Karnataka High Court
The Commissioner Of Income Tax vs Shamnur Savithramma Kallappa on 25 January, 2011
Bench: N.Kumar, Ravi Malimath
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IN THE HIGH CCRERT GF KARNATAKA AT _
DATED THIS THE 25"" am' 0:: 3Amu,n;é{*;*.V20-T.3;j1.0A "
THE HC1N'Bi.E Ma..413usfIc7E'-N.r<Ls:viAV.a>.':'_VA 1'
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THE HON'BLE:MR.Ja.jS1?iAC§._VRgX\,<I% MALIAMATH
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"*fi'=._'zrA;r\:0,"749 OF 2009
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The .:n";ume Tax Officer
Wardéi
Liaxfangere. ...APPELL;-XNTS
" COMMON
'- ""'Mar-10.40,/ang/2009
ITA».No..7'2?.1;*BNG/200? dated 30.5.2008 Confirming the
he-.or'd_aerofV"t.he Appietlate Commissioner and confirm the order
'-»§."§".Ac:§:,,__ 31%:
;s».o'u'e--stiohs of Jaw stated therein, ailow the appeai and set
= " aside.' the order passed by the ETA"? Bangaiore En
F~1P.No,17/Brag/Z009
AND:
Sharnnor Savithramma
Kaliappa Pobiéc Trust,
Chowkipeth,
Davangere.
(By Sri S.Pa:"thasarathi, Advocate) A
>i<>§<>ifi
This ITA.|\E0.739/2009 Vfi'§.-§d'~..sund.ér4._Se£tVEo:nVVA'~-260'*A of ' A
I.T.Act, 1961 praying to forrruzlate "the" suostantiat
questions of law stated-~.there.in",' --a'tiiow-»e.the app-ea!~'and set
aside the order pass.ed by i-th.e~--.__*ITAT Bangalore in
MP.No.43/Bang/2009 _a_'date,d' _n-..o3.."o7.2oo9 &
:TA.No.?74/BN6/zoo? _da.t_ed '3G.,S."2'E)08~--Lyconfirming the
order of the Appedléate C§omm'Vi.ssi.o'ner._aod'»c;onfirm the order
passed by the3._1nc;i:r'r1e.T'a><1Qffice'r,Ward-»"1, Davangere.
This I"FA.No_.}'-38/2'Q0'9'flied under section 260--A of
I;."E".Ac:t, 19.6%}. p:iayi;3g»__'..'nto formulate the sobstantiai
questions of"ia,w'st'ateéd therein, atiow the appeal and set
asidti, the ord"er.__passed by the LETAT Bangaiore in
""" " dated 03.012009 81
padssed by.'tLheA'[:IVncome Tax Officer, Wardml, Davangere.
This t1'*rMuo,737/2009 filed under section 260-A of
praying to formulate the Substantial
_ dated 03.07.2009 8:
]i"¥"A.No.769/BNGXZQO? sated 3{).S,2008 Confirming the
''''order of the Apoeltate Commissioner and confirm the order
passed by the income Yax Gfficer, Ward--§_, Efiavangerea }
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This ITA.No.743./2009 flied under sectiohifii-6Q»_A ifof"
I.T.At:t, 1961 praying to formuiete the .fsubAstaritia*i-----.t
questions of iaw stated therein, aiiow the a;:_>_pe--a_i 'a_ihd4 set'-« K
aside the order passed by the» ITAT' 8a'n~gfa1ore_' 2VEi''r_ '
MP.No.39/Brag/2009 dated 7
ITA.No.770/BNG/2007 dated 30..£r,2C3Qi8'i confi'rmEhg~'thiefj
order of the Appeiiate Corhrhiss_ioi1er'--and. confitrfmpthe order '
passed by the Income Tax OffEt;e':., War'd~g1,.Davange-ret--'
This ITA.No.742/2009 f!ied'~i,m'd_ver seCt.io_n 2?6o-A of
I.T.A<::t, 1961 prayinjg'~~..é_tofor'r'm,siate_A the "sLibstahtiai
questions of law stated"--t~'ne.re.in,{--,'aiEoWf'tthe appeai and set
aside the order passed _by'f" t.:he.--«._VI'T.}{§x7i'_'_'_.Bangalore in
MP.No.41/ang/2_oo9 '.ot3d.'p7.2oo9 &
rm.i\£o.772/ei:tt:;,>*««;>.tiro7 '=._da_ted '3o';5.r;--2OrQ8 confirming the
order of ther;\:3pe'ijE_a_t_e'Comh:}iss_§--oher and confirm the order
passed by the l;Er"1¢on*r'e Ta:éf.'jOttir:ie2r,'Ward-1, Davahgere.
