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Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI [CAMP: MADURAI
Before: SHRI N.R.S. GANESAN & SHRI ABRAHAM P. GEORGE
आदेश /O R D E R
PER N.R.S. GANESAN, JUDICIAL MEMBER:
This appeal of the assessee is directed against the order of the Commissioner of Income Tax (Appeals) -1, Madurai, dated 23.02.2015 and pertains to assessment year 2010-11.
Shri S. Sridhar, the Ld.counsel for the assessee, submitted that the assessee has collected charity / mahamai as part of business consideration and claimed the same as exemption. The Assessing Officer, however, disallowed the claim of the assessee.
Placing reliance on the order of this Tribunal for assessment years 2009-10 and 2011-12 in & 2287/Mds/2015 dated 27.12.2016, the Ld.counsel submitted that on an identical circumstance, this Tribunal remitted back the matter to the file of the Assessing Officer with a direction to verify whether the bills issued by the assessee disclose the mahamai / charity in a separate column and also find out whether the assessee is maintaining separate books of account in respect of charity / mahamai collected.
It was also directed to verify whether the payments have been made to the trust. According to the Ld. counsel, a similar direction may be given for this year also.
On the contrary, Shri Shiva Srinivas, the Ld. Departmental Representative, submitted that mahamai / charity collected by the assessee was not taken as part of turnover, therefore, it cannot be allowed as claim of the assessee.
We have considered the rival submissions on either side and perused the relevant material available on record. On identical circumstances, for the assessment years 2009-10 and 2011-12, in the assessee's own case, this Tribunal by order dated 27.12.2016 in & 2287/Mds/2015, directed as follows:-
“8. This judgment of Apex Court was distinguished by the CIT(Appeals) on the ground that the directors of the assessee-company were controlling the trust. This Tribunal is of the considered opinion that merely because the directors of the assessee-company were controlling the trust, when the amounts were specifically collected towards charity and the assessee was maintaining separate books of account with regard to collection of charity and the payments made to trust, it cannot be said that the judgment of Apex Court is not applicable to the facts of the case. This Tribunal is of the considered opinion that when the assessee is maintaining books of account in respect of the amounts collected towards mahamai / charity and credited the amounts collected towards charity and debited the amounts paid to the trust in the separate books of account, the assessee is not liable for taxation. Since these aspects were not examined by the Assessing Officer as well as the CIT(Appeals), this Tribunal is of the considered opinion that the matter needs to be re-examined. Accordingly, the orders of the lower authorities are set aside and the claim of the assessee is remitted back to the file of the Assessing Officer. The Assessing Officer shall re-examine the matter afresh and bring on record whether the bills issued by the assessee disclose the mahamai / charity in a separate column and also find out whether the assessee is maintaining separate books of account in respect of charity / mahamai collected and payments made to the trust and, thereafter decide the issue afresh in the light of the judgment of Apex Court in Bijli Cotton Mills (P.) Ltd. (supra), after giving a reasonable opportunity to the assessee.” 5. Since facts are identical to that of assessment years 2009-10 and 2011-12, the Assessing Officer is directed to follow the direction of this Tribunal given for assessment years 2009-10 and 2011-12, for the year under consideration also.
With the above direction, the assessee’s appeal is allowed for statistical purposes.