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TMI Blog2019 (3) TMI 498X X X X Extracts X X X X X X X X Extracts X X X X ..... e said finding however, the Tribunal suo motu took up the issue and adjudicated the same and rendered a finding against the assessee. The procedure adopted by the Tribunal is impermissible. The assessee can be worse of in their appeal petition. Revenue having not filed any appeal were not aggrieved over the finding rendered in favour of the assessee by the CIT(A). Therefore, the finding rendered by the Tribunal on the said issue needs to be set aside. - Decided in favour of the assessee Income from the auditorium hall - exemption under Section 11 - whether the income arising from the auditorium is from a business activity when the assessee would state that the dominant activity of the assessee is education ? - new proviso introduced by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome-tax Appellate Tribunal, D Bench, Chennai, dated 29.06.2016, passed in I.T.A.No.2172/Mds/2014 for the assessment year 2010-11. 2.The appeal is entertained on the following substantial questions of law:- 1.Whether the Appellate Tribunal is right in law inholding that the income arising to the appellant Trust from 'Suguna Auditorium Hall' is from a business activity, when the dominant activity and purpose of the Trust is education, so as to attract the Proviso to Section 2(15) of the Income Tax Act, 1961? 2.Whether the Appellate Tribunal is right in law in holding that the Auditorium income is exigible to tax when such income is meant to sub serve and augment the resources for the educational activity of the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ritten down value of the assets in the assessment year under consideration. We need not go into the merits of the matter as this issue was decided in favour of the assessee by the Commissioner of Income Tax (Appeals)-I (CIT(A)) in Appeal No.39/13-14 dated 02.06.2014. Admittedly, the revenue did not file any appeal against the said finding however, the Tribunal suo motu took up the issue and adjudicated the same and rendered a finding against the assessee. The procedure adopted by the Tribunal is impermissible. The assessee can be worse of in their appeal petition. The Revenue having not filed any appeal were not aggrieved over the finding rendered in favour of the assessee by the CIT(A). Therefore, the finding rendered by the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of Trust, the revenue was not correct in saying that the assessee is not eligible for exemption under Section 11(4) of the Act. Further the assessee's case was that letting out of auditorium hall is incidental to the attainment of objectives of the Trust and the assessee maintained separate books of accounts in respect of such activities and therefore, the income is eligible for exemption under Section 11 of the Act. The Tribunal did not agree with the assessee and dismissed the appeal vide the impugned order. After the impugned order was passed by the Tribunal on 29.06.2016, the assessee filed miscellaneous application in M.A.No.325/Mds/2016 requesting to recall the order dated 29.06.2016 which was dismissed. 7.The followin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... light of the Supreme Court Judgments, CBDT's Circular and the judgment of the Hon'ble Bombay High Court the appellant's income from the auditorium is eligible for exemption u/s.11 of the Act. 8.It is not in dispute that though the assessee placed reliance on Circular No.21 of 2016 dated 27.05.2016, the same was not placed for consideration before the Tribunal when the appeal was heard by the Tribunal on 22.06.2016. Nevertheless, the revenue atleast should have pointed out to the Tribunal regarding the circular so that the Tribunal could have considered the effect of the circular and whether the assessee's contention now sought to be advanced by the assessee is justified or not? However, such exercise was not done and pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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