TMI Blog2014 (3) TMI 579X X X X Extracts X X X X X X X X Extracts X X X X ..... come from house property – the order of the Tribunal is confirmed for remanding the matter back to the AO for fresh adjudication - the AO shall consider the nature of receipts keeping in mind the objects of the institution to find out as to whether the income earned is incidental to the objects of the association and hence income from the house property or whether the income could only be treated as a separate business carried on by the assessee – Decided against Assessee. - Tax Case (Appeal) Nos.35 and 36 of 2014 and M.P.No.1 of 2014 - - - Dated:- 3-3-2014 - Chitra Venkataraman And T. S. Sivagnanam,JJ. For the Appellant : Mr. V. S. Jayakumar in both the appeals For the Respondent : Mr. J. Narayanasamy in both the appeals Stan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al relief to the poor and objects of general public utility. It is stated that it is running lodging accommodations at two places and has a large Auditorium for conducting functions at Vepery and one such small Auditorium is at Esplanade and a large ground at Royapettah, which has a commercial value to be let out for public functions, exhibitions,etc. The Society maintains swimming pool, recreation centres and gymnasium. Two schools and a home were formed and maintained for the deprived children. Relief activities in times of flood and other natural calamities are also being carried out by the Society. The Auditorium and the hall are let out to members and non-members. Rooms are also let out to members and non-members, which included provid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were maintained. Going by the requirement of Section 11(4A) of the Income Tax Act, 1961, the Assessing Officer viewed that the assessee would be ineligible for exemption under Sections 11 and 12 of the Income Tax Act,1961. 3. Aggrieved by this assessment, the assessee went on appeal before the Commissioner of Income Tax (Appeals), who agreed with the assessee that the receipts from letting off of the rooms and the Auditorium constitute income from a house property. Referring to the objects of the Trust and Section 11(4A) of the Act, the Commissioner of Income Tax (Appeals) held that there was no violation of the provisions of the Act to deny the exemption under Section 11 of the Act. Considering the objects of the Society, viz., maintain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rate business carried on by the assessee, it held that the matter deserved to be remitted back to the Assessing Officer to examine afresh in all these aspects. 5. Aggrieved by such order, the assessee is on appeal before us. 6. Learned counsel for the assessee submitted that although strictly speaking, the asssesee is not against the remand order, his only anxiety is that the Tribunal having not considered the view of the Commissioner of Income Tax (Appeals) that the income earned was an income from house property and the remand order had not referred to this but ordered an open remand, such open remand will prejudice the assessee and hence submitted that the same may be clarified herein by directing the Assessing Officer to consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal to the objects of the association, and income from the property, then the consequences to flow would have to be considered in terms of Section 11 of the Act. We do not think that we need to elaborate further on this since the Income Tax Appellate Tribunal has already considered this in para No.9 of its order. 8. Except for the clarification that we have mentioned above, we do not find any further elaboration is required while confirming the order of the Income Tax Appellate Tribunal. Consequently, the Assessing Officer shall consider the case of the assessee in the context of the nature of activity vis-a-vis the objects of the trust/association to decide on the nature of receipt for the purpose of considering the assessee's claim ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
