Commissioner Of Income Taxchennai v. Thiruvalluvar Ethicseducational Service Trustfrench Teacher Street Extn.,Karaikal – 609 602Chennai – 600 001Pan: Aabtt1588K

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 21.03.2022 CORAM THE HON'BLE MR.JUSTICE R. MAHADEVANANDTHE HON'BLE MR.JUSTICE J. SATHYA NARAYANA PRASAD T.C.A. No. 84 of 2014 Commissioner of Income TaxChennai ..Appellant Versus Thiruvalluvar EthicsEducational Service TrustFrench Teacher Street Extn.,Karaikal – 609 602Chennai – 600 001PAN: AABTT1588K ..Respondent Tax Case Appeal filed under Section 260A of the Income TaxAct, 1961 against the order dated 12.02.2013 passed by theIncome Tax Appellate Tribunal, Chennai 'B' Bench, inI.T.A.No.2204/Mds/2012 against the Commissioner of Income Tax-II No.44, Williams Road, Contonment, Tiruchirapalli dated21.09.2012 C.No.7162E(19)/CIT-II/TRY 2005-06. For Respondent : Mr.S.Namasivayam JUDGMENT (Judgment of the Court was delivered by R. MAHADEVAN, J.) Heard both sides and perused the materials placed beforethis court. 2.This appeal filed at the instance of the appellant /Revenue is directed against the order dated 12.02.2013 passed bythe Income Tax Appellate Tribunal, 'B' Bench, Chennai, inI.T.A.No.2204/Mds/2012. 3.This Court, by order dated 09.07.2014 admitted thefollowing substantial question of law for consideration: https://hcservices.ecourts.gov.in/hcservices/ “Whether the Tribunal was justified in directingthe Commissioner of Income Tax to grant renewal underSection 80G(5)(vi) of the Income Tax Act without anymaterial to show that the activities of therespondent/Trust are charitable in nature?" 4.According to the appellant, the respondent / assessee,which is a trust running in the name and style of ThiruvalluvarTamil High School at Karaikal, had applied for renewal ofexemption under section 80G of the Income-tax Act, 1961 (inshort, 'the Act') dated 05.03.2012 and the same was rejected bythe Commissioner of Income Tax-II, Tiruchirappalli by orderdated 21.09.2012, on the ground that statutory requirement underSection 11(1)(a) of the Act, has not been fulfilled. Aggrievedby the same, the respondent / assessee filed an appeal beforethe ITAT. The Tribunal, vide order dated 12.02.2013 allowed theappeal and thereby, directed the assessing officer to renewexemption given to the respondent under section 80G(5)(vi) ofthe Act. Therefore, the appellant / Revenue is before this courtwith this appeal. 5.To answer the issue involved herein, this court isinclined to look into the findings recorded by the Tribunal inthe order impugned herein, which read as follows: “4. It is to be seen that the assessee hasalready been registered under Sec. 12AA of the Actand it is continuing the registration granted underthat section. Therefore, it is admitted by thedepartment that the assessee is a charitable trusteligible for other benefits flowing out of theregistration under Sec.12AA. 5.In the paragraph extracted above, theCommissioner of Income-tax himself admits that theassessee is carrying on charitable activity by wayof running a Tamil High School at Karaikal for thebenefit of the local population. There is noallegation that the assessee trust is diverting anyof its income for purposes other than the objectsproclaimed by it. There is no case of any privateenjoyment of any asset, property or income of theassessee trust. On going through the records of thecase, we find that the assessee is carrying oncharitable activity by running a Tamil High Schoolfor the benefit of poor and people of moderateincome. 6.In the facts and circumstances of the case,we do not find any reason to deny the benefit ofsec.80G(5)(vi) to the assessee. Accordingly, we direct the Assessing Officer to renew exemptiongiven to the assessee under sec.80G(5)(vi) of theAct, from the date of expiry of earlier ordergranting exemption.” 6.In the facts and circumstances of the case,we do not find any reason to deny the benefit ofsec.80G(5)(vi) to the assessee. Accordingly, we direct the Assessing Officer to renew exemptiongiven to the assessee under sec.80G(5)(vi) of theAct, from the date of expiry of earlier ordergranting exemption.” 6.This court is of the opinion that after considering thesubmissions made by the parties and analysing the entirematerials placed before it, the Tribunal being the fact findingbody, allowed the assessee's appeal. Moreover, the issueinvolved herein is question of fact and the same does notinvolve any principle of law, warranting interference. In thisregard, it may be useful to refer to the decision of the Hon'bleSupreme Court in Metroark Ltd. v. CCE [(2004) 12 SCC 505],wherein it was held as under: "8. Even otherwise, the law on the subjectis clear. The Tribunal is the final fact-findingauthority. Unless it is shown that there is somethingperverse in its finding, this Court would notinterfere. No authority is required for this purpose.But as a large number of authorities are cited, werefer to them: Pragati Computers (P) Ltd. v.Collector of Customs [(2000) 10 SCC 150], RelianceSilicon (I) (P) Ltd. v. CCE [(1997) 1 SCC 215], AsianPaints India Ltd. v. CCE [(1988) 2 SCC 470 : 1988 SCC(Tax) 201] and Collector of Customs v. SwasticWoollens (P) Ltd. [1988 Supp SCC 796 : 1989 SCC (Tax)67]." 7.That apart, it is settled law that “a court of appealinterferes not when the judgment under attack is not right, butonly when it is shown to be wrong” [Refer: Dollar Co. v.Collector of Madras, (1975) 2 SCC 730]. 8. Accordingly, the Tax case Appeal filed by the Revenuestands dismissed. No costs. Assistant Registrar(CS-IV) //True Copy// Sub Assistant Registrar dhk To 1. The Income Tax Appellate Tribunal, Chennai “B” Bench. Chennai “B” Bench. https://hcservices.ecourts.gov.in/hcservices/ 2. Commissioner of Income Tax Chennai.3. The Commissioner of Income – tax - II, Tiruchirapalli.+1cc to Mr.Namasivayam, Advocate, S.R.No.18861 T.C.A No. 84 of 2014 AD(CO)RGA(22/04/2022)