YYMMISSIONER OF INCOME TAX V. ST.THOMAS CATHEDRAL CHURCH

OP/29425/1999

AI Insights

The case involves the Commissioner of Income-Tax, Cochin, as the petitioner, and St. Thomas Cathedral Church, Irinjalakuda, Trichur District, as the respondent. The core issue revolves around the entitlement of the respondent, a religious and charitable institution, to exemptions under Section 11 of the Income Tax Act, 1961, specifically concerning the income from kuri business used for charitable purposes. The Tribunal had previously rejected the Revenue's appeal and application to refer the questions of law to the High Court. The Revenue challenged this decision, leading to the High Court's directive to the Tribunal to refer the questions for judicial consideration.

• Counselvise Citation: [2007] 140 COUNSELVISE.COM (IT) 699004 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 30-07-2007
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: P BALACHANDRAN
• Assessee Lawyers: P K RAVINDRANATHA MENON; GEORGE GEORGE
• Keywords: Charitable purpose; Exemption; Income Tax; Kuri Business; Religious Institution
• Section: 11; 256(1); 256(2)

Judgement Text

" IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT:- THE HONOURABLE THE CHIEF JUSTICE MR.H.L.DATTU & THE HONOURABLE MR. JUSTICE K.T.SANKARAN MONDAY, THE 30TH JULY 2007 / 8TH SRAVANA 1929 O.P.No.29425 of 1999(S) -------------------------------------------- (R.A.NO.334 (COCH)/1998 ARISING OUT OF I.T.ANO.261(COCH)/1984 OF THE INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH, COCHIN) .................... PETITIONER:- ------------------- THE COMMISSIONER OF INCOME-TAX, COCHIN. BY STANDING COUNSEL FOR GOVERNMENT OF INDIA (TAXES) SRI.P.K.RAVINDRANATHA MENON (SR.) SRI.GEORGE K. GEORGE. RESPONDENTS:- ------------------------ ST.THOMAS CATHEDRAL CHURCH, IRINJALAKUDA, TRICHUR DISTRICT. BY ADV. SRI.P.BALACHANDRAN. THIS ORIGINAL PETITION HAVING BEEN FINALLY HEARD ON 30/07/2007, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: H.L.Dattu, C.J. & K.T.Sankaran, J. ------------------------------------------------------- O.P.No.29425 of 1999-S --------------------------------------------------------- Dated, this the 30th day of July, 2007 JUDGMENT H.L.Dattu, C.J. The Revenue has filed this petition under Section 256(2) of the Income Tax Act, 1961 ('Act' for short), inter alia, requesting us to direct the Income Tax Appellate Tribunal to state the case and refer the questions of law that would arise in I.T.A.No.261/Coch)/1984 dated 7th September, 1998 for the assessment year 1990-91. The questions of law raised by the Revenue are as under: “1. Whether, on the facts and in the circumstances of the case and in view of sub-section (4A) of Section 11, the assessee is entitled to exemption u/s.11 of the Income-tax Act? 2. Whether, on the facts and in the circumstances of the case, the assessee is right in law and fact in holding that 'the assessee is a religious and charitable institution and carried on kuri business for utilising the income therefrom also for the charitable purpose such as medical relief, education, etc.? 3. Whether, on the facts and in the circumstances of the case, the Tribunal is right in holding that the interest claimed cannot be taxed in the hands of the assessee trust as it is exempt from taxation?” (2) The Tribunal has rejected the appeal filed by the Revenue. The Revenue had filed an application under Section 256(1) of the Act requesting the Tribunal to state the case and refer the questions of law that would arise in I.T.A.No.261/Coch)/1984 for the assessment year 1990-91. The O.P.No.29425/1999-S 2 Tribunal has rejected the application. (3) We have carefully perused the order passed by the Tribunal and also the questions of law raised by the Revenue for consideration and decision by this Court. In our opinion, the questions of law raised by the Revenue require consideration by this Court. Therefore, a direction requires to be issued to the Tribunal to state the case and refer the questions of law that would arise in I.T.A.No.261/Coch)/1984 dated 7th September, 1998 for the assessment year 1990-91. (4) Accordingly, the following: Order i) The petition is allowed. ii) A direction is issued to the Tribunal to state the case and refer the questions of law that would arise in .T.A.No.261/Coch)/1984 dated 7th September, 1998 for the assessment year 1990-91 for consideration and decision by this Court, as expeditiously as possible. Ordered accordingly. (H.L.Dattu) Chief Justice (K.T.Sankaran) Judge vku/- "