9911796707
TMI Blog2010 (11) TMI 478X X X X Extracts X X X X X X X X Extracts X X X X ..... bad in law and against all cannons of equity and natural justice. (2) The learned Commissioner of Income-tax Tirupati erred in understanding the provisions of Law and facts of the case. (3) The learned Commissioner of Income-tax, Tirupati erred in appreciating the fact that Sri Venkateswara Bhakti Channel is a company converted under section 25 of the Companies Act. (4) For these and other grounds that may be submitted at the time of hearing the appellant prays the Hon'ble Income-tax Appellate Tribunal to direct the Commissioner of Income-tax Tirupati to grant sanction of registration under section 12A to Sri Venkateswara Bhakti Channel." 3. Learned counsel for the assessee submitted that the only re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 12A of the Act, namely, Hyderabad Race Club, A.P. State Civil Supplies Corporation and A.P. State Road Transport Corporation. He relied on the decision of the Hon'ble Supreme Court in CIT v. Andhra Pradesh State Road Transport Corporation [1986] 159 ITR 1, wherein it was held that the activity of the assessee was not carried on with the object of making profit and hence the assessee was entitled to the exemption claimed by it both under the 1922 Act and under the 1961 Act. 4. The learned CIT-Departmental Representative has opposed the submissions of the learned counsel for the assessee. She relied on the order of the Commissioner of Income-tax and submitted that what could be registered under the provisions of section 12A of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er section 12A of the Act. We find that there is no provision in the Income-tax Act or Rules made thereunder to deny registration under the provision of section 12A of the Act merely because the assessee is a 'company'. The provision of section 11 provide for exemption of the total income of a 'person', who derives income from property held under trust for charitable or religious purposes. The word 'person' has been defined in section 2(31) of the Act, and the definition therein is not exhaustive, but illustrative, and it reads as under- "2. Definitions.-In this Act, unless the context otherwise requires,- (1) TO (30)..... (31) "person" includes- (i) an individual, (ii) a Hindu undivided family, (iii) &nb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r a religious, educational, professional, or social purpose l an organization providing residential care for people with special needs: about 5 per cent of elderly people live in institutions l an established official organization having an important role in a society, such as the Church or parliament: the institutions of democratic Government l a large company or other organization involved in financial trading: City institutions l 2 an established law or practice: the institution of marriage l informal a well-established and familiar person or custom: he soon became something of a national institution 3 [mass noun] the action of instituting something: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A of the Act being a pre-condition to avail the benefit of exemption provided under section 11 of the Act, harmonious interpretation would be that the company is also entitled to registration under the provision of section 12A of the Act. Any other interpretation, denying registration under section 12A of the Act to a company, shall render the provision of section 11 providing exemption from tax to a 'person', redundant and therefore, such interpretation should be avoided. Since the Revenue treats 'company' as a taxable entity, being an assessee in terms of definition of the word 'assessee' as defined in section 2(7) of the Act, it does not lie in the mouth of the Department to plead to the contrary and to take a contrary stand in the conte ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
