Ita/73/2011 Of M/S.sree Avittom Thirunal Hospital Healt v. The Commr.of Income Tax, Kaudiar, Tvm

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE C.N.RAMACHANDRAN NAIR &THE HON'BLE MR. JUSTICE BABU MATHEW P.JOSEPH FRIDAY, THE 24TH DAY OF FEBRUARY 2012/5TH PHALGUNA 1933 ITA.No. 73 of 2011 ( ) ---------------------- (ITA.249/COCH/2009 of I.T.A.TRIBUNAL,COCHIN BENCH) APPELLANT/: ------------ M/S.SREE AVITTOM THIRUNAL HOSPITAL HEALTH EDUCATION SOCIETY, MEDICAL COLLEGE P.O. TRIVANDRUM. BY ADVS.SRI.P.BALAKRISHNAN (E) SRI.V.SREEKUMAR SRI.K.S.MENON (K) RESPONDENT: -------------- THE COMMISSIONER OF INCOME TAX, TRIVANDRUM-695 003. BY ADV. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) BY ADV. SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 24-02-2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: APPENDIX ANNEXURE A: TRUE COPY OF ASSESSMENT ORDER DT.17.12.2007 OF THEASSESSING OFFICER. ANNEXURE B: TRUE COPY OF MEMORANDUM OF ASSOCIATION AND ITS RULES ANDREGULATIONS. ANNEXURE C: TRUE COPY OF APPEAL ORDER DT.16.12.2008 OF THE COMMISSIONEROF INCOME TAX (APPEALS)-II, KOCHI. ANNEXURE D: TRUE COPY OF APPELLATE ORDER DT.16.11.2010 OF THE INCOMETAX APPELLATE TRIBUNAL, COCHIN BENCH. TRUE COPY C.N.RAMACHANDRAN NAIR, &BABU MATHEW P. JOSEPH, JJ. .................................................................... I.T. Appeal No.73 of 2011 .................................................................... Dated this the 24th day of February, 2012. JUDGMENT Ramachandran Nair, J. Appeal is filed against order of the Tribunal confirming theassessment completed for the year 2005-2006. We have heard counselfor the appellant and also Standing Counsel for the respondent. 2. After hearing both sides and after going through the ordersimpugned, we do not find any substantial question of law arising fromthe assessment sustained by the Tribunal. It is seen that assessee'sclaim for exemption as a charitable institution is allowed. In fact on atotal net income estimated at Rs.1,26,86,204/-, after giving deductionsat Rs.1,04,89,936/-, the Assessing Officer has accepted application of50% expenditure under Section 11(1)(a) at Rs.16,57,210/-. Besidesthis, 75% of the income was allowed to be carried over to subsequentyears i.e. Rs.68,88,591/- under Section 11(2) of the Act. In the result,the net surplus income assessed as not used for charitable purpose orpermissible to be carried forward for subsequent years is ITA 73/2011 Rs.19,44,135/-. It is seen that assessee is engaged only in businessactivity, though income generated is used for charitable purpose. Somuch so, excess unutilised income was rightly found to be assessableby the Tribunal. We, therefore, do not find any substantial question oflaw arising from the order of the Tribunal. Accordingly appeal isdismissed as devoid of any merit. C.N.RAMACHANDRAN NAIRJudge BABU MATHEW P. JOSEPHJudge pms