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2022 (6) TMI 268 - HC - Income TaxExemption u/s 11 - printing of News papers to educate the Toiling Masses being its objects is not a Charitable activity in nature - Whether Tribunal was right in law in denying the exemption under section 11 to 13 of the Act by placing a very narrow interpretation to the term charitable activity with respect to amount applied towards the objectives of the Trust? - HELD THAT:- From the order passed by the Commissioner of Income Tax (Appeals)- VII, Chennai, we find that the authority had examined the nature and purpose for which the Trust was created and the publication of the newspaper was to educate the toiling masses and having arrived at such a factual conclusion held the denial of exemption under section 11 of the Act was not correct - CIT(A) has also noted as to how the substantial number of people in the country lives in rural areas and about 40% of the population is below the poverty line and the appellant-trust is to educate those daily wage earners in urban areas and industrial workers about the various aspects, which they are bound to know and held that the activity of publishing the newspaper can be covered under ''advancement of any other object of general public utility''. While testing the correctness of the order passed by the CIT(A), the Tribunal had relied upon the decision of the Cochin Bench of this Tribunal in Al-Madeena Charitable Trust -vs- ACIT [1999 (11) TMI 104 - ITAT COCHIN] and came to the conclusion that the assessee had not carrying on any charitable activity and therefore, exemption cannot be granted under section 11 of the Act. Tribunal has not rendered any finding on the correctness of the decision of the CIT(A), which examined the factual aspects as to purpose behind which the newspaper was printed and published. Therefore, merely by applying the decision in Al-Madeena Charitable Trust(cited supra), the order passed by the CITA could not have been reversed. Depreciation claim - Tribunal has reversed the finding of the CIT(A) that the claim of depreciation cannot be a double deduction over and above the full value of the assets and with that observation, the Revenue's appeal was allowed. There is no finding rendered by the Tribunal as regards the views expressed by the CIT(A). Before us the assessee would contend that in terms of the decision of the Hon'ble Supreme Court in CIT Vs. Vegetable Products Ltd. [1973 (1) TMI 1 - SUPREME COURT] that the view expressed by the High Court in favour of the assessee should be preferred to the views expressed as against the assessee and this aspect has not been considered by the Tribunal. As assessee placed reliance on the decision of the Punjab & Haryana High Court in CIT -vs- Market Committee Pipli reported in [2010 (7) TMI 374 - PUNJAB AND HARYANA HIGH COURT] and CIT -vs- Tiny Tots Education Society [2010 (7) TMI 377 - PUNJAB AND HARYANA HIGH COURT] wherein, it has been held that depreciation allowance on fixed assets of charitable trusts are not double deduction as claimed by the department. Depreciation on fixed assets - As the decisions of this Court in Director of Income Tax (Exemptions) -vs- Medical Trust of the Seventh Day Adventists [2017 (8) TMI 931 - MADRAS HIGH COURT] is fully in favour of the appellant-assessee and the question has been answered in favour of the appellant-assessee. This issue also can be raised before the Tribunal. Thus in the light of what we have observed above, we are of the view that the Tribunal should reconsider the case of the appellant-assessee by taking note of all the facts and legal position that may be placed before the Tribunal by and on behalf of the assessee. Tax Case Appeal is allowed and the order passed by the Tribunal was set aside and the matter is remanded before the Tribunal for fresh consideration on all issues
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