SONIYA BINAYAKIYA MEMORIAL CHARITABLE TRUST,CHENNAI vs. ITO NON CORPORATE CIRCLE 9(5), CHENNAI

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ITA 1060/CHNY/2019Status: DisposedITAT Chennai19 July 2019AY 2014-153 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that if a trust is liable to tax at the maximum marginal rate under Section 167B, no basic exemption limit is allowed. Therefore, the appeal filed by the assessee has no merit.

What were the facts?

The assessee is a Charitable Trust that filed its return of income for AY 2014-15. The return was processed under section 143(1), and an appeal was filed before the CIT(A) who confirmed the intimation.

What were the issues?

Whether a charitable trust liable to tax at the maximum marginal rate is entitled to basic exemption limit.

Which sections of the Income-tax Act were involved?

Section 167B,Section 143(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI

Before: SHRI INTURI RAMA RAO & SHRI DUVVURU R.L.REDDY

Hearing: 19.07.2019

आदेश / O R D E R PER INTURI RAMA RAO, ACCOUNTANT MEMBER:

1.

This is an appeal filed by the assessee Trust directed against the Order of the Commissioner of Income Tax (Appeals)-17, Chennai, in dated 29.01.2019 for the AY 2014-15.

2.

The assessee is a Charitable Trust raised the following grounds of appeal:

1.

The order of the learned Commissioner of Income-Tax (Appeals)-17 is wrong, illegal and opposed to facts of the instant case.

2. The learned C1T(A)-17 erred in not allowing basic exemption. The Trust is not registered in Sec. 12(A). The Trust is only a public charitable Trust and not a beneficiary Trust. 3. The Appellant submits that the Learned C1T Appeal ought to have considered the facts that the Trust Deed is registered with the objects to service humanitarian and other living object. 4. Therefore the Appellant submits that the order passed by the Learned C1T appeal may be set aside and consequential relief may be granted as this Hon'ble Tribunal deem fit and necessary and thus render justice.

3.

Briefly the facts of the case are that the assessee is a Charitable Trust. The return of income for the AY 2014-15 was filed on 26.02.2015.

The said return of income was processed u/s.143(1) of the Act vide intimation dated 14.03.2016. wherein the tax liability was computed in the statuse of AOP at a maximum marginal rate of tax. However, the basic exemption limit was not granted to the assessee Trust.

4.

Being aggrieved an appeal was preferred before the Ld.CIT(A) who vide impugned order confirmed the intimation.

5.

Being aggrieved the assessee is in appeal before us in the present appeal. On the date of hearing ‘none’ appeared on behalf of the assessee Trust and we heard the Ld.Sr.DR. The issue whether the assessee trust is liable to tax at maximum marginal rate of tax is not in dispute. In case, where an assessee is liable to tax at maximum marginal rate of tax under the provisions of Sec.167B of the Act, the provisions of this section does not provide any allowance of any basic exemption limit. Hence, we do not find any merit in the present appeal filed by the assessee. Consequently, the appeal filed by the assessee is dismissed.

6.

In the result, the appeal filed by the assessee is dismissed.

Order pronounced on the 19th day of July, 2019 in Chennai.

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