Income Tax Appellate Tribunal - Chennai
Ito, Madurai vs M/S. Mahasemam Trust, Madurai on 7 December, 2018
आयकर अपील य अ धकरण, 'सी' यायपीठ, चे नई
IN THE INCOME TAX APPELLATE TRIBUNAL ,
'C' BENCH, CHENNAI
ी एन.आर
एन आर.एस
आर एस.
एस गणेशन, याियक
न याियक सद य एवं ए.मोहन अलंकामणी, लेखा सद य के सम!
BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND
SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER
Miscellaneous Petition No.200/Chny/2018
in I.T.A.Nos.2919 & 2920/ Mds/2016
( नधा रण वष / Assessm ent Years:2011-12 & 2012-13)
The Income Tax Officer, Vs M/s. Mahasemam Trust,
Ward II (4), No.2/47-B, Melur Road,
Madurai Uthangudi, Madurai - 625 107.
PAN: AAATM7040C
(अपीलाथ /Applicant) ( यथ /Respondent)
अपीलाथ क ओर से/ Applicant by : Shri B. Sagadevan, JCIT
यथ क ओर से/Respondent by : Shri K. Raghunath, Advocate
सन
ु वाई क तार ख/Da te of h ear i n g : 07.12.2018
घोषणा क तार ख /Da te of P r on o u nc em en t : 07.12.2018
आदे श / O R D E R
PER A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER:
The Miscellaneous Petition is filed by the Revenue praying for rectification of mistake apparent on record in the order of the Tribunal passed in I.T.A. No.2919 & 2920/Mds/2016 dated 09.08.2017 for the assessment years 2011-12 & 2012-13.
2. The Ld.DR submitted before us that the Tribunal in its order dated 09.08.2017 supra has held that the assessee trust which is engaged in micro financing activity has rendered service in the nature of providing relief to the poor as envisaged in the Act and therefore entitled to the benefit of Section 11 & 12 of the Act while as in the case of M/s. Grama Vidiyal Trust, the Chennai 'D' 2 MP No.200/Chny/2018 Bench of the Tribunal in ITA No.345/Mds/2013, 1437/Mds/2014 and 392/Mds/2015 for the assessment years 2010-11 & 2012-13 had held that micro insurance business in addition to micro finance business carried out by the assessee bars the assessee from the entitlement of exemption U/s.11 of the Act. The Ld.DR further submitted that in the case of the assessee, the assessee obtained interest bearing funds from banking institutions and thereafter advanced the same to its clients at higher rate of interest which establishes the fact that the assessee is indulging in commercial transactions and therefore the assessee is not entitled for the benefit of Section 11 of the Act. Hence it was pleaded that the Tribunal has not followed its previous Order and therefore there is a mistake in the order of the Tribunal dated 09.08.2017 in ITA No.2919 & 2920/Mds/2016 for the assessment year 2011-12 & 2012-13 and hence the same may be recalled and rectified.
3. The Ld.AR on the other hand argued in support of the order of the Tribunal and pleaded that there is no mistake in the order of the Tribunal because the Tribunal had arrived at the conclusion after examining the facts of the case which is distinct from the other cases decided by the Tribunal against the assessees.
4. We have heard the rival submissions and carefully perused the materials on record. From the order of the Tribunal dated 09/08/2017, it is clear that the assessee was granted the benefit of Section 11 & 12 of the Act, because the assessee was carrying out the activity of micro financing for uplifting of the 3 MP No.200/Chny/2018 downtrodden and the poor and needy in rural areas. Further the Tribunal has also made an observation that it was necessary for the trust to lend at a higher rate of interest than the borrowing rate of interest in order to cover up the administration cost and the bad debts arising out of such advances. Considering these facts of the case, the Tribunal had consciously decided that the Trust was carrying out service to the poor and downtrodden as envisaged under the Act and therefore extended the benefit of Section 11 & 12 of the Act. In this situation we do not find any mistake in to the order of the Tribunal which is required to be rectified. The Facts of the cases relied by the Revenue are not identical to the facts in this case before us. Hence the miscellaneous petition of the Revenue is devoid of merits.
5. In the result, the Miscellaneous Petition filed by the Revenue is dismissed. Order pronounced in the open court on 7th December, 2018 at Chennai.
Sd/- Sd/-
(एन.आर.एस. गणेशन) ए. मोहन अलंकामणी)
(ए ामणी
(A. Mohan Alankamony)
लेखा सद य/Accountant
सद य
(N.R.S. Ganesan)
याियक सद य/Judicial Member
Member
चे"नई/Chennai,
#दनांक/Dated 7th December, 2018
RSR.
आदे श क त(ल)प अ*े)षत/Copy to:
1. अपीलाथ /Applicant 2. यथ /Respondent 3. आयकर आयु+त (अपील)/CIT(A)
4. आयकर आयु+त/CIT 5. )वभागीय त न.ध/DR 6. गाड फाईल/GF.