CIT v. Programme for Community Organisation

Dy. DIT vs. Karnataka Jesuit Education Society

In the result, the appeals of the Revenue are dismissed, and that of the assessee are partly allowed

Bench: Shri Sunil Kumar Yadav & Shri A.K. Garodia

…IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH : BANGALORE BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA Nos.485 & 486/Bang/2013 Assessment years : 2008-09 & 2009-10 The Deputy Director of Vs. Karnataka Jesuit Educational Income Tax (Exemptions), Society, Cirlce 17(1), Loyola Mandir, Bangalore. No.96, Lavelle Road, Bangalore – 560 001. PAN: AAATK 2245D APPELLANT RESPONDENT ITA Nos.307 & 308/Bang/2013 Assessment years : 2008-09 & 2009-10 Karnataka Jesuit Educational Vs. The Deputy Director of Society, Income Tax (Exemptions), Bangalore – 560 001. Cirlce 17(1), PAN…

M/S Society of Sisters of Holy Cross, Bangalore vs. DDIT, Bangalore

In the result, appeal of the assessee is allowed

Bench: Smt. Asha Vijayaraghavans & Shri. S. Jayaraman

…ITA.970/Bang/2015 Page - 1 IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH 'A', BANGALORE BEFORE SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBERS AND SHRI. S. JAYARAMAN, ACCOUNTANT MEMBER I.T.A No.970/Bang/2015 (Assessment Year : 2011-12) M/s. Society of Sisters of Holy Cross, St. Jseph Post, Bannerghatta Road, Bengaluru 560 082 .. Appellant PAN : AABTS1502N v. Deputy Director of Income-tax (Exemption), Circle -17(2), Bangalore .. Respondent Assessee by : Shri. Narendra Sharma, Advocate Revenue by : Smt. Priscilla Singsit, CIT - I Heard on : 25.07.2016 Pronounced on : 05.08.2016 O R D E R PER S. JAYARAM…

M/S Society of the Servants of the Holy Spirit, Bangalore vs. DDIT, Bangalore

In the result, appeal filed by the assessee is allowed

Bench: Shri. Abraham P. George & Shri. Vijaypal Raoi.T.A No.975/Bang/2015 (Assessment Year : 2011-12) M/S. Society Of The Servants Of The Holy Spirit, Convent Of The Holy Spirit, Mount St. Joseph P.O, Bangalore 560 083 .. Appellant Pan : Aabts1501R V. Deputy Commissioner Of Income-Tax (Exemption), Circle -17(2), Bangalore .. Respondent Assessee By : Shri. Suresh Muthukrishnan, Ca Revenue By : Shri. Sunil Kumar Agarwala, Jcit Heard On : 17.11.2015 Pronounced On : 27.11.2015 O R D E R Per Abraham P. George:

…) was partly successful. According to the CIT (A), 15% accumulation on net donation and medical income was applied by the AO without application of mind. Relying on the judgment of Hon’ble Apex Court in the case of CIT v. Programme for Community Organization [248 ITR 1], CIT (A) held that application of income for charitable purposes should be calculated with reference to gross income and not net income. He directed the AO to bifurcate the receipts of ITA.975/Bang/2015 Page - 3 the assessee into two heads, namely donation and income from charitable activities. According to him in respect of the former, gross rec…

M/S Pratham Books (Trust), Bangalore vs. DDIT, Bangalore

In the result, the appeal by the assessee is allowed

Bench: Smt. Asha Vijayaraghavan & Shri Jason P. Boazassessment Year : 2011-12

…of 15% of the income derived from the property / voluntary contribution has to be calculated on the income derived by the charitable trust and not on amount remained after expending money on charitable purposes”: a. CIT v. Program for Community Organization (248 ITR 1); b. CIT v. P. Krishna Warriar (53 ITR 176). 6. Reliance was also placed on the decision of the Special Bench of Mumbai ITAT in the case of Bai Sonabai Hirji Agiary Trust v. ITO, 93 ITD 70, wherein the ruling of the Hon’ble Supreme Court in the case of CIT v. Program for Community Organization (supra) was followed. 7. The CIT(Appeals) held that t…

M/S Allard Education Society, Bangalore vs. DDIT, Bangalore

In the result, the assessee's appeal for Assessment Year 2011-12 is allowed as indicated above

Bench: Smt. Asha Vijayaraghavan & Shri Jason P. Boazi.T. A. No.355/Bang/2015 (Assessment Year : 2011-12) M/S. Allard Education Society, No.441, St. Thomas Town, Hennur Road, Bangalore-560 084 …. Appellant. Pan Aaata 3937E Vs. Dy. Commissioner Of Income Tax (Exemptions), Circle 17(1), Bangalore. ….. Respondent. Appellant By : Shri V. Srinivasan, C.A. Respondent By : Shri Sunil Kumar Agarwala, Jcit (D.R.) Date Of Hearing : 6.10.2015. Date Of Pronouncement : 23.10.2015. O R D E R Per Shri Jason P. Boaz, A.M. : This Appeal By The Assessee Is Directed Against The Order Of The Commissioner Of Income Tax (Appeals)-14, Ltu, Bangalore Dt.29.10.2014 Relating To Assessment Year 2011-12. 2. The Facts Of The Case, Briefly, Are As Under :- 2.1 The Assessee Is A Public Religious Cum Public Charitable Institution Registered Under The Karnataka Societies Act, 1960 & Also Registered Under Section 12A Of The Income Tax Act Vide Order No.Pro 718/10A/Vol.A1/A-280 Dt.23.4.1975 As A Religious-Cum-Educational Institution. The Assessee Filed Its Return Of Income For Assessment Year 2011-12 On 27.3.2012

