ITO, Calicut V. Bathany sisiters, Sulthan Bathery

ITA 641/COCH/2010

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 61442 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 5 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-04-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2002-2003
• Appeal Filed On: 26-11-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHIMANYU SINGH YADAV
• Assessee Lawyers: L KURIAKOSE
• Keywords: Charitable institution
• Section: 11

Judgement Text

1 ITA NO.641/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.T.A NO. 641/COCH/2010 (ASSESSMENT YEAR 2002-03) ITO, WD.1(4) VS M/ BATHANY SISTERS CALICUT BATHANY PROVINCIAL HOUSE SULTAN BATHERY PAN : AAAAB0755E (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ABHIMANYU SINGH YADAV RESPONDENT BY : SHRI L KURIAKOSE DATE OF HEARING : 24-04-2012 DATE OF PRONOUNCEMENT : 24-04-2012 O R D E R PER N.R.S. GANESAN (JM) THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-I, CALICUT DATED 29-09-2010 FOR THE ASSESSMENT YEAR 2002-03 2. THE LD.DR, SHRI ABHIMANYU SINGH YADAV, VERY FAIR LY SUBMITTED THAT THE ISSUE ARISES FOR CONSIDERATION IS EXEMPTION U/S 11 WHEN THE ASSESSEE HAS MULTIPLE OBJECTS I.E. BOTH RELIGIOUS AND CHARITABLE ACTIVITY . THE KERALA HIGH COURT HAS CONSIDERED THIS ISSUE AND FOUND THAT WHEN THE ASSES SEE HAS BOTH RELIGIOUS AND CHARITABLE ACTIVITY, THE ASSESSEE IS ENTITLED FOR EXEMPTION U/S 11 OF THE INCOME- 2 ITA NO.641/COCH/2010 TAX ACT. IN VIEW OF THE JUDGMENT OF THE KERALA HIGH COURT, THE LD.DR VERY FAIRLY SUBMITTED THAT THE ASSESSEE MAY BE ENTITLED FOR EXE MPTION WHEN THE OBJECT OF THE TRUST IS BOTH RELIGIOUS AND CHARITABLE IN NATUR E. 3. SHRI L KURIAKOSE, THE LD.REPRESENTATIVE FOR THE AS SESSEE SUBMITTED THAT ADMITTEDLY, THE ASSESSEES ACTIVITY IS BOTH RELIGIO US AND CHARITABLE IN NATURE. ON IDENTICAL CIRCUMSTANCES, THE KERALA HIGH COURT IN CO MMISSIONER OF INCOME-TAX VS MUSLIM SERVICE SOCIETY IN ITA NO.11 OF 2010 HAD AN OCCASION TO CONSIDER THE CASE OF THE TRUST WHICH IS HAVING CHARITABLE AND RELIGIO US ACTIVITY AS ITS OBJECT. THE KERALA HIGH COURT FOUND THAT THE INCOME EARNED BY A TRUST ENGAGED IN RELIGIOUS AND CHARITABLE ACTIVITY IS ENTITLED FOR EXEMPTION U /S 11 OF THE INCOME-TAX ACT. THE ASSESSEE HAS FILED THE COPY OF THE ORDER OF THE HIGH COURT IN THE PAPER BOOK. THE LD.REPRESENTATIVE FURTHER SUBMITTED THAT IN ONE OF THE APPEALS, THE MATTER TRAVELLED UPTO THE APEX COURT. THE APEX COURT IN C OMMISSIONER OF INCOME-TAX VS NOBERT HOUSE DISMISSED THE SPECIAL LEAVE PETITION F ILED BY THE REVENUE ON IDENTICAL CIRCUMSTANCES AGAINST THE JUDGMENT OF THE KERALA HIGH COURT. THE ASSESSEE HAS FILED THE COPY OF THE ORDER OF THE APE X COURT WHEREIN THE SPECIAL LEAVE PETITION FILED BY THE DEPARTMENT WAS DISMISSE D. 4. WE HAVE CONSIDERED THE SUBMISSIONS OF THE LD.DR AND THE LD.REPRESENTATIVE FOR THE ASSESSEE. ADMITTEDLY, TH E ASSESSING OFFICER HAS DISALLOWED THE CLAIM OF THE ASSESSEE U/S 11 OF THE ACT ON THE GROUND THAT THE OBJECT OF THE ASSESSEE IS BOTH RELIGIOUS AND CHARIT ABLE. THE QUESTION ARISES FOR CONSIDERATION IS WHEN THE ASSESSEES OBJECT IS FOR BOTH RELIGIOUS AND CHARITABLE, WHETHER IT IS ENTITLED FOR EXEMPTION U/S 11 OF THE INCOME-TAX ACT OR NOT? THIS ISSUE WAS CONSIDERED BY THE KERALA HIGH COURT IN THE CASE OF MUSLIM SERVICE SOCIETY (SUPRA). THE KERALA HIGH COURT FOUND THAT WHEN THE TRUST WAS ENGAGED IN 3 ITA NO.641/COCH/2010 RELIGIOUS AS WELL AS CHARITABLE PURPOSE, IT IS ENTI TLED FOR EXEMPTION U/S 11 OF THE INCOME-TAX ACT. ON IDENTICAL CIRCUMSTANCES, THE SPE CIAL LEAVE PETITION FILED BY THE DEPARTMENT AGAINST THE JUDGMENT OF THE KERALA HI GH COURT WAS REJECTED IN NOBERT HOUSE (SUPRA). IN VIEW OF THE JUDGMENT OF T HE KERALA HIGH COURT AND THE JUDGMENT OF THE APEX COURT IN NOBERT HOUSE (SUPRA), WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LOWER AUTHORITY. ACCORDINGLY, THE SAME IS CONFIRMED. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 24 TH DAY OF APRIL, 2012. SD/- SD/- (B.R. BASKARAN) (N.R.S. GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN, DT : 24 TH APRIL, 2012 PK/- COPY TO: 1. ITO, WD.1(4), CALICUT 2. M/S BATHANY SISTERS, BATHANY PROVINCIAL HOUSE, SULT HAN BATHERY 3. THE COMMISSIONER OF INCOME-TAX(A)-I, CALICUT 4. THE COMMISSIONER OF INCOME-TAX, CALICUT 5. THE DR (TRUE COPY) BY ORDER ASSTT. REGISTRAR, INCOME-TAX APPELLATE TRIBUNAL, COCHIN BENCH