ITO, Nagercoil V. M/s. Peace Trust, Kanyakumari

ITA 850/CHNY/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 61238 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-06-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 18-04-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G NANTHAKUMAR JT
• Assessee Lawyers: N QUADIR HOSEYN
• Keywords: Charitable institution
• Section: 12AA; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : CHENNAI [BEFORE SHRI N.S. SAINI, ACCOUNTANT MEMBER AND SHRI V. DURGA RAO, JUDICIAL MEMBER] I.T.A.NO.850/MDS/2012 ASSESSMENT YEAR : 2007-08 THE INCOME TAX OFFICER WARD I(1) NAGERCOIL VS M/S PEACE TRUST HIGH GROUND ANJUKOOTUVILAI ROAD KANYAKUMARI 629 702 [PAN AABTP 3448 Q] (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI G. NANTHAKUMAR, JT. CIT RESPONDENT BY : SHRI N. QUADIR HOSEYN, ADVOCATE DATE OF HEARING : 27-06-2012 DATE OF PRONOUNCEMENT : 29-06-2012 O R D E R PER N.S. SAINI, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE RE VENUE AGAINST THE ORDER OF THE CIT(A)-I, MADURAI, DATED 17.1.2012. 2. IN THIS APPEAL, THE REVENUE HAS RAISED THE FOLLOWIN G GROUNDS: 1. THE ORDER OF THE CIT(A) IS OPPOSED TO LAW ON T HE FACTS AND IN THE CIRCUMSTANCES OF THE CASE. 2. THE CIT(A) OUGHT TO HAVE SEEN THAT THE REGIST RATION GRANTED BY THE CIT WAS IN CONSEQUENCE TO THE ORDER OF THE HON'BLE ITAT IN ITA NO. 1949/MDS/2011 DATED 18.08.2 011 AGAINST WHICH THE DEPARTMENT HAS FILED A MISC. PETITION BEFORE THE ITAT . I.T.A.NO. 850/12 :- 2 -: 3. FOR THESE AND SUCH OTHER GROUNDS THAT MAY BE ADDUCED AT THE TIME OF HEARING, IT IS PRAYED THAT THE ORDER OF THE CIT(A) MAY BE SET-ASIDE AND THAT THE ISSUE M AY BE RESTORED TO THE ASSESSING OFFICER FOR FRESH CONSID ERATION. 3. THE ONLY GRIEVANCE OF THE REVENUE IN THIS APPEAL IS THAT THE CIT(A) WAS NOT JUSTIFIED IN ALLOWING THE CLAIM FOR EXEMPTION U/S 11 OF THE ACT IN COMPUTING THE INCOME OF THE ASSESSEE UN DER THE STATUS AOP WHEN THE REGISTRATION BY THE CIT WAS IN CONSE QUENCE TO THE ORDER OF THE TRIBUNAL IN I.T.A.NO. 1949/MDS/2011, D ATED 18.8.2011, AGAINST WHICH THE DEPARTMENT HAS FILED A MISCELLANE OUS PETITION BEFORE THE TRIBUNAL. 4. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A CHARITABLE TRUST CREATED THROUGH A DEED DATED 19.6. 86. THE ASSESSEE FILED RETURN OF INCOME FOR ASSESSMENT YEAR 2007-08 ON 5.10.2007 SHOWING NIL INCOME AFTER CLAIMING EXEMPTION U/S 11 OF THE ACT. THE ASSESSING OFFICER NOTED THAT THE ASSESSEE WAS GRAN TED REGISTRATION U/S 12AA OF THE ACT VIDE ORDER OF THE CIT-I, MADURA I IN C.NO.464/76/07-08/CIT-I DATED 13.11.2007 W.E.F 1.4. 2007 I.E. EFFECTIVE FROM ASSESSMENT YEAR 2008-09. HENCE, THE ASSESSING OFFICER HELD THAT THE TRUST WAS NOT ENTITLED TO EXEMPTION U/S 11 OF THE ACT FOR ASSESSMENT YEAR 2007-08. ACCORDINGLY, THE ASSESSIN G OFFICER ASSESSED THE INCOME OF THE ASSESSEE-TRUST AT ` 25,40,070/-. 5. AGGRIEVED, THE ASSESSEE FILED APPEAL BEFORE THE CI T(A). I.T.A.NO. 850/12 :- 3 -: 6. THE CIT(A) ALLOWED THE CLAIM FOR EXEMPTION U/S 11 OF THE ACT TO THE ASSESSEE BY OBSERVING AS UNDER: 5. DURING THE COURSE OF APPELLATE PROCEEDINGS, ASSESSEES REPRESENTATIVE SUBMITTED COPY OF ORDER U/S 12A(OF THE ACT) R.W.S 12(2) OF THE INCOME-TAX ACT , 1961 DATED 04.11 .2011 WHEREIN COMMISSIONER OF INCOME TAX-I, MADURAI GRANTED REGISTRATION TO THE APPELLANT TRUS T U/S.12AA OF THE ACT WITH EFFECT FROM 19.06.1986 RE LEVANT TO ASST. YEAR 1987-88 ONWARDS CONSEQUENT TO GIVING EFFECT TO THE ORDER OF THE HON'BLE ITAT, CHENNAI 'C', BENC H VIDE ITS ORDER IN ITA NO. 1949/MDS./2011, DATED 18.08.20 11. SINCE THE REGISTRATION U/S.12AA WAS GRANTED FROM TH E DATE OF INCEPTION OF THE TRUST, EXEMPTION U/S.11 OF THE ACT IS AVAILABLE TO IT FOR ASST. YEAR 2007-08. THEREFORE, ASSESSING OFFICER'S ACTION IN COMPUTING THE INCOME OF ASSESSEE UNDER THE STATUS OF AOP AND DENYING IT EXEMPTION U/S.11 OF THE ACT IS NOT IN ORDER. I THE REFORE, DIRECT THE ASSESSING OFFICER TO GRANT EXEMPTION U/S . 11 OF THE ACT AND RECOMPUTE THE INCOME ACCORDINGLY. 7. THE DR, AT THE TIME OF THE HEARING, VERY FAIRLY CON CEDED BY FILING A COPY OF THE ORDER OF THE TRIBUNAL IN M.P.N O.20/MDS/2012 IN I.T.A.NO.1949/MDS/2009, ORDER DATED 20.4.2012 THAT THE MISCELLANEOUS PETITION FILED BY THE REVENUE WAS DIS MISSED BY THE TRIBUNAL BY THE AFORESAID ORDER. HE, THEREFORE, SU BMITTED THAT THE ORDER OF THE CIT(A) IN ALLOWING THE EXEMPTION U/S 11 OF THE ACT TO THE ASSESSEE ON THE BASIS OF THE REGISTRATION GRANTED T O THE ASSESSEE SINCE INCEPTION OF THE TRUST IN CONSEQUENCE TO THE ORDER OF THE TRIBUNAL IN I.T.A.NO.1949/MDS/2011 DATED 18.8.2011 WAS JUSTIFIE D. I.T.A.NO. 850/12 :- 4 -: 8. IN VIEW OF THE ABOVE, WE DISMISS THE GROUNDS OF APP EAL RAISED BY THE REVENUE. 9. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED ON FRIDAY, THE 29 TH OF JUNE, 2012, AT CHENNAI. SD/- SD/- (V. DURGA RAO) JUDICIAL MEMBER (N.S.SAINI) ACCOUNTANT MEMBER DATED: 29 TH JUNE, 2012 RD COPY TO: APPELLANT/RESPONDENT/CIT(A)/CIT/DR