ITO, Calicut V. Samastha Kerala Sunni yuva jana sangham, Calicut

ITA 710/COCH/2010

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 61486 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 5 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-05-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 28-05-2012
• Assessment Year: 2002-2003
• Appeal Filed On: 23-12-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S VIJAYAPRABHA
• Keywords: Charitable institution
• Section: 2; 11

Judgement Text

1 ITA NO. 710/COCH/2010 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI N.R.S. GANESAN (JM) AND SHRI B.R. BASKA RAN(AM) I.TA NO. 710/COCH/2010 (ASSESSMENT YEAR 2002-03) ITO, WD.1(2) VS SAMASTHA KERALA SUNNI YUVA JAN A KOZHIKODE SANGAM (SYS HAJJ CELL) MARKAZ COMPLEX, MAVOOR ROAD KOZHIKODE 673 004 PAN : AACTS6944B (APPELLANT) (RESPONDENT) APPELLANT BY : SMT. S VIJAYAPRABHA RESPONDENT BY : NONE, WRITTEN SUBMISSION DATE OF HEARING : 28-05-2012 DATE OF PRONOUNCEMENT : 28-05-2012 O R D E R PER N.R.S. GANESAN (JM) THE REVENUE FILED THE PRESENT APPEAL AGAINST THE O RDER OF COMMISSIONER OF INCOME-TAX(A)-I, CALICUT DATED 18-10-2010 AND PERTA INS TO ASSESSMENT YEAR 2002-03. 2. NO ONE APPEARED FOR THE ASSESSEE INSPITE OF SERV ICE OF NOTICE. HOWEVER, A WRITTEN SUBMISSION WAS FILED ON BEHALF OF THE ASSES SEE IN THE REGISTRY, WHICH IS ON RECORD. THEREFORE, WE HAVE HEARD THE LD.DR AND DIS POSE OF THE APPEAL ON MERIT. 3. WE HEARD SMT. S VIJAYAPRABHA, THE LD.DR. THE ON LY ISSUE ARISES FOR CONSIDERATION IS EXEMPTION U/S 11 OF THE INCOME-TAX ACT. THE ASS ESSING OFFICER REJECTED THE CLAIM OF THE ASSESSEE ON THE GROUND THAT THE ASSESSEE TRUST WAS CONSTITUTED FOR BOTH RELIGIOUS AND CHARITABLE PURPOSE, THEREFORE, THE ASSESSEE IS NOT ELIGIBLE FOR EXEMPTION U/S 11 OF 2 ITA NO. 710/COCH/2010 THE ACT. THE QUESTION ARISES FOR CONSIDERATION IS WHEN THE TRUST WAS CONSTITUTED FOR BOTH RELIGIOUS AND CHARITABLE PURPOSE, WHETHER THE ASSES SEE WOULD BE ELIGIBLE FOR EXEMPTION U/S 11 OF THE INCOME-TAX ACT. THIS ISSUE WAS CONSI DERED ELABORATELY BY THIS TRIBUNAL IN ASSESSEES OWN CASE FOR ASSESSMENT YEARS 2000-01, 2 001-02, 2003-04, 2004-05,2005-06 AND 2006-07. THIS TRIBUNAL BY FOLLOWING THE JUDGME NT OF THE KERALA HIGH COURT IN THE CASE OF COMMISSIONER OF INCOME-TAX VS M/S MUSLIM SE RVICE SOCIETY DATED 02-08-2010 FOUND THAT THE ASSESSEE IS ELIGIBLE FOR EXEMPTION U /S 11 EVEN THOUGH THE OBJECT OF THE TRUST WAS OF BOTH RELIGIOUS AND CHARITABLE PURPOSE. WE HAVE ALSO CAREFULLY GONE THROUGH THE UNREPORTED JUDGMENT OF THE KERALA HIGH COURT IN THE CASE OF M/S MUSLIM SERVICE SOCIETY (SUPRA), COPY OF WHICH IS FILED ALONG WITH THE WRITTEN SUBMISSION. THE KERALA HIGH COURT FOUND THAT WHEN THE EXEMPTION IS AVAILAB LE BOTH FOR RELIGIOUS AND CHARITABLE PURPOSE INDEPENDENTLY, THERE IS NO REASON HOW THE E XEMPTION CAN BE DECLINED TO A TRUST WHICH IS ENGAGED IN BOTH CHARITABLE AND RELIGIOUS A CTIVITY. ACCORDINGLY, THE CLAIM OF THE ASSESSEE WAS ALLOWED. BY RESPECTFULLY FOLLOWING TH E JUDGMENT OF THE KERALA HIGH COURT IN THE CASE OF M/S MUSLIM SERVICE SOCIETY (SUPRA) A ND THE REASONS STATED THEREIN WE UPHOLD THE ORDER OF THE COMMISSIONER OF INCOME-TAX( A). 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON THIS 28 TH DAY OF MAY, 2012. SD/- SD/- (B.R. BASKARAN) (N.R.S. GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN, DT : 28 TH MAY, 2012 PK/- COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE COMMISSIONER OF INCOME-TAX 4. THE COMMISSIONER OF INCOME-TAX(A) 5. THE DR (TRUE COPY) BY ORDER ASSTT. REGISTRAR, INCOME-TAX APPELLATE TRIBUNAL, COCHIN BENCH