2015 (11) TMI 1863

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....ated 28.2.2014. 2. The Revenue has raised the following grounds : "1.1 On the facts and circumstances of the case, the Order of the CIT (A) is perverse in as much as he has ignored relevant facts brought on record by the Assessing Officer at p.2, 3, 5 & 6 of his Order. 1.2 The Id CIT(A) ought to have appreciated that the assessee is printing "Thee Kathir Press" and "Yellow Pages" on contract basis, for the Publisher, "Thee Kathir Press of CPI(M) Tamil Nadu state committee, Madurai", which is not a "Charitable" activity, but a "commercial" activity. 2.1 On the facts and circumstances of the case, the Id. CIT (A) erred in law in holding that the assessee is entitled for exemption u/s 11 of the Income Tax Act, as ....

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....ted Vs CIT, 314 ITR 314. (ii) Mls J.K Synthetics Limited (65 Taxman 420) (iii) Lissie Medical Institutions Vs CIT, 348 ITR 344 (Ker). (iv) DIT Vs. Ms/. Charanjiv Charitable Trust (2014) 43 taxmann.com 300(Del). 3.3 The Ld CIT (A) ought to have placed reliance on the decision of jurisdictional High Court in the case of CIT Vs Rao Bahadur Cunnan Chetty Charities 135 ITR 485(Mad)." 3. In the cross objection, the issue raised by the assessee is with regard to maintainability of sec.260A of the Act and the appeal of the Revenue is not maintainable as the grounds are not in proper form. 4. The facts of the case are that the assessee is a trust registered u/s.12A(a) of the Act vide order of the CIT dated 5....

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....essee was treated as an AOP and taxed accordingly. Aggrieved by this, the assessee went in appeal before the Commissioner of Income-tax(Appeals). 5. On appeal, the Commissioner of Income-tax(Appeals) observed that perusal of the Trust Deed dated 28.02.1986 reveals that it was formed with the principal objective "to educate the toiling masses on the principles of scientific socialism and to expand and develop the movement for their complete emancipation by ending exploitation of man by man". The other objects are to publish newspaper, magazine, journal, books, etc., upliftment of working class, spread of scientific socialism, so on and so forth. 5.1 The CIT(Appeals) further observed that India that is Bharat is by itself a sub-continen....

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....en effect to and directed the AO to allow depreciation and accept the returned income of the assessee. Against this, the Revenue is in appeal before us. 6. We have heard both the parties and perused the material on record. We find that the issue raised by the assessee is squarely covered by the order of the Cochin bench of this Tribunal in AI-Madeena Charitable Trust v. ACIT in ITA No.407 & 408/Mds/Coch/1995 dated 1.11.1999(76 ITD 214), wherein it was held that when an assessee had not carried on any activity of charitable nature as contemplated under the trust deed except running the business of printing a newspaper, the assessee cannot be considered as carrying on charitable activity so as to grant exemption u/s.11 of the Act. In view ....