ITO, Calicut V. Nobert House, Calicut

ITA 95/COCH/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 58291 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-03-2012
• Appeal Filed By: Department
• Bench Allotted: DB
• Assessment Year: 2002-2003
• Appeal Filed On: 03-02-2011
• Court: TRIBUNAL
• Department Lawyers: VIJAYAPRABHA
• Keywords: Charitable institution

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE: SHRI N.R.S.GANESAN, JUDICIAL MEMBER AND SHRI B.R. BASKARAN, ACCOUNTANT MEMBER ITA NO. 95/COCH/2011 ASSESSMENT YEAR : 2002-03 I.T.O., WARD-1(4), CALICUT WAYANAD MUSLIM ORPHANAGE COMMITTEE, MUTTIL, KALPETTA, WAYANAD-673 122. [PAN: AAATW 0193L] (APPELLANT) VS. (RESPONDENT) APPELLANT BY: SMT. VIJAYAPRABHA, JR. DR RESPONDENT BY: NONE DATE OF HEARING: 02/03/2012 DATE OF PRONOUNCEMENT: 02/03/2012 ORDER PER SHRI B.R.BASKARAN, ACCOUNTANT MEMBER:- THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 23-11-2010 PASSED BY LD. COMMISSIONER OF INCOME-TAX (A)-I, CAL ICUT AND PERTAINS TO THE ASSESSMENT YEAR 2002-03. 2. THE ONLY ISSUE ARISES FOR CONSIDERATION IS ABOUT THE ELIGIBILITY OF EXEMPTION U/S. 11 OF THE INCOME-TAX ACT TO THE ASSESSEE IN THE FAC TS AND CIRCUMSTANCES OF THE CASE. 3. SMT. VIJAYAPRABHA, THE LD. DR SUBMITTED THAT THE ASSESSING OFFICER REJECTED THE CLAIM OF EXEMPTION U/S. 11 OF THE ACT ON THE GROUND THAT THE OBJECT OF THE TRUST WAS CHARITABLE AND RELIGIOUS IN NATURE. ACCORDING TO T HE LD. DR, THE ASSESSEE-TRUST CANNOT HAVE BOTH OBJECTS. IT HAS TO CONFINE EITHER TO CHA RITABLE ACTIVITY OR RELIGIOUS ACTIVITY. THE TRUST HAVING MIXED OBJECTS OF RELIGIOUS AND CHA RITABLE NATURE CANNOT BE TREATED AS CHARITABLE TRUST FOR EXEMPTION U/S. 11 OF THE ACT. REFERRING TO THE ORDER OF THIS TRIBUNAL, THE LD. DR SUBMITTED THAT THE REVENUE HAS ALREADY FILED THE APPEAL BEFORE THE I.T.A. NO.95/COCH/2011 2 HIGH COURT, THEREFORE, THE LD. CIT(A) IS NOT CORREC T IN PLACING RELIANCE ON THE ORDER OF THIS TRIBUNAL. 4. NONE APPEARED ON BEHALF OF THE ASSESSEE NOR ANY ADJOURNMENT APPLICATION FILED BEFORE THE TRIBUNAL. ON PERUSAL OF THE LD. CIT(A) S ORDER, WE FIND THAT THE LD. CIT(A) HAS ALLOWED THE CLAIM OF THE ASSESSEE BASED ON THE ORDER OF THIS TRIBUNAL IN THE ASSESSEES OWN CASE IN I.T.A. NO. 128/COCH/2007 DAT ED 22-09-2009 FOR THE ASSESSMENT YEAR 2003-04. THIS TRIBUNAL HAS FOUND THAT THE ASS ESSEE IS ELIGIBLE FOR EXEMPTION U/A 11 EVEN THOUGH THE OBJECT IS BOTH CHARITABLE AND RE LIGIOUS IN NATURE. IT WAS SUBMITTED THAT THE VIEW OF THE TRIBUNAL HAS ALREADY BEEN CONF IRMED BY THE HONBLE JURSIDICTIONAL KERALA HIGH COURT. 5. AFTER HEARING THE LD. DR AND CONSIDERING THE MAT ERIAL ON RECORD, WE FIND THAT ADMITTEDLY, IN THE ASSESSEES OWN CASE FOR THE ASSE SSMENT YEAR 2003-04, THIS TRIBUNAL EXAMINED THE ISSUE AND FOUND THAT THE ASSESSEE IS E LIGIBLE FOR EXEMPTION U/S. 11 EVEN THOUGH THE OBJECT WAS BOTH RELIGIOUS AND CHARITABLE IN NATURE. ON IDENTICAL SET OF FACTS, THIS TRIBUNAL HAS, AS IN THE CASE OF OTHER ASSESSES ALSO FOUND THAT THE ASSESSEE IS ELIGIBLE FOR EXEMPTION U/S. 11 EVEN THOUGH THEIR OB JECTS WERE BOTH RELIGIOUS AND CHARITABLE IN NATURE. IN FACT THE HIGH COURT HAS A LSO CONFIRMED THE ORDER OF THIS TRIBUNAL. THEREFORE, THIS TRIBUNAL IS OF THE OPINI ON THAT THE LD. CIT(A) HAS RIGHTLY FOLLOWED THE ORDER OF THIS TRIBUNAL WHILE DIRECTING THE ASSESSING OFFICER TO GRANT EXEMPTION U/S. 11 OF THE ACT. WE DO NOT FIND ANY I NFIRMITY IN THE ORDER OF THE LOWER AUTHORITY. THE SAME IS CONFIRMED. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. PRONOUNCED ON 02-03-2012 SD/- SD/- (N.R.S.GANESAN) (BR BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE: KOCHI DATED: 2 ND MARCH, 2012 I.T.A. NO.95/COCH/2011 3 GJ COPY TO 1 WAYANAD MUSLIM ORPHANAGE COMMITTEE, MUTTIL, KALPE TTA, WAYANAD. 2 THE INCOME-TAX OFFICER, WARD-1(4), CALICUT 3 THE COMMISSIONER OF INCOME-TAX(APPEALS)-I, CALICU T. 4 THE COMMISSIONER OF INCOME-TAX, CALICUT. 5. THE DR, ITAT, COCHIN BENCH. 6 GUARD FILE. BY ORDER A SSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH