Income Tax Appellate Tribunal - Chennai
Avm Charities, Chennai vs Department Of Income Tax on 30 April, 2013
IN THE INCOME TAX APPELLATE TRIBUNAL
"C" BENCH, CHENNAI
BEFORE SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER
AND SHRI S.S. GODARA, JUDICIAL MEMBER
I.T.A. No. 430/Mds/2010
(Assessment Year : 2006-07)
The Deputy Director of M/s AVM Charities,
Income Tax (Exemptions)-I, No.57, Dr. Radhakrishnan Road,
Chennai - 600 034. v. Mylapore, Chennai - 600 004.
PAN : AAATA 0512 F
(Appellant) (Respondent)
Appellant by : Shri T.N. Betgiri, JCIT
Respondent by : Shri S. Sridhar, Advocate
Date of Hearing : 30.04.2013
Date of Pronouncement : 30.04.2013
O R D E R
PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER :
In this appeal, grievance raised by the Revenue is that CIT(Appeals) held assessee to be eligible for claiming exemption under Section 11 of Income-tax Act, 1961 (in short 'the Act') for the receipts from renting out of Kalyana Mandapams for functions. 2 I.T.A. No. 430/Mds/10
2. When the matter came up, learned D.R. submitted that this issue stood resolved in favour of Revenue by the decision of Hon'ble jurisdictional High Court in assessee's own case for assessment year 1987-88. A copy of the order has been placed on record.
3. Per contra, learned A.R. submitted that the matter had to be remitted back to CIT(Appeals) for consideration in accordance with the directions of Hon'ble jurisdictional High Court.
4. We have perused the orders and heard the contentions of both the counsels. For assessment year 1987-88, Assessing Officer treated similar income derived from letting out of Kalyana Mandapams as business income. Assessee had moved in appeal first before the CIT(Appeals), who held that letting out of Kalyana Mandapams did not result in income from business. Tribunal in further appeal confirmed the order of CIT(Appeals). Revenue moved Hon'ble jurisdictional High Court under Section 260A of the Act. Their Lordship in their order dated 2nd February, 2010 at paras 11 and 12, held as under:-
"11. There is absolutely no discussion about the application of the provision to the trust in question by the Commissioner of Income Tax (Appeals) as well as the Tribunal. In our opinion, the entire issue should be reconsidered by the Commissioner of 3 I.T.A. No. 430/Mds/10 Income Tax (Appeals) as to whether the trust in question is entitled to the exemption in respect of the assessment year by applying the relevant provisions. In that case, if the Commissioner of Income Tax (Appeals) comes to the conclusion that the income is a property income, then he has to find out the actual quantum of tax component with reference to the actual profit and the amounts spent towards the object of the trust. In the absence of any of the discussion, we are of the view that we have to only remand the matter after setting aside the orders of the Commissioner of Income Tax (Appeals) and the Tribunal for fresh consideration.
12. Accordingly, the orders of the Commissioner of Income Tax (Appeals) and the Tribunal are set aside and the matter is remanded to the Commissioner of Income Tax (Appeals) for fresh consideration. We may make it clear that the Commissioner of Income Tax (Appeals) should consider the matter afresh by considering both the judgments of this court reported in CIT v. Halai Nemon Association [2000] 243 ITR 439 (Mad) and CIT v. Samyuktha Gowda Saraswatha Sabha [2000] 245 ITR 242 (Mad) with reference to the provision. We may also point out that all the provisions relating to exemption prior to 1989 and thereafter prior to 192 and after April 1, 1992, have been considered by the Supreme Court in the case of Asst. CIT v. Thanthi Trust [2001] 247 ITR 785 and that judgment also be taken note of by the Commissioner of Income Tax (Appeals). We also make it clear that both the Revenue as well as the assessee are entitled to place whatever judgments which they intend to rely before the Commissioner of Income Tax (Appeals) for his consideration."
Accordingly, we are of the opinion that for the impugned assessment year also, the matter requires a fresh look by the CIT(Appeals). We, therefore, set aside the order of lower authorities and remit the issue back to the file of CIT(Appeals) for consideration afresh in accordance with directions of the Hon'ble jurisdictional High Court. 4 I.T.A. No. 430/Mds/10
5. In the result, appeal filed by the Revenue is allowed for statistical purposes.
Order was pronounced in the Court on Tuesday, the 30th of April, 2013, at Chennai.
sd/- sd/-
(S.S. Godara) (Abraham P. George)
Judicial Member Accountant Member
Chennai,
Dated the 30th April, 2013.
Kri.
Copy to: (1) Appellant
(2) Respondent
(3) CIT(A)-XII, Chennai-34
(4) DIT(Exemptions), Chennai
(5) D.R.
(6) Guard file