TVS CHARITIES Vs. THE INCOME TAX OFFICER

JUDGEMENT

(1.) The instant writ petition has been filed challenging the order dtd. 19/2/2019 passed by the first respondent in PAN:AAATT1082B.

(2.) It is the case of the petitioner that they are a Public Charitable Trust having obtained exemption under sec. 12A(a) of the Income Tax Act, 1961. It is their case that they have been filing returns under the Income Tax Act right from the year 1973. It is the case of the Assessing Officer that the petitioner has let out the property to their Associate Company, who is a specified person under sec. 13(3) of the Income Tax Act.

(3.) It is the case of the Department that the market rent for the said properties are much higher than what the petitioner is collecting from them as rent. It is the petitioner's case that the Department has wrongly assessed the market rent for the properties let out by the petitioner at Rs.1,79,67,636.00 whereas, as per the returns filed by the petitioner, the actual rent received from the respective tenants is only Rs.5,34,372.00. The Income Tax Officer passed an order dtd. 14/12/2018 directing the petitioner to pay Rs.82,70,246.00 as tax, together with interest. Aggrieved by the order of the Income Tax Officer, dtd. 14/12/2018, the petitioner preferred an appeal before the second respondent on 19/1/2019.