…Assessing Officer and confirmed by the learned CIT (Appeals). In support of this proposition, the learned Authorised Representative placed reliance on the judgment of the Hon'ble Apex Court in the case of CIT V Programme for Community Organisation reported in 248 ITR 1 (SC) affirming the decision of the Hon'ble Kerala High Court reported in 228 ITR 620 (Ker). Reliance was also placed on the judgment of the Hon'ble Apex Court in the case of S.R.M.M.C.T.M. Tiruuppani Trust reported in 230 CTR 638 (SC) and CIT V A.L.N. Rao Charitable Trust reported in 216 ITR 697 (SC). The learned Authorised Representative also drew…

Prarthana Education Society, Bangalore vs. Dy.DIT, Bangalore

In the result, the appeal filled by the assessee is partly

Bench: Shri Vijay Pal Rao & Shri G. Manjunatha

…e income from property held under trust is eligible for exemption after certain conditions set out in section 11. In support of its contention it has relied upon the Hon’ble Supreme Court judgment in the case of CIT. vs Programme for Community Organisation, 248 ITR 1 (SC). The CIT(A) rejected the assessee contentions and held that in the case of trusts, where income generating activity are involved, then only net income after deducting all revenue expenditure shall only be available for application of income. 5.1. At the time of hearing, the authorised representative brought to our notice that the issue invo…

M/S the Capuchin Friar Services Society, Bangalore vs. DDIT, Bangalore

In the result, the appeal of the assessee is allowed

Bench: Smt. Asha Vijayaraghavan & Shri Jason P. Boazassessment Year : 2011-12

…d is applicable only to a Trust which is running purely on donations and where no amount has been spent for getting such donations. 5. The assessee relied upon the decision of the Hon’ble Supreme Court in case of CIT vs Programme for Community Organization 248 ITR 1 to emphasize its stand that the accumulation of income provided for after application of income for charitable purposes u/s 11(1)(a), should be with reference to ‘gross’ and not ‘net’ income. 6. The ld. CIT(Appeals) was of the opinion that assessee’s reading of the said judgment was incorrect since the decision deals with a case where Page 3 of 1…

M/S the Jyothi Seva Society of Bangalore, Bangalore vs. DDIT, Bangalore

In the result, the appeal of the assessee is

Bench: Smt. Asha Vijayaraghavan & Shri Abraham P. Georgeassessment Year : 2011-12

…11(1)(a) being computed at 37,45,409 as against Rs.41,41,899 claimed by the assessee at 15% of the gross receipts of Rs.2,76,12,662. 6. The assessee relied upon the decision of the Hon’ble Supreme Court in case of CIT vs Programme for Community Organization 248 ITR 1 to emphasize its stand that the accumulation of income provided for after application of income for charitable purposes u/s 11(1)(a), should be with reference to ‘gross’ and not ‘net’ income. 7. The ld. CIT(Appeals) was of the opinion that assessee’s reading of the said judgment was incorrect since the decision deals with a case where only volun…

M/S St. Charles Medical Society, Bangalore vs. DDIT, Bangalore

In the result, the appeal of the assessee is

Bench: Smt. Asha Vijayaraghavan & Shri Jason P Boazassessment Year : 2011-12

…able only to a Trust which is running purely on donations and where no amount has been spent for getting such donations. 4. On appeal, the assessee relied upon the decision of the Hon’ble Supreme Court in case of CIT vs Programme for Community Organization 248 ITR 1 to emphasize its stand that the accumulation of income provided for after application of income for charitable purposes u/s 11(1)(a), should be with reference to ‘gross’ and not ‘net’ income. Page 3 of 13 5. The ld. CIT(Appeals) was of the opinion that assessee’s reading of the said judgment was incorrect since the decision deals with a case wher…

Public Education Society, Bangalore vs. Dy.DIT, Bangalore

Bench: Shri D. Manmohanassessment Year : 2011-12

…ficer. Nothing could therefore be more appropriate than to regard the expenditure incurred by the Trust as having been incurred for charitable purposes. 10. The decision of the Hon’ble Supreme Court in the case of CIT vs. Programme for Community Organisation [248 ITR 1] which while dealing with the issue, had held that a charitable or religious trust is entitled to accumulate twenty-five per cent of its gross income derived from property held under trust, was also brought to the attention of the learned CIT(Appeals). There, their Lordships had elucidated their view by stating that the limit of 25% (as applicable…