S P H E R E, Gooty V. ACIT, Anantapur

MA 160/HYD/2010

• Counselvise Citation: [2010] 123 COUNSELVISE.COM (IT) 4923 (ITAT-HYDERABAD)
• Duration Of Justice: 1 month(s) 13 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 24-09-2010
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 11-08-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Charitable institution
• Section: 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B', HYDERABAD BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMEBR MA NO. 160/HYD/2010 (ARISING OUT OF I.T.A. NO. 504/HYD/98) ASSESSMENT YEAR 1988-89 MA NO. 161/HYD/2010 (ARISING OUT OF I.T.A. NO. 505/HYD/98) ASSESSMENT YEAR 1989-90 MA NO. 162/HYD/2010 (ARISING OUT OF I.T.A. NO. 506/HYD/98) ASSESSMENT YEAR 1990-91 MA NO. 163/HYD/2010 (ARISING OUT OF I.T.A. NO. 507/HYD/98) ASSESSMENT YEAR 1991-92 MA NO. 164/HYD/2010 (ARISING OUT OF I.T.A. NO. 508/HYD/98) ASSESSMENT YEAR 1992-93 SOCIETY FOR PROMOTION OF HEALTH, EDUCATION & RURAL ECONOMY (SPHERE), GOOTY GIR NO. 617 (TRUST) VS. ACIT, CIRCLE I, ANANTAPUR APPELLANT RESPONDENT APPELLANT BY: SHRI S. RAMA RAO RESPONDENT BY: SHRI AMLAN THRIPATY O R D E R PER NRS GANESAN, JM: THE ASSESSEE HAS FILED THE PRESENT MISCELLANEOUS APPLICATION ON THE GROUND THAT GROUND NO. 2 RAISED BY THE ASSESSEE IN ALL THE APPEALS WAS NOT DISPOSED OF. 2. SHRI S. RAMA RAO, THE LEARNED COUNSEL FOR THE AS SESSEE SUBMITTED THAT THE ASSESSEE HAS RECEIVED GRANT-IN-A ID FROM FOREIGN DONOR FOR A SPECIFIC PURPOSE. THEREFORE, T HE SAME CANNOT SOCIETY FOR PROMOTION OF HEALTH EDUCATION AND RURAL ECONOMY, GOOTY =================== 2 BE INCOME OF THE ASSESSEE. ON THE CONTRARY SHRI AM LAN THRIPATY, THE LEARNED DR SUBMITTED THAT THIS TRIBUN AL HAS CONSIDERED THIS ISSUE AND FOUND THAT THE ASSESSEE H AS NOT CARRIED ON CHARITABLE ACTIVITY OR UTILISED ITS FUND S FOR CHARITABLE PURPOSES. THEREFORE, IT CANNOT BE SAID THAT THE GR OUND RAISED BY THE ASSESSEE WAS NOT ADJUDICATED. 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND ALS O PERUSED THE MATERIAL ON RECORD. THE ASSESSEE FILED THE APPEALS BEFORE THIS TRIBUNAL CLAIMING MAINLY EXEMPTION U/S. 11 OF INCOME-TAX ACT, 1961 ON THE GROUND THAT THE ASSESSE E IS A CHARITABLE INSTITUTION. ON THE BASIS OF THE MATERI AL AVAILABLE ON RECORD THIS TRIBUNAL FOUND THAT THE ASSESSEE HAS NO T CARRIED OUT ANY CHARITABLE ACTIVITIES OR UTILISED ITS FUNDS FOR ANY CHARITABLE PURPOSES. THE CONTENTION OF THE ASSESSEE NOW BEFOR E THIS TRIBUNAL IS THAT A SPECIFIC GRANT WAS RECEIVED FROM FOREIGN DONOR FOR A SPECIFIC PURPOSE. THEREFORE, IT CANNOT BE TH E INCOME OF THE ASSESSEE. WHEN THE ASSESSEE HAS NOT CARRIED ON ANY CHARITABLE ACTIVITIES AND HAS NOT UTILISED ITS FUNDS FOR CHARI TABLE PURPOSES, THE QUESTION OF EXEMPTION DOES NOT ARISE FOR CONSID ERATION. UNLESS UNTIL THE ASSESSEE PROVES THAT THE SPECIFIC GRANT RECEIVED BY THE ASSESSEE WAS UTILISED FOR THE SPECIFIC CHARI TABLE ACTIVITY AS POINTED OUT BY THE DONOR, THE QUESTION OF EXEMPT ION DOES NOT ARISE FOR CONSIDERATION. THEREFORE, IN OUR OPINION , EVEN THE GRANT RECEIVED BY THE ASSESSEE WOULD FORM PART OF T HE INCOME. IN OTHER WORDS, IN ABSENCE OF ANY MATERIAL TO SHOW THAT THE GRANT-IN-AID OR OTHER INCOME OF THE ASSESSEE WAS UT ILISED FOR THE PURPOSE OF CHARITABLE ACTIVITIES, THE ASSESSEE CANN OT CLAIM ANY EXEMPTION MERELY THE GRANT-IN-AID WAS GIVEN BY A FO REIGN DONOR. THE INTENTION OF THE LEGISLATURE IS TO EXEMPT THE I NCOME WHICH IS APPLIED FOR CHARITABLE PURPOSES. IN THE ABSENCE OF ANY MATERIAL, WE DO NOT FIND ANY ERROR IN THE ORDER OF THIS TRIBUNAL WITHIN THE MEANING OF SECTION 254(2) OF THE ACT. SOCIETY FOR PROMOTION OF HEALTH EDUCATION AND RURAL ECONOMY, GOOTY =================== 3 4. WE DO NOT FIND ANY MERIT IN THE MAS AND ALL THE MAS ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 24TH SEPTEMBE R, 2010 SD/- (CHANDRA POOJARI) ACCOUNTANT MEMBER SD/- (N.R.S. GANESAN) JUDICIAL MEMBER HYDERABAD, DATED 24TH SEPTEMBER, 2010 TPRAO COPY FORWARDED TO: 1. THE SOCIETY FOR PROMOTION OF HEALTH, EDUCATION A ND RURAL ECONOMY (SPHERE), GOOTY-515 401, ANANTAPUR DIST., A P. 2. THE ASST. CIT, CIRCLE-1, ANANTAPUR, A.P. 3. THE CIT(A)-II, HYDERABAD. 4 THE CIT, AP, HYDERABAD 5. THE DR, ITAT, HYDERABAD.