ADDL DIT (E) RG II, MUMBAI V. K.C. MAHINDRA EDUCATION TRUST, MUMBAI

ITA 5615/MUM/2011

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 101227 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 1 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-10-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 01-10-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 03-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JASBIR S CHOUHAN
• Assessee Lawyers: H P MAHAJANI
• Keywords: Charitable institution
• Section: 143(3); 12A; 12; 10; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH A, MUMBAI BEORE SHRI G.S.PANNU, ACCOUNTANT MEMBER AND SHRI RAMLAL NEGI, JUDICIAL MEMBER ITA NO. 5615/MUM/2011 (ASSESSMENT YEAR : 2008-09) THE ITO (E)-II(1), ROOM NO.509, PIRAMAL CHAMBERS, LALBAUG, PAREL, MUMBAI -12 ... APPELLANT VS. K.C.MAHINDRA EDUCATION TRUST, CECIL COURT, 3 RD FLOOR, MAHAKAVI BHUSHAN MARG, MUMBAI- 400001 PAN:AAATKO 315Q .... RESPONDENT APPELLANT BY : SHRI JASBIR S. CHOUHAN RESPONDENT BY : SHRI H.P.MAHAJANI DATE OF HEARING : 01/10/2015 DATE OF PRONOUNCEMENT : 01/10/2015 ORDER PER G.S. PANNU,AM: THE CAPTIONED APPEAL FILED BY THE REVENUE IS DIREC TED AGAINST THE ORDER OF THE CIT(A)-I, MUMBAI DATED 08/05/2011 PERT AINING TO THE ASSESSMENT YEAR 2008-09, WHICH IN TURN HAS ARISEN F ROM AN ORDER PASSED BY THE ASSESSING OFFICER DATED 20/12/20 10 UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). 2 ITA NO. 5615/MUM/2011 (ASSESSMENT YEAR : 2008-09) 2. THE MAIN GROUND OF APPEAL RAISED BY THE REVENUE READ AS UNDER: 1. ' ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, AND IN LAW, THE LEARNED CIT{A) ERRED IN HOLDING THAT THE ASSESSEE; IS ENTITLED FOR EXEMPTION U/S. 11 OF THE I.T.ACT 1961 WITHOUT APPRECIATING TH E FACT SINCE THE TERMS AND CLAUSES OF THE, TRUST DEED WHICH WERE THE BASIS OF GRANT OF REGISTRATION U/S.12A THE ACT HAVE BEEN ALTERED AFTER GRANT OF SU CH REGISTRATION, THE VERY FOUNDATION OF REGISTRATION HAVING BEEN REMOVED BY VOLUNTARY ACT OF THE ASSESSEE, THE REGISTRATION DOES NOT SURVIVE.' 3. THE RESPONDENT ASSESSEE IS A CHARITABLE TRUST RE GISTERED UNDER THE PROVISIONS OF THE BOMBAY PUBLIC TRUSTS ACT AND HAS ALSO BEEN GRANTED REGISTRATION BY THE COMMISSIONER OF INCOME TAX UNDER SECTION 12A OF THE ACT ON 18/02/1974. THE OBJECTS OF THE A SSESSEE TRUST AS CONTAINED IN ITS ORIGINAL INDENTURE OF 1954 WERE TO WARDS PROMOTION AND ENCOURAGEMENT OF ENGINEERING EDUCATION AMONG INDIAN S. SUBSEQUENTLY, AMENDMENT TO THE TRUST DEED WAS CARRI ED OUT WHICH WAS AIMED AT BROADENING THE SCOPE OF EDUCATION BEYOND E NGINEERING STATED IN THE TERMS OF THE ORIGINAL DEED. A DECREE WAS SO UGHT BY THE TRUSTEES FROM THE BOMBAY CIVIL COURT FOR AMENDMENT TO THE TR UST DEED, WHICH WAS PASSED BY THE COURT ON 29/01/1983, PURSUANT TO WHICH THE TRUST DEED WAS AMENDED ON 