M.Palanisamy, Coimbatore V. ACIT, Coimbatore

MA 349/CHNY/2016

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 8747 (ITAT-CHENNAI)
• Duration Of Justice: 2 year(s) 1 month(s) 3 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 10-12-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 07-07-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 07-11-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: B SAGADEVAN
• Assessee Lawyers: S SRIDHAR
• Keywords: Rectification of order; Charitable institution
• Section: 12AA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , A BENCH, CHENNAI . , ! ' ! #$%,'( BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI DUVVURU R.L. REDDY, JUDICIAL MEMBER MISCELLANEOUS PETITION NO.349/CHNY/2016 IN I.T.A.NO.1986/MDS/2015 SHRI M. PALANISAMY, 107A, SENGUPTHA STREET, RAMNAGAR, COIMBATORE 641 009. VS THE ASST. COMMISSIONER OF INCOME TAX, NON-CORPORATE CIRCLE 2, COIMBATORE. PAN: AFRPP5948J ( / APPLICANT) ( / RESPONDENT) / APPLICANT BY : SHRI S. SRIDHAR, ADVOCATE /RESPONDENT BY : SHRI B. SAGADEVAN, JCIT /DATE OF HEARING : 30.11.2018 /DATE OF PRONOUNCEMENT : 10.12.2018 / O R D E R PER A. MOHAN ALANKAMONY, AM:- THE MISCELLANEOUS PETITION IS FILED BY THE ASSESSEE PRAYING FOR RECTIFICATION OF MISTAKE APPARENT ON RECORD IN THE ORDER OF THE TRIBUNAL PASSED IN I.T.A. NO.1986/MDS/2015 DATED 09.09.2016. 2. THE ASSESSEE HAS FILED AN ELABORATE WRITTEN SUBM ISSION WITH RESPECT TO THE OBSERVATION MADE IN THE ORDER OF THE TRIBUNAL DATED 09.09.2016 IN THE CASE OF THE ASSESSEE FOR THE ASSE SSMENT YEAR 2010-11 WHILE DISMISSING THE APPEAL OF THE REVENUE. HOWEVER THE CRUX OF THE 2 MP NO .349 /CHNY/ 2016 ISSUE IS THAT THE OBSERVATION OF THE TRIBUNAL VIZ., HOWEVER, THE AMOUNT RECEIVED BY M/S. SHREE VIJAYALAKSHMI CHARITABLE TRUS T WILL BE LIABLE TO TAX IN ITS HANDS EVEN THOUGH IT ENJOYS THE BENEFIT OF REGI STRATION UNDER SECTION 12A(A)/ 12AA OF THE ACT BY VIRTUE OF THE PROVISO TO SECTION 2( 15) OF THE ACT BECAUSE BY SUB-LEASING THE LAND THE TRUST HAS VENTURED INTO A COMMERCIAL TRANSACTION WHICH IS DISTINCT FROM ITS CHARITABLE ACTIVITIES. IS ERRONEOUS BECAUSE OF MISREADING OF FACTS. 3. BEFORE US THE LD.AR VEHEMENTLY SUBMITTED THAT T HE OBSERVATION MADE BY THE TRIBUNAL WITH RESPECT TO M/S. SHREE VIJA YALAKSHMI CHARITABLE TRUST WHILE DECIDING THE APPEAL OF THE REVENUE IN TH E CASE OF THE ASSESSEE IS NOT WARRANTED AND ERRONEOUS AND THEREFO RE THE ORDER OF THE TRIBUNAL MAY BE RECALLED AND THE ABOVE MENTIONED OBS ERVATION OF THE TRIBUNAL MAY BE EXPUNGED FROM THE ORDER OF THE TRIBU NAL. THE LD.DR ON THE OTHER HAND ARGUED IN SUPPORT OF THE ORDER OF TH E TRIBUNAL AND PLEADED THAT THERE IS NO MISTAKE IN THE ORDER AND HENCE THE ORDER OF THE TRIBUNAL NEED NOT BE RECALLED. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFU LLY PERUSED THE MATERIALS ON RECORD. THE TRIBUNAL IN ITS ORDER DATED 09.09.2016 HAD CONSCIOUSLY MADE SUCH OBSERVATION AFTER WHOLLY EXAM INING THE ISSUE IN DETAIL BASED ON THE FACTS OF THE CASE. MOREOVER ON SUCH OBSERVATION 3 MP NO .349 /CHNY/ 2016 MADE BY THE TRIBUNAL NO NEGATIVE INFERENCE CAN BE AT TRIBUTABLE TO THE CASE OF THE ASSESSEE. IN THE APPEAL OF THE REVENUE, THE TRIBUNAL HAD ONLY CLARIFIED THAT THE LEASE RENT PAID BY THE ASSE SSEE TO M/S. SHREE VIJAYALAKSHMI CHARITABLE TRUST SHOULD BE ALLOWED AS EXPENDITURE IN THE HANDS OF THE ASSESSEE AND THE SAME SHOULD BE TREATE D AS INCOME IN THE HANDS OF M/S. SHREE VIJAYALAKSHMI CHARITABLE TRUST FOR HAVING TRANSACTED COMMERCIAL TRANSACTION WHICH IS IN VIOLATION OF THE PROVISO TO SECTION 2(15) OF THE ACT. IN SUCH SITUATION, WE FAIL TO UND ERSTAND AS TO WHY THE ASSESSEE IS AGGRIEVED BY THE ORDER OF THE TRIBUNAL W HEN THE TRIBUNAL HAS ONLY GRANTED RELIEF TO THE ASSESSEE. CONSIDERING TH E SUBMISSION OF THE ASSESSEE, FACTS OF THE CASE AND THE ORDER OF THE TRI BUNAL WE DO NOT FIND ANY MISTAKE IN THE ORDER OF THE TRIBUNAL THAT IS RE QUIRED TO BE RECTIFIED. THEREFORE THE MISCELLANEOUS PETITION FILED BY THE AS SESSEE IS DEVOID OF MERITS. 5. IN THE RESULT, THE MISCELLANEOUS PETITION FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED ON THE 10 TH DECEMBER, 2018 AT CHENNAI. SD/- SD/- ( ! ' ! # $% ) (DUVVURU R.L REDDY) ' /JUDICIAL MEMBER ( . ) (A. MOHAN ALANKAMONY) /ACCOUNTANT MEMBER 4 MP NO .349 /CHNY/ 2016 /CHENNAI, !' /DATED 10 TH DECEMBER, 2018 RSR . ! %&' (' /COPY TO: 1. / APPLICANT 2. / RESPONDENT 3. ) ( ) /CIT(A) 4. ) /CIT 5. '*+ %%,- /DR 6. +./ /GF.