS RAISED BY THE REVENUE READ AS UNDER:- 1. THE ORDER OF THE CIT (A) IS ERRONEOUS BOTH IN LAW AND IN FACTS. 2. THE LD. CIT (A) FAILED TO APPRECIATE THE PENULTIMATE EFFECT OF THE DECISION OF THE APEX COURT IN THE CASE OF STATE OF KERALA VS. MP SHANTI VARMA JAIN IN 231 ITR 787 HOLDING THAT THE TRUST WITH MIXED ACTIVITIES ESTABLISHED AFTER 1-4-1962 IS NOT ENTITLED FOR BENEFIT U/S 11(1A). 3. THE LD. CIT (A) WRONGLY RELIED ON THE CASE OF TATA STEEL CHARITABLE TRUST IN 203 ITR 764 WHICH DEALT WITH SECTION 13(3)(D) IN THE CONTEXT OF MEANING OF RELATIVE AND NOT IN THE CONTEXT OF 13(3)(CC) REFERRING TO ANY TRUSTEE. 3. AFTER HEARING BOTH THE PARTIES, WE ARE OF THE OP INION THAT SIMILAR ISSUE CAME FOR CONSIDERATION BEFORE TH E COCHIN BENCH OF ITAT IN THE CASE OF THE SOCIETY OF PRESENT ATION SISTERS VS. INCOME-TAX OFFICER (121 ITD 422) WHEREI N HELD THAT THE EXEMPTION UNDER SECTION 11 CANNOT BE DENIE D ON THE REASON THAT THE ASSESSEES ARE ENGAGED IN ANCILL ARY AND INCIDENTAL ACTIVITIES BESIDES ITS PRIMARY AND DOMIN ANT CHARITABLE PURPOSES. WE HAVE GONE THROUGH THE SAID ORDER OF THE COCHIN BENCH OF THE TRIBUNAL (SUPRA) AND FIN D THAT BOTH THE FACTS AND THE CIRCUMSTANCES OF THESE CASES ARE QUITE IDENTICAL AND SIMILAR. IN VIEW OF THE ABOVE, WE ARE INCLINED TO FOLLOW THE ORDER OF THE COCHIN BENCH OF THE TRIBUNAL MENTIONED SUPRA AND DECIDE THE ISSUE INVOL VED IN THESE APPEALS AGAINST THE REVENUE AND IN FAVOUR OF THE ASSESSEES. ITA NOS.298 & 509/H/2009 WARANGAL DIOCESAN & OTHERS,WARANGAL. =============================== 3 3. IN THE RESULT, BOTH THE APPEALS FILED BY THE R EVENUE STAND DISMISSED. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 03-01- 2012. SD/- (ASHA VIJAYA RAGHAVAN) SD/- (CHANDRA POOJARI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED THE 3 RD JANUARY, 2012. COPY FORWARDED TO: 1. DY. DIRECTOR OF INCOME-TAX (EXEMPTIONS)-II, HYDERABAD. 2. WARANGAL DIOCESAN SOCIETY, FATHIMANAGAR, WARANGAL. 3. M/S. NALGONDA DIOCESE SOCIETY, BISHOPS HOUSE, RASHTRAPATHI ROAD, NALGONDA. 4. THE CIT(A)-IV, HYDERABAD. 5. THE DR, ITAT, HYDERABAD JMR*