This'I1'A.Npf3?4i9,/V289'? filed under section 260-A of
I.T.Act, " .3361 " .pray:ng-..t_ formuiate the substantiai
questions or law s.tated.therein, aitow the appeai and set
aside. the or.der-passed by the ITAT Bangatore in
MPV.»'ix£'.o.42/Bhg/2GD,9____A. dated 03.012009 &
_ d'-1*rA'.r~r\io.5»r7'7375Ne/2oo7 dated 30.5.2008 confirming the
'0,rder of theflppetiate Commissioner and Confirm the order
*-.oassed..bjy<.Vti"t§-Income Tax Officer, Ward~3, Davangere.
A Th~es_e¢!Yii'As coming on for orders this day, KZUMAR 3.,
deiixretréds the foiEowing:~
JUDGMENT
At; these appeats are preferred by the Revenue chaiiengieg the erder of the Tribzznai uphdiding the drder ef t ..
the appellate authority granting exemption. The assesse is common in all these appeals and the cguestidh"Q3?-jlleiaiv, involved is the same. Therefore ail the appeaisfares:h'e'ali'd_"'_4'i M tegether and disposed of by a cemn'ien"erde.et.
2. The assessee is tijust l't:.ijrfsed witiinéigijecjig: at education, relief to the eeott4,t"'i«.fnedica'l"'relief the advancement of etherVa.l§j"ect:é_ cij;aiiri't.a_'b.l.e~.Qr general public:
utility not involving thee-i.ca::*.ryiV.nAg.._ activity for profit. .ii~i"i---ipaiir'tilculaieji, the-)..r.e'ads as under:
V _ " :"4(ay}" estai5iii.s'h,' maintain and run edLiC3a4_ti'onai'-- for the benefit of air' iss.ection's..,VQfiithetlpeeple, irrespective of caste, car Ce/o'ur~'of such kinds as the Trustees dveenjficcper for imparting general, technical or knewiedge and TO AFFORD F{NANi§iAL on GTHER ASSISTANCE TO SUCH {{\lSTITUTIONS. "
A 3. it is in §)Ul'Si.Eai"iC@ of the said object, for the "assessment year 1999~2OD8, they have given denatiens ef Rsi5,G£3;OG8;'» te TTD fieisasthaeemf Térupathi and is :%*'%.,----../"/'"
Rs.1,2S,OO0/~ to Rajiv Gandhi University. assessment year 2{){}1--O2, they have given..R§_;'3.iOQ;0§{;j'. to Sri.Rama Vittat Trust. Fortthee'assessmerit.».,f,}eaTrVi' 2004-05, they have given Rs._S,OO, L';-Q'O'--to Imugiertiatl and Rs.1,00,000/~ to VignesV't'i'i'ii_V'»a'raV Sat-i_h¢.a1-5% ."»;§a¥aakari Niyamith. For the they have given Rs.1,00,0Q_O/-- eaACb,:'_tQ National Foundation and National Education V'«F<s;;'1'0,00,00o/-- to BIRRD For the assessment year Rs.2,00,000/-- each to the DeDiA;t\,!} Ditfefitoir/,.v" ¥5i3bV!«i"'<:: Eristructions and Kodaikanat '.""~E'r§teti'ia.tiA0ni'a] StV:tibb"E}V Rs.i0,00,000/~ to Rssikshalaya " and Rs.2,00,000/-- to Doddapete S%i..s4'Basaves;h*wara Seva Sangha. tor the assessment year, 2GO3?Q%1'1; they have given Rs.S,O{'},OOO/~ te imperiai Poois a::_d 'i.Rs.2,QO,{)OG/-- to Sri.Krishna Vajra Kavacha Trust ®.
