IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE T.R.RAMACHANDRAN NAIR WEDNESDAY, THE 6TH FEBRUARY 2008 / 17TH MAGHA 1929 ITA.No. 147 of 2001() --------------------- ITA.42/2000 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT: ----------------- THE COMMISSIONER OF INCOME TAX, TRIVANDRUM. BY ADV. SRI.P.K.R.MENON,SR.COUNSEL,GOI(TAXES) SRI.GEORGE K. GEORGE, SC FOR IT RESPONDENTS: ------------- M/S. GEORGE EDUCATIONAL MEDICAL & CHARITABLE SOCIETY, TRIVANDRUM. BY ADV.SRI. C. KOCHUNNI NAIR & SRI. DALE P. kURIEN THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 06/02/2008, ALONG WITH ITA 158 OF 2001 THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C .N. RAMACHANDRAN NAIR & T.R. RAMACHANDRAN NAIR, JJ. -------------------------------------------- I.T.A. No. 147 & 158 OF 2001 -------------------------------------------- Dated this the 6th day of February, 2008 JUDGMENT C.N. Ramachandran Nair,J. Heard standing counsel appearing for the appellant in both the cases, which arise from the order of the Income-tax Appellate Tribunal for the year 1996-97. The assessee was granted registration as charitable institution. It has operations both in Kerala as well as in Tamil Nadu. Department has granted exemption for the income from Kerala operations on the ground that assessee was applying the income for charitable purposes. However, disallowance was made for the income relating to operations in Chennai for the reason that respondent- assessee incurred expenditure for furnishing and maintenance of guest house for the author of the trust and his wife. Disallowance is made by reference to Section 13(1)(c)(ii) of the I.T. Act which disentitles a charitable organisation for exemption if any part of such income or any property of the trust or institution is during 2 the previous year used or applied directly or indirectly for the benefit of any person referred to in sub-section (3). We notice from the order of the Tribunal that the allegation of the Department that the guest house is maintained and used by the author of the trust and his wife is incorrect because they were engaged in business operations in Singapore and they were maintaining another house in Chennai for their residence. Since there was no application of income for purposes referred in Section 13(1)(c)(ii) the Tribunal allowed the claim. We find that the finding entered by the Tribunal is based on evidence. No question of law arises from the order of the Tribunal. We accordingly dismiss the appeal. (C.N.RAMACHANDRAN NAIR) Judge. (T.R.RAMACHANDRAN NAIR) Judge. kk 3