2014 (1) TMI 745 - AT - Income Tax

Scope of the term charitable institution u/s 2(15) of the Act Assessee treated as charitable institution Held that - the claim of the assessee of being a public charitable trust is covered in favour of the assessee - The AO in the assessment order 1990-01 and 1992- 93 in the assessment framed in scrutiny assessment has admitted that the assessee is a public charitable trust - there is no merit in the grounds of appeal of the revenue - the action of the CIT(A) in treating the assessee as a charitable institution covered u/s 2(15) of the Ac upheld Decided against Revenue.

Summary

Issues:
1. Appeal against orders of CIT(A)-I, Mumbai for assessment years 2002-03 and 2005-06.
2. Issue of treating the assessee as a charitable institution under section 2(15) of the Act.

Analysis:
1. The Appellate Tribunal, ITAT Mumbai, comprising J. Sudhakar Reddy and V. Durga Rao, JJ., heard appeals by the revenue against CIT(A)-I, Mumbai's orders for assessment years 2002-03 and 2005-06. As the appeals pertained to the same assessee and involved identical issues, they were consolidated for a common order.

2. The main contention in both appeals was the CIT(A)'s decision to classify the assessee as a charitable institution falling under section 2(15) of the Act. During the hearing, both parties acknowledged that this issue had been previously decided in favor of the assessee by the ITAT in the assessee's own case for earlier years 2001-02, 2003-04, and 2004-05. The Tribunal's decision in the AY 2001-02 case was particularly cited, where it was held that the assessee qualified as a public charitable trust based on previous assessments and grounds presented.

3. Citing precedent and following the ITAT's decision in the assessee's previous case, the Tribunal upheld the CIT(A)'s classification of the assessee as a charitable institution under section 2(15) of the Act for the years under review. Consequently, the revenue's appeals were dismissed, and the orders of the CIT(A) were affirmed.

4. The Tribunal, in its ruling dated November 25, 2011, pronounced the dismissal of both appeals by the revenue in an open court session. The decision was based on the consistent application of legal principles and precedents established in previous cases concerning the classification of the assessee as a charitable institution under the relevant provisions of the Act.