2015 (5) TMI 1116

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....d. Departmental Representative submitted that the assessee-society was registered u/s 12AA of the Act as charitable institution. According to the ld. DR, the assessee received rental income of Rs. 4,16,532/- from house property situated at Govindappa Naicken Street, Chennai. The assessee has also received from another house property Rs. 8,95,886/- in same street, at Chennai. The assessee claimed standard deduction in respect of income received from the house properties. However, the Assessing Officer disallowed the claim of the assessee on the ground that deduction u/s 24(a) of the Act is inconsistent to the principles of revenue recognition involving charitable organizations. According to the ld. DR, in case of charitable organization, the....

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....erties at Govindappa Naicken Street, Chennai and receiving rental income. After claiming standard deduction of 30% allowed u/s 24(a) of the Act, the assessee scaling down the rental income to Rs. 8,12,049/-. The Assessing Officer found that the claim of standard deduction u/s 24(a) of the Act is inconsistent to the principles of revenue recognition involving charitable organizations. After referring to the order of this Tribunal in the assessee's own case for assessment year 2008-09, the Assessing Officer found that this Tribunal granted relief to the assessee after adjudicating on the aspect as to whether the society was engaged in profit motive or not. The characteristics of the income derived by the society were never put forth before th....

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.... derived from the hospital or other institution. The language employed by the Parliament clearly says that "any income" and "aggregate annual receipts". Therefore, it means that the aggregate annual receipts of the institution/hospital from all sources including the running of the hospital received by the assessee for providing treatment should be covered by section 10(23C)(iiiae) of the Act. When the hospital has house property which was held under the trust, the income earned by the assessee from such house property shall also form part of the aggregate annual receipts of the institution provided the same is utilized for providing treatment. It is well settled principles of law that the taxation law has to be interpreted without adding an....

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....of the total income provided the same is applied for carrying out the objects of the trust. Hence, any part of the income received by the assessee from house property is applied for maintenance of the very same house property, the same is allowed as application u/s 11 and 10(23C) of the Act. This Tribunal is of the considered opinion that sections 10 and 11 of the Act override section 22 to 27 of the Act. Therefore, the gross rent received from house property shall be taken as income of the Trust/Society. The computation of income from house property u/s 24 of the Act fails when the assessee claims exemption u/s 10 or 11 of the Act. In case, the income is not exempted u/s 10 or 11, the income from house property has to be computed u/s 24 of....