The Director Of Income Tax, Exemption-I, Chennai-34 v. M/S.the Wellington Charitable Trust, Chennai-28

In the High Court of Judicature at MadrasDated : 20.8.2019 The Honourable Mr.Justice T.S.SIVAGNANAMandThe Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal Nos.105 & 106 of 2011 & MP.No.1 of 2011 The Director of Income Tax,Exemption-I, Chennai-34....Appellant/AppellantVs.M/s.The Wellington Charitable Trust, Chennai-28....Respondent/Respondent APPEALS under Section 260A of the Income Tax Act, 1961against the common order dated 08.10.2010 made respectively inI.T.A.Nos.685 and 686/Mds/2010 on the file of the Income TaxAppellate Tribunal Madras 'C' Bench for the assessment years2006-07 and 2007-08 against the order of the Revenue forassessment years 2006-2007 and 2007-2008 respectively aredirected against the order of the ID(IT(A)in 53/2008-2009, dated26/09-2010 dated 26.02.2010 against order of this appeal isdirected against the order under Section 143(3) of the IncomeTax Act, 1961 (in short Act) dated 14.10.2008 passed by theDeputy Director of Income Tax (Exemptions)I Chennai. There are15 grounds of appeal against Assessing officer;s refused tostant exemption u/s 11 of the Act in PAN/GIR No. 1646-T, 2006-2007(2007-2008, 06.07.2009) For Appellant : Mr.J.Narayanasamy, SSCFor Respondent : Mr.A.S.Sriraman COMMON JUDGMENT These appeals by the Revenue under Section 260A of theIncome Tax Act, 1961 (for short, the Act) are directed againstthe common order dated 08.10.2010 made respectively inI.T.A.Nos.685 and 686/Mds/2010 on the file of the Income TaxAppellate Tribunal Madras 'C' Bench for the assessment years2006-07 and 2007-08. 2. The Revenue filed these appeals by raising the followingsubstantial questions of law : https://hcservices.ecourts.gov.in/hcservices/ “i. Whether, on the facts andcircumstances of the case, the Tribunal wasright in following its earlier orderswithout evaluating the eligibility ofexemption under Section 11 of the Act forthe current assessment year ? Andii. Whether, on the facts andcircumstances of the case, the Tribunal wasright in passing this order contrary to theorder passed by this Court in TCA.Nos.1812and 2112 to 2116 of 2008 and 468 of 2010dated 08.10.2010 ?”3. We have heard Mr.J.Narayanasamy, learned Senior StandingCounsel appearing for the appellant – Revenue andMr.A.S.Sriraman, learned counsel appearing for the respondent -assessee. 4. The Tribunal, in the common impugned order, referred toits earlier decisions on identical issue in the assessee's owncase for the earlier assessment years and dismissed the appealsfiled by the Revenue. The decision of the Tribunal in theassessee's own case for the earlier assessment years was thesubject matter of appeal before this Court in the decisionreported in (2011) 330 ITR 24 and it was held that thesubstantial questions of law raised were answered in favour ofthe Revenue and in view of their reasoning that a businessincome, if utilized towards the achievement of the object of theassessee trust, would be incidental to the achievement of theobject, the Division Bench of this Court deemed it fit to remandthe assessment files to the Assessing Officer to decide as towhether such business income was used for the attainment of theobject and thereafter proceed in accordance with law.Ultimately, the orders passed by the Tribunal were set aside andthose appeals were allowed to the extent indicated above. 5. Thus, following the above decision in the assessee's owncase, the the common order passed by the Tribunal is hereby setaside and the matters are remanded to the Assessing Officer ashas been ordered in the assessee's own case in the decisionreported in (2011) 330 ITR 24. The appeals stand disposed ofaccordingly. Consequently, the connected MP is closed. No costs. s/d- Assistant Registrar(CO) True Copy Sub-Assistant Registrar To 1.The Income Tax Appellate Tribunal, 'C' Bench, Chennai. 5. Thus, following the above decision in the assessee's owncase, the the common order passed by the Tribunal is hereby setaside and the matters are remanded to the Assessing Officer ashas been ordered in the assessee's own case in the decisionreported in (2011) 330 ITR 24. The appeals stand disposed ofaccordingly. Consequently, the connected MP is closed. No costs. s/d- Assistant Registrar(CO) True Copy Sub-Assistant Registrar To 1.The Income Tax Appellate Tribunal, 'C' Bench, Chennai. 2.The Commissioner of Income Tax (Appeals)XIINungambakkam, Chennai 34.Nungambakkam, Chennai 34. 3.The Director of Income Tax Exemption 1, Chennai 34. 4.The Deputy Director of Income Tax(Exemptions)I, Chennai 34(Exemptions)I, Chennai 34 +1 CC to Mr.J.Narayanasamy, advocate sr 72219 +1 CC to Mr.S. Sridhar, Advocate sr 70615. TCA.Nos.105 & 106 of 2011and MP.No.1 of 2011 NR(CO)SP(22/10/2019)