Wp(C)/20825/2014 Of Mary Matha Educational Society v. The Commissioner Of Income Tax(Ppeals)

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN WEDNESDAY, THE 13TH DAY OF AUGUST 2014/22ND SRAVANA, 1936 WP(C).No. 20825 of 2014 (C) ---------------------------- PETITIONER : -------------------- MARY MATHA EDUCATION SOCIETYRAJCOT, THYCAUD, TRIVANDRUM - 695 014REPRESENTED BY ITS CHAIRMAN R. MURUGANS/O. LATE P. RATNASWAMY, AGED 61 YEARS RESIDING AT 'RAJCOT', TC NO. 24/447THYCAUD, THIRUVANANTHAPURAM. BY ADVS.SRI.R.S.KALKURA SRI.M.S.KALESH SMT.A.V.PRIYA SRI.HARISH GOPINATH RESPONDENT(S) : ---------------------------- 1. THE COMMISSIONER OF INCOME TAX (APPEALS),TRIVANDRUMAYYAKKAR BHAVAN, KOWDIARTRIVANDRUM - 695 003. 2.THE ASSISTANT DIRECTOR OF INCOME-TAX (EXEMPTION)TRIVANDRUM, AYYAKKAR BHAVAN, KOWDIARTRIVANDRUM - 695 003. R1 & R2 BY ADV. SRI.JOSE JOSEPH, SC THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 13-08-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Mn WP(C).No. 20825 of 2014 (C) --------------------------------------- APPENDIX PETITIONERS' EXHIBITS : ------------------------------------- EXHIBIT P1 COPY OF THE REGISTRATION CERTIFICATE ISSUED UNDER THE TRAVANCORE -COCHIN LITERARY, SCIENTIFIC & CHARITABLE SOCIETIES REGISTRATION ACT, 1955.TRAVANCORE -COCHIN LITERARY, SCIENTIFIC & CHARITABLE SOCIETIES REGISTRATION ACT, 1955. EXHIBIT P2 COPY OF THE REGISTRATION UNDER SECTION 12AA OF THE INCOME-TAX ISSUED BY THE COMMISSIONER OF INCOME TAX, TRIVANDRUM DATED 25/2/2005.INCOME-TAX ISSUED BY THE COMMISSIONER OF INCOME TAX, TRIVANDRUM DATED 25/2/2005. EXHIBIT P3 COPY OF THE RETURN 30/9/2011 SUBMITTED BY THE PETITIONER. EXHIBIT P4 COPY OF THE ASSESSMENT ORDER DATED 30/3/2014 ISSUED BY THE SECOND RESPONDENT TO THE PETITIONER.SECOND RESPONDENT TO THE PETITIONER. EXHIBIT P5 COPY OF THE COMPUTATION SHEET OF THE INCOME OF THE PETITIONER FOR THE ASSESSMENT YEAR 2011-2012.PETITIONER FOR THE ASSESSMENT YEAR 2011-2012. EXHIBIT P6 COPY OF THE MEMORANDUM OF APPEAL SUBMITTED BY THE PETITIONER BEFORE THE IST RESPONDENT DATED 29/4/2014.PETITIONER BEFORE THE IST RESPONDENT DATED 29/4/2014. EXHIBIT P7 COPY OF THE APPLICATION FOR STAY DATED 21/5/2014 SUBMITTED BY THE PETITIONER BEFORE THE FIRST RESPONDENT.BY THE PETITIONER BEFORE THE FIRST RESPONDENT. EXHIBIT P8 COPY OF THE NOTICE DATED 12/5/2014 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONER.RESPONDENT TO THE PETITIONER. EXHIBIT P9 COPY OF THE PETITION FOR EARLY HEARING DATED 21/5/2014. EXHIBIT P10 COPY OF THE APPLICATION DATED 23/5/2014 SUBMITTED BY THE PETITIONERS BEFORE THE SECOND RESPONDENT.PETITIONERS BEFORE THE SECOND RESPONDENT. EXHIBIT P11 COPY OF THE JUDGMENT DATED 27/6/2014 IN WPC NO.16311/2014. EXHIBIT P12 COPY OF THE ORDER DATED 24.7.2014 ISSUED BY THE FIRST RESPONDENT IN ITA NO. 58/TVM/CIT(A), TVM/14-15.RESPONDENT IN ITA NO. 58/TVM/CIT(A), TVM/14-15. RESPONDENT(S)' EXHIBITS : NIL ------------------------------------------------------------------- //TRUE COPY// P.S. TO JUDGE Mn K.Vinod Chandran, J. --------------------------------------- W.P.(C).No.20825 of 2014-C --------------------------------------- Dated this the 13[th] day of August, 2014 JUDGMENT The petitioner is aggrieved by the interim order passedin first appeal, as evidenced by Exhibit P12. The petitioner wasdirected to pay 50% of the demand in six equal monthlyinstalments, starting from 11.08.2014. 2. The petitioner, a charitable institution, had subscribedto a chitty and had bid the amount at the initial stage itself. Thepetitioner claimed exemption of the contribution made towards thechitty as eligible for exemption. One another deduction claimedwas with respect to depreciation on capital assets. 3. The Assessing Officer disallowed both of the claims. Mn K.Vinod Chandran, J. --------------------------------------- W.P.(C).No.20825 of 2014-C --------------------------------------- Dated this the 13[th] day of August, 2014 JUDGMENT The petitioner is aggrieved by the interim order passedin first appeal, as evidenced by Exhibit P12. The petitioner wasdirected to pay 50% of the demand in six equal monthlyinstalments, starting from 11.08.2014. 2. The petitioner, a charitable institution, had subscribedto a chitty and had bid the amount at the initial stage itself. Thepetitioner claimed exemption of the contribution made towards thechitty as eligible for exemption. One another deduction claimedwas with respect to depreciation on capital assets. 3. The Assessing Officer disallowed both of the claims. The contribution to the chitty was found to be not eligible forexemption, since the income was applied other than for charitablepurposes. With respect to the depreciation on capital assets, it wasfound that since the assessee has obtained complete exemptionon the investments, there cannot be any double benefit anddepreciation granted on that respect. The Assessing Officer, hence, WP(C).No.20825 of 2014 assessed the income tat the hands of the petitioner, a charitablesociety, for the income which was alleged to have been applied forthe purposes other than charitable purposes. 3. the first appellate authority, on a prima facieconsideration, granted stay of 50% of the demand on condition asnoticed above. This Court is not convinced of there being anyreason for interference with the discretion exercised by the firstappellate authority. However, the instalment granted by the firstappellate authority shall start from 11.09.2014. With the above modification, the writ petition shall standdismissed. The appeal shall be considered untrammelled by theobservations made herein. vku. Sd/- K.Vinod Chandran, Judge ( true copy )