IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM WEDNESDAY, THE 17TH JUNE 2009 / 27TH JYAISHTA 1931 ITA.No. 107 of 2009() --------------------- ITA.1088/2004 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT: -------------------- THE COMMISSIONER OF INCOME TAX(CENTRAL), COCHIN. BY ADV. SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT(S): --------------- M/S.SABARIGIRI EDUCATIONAL AND CULTURAL SOCIETY, ANCHAL, KOLLAM. THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 17/06/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & C.K.ABDUL REHIM, JJ. .................................................................... I.T. Appeal No.107 of 2009 .................................................................... Dated this the 17th day of June, 2009. JUDGMENT Ramachandran Nair, J. Appeal is filed by the department against the order of the Tribunal confirming the order of the C.I.T. (Appeal) declaring respondent's eligibility for exemption from payment of Income Tax under Section 10(22) of the Income Tax Act. Standing Counsel submitted that exemption claimed by the respondent was under Section 11(1)(a) and since registration was not granted under Section 12A, respondent is not entitled to exemption. However, it is seen from the orders of the authorities below particularly, the detailed order issued by the C.I.T. (Appeal) that respondent made an alternate claim that it is entitled to exemption under Section 10(22) as it was engaged in running educational institutions namely, schools. The Assessing Officer though did not entertain the claim as it was not made in the original return, did not give any finding that respondent has utilised funds for any other purpose. In fact, it is seen from records that 2 exemption claimed under Section 11(1)(a) was allowed in previous years without objection and that is the reason why assessee continued to claim under the said provision for 1996-97 also. When this is declined after belated rejection of application for registration filed under Section 12A by the Commissioner, the assessee made alternate claim of exemption under Section 10(22) which is a statutory benefit available to them. Since Commissioner (Appeals) and the Tribunal found on facts that respondent was engaged in educational activities, exemption was rightly granted. We do not find any substantial question of law arising from the order of the Tribunal. The appeal is consequently dismissed. C.N.RAMACHANDRAN NAIR Judge C.K.ABDUL REHIM Judge pms