26/11/1984. IN SUM AND SUBSTAN CE, THE PLEA OF THE ASSESSEE IS THAT THE PRIMARY OBJECTS OF THE TRU ST BEFORE AND AFTER AMENDMENT CONTINUED TO BE PROMOTION AND ENCOURAGE MENT IN THE FIELD OF EDUCATION. IN THIS BACKGROUND, THE ASSESS ING OFFICER IN THE COURSE OF ASSESSMENT FOR ASSESSMENT YEAR 2008-09 D ENIED THE CLAIM OF EXEMPTION UNDER SECTION 11 & 12 OF THE ACT ON THE G ROUND THAT SUBSEQUENT TO THE REGISTRATION GRANTED BY THE COMMI SSIONER OF INCOME TAX UNDER SECTION 12A OF THE ACT, THERE HAS BEEN AN AMENDMENT TO THE 3 ITA NO. 5615/MUM/2011 (ASSESSMENT YEAR : 2008-09) TERMS AND CLAUSES OF THE TRUST DEED. ACCORDING TO THE ASSESSING OFFICER UNDER THESE CIRCUMSTANCES, ASSESSEE WAS NOT ENTITLE D TO THE EXEMPTION UNDER SECTIONS 11 & 12 OF THE ACT. AS A CONSEQUENC E, THE TOTAL INCOME WAS ASSESSED AT RS.9,86,59,591/-, BEING THE EXCESS OF INCOME OVER EXPENDITURE DEPICTED IN THE INCOME & EXPENDITURE A CCOUNT, AS AGAINST NIL INCOME RETURNED BY THE ASSESSEE. 4. THE CIT(A) HAS SINCE UPHELD THE STAND OF THE AS SESSEE PRIMARILY ON THE GROUND THAT THE ALTERATION IN THE TERMS OF T HE TRUST DEED DOES NOT MAKE THE ACTIVITIES OF THE ASSESSEE BEYOND THE SCOPE OF THE ORIGINAL OBJECT, WHICH WAS IN THE FIELD OF EDUCATION. AS PE R THE CIT(A), THE ORIGINAL AS WELL AS THE EXTENDED OBJECTS OF THE ASS ESSEE TRUST ARE OF THE SAME GENRE AND SPECIES I.E. ENHANCEMENT OF EDUCAT ION. AS A CONSEQUENCE, THE CIT(A) DIRECTED THE ASSESSING OFFI CER TO ALLOW THE EXEMPTION UNDER SECTION 11 & 12 OF THE ACT. AGAINS T SUCH A DECISION, THE REVENUE IS IN APPEAL BEFORE US. 5. BEFORE US, IT WAS A COMMON POINT BETWEEN THE PAR TIES THAT IN THE CASE OF THE ASSESSEE, IN THE PRECEDING ASSESSMENT Y EAR 2007-08 AS ALSO IN SUCCEEDING ASSESSMENT YEAR 2009-10, SIMILAR ISSU E HAD COME UP BEFORE THE TRIBUNAL AND VIDE ITS ORDERS DATED 8/6/2 012 AND 8/12/2013 IN ITA NOS. 5354/MUM/2010 AND 5988/MUM/2012 RESPEC TIVELY, THE DECISION OF THE CIT(A) ALLOWING THE EXEMPTION UNDER SECTIONS 11 & 12 HAS BEEN AFFIRMED. IT WAS ALSO A COMMON POINT BET WEEN THE PARTIES THAT THE AFORESAID PRECEDENTS IN THE CASE OF THE AS SESSEE CONTINUE TO HOLD THE FIELD AND HAVE NOT BEEN ALTERED BY ANY HI GHER AUTHORITIES, THEREFORE, THE IMPUGNED ORDER OF THE CIT(A) DESERVE S TO BE AFFIRMED IN 4 ITA NO. 5615/MUM/2011 (ASSESSMENT YEAR : 2008-09) THE ABSENCE OF ANY CHANGE IN FACTS AND CIRCUMSTANCE S BROUGHT OUT BEFORE US. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. THE ABOVE DECISION WAS PRONOUNCED IN THE OPEN COU RT IN THE PRESENCE OF BOTH THE PARTIES AT THE CONCLUSION OF T HE HEARING ON 01/10/2015. SD/- SD/- (RAMLAL NEGI) (G.S. PANNU) JUDICIAL MEMBER ACCOUNTANT ME MBER MUMBAI, DATED 01/10/2015 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT , 2. THE RESPONDENT. 3. THE CIT(A)- 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI VM , SR. PS