Ita/116/2010 Of The Commissioner Of Income Tax, Calicut v. Muslim Service Society, Calicut

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE P.S.GOPINATHAN MONDAY, THE 2ND AUGUST 2010 / 11TH SRAVANA 1932 ITA.No. 116 of 2010() --------------------- ITA.455/COCH/2007 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT: RESPONDENT ------------------------------ THE COMMISSIONER OF INCOME TAX, CALICUT. BY ADV. SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT(S): APPELLANT ------------------------ M/S. MUSLIM SERVICE SOCIETY, CHEROOTTY ROAD, CALICUT. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 02/08/2010, ALONG WITH ITA. 117 OF 2010 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C .N. RAMACHANDRAN NAIR, &P.S. GOPINATHAN, JJ. -------------------------------------------- I.T.A. Nos. 116, 117, 130, 145, 153, 170, 172, 180, 193, 199, 207, 212,220, 229, 240, 242 & 270 of 2010 -------------------------------------------- Dated this the 2nd day of August, 2010 JUDGMENT Ramachandran Nair, J. The question raised is whether the Tribunal was right ingranting exemption to the respondent-assessee which is a charitablesociety engaged in various religious activities as well. The appellant-revenue has no dispute that respondent is engaged in charitableactivities. However, the reason for denying exemption under Section11(a) of the I.T. Act is on the ground that the respondent is alsoengaged in religious activities. Admittedly income earned by a Trustengaged in religious or charitable purpose enjoys exemption. Ifexemption is available to both these activities independently we see noreason how the exemption can be declined to an institution engaged inboth the religious and charitable activities. Department has no case thatincome of the Trust is utilized for any personal benefits of those incontrol of the Trust. In other words, income is admittedly used for ITA 116/2010 and connected cases 2 religious as well as charitable purposes. So much so, we find no meritin the appeals filed by the revenue and consequently all the appeals aredismissed. (C.N.RAMACHANDRAN NAIR)Judge. (P.S. GOPINATHAN) Judge. kk