M/s.Rajiv Gandhi University of Health Sciences,Karnataka, Bangalore V. DCIT-Exemptions, Circle-1, Bangalore

CO 30/BANG/2017

• Counselvise Citation: [2017] 123 COUNSELVISE.COM (IT) 3316 (ITAT-BANGALORE)
• Duration Of Justice: 9 month(s) 5 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 26-12-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 21-03-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R N PARBAT; NAMBIRAJAN DR S
• Assessee Lawyers: C SUMAN LUNKAR
• Keywords: Charitable institution
• Section: 143(3); 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, B E NGAL U R U BEFORE SHRI VIJAY PAL RAO , JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ITA NO. 885 / BANG/20 16 (ASSESSMENT YEAR: 20 11 - 12 ) DEPUTY COMMISSIONER OF INCOME - TAX (EXEMPTIONS), CIRCLE - 1, BENGALURU. VS. APPELLANT THE RAJIV GANDHI UNIVERSITY OF HEALTH SCIENCES, 4 TH T BLOCK, JAYANAGAR, BENGALURU - 560041. PAN:AAALF 0023 C RESPONDENT AND C.O.NO.30/BANG/2017 (IN ITA NO.885/BANG/2016) (ASSESSMENT YEAR: 2011 - 12) ITA NO . 805/ BANG/20 16 (ASSESSMENT YEAR: 2011 - 12) THE RAJIV GANDHI UNIVERSITY OF HEALTH SCIENCES, BENGALURU. CROSS - OBJECTOR/ APPELLANT VS. DEPUTY COMMISSIONER OF INCOME - TAX (EXEMPTIONS), CIRCLE - 1, BENGALURU. RESPONDENT REVENUE BY : S/ SHRI R.N.PARBAT & NAMBIRAJAN (DR S ) A SSