ITO (OSD), CHENNAI v. St. Joseph's Educational Social Development Society, Vellore

ITA 1009/CHNY/2010 | 2006-2007
Pronouncement Date: 14-10-2010 | Result: Dismissed

Appeal Details

RSA Number 100921714 RSA 2010
Assessee PAN AAFTS7924N
Bench Chennai
Appeal Number ITA 1009/CHNY/2010
Duration Of Justice 3 month(s) 26 day(s)
Appellant ITO (OSD), CHENNAI
Respondent St. Joseph's Educational Social Development Society, Vellore
Appeal Type Income Tax Appeal
Pronouncement Date 14-10-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 14-10-2010
Date Of Final Hearing 14-10-2010
Next Hearing Date 14-10-2010
Assessment Year 2006-2007
Appeal Filed On 18-06-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL BENCH B CHENNAI BEFORE SHRI K. K. GUPTA ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN JUDICIAL MEMBER .. I.T.A. NOS. 1004 TO 1009/MDS/2010 ASSESSMENT YEARS: 2001-02 TO 2006-07 THE INCOME-TAX OFFICER (OSD) EXEMPTIONS-III CHENNAI. V. M/S. ST. JOSEPHS EDUCATIONAL SOCIAL DEVELOPMENT SOCIETY POLUR TALUK THIRUVANNAMALAI VELLORE-632 326. (PAN : AAFTS7924N) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI P.B. SEKARAN RESPONDENT BY : SHRI SANJIV SHAH O R D E R PER BENCH: THESE ARE APPEALS FILED BY THE REVENUE AGAINST THE ORDERS OF THE LEARNED CIT(APPEALS)-XII CHENNAI IN APPEAL NOS. 255/08-09 DATED 31-03-2010 272/08- 09 DATED 24-03-2010 254/08-09 DATED 24-03-2010 25 7/08-09 DATED 24-03- 2010 258/08-09 DATED 24-03-2010 AND 256/08-09 DATE D 24-03-2010 FOR THE ASSESSMENT YEARS 2001-02 TO 2006-07 RESPECTIVELY. 2. SHRI SANJIV SHAH CA REPRESENTED ON BEHALF OF TH E ASSESSEE AND SHRI P.B. SEKARAN LEARNED CIT-DR REPRESENTED ON BEHALF OF TH E REVENUE. I.T.A. NOS. 1004 TO 1009/MDS/2010 2 3. AT THE TIME OF HEARING IT WAS SUBMITTED BY THE LEARNED AUTHORISED REPRESENTATIVE THAT THE ISSUE WAS SQUARELY COVERED BY THE DECISION OF THE CO- ORDINATE BENCH OF THIS TRIBUNAL IN THE CASE OF M/. ARR TRUST IN ITA NOS. 1921 TO 1926/MDS/2004 DATED 3-6-2005 REPORTED IN 2006-TIOL- 15-ITAT-MAD. IT WAS SUBMITTED THAT THE LEARNED CIT(A) HAD FOLLOWED THE SAID DECISION. THOUGH THE REVENUE HAS FILED APPEALS AGAINST THE SAID DECISION AND AS THE SAID DECISION IN THE CASE OF M/S. ARR TRUST STILL HOLDS THE FIELD T HE ORDER OF THE LEARNED CIT(A) WILL HAVE TO BE UPHELD. 4. IN REPLY THE LEARNED DR SUBMITTED THAT THE DECI SION IN THE CASE OF M/S. ARR TRUST WAS NOT TO BE FOLLOWED INSOFAR AS THE REV ENUE HAS FILED APPEALS AGAINST THE SAID DECISION AND THAT SAID THE DECISIO N WAS ALSO DISTINGUISHABLE. IT WAS THE SUBMISSION THAT THAT WAS A CASE WHERE THERE WAS SALE OF LAND BY THE TRUSTEES TO THE TRUST. IT WAS SUBMITTED THAT IN TH E PRESENT CASE THAT WAS NOT SO. IT WAS THE SUBMISSION THAT AS THE ASSESSEE WAS ALSO HAVING RELIGIOUS OBJECTS IN THE MEMORANDUM OF TRUST IT SHOULD NOT BE GRANTED R EGISTRATION U/S. 10(22)/(23C) OF THE INCOME-TAX ACT 1961. 5. IN REPLY THE LEARNED AUTHORISED REPRESENTATIVE SUBMITTED THAT THERE WAS NO EXPENDITURE IN RESPECT OF THE RELIGIOUS OBJECTS. THE LEARNED DR SUBMITTED THAT EXPENDITURE TOWARDS PROVINCIALATE HAD BEEN INCURRED . TO THIS THE LEARNED AUTHORISED REPRESENTATIVE SUBMITTED THAT PROVINCIAL ATE WAS RUNNING THE EDUCATIONAL INSTITUTIONS AND JUST AS DURING THE MEE TINGS EXPENDITURE IS INCURRED I.T.A. NOS. 1004 TO 1009/MDS/2010 3 THE EXPENDITURE WAS ONLY FOR THE RUNNING OF THE PRO VINCIALATE AND THERE WAS NO RELIGIOUS ELEMENT IN THE EXPENDITURE. IT WAS THE SUBMISSION THAT THERE WERE NO CHURCHES OR PRIESTS WHO HAD BEEN BENEFITED FROM SUC H EXPENDITURE. 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. A PER USAL OF THE ORDER OF THE LEARNED CIT(A) IN PAGE 4 CLEARLY SHOWS THAT THE ASS ESSEE HAS REPLIED TO THE ISSUE OF THE EXPENDITURE INCURRED ON THE PROVINCIALATE. IT IS ALSO NOTICED THAT IN THE REPLY THE ASSESSEE HAS SPECIFICALLY GIVEN THE DETAI LS OF THE EXPENDITURE TO THE ASSESSING OFFICER. THE ASSESSING OFFICER HAS NOT B EEN ABLE TO POINT OUT ANY DEFECT IN REGARD TO THE SAID EXPENDITURE ALSO. IT IS FURTHER NOTICED THAT THIS ISSUE IS SQUARELY COVERED BY THE DECISION OF THE CO-ORDIN ATE BENCH OF THIS TRIBUNAL IN THE CASE OF M/S. ARR TRUST IN ITA NOS. 1921 TO 1926 /MDS/2004 DATED 3-6-2005 WHEREIN IT HAS BEEN CATEGORICALLY HELD THAT AS LONG AS THERE IS NO EXPENDITURE INCURRED TOWARDS RELIGIOUS OBJECTS AND AS LONG AS T HE OBJECTS OF THE TRUST AND THE FUNCTIONING OF THE TRUST IS TOWARDS THE EDUCATIONAL PURPOSES ONLY THEN THE BENEFIT UNDER SECTION 10(23C) CAN BE GRANTED TO THE ASSESSEE. IN THE CIRCUMSTANCES AS NOTHING HAS BEEN SHOWN BY THE REV ENUE TO DISTINGUISH THE PRINCIPLES AS LAID DOWN BY THE CO-ORDINATE BENCH OF THIS TRIBUNAL IN THE CASE OF M/S. ARR TRUST AND AS IT IS NOTICED THAT THE LEARNE D CIT(A) HAS ONLY FOLLOWED THE JUDICIAL DISCIPLINE BY FOLLOWING THE DECISION OF TH IS TRIBUNAL IN THE CASE OF M/S. ARR TRUST RESPECTFULLY FOLLOWING THE DECISION OF T HE CO-ORDINATE BENCH OF THIS I.T.A. NOS. 1004 TO 1009/MDS/2010 4 TRIBUNAL IN THE CASE OF M/S. ARR TRUST WE UPHOLD T HE FINDING OF THE LEARNED CIT(A) WHICH IS ON RIGHT A FOOTING AND DISMISS THE REVENUES APPEAL. 7. IN THE RESULT THE REVENUES APPEALS ARE DISMISS ED. 8. THE ORDER WAS DICTATED AND PRONOUNCED IN THE OPE N COURT ON 14-10-2010. SD/- SD/- (K.K. GUPTA) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER CHENNAI DATED THE 14 TH OCTOBER 2010. H. COPY TO: ASSESSEE/AO/CIT (A)/CIT/D.R./GUARD FILE