The ACIT, 1 (1), v. India Red Cross Society,

ITA 10/IND/2009 | 2004-2005
Pronouncement Date: 22-04-2010 | Result: Dismissed

Appeal Details

RSA Number 1022714 RSA 2009
Assessee PAN EYEAR1920A
Bench Indore
Appeal Number ITA 10/IND/2009
Duration Of Justice 1 year(s) 3 month(s) 1 day(s)
Appellant The ACIT, 1 (1),
Respondent India Red Cross Society,
Appeal Type Income Tax Appeal
Pronouncement Date 22-04-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted DB
Tribunal Order Date 22-04-2010
Date Of Final Hearing 22-04-2010
Next Hearing Date 22-04-2010
Assessment Year 2004-2005
Appeal Filed On 20-01-2009
Judgment Text
1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH INDORE BEFORE SHRI JOGINDER SINGH JUDICIAL MEMBER AND SHRI V.K. GUPTA ACCOUNTANT MEMBER ITA NO. 10/IND/09 A.YS. 2004-05 ASSTT. COMMISSIONER OF INCOME TAX 1(1) BHOPAL APPELLANT VS INDIAN RED-CROSS SOCIETY BHOPAL PAN AAAAI-0091C RESPONDENT APPELLANT BY : SMT. APARNA KARAN SR. DR RESPONDENT BY : SHRI ASHISH GOYAL O R D E R PER BENCH THIS IS AN APPEAL BY THE REVENUE CHALLENGING THE OR DER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) DATED 10.10.2008 ON THE GROUND THAT ON THE FACTS AND IN THE CIRCUMSTANC ES OF THE CASE THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) ERRED IN 1. QUASHING THE ASSESSMENT ORDER TREATING IT AS NUL L AND VOID 2 2. HOLDING THAT THE SOCIETY IS NOT AN INDEPENDENT A SSESSEE BUT REPRESENTS THE BRANCH OFFICE OF INDIAN RED CROSS SO CIETY REGISTERED AT NEW DELHI WHICH IS CONTRARY TO THE F ACTS ON RECORD. 3. HOLDING THAT THE EXPENDITURE UNDER SECTION 12A A VAILABLE TO THE INDIAN RED CROSS SOCIETY SITUATED AT NEW DELHI HAD RELEVANCE TO THE ASSESSEE SOCIETY AT BHOPAL. DURING HEARING WE HAVE HEARD SMT. APARNA KARAN S R. DR AND SHRI ASHISH GOYAL LD. COUNSEL FOR THE ASSESSEE. THE CRU X OF ARGUMENTS ON BEHALF OF THE REVENUE IS IN SUPPORT TO THE ASSESSME NT ORDER WHEREAS THE LD. COUNSEL FOR THE ASSESSEE DEFENDED THE IMPUGNED ORDER 2. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS OF LD. REPRESENTATIVES OF BOTH SIDES AND PERUSED THE MATERIAL AVAILABLE ON RE CORD. BRIEF FACTS ARE THAT INDIAN RED CROSS SOCIETY IS HAVING ITS HEAD OF FICE IN NEW DELHI AND BRANCH OFFICE IN BHOPAL. THE ASSESSEE IS A CHARITAB LE ORGANIZATION WORKING FOR THE OBJECTIVE OF CHILD WELFARE MATERNI TY NURSING AND AMBULANCE FACILITY FOR THE GENERAL PUBLIC WITH THE INTENTION TO PREVENT DISEASES AND TO MITIGATE THE SUFFERING OF MAN-KIND. THE IMPUGNED ADDITION WAS MADE BY THE ASSESSING OFFICER MERELY O N THE GROUND THAT THE BRANCH OFFICE/ASSESSEE WAS NOT APPROVED BY THE PRESCRIBED AUTHORITY CONSEQUENTLY THE TOTAL INCOME WAS ASSES SED AT RS.42 52 965/-. ADMITTEDLY THE INDIAN RED CROSS S OCIETY WAS ENACTED BY THE ACT OF PARLIAMENT IN THE YEAR 1920 AND EVER SINCE IT HAS BEEN 3 WORKING AS A CHARITABLE ORGANIZATION AND ITS REGIST ERED HEAD OFFICE IS AT 1 RED CROSS ROAD NEW DELHI HAVING ITS BRANCHES A LMOST AT EVERY DISTRICT HEADQUARTER OF THE COUNTRY. THE ONLY MOOT QUESTION IS WHETHER THE BRANCH OFFICE AT BHOPAL IS ALSO A PART OF THE A PEX BODY/SOCIETY. BEFORE THE LEARNED COMMISSIONER OF INCOME TAX (APPE ALS) THE TAX EXEMPTION CERTIFICATE ISSUED BY DIRECTOR OF INCOMET AX (EXEMPTION) WAS DULY FILED BY THE ASSESSEE. ADMITTEDLY THE ASSESSE E IS REGISTERED U/S 12A OF THE ACT AND IS VALID WITH EFFECT FROM 1.4.19 99. THE PHOTOCOPY OF ACKNOWLEDGEMENT OF INCOME TAX RETURN OF INDIAN RED CROSS SOCIETY NEW DELHI BEARING NO. 2575 FOR THE IMPUGNED ASSESS MENT YEAR WAS ALSO DULY FILED BEFORE THE LEARNED FIRST APPELLATE AUTHORITY. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS ALREADY CO NSIDERED THE ISSUE WITH THE ELIGIBILITY ANGLE FOR EXEMPTION U/S 10(23C)(IIIAC) OF THE ACT WHICH IS AS UNDER :- 10. IN COMPUTING THE TOTAL INCOME OF A PREVIOUS YEAR OF ANY PERSON ANY INCOME FALLING WITHIN ANY OF THE FOLLOW ING CLAUSES SHALL NOT BE INCLUDED 23C) ANY INCOME RECEIVED BY ANY PERSON ON BEHALF OF (I) THE PRIME MINISTERS NATIONAL RELIEF FUND; OR (II) THE PRIME MINISTERS FUND (PROMOTION OF FOLK ART); OR (III) THE PRIME MINISTERS AID TO STUDENTS FUND; 32 [OR] 33 [(IIIA) THE NATIONAL FOUNDATION FOR COMMUNAL HARMON Y; OR] 34 [(IIIAB) ANY UNIVERSITY OR OTHER EDUCATIONAL INSTIT UTION 35 EXISTING 35 SOLELY 35 FOR EDUCATIONAL PURPOSES AND NOT FOR PURPOSES OF PROFIT AND WHICH IS WHOLLY OR SUBSTANT IALLY FINANCED BY THE GOVERNMENT; OR 4 (IIIAC) ANY HOSPITAL OR OTHER INSTITUTION FOR THE R ECEPTION AND TREATMENT OF PERSONS SUFFERING FROM ILLNESS OR MENT AL DEFECTIVENESS OR FOR THE RECEPTION AND TREATMENT OF PERSONS DURING CONVALESCENCE OR OF PERSONS REQUIRING MEDICA L ATTENTION OR REHABILITATION EXISTING SOLELY FOR PH ILANTHROPIC PURPOSES AND NOT FOR PURPOSES OF PROFIT AND WHICH IS WHOLLY OR SUBSTANTIALLY FINANCED BY THE GOVERNMENT; OR (IIIAD) ANY UNIVERSITY OR OTHER EDUCATIONAL INSTITU TION 35 EXISTING 35 SOLELY 35 FOR EDUCATIONAL PURPOSES AND NOT FOR PURPOSES OF PROFIT IF THE AGGREGATE ANNUAL RECEIPTS OF SUCH UNI VERSITY OR EDUCATIONAL INSTITUTION DO NOT EXCEED THE AMOUNT OF ANNUAL RECEIPTS AS MAY BE PRESCRIBED 36 ; OR (IIIAE) ANY HOSPITAL OR OTHER INSTITUTION FOR THE R ECEPTION AND TREATMENT OF PERSONS SUFFERING FROM ILLNESS OR MENT AL DEFECTIVENESS OR FOR THE RECEPTION AND TREATMENT OF PERSONS DURING CONVALESCENCE OR OF PERSONS REQUIRING MEDICA L ATTENTION OR REHABILITATION EXISTING SOLELY FOR PH ILANTHROPIC PURPOSES AND NOT FOR PURPOSES OF PROFIT IF THE AGG REGATE ANNUAL RECEIPTS OF SUCH HOSPITAL OR INSTITUTION DO NOT EXCEED THE AMOUNT OF ANNUAL RECEIPTS AS MAY BE PRESCRIBED 36 ; OR] 37 [(IV) 38 ANY OTHER FUND OR INSTITUTION ESTABLISHED FOR CHARI TABLE PURPOSES 39 [WHICH MAY BE APPROVED BY THE PRESCRIBED AUTHORITY 40 ] HAVING REGARD TO THE OBJECTS OF THE FUND OR INSTITUTION AND ITS IMPORTANCE THROUGHOUT INDIA OR THROUGHOUT ANY STATE OR STATES; OR 3. THE CENTRAL BOARD OF DIRECT TAXES ALSO GRANTE D EXEMPTION U/S 10(23C)(VIA) VIDE ORDER DATED 22.1.2004 FOR THE ASS ESSMENT YEARS 1999-2000 TO 2000-01 WHICH WAS ALSO CONSIDERED BY T HE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) AS ADDITIONAL EVIDENCE UNDER RULE 46A. IN VIEW OF THESE FACTS IT IS AN UNCONTR OVERTED FACT THAT THE BHOPAL OFFICE IS BRANCH OF INDIAN RED CROSS SOCIETY HAVING ITS HEADQUARTERS AT NEW DELHI THEREFORE THE CORRECT JURISDICTION LIES IN NEW DELHI THEREFORE WITHOUT COMMENTING FURTHER AS HA S ALREADY BEEN COMMENTED IN THE CONCLUDING PARA 9 OF THE IMPUGNED ORDER THE ASSESSMENT WAS RIGHTLY QUASHED BY THE LEARNED COMMI SSIONER OF 5 INCOME TAX (APPEALS) AS THE DOMINANT PURPOSE OF TH E ASSESSEE IS PHILANTHROPIC. WE AFFIRM THE SAME. RESULTANTLY THE APPEAL OF THE REVENUE IS DISMISSED . ORDER PRONOUNCED IN OPEN COURT IN THE PRESENCE OF L EARNED REPRESENTATIVES OF BOTH THE SIDES AT THE CONCLUSION OF THE HEARING ON 22 ND APRIL 2010. (V.K. GUPTA) (JOGINDER SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER APRIL 22 ND 2010 COPY TO: APPELLANT RESPONDENT CIT CIT(A) DR G UARD FILE *DBN/