4. it is not in dispute that all donees from payment of tax under the Act, as they oh' charitable activities. The Assessihg aforesaid donations are not utlii'sed= for}:-lheV" ohjieetshs enumerated in the trust deeti'l';'ri.:._V'»vMoreVloixeip-itheireWis ho clause in the ~fl"t~i.onateVV'AA to other ihstitutiens/trustAs. As the funds for meeting estatiiished, he proceedeciztgp tiotnavtioéis made by the trust are and therefore, not entitled" to _ Therefore, he passed an asserssment"ordei'~ dire-ctihg the assessee to pay the income tak" as3'=rh.e'i*rti'_ehedwith"each of these orders. Aggrieved by lithe tliiie:'.1~~assessee preferred an appeal before the CAo'mmi_ssir;}her of income Tax (Appeals) Hubli. The sAppe.Et.:+.tAe Autherity reeppreeiateé the entire material on "~..VreCo5rd and ieoked into the objects of the trust of the V. ,_..assessee. He held that the trust has apelied its eonatiehs received fer the ebjects er' the trust arid therefore? eiigibie i far exemption under Section 11 of the Act.
set aside the assessment orders. Aggrieved. the revenue preferred an appeal Again, the Apeeliate Trihuntaiék recons'i'dered."73i:Vhe"V1entireif material on record, looked into'V'tihTev'tetms" ttuistiiideed and came to the were exempted uhder_Section_ Tax Act and renewed evengf av;r;.¢l those trusts are similar and assessee. Ciatise 4(a) of the to afford financiai or other assistancew.VtoA:.l;st:ltjhifiistitutions. In the trust deed, therei-sa s4necAlf'ie"'obj'ect.that to establish, maintain and if"run.'i"eduE:*ati'C.hal institutions for benefit of ali sections and ,digit)-afford"«~f.ihaViticVi.al or other assistance to such institutions. The-t_efoV__re,iVli§2' held that the order of the Assessing Officer ""njisinte:.tiectlng the provisions was incorrect and hence the
-.g;'r'd.e'i9 eassed by the Commissioner is vaiid and legal and Vi ..._ai:cordii'igly, dismissed the appeais. Aggrieved by the said §E order, the revenue is in apneai. Ki///'
5. The learned counsel apeearlng for the~~--re}:e__ni.jie"
assailing the impugned order contended F'¥g~ clause in the trust deed which perri3'lttec:l4Ttije".esses_see;ftri;ist?Vi' to donate money to the cth4_er contentied that the donee trust"l'ili..e%ve_ not'etEAl'§z-ed the funds for charitable §3urpo3§§;~~,,%,_ has" not been considered by both the Aapt)eVllet_e and therefore according to liable to be set aside. ' l l
6." l?ereVcoi:.t.re;{th'_e---l:e'a«r"ned Counsel for assessee/trust supported t'hei.,irh;:i{3gn'ed«worder. material on record, it is clear that the tri;:'s;t was eonlstétuted for a charitable purpose. Clause 4(a) An"rai<esv..§t clear as to what are the purposes for which the l' is censtituteci. However, it is important to note that ~~ the trustees are authorized by the trust to spend meney for the establishment, maintaining and runeieg educational $5: ,-
_.g....
institutions for the benefit of all the sections of the people and for imparting general professional, techhicai knowledge. It authorizes the trust to extend 3 other assistance to such institutions. Therefore;tnejV"eia'u"seV.';_.'i in the trust deed is unamblguous.i';M'ih'ei=e is no.ls'cop.e"'fVor any confusion. Not oniy the trust?__ca'r_ries on purpose, but it aiso extends assrisitance to .such'.=institutilons carrying on these char.ita.pie is no't"in"Vdispute that at: the donees who are ri'ar'r~,2in_.gr"c.h:a»ritable activities are exempted Se:C'ti'_on_ and which is renewed every yea; "If have not utilized the funds for charitabig pu'r;;aose,"' said amount is taxable at their ."'i*.an'C1"s.. WfhéA.-joneevvlltlrusts which are registered under the AiAc't.;-are».re.:;o§jnis.eti as Carrying on charitable purpose and the'-~regi,sti'at.i'.oAn is renewed every year and in particular to relvexiant years, Therefore, the tower appeliate i.."aVut.hc;rity as well as the tribunal on consideration of the ...er5ztire rnateriai on record, have properly heie that the it order passee by the Assessing Qfficer is iliegai, eontrary te 1J«€W/ "lg-
{aw and requires to be set aside. According_l*Qf"t%é.ef;r;:
set aside. Hence, no inteyference is requi§re-dy-thiis €;0;;ft;«V. » No substantiat question of Eaw is:=.§:nveiA\.: éid'En.':tE"§éS- 4a"p':3-+:fiE»:.fe'r consideration. AcCordEngEy,»'aH.__appéajé' are 53:'énfiis_sed_.:§ = §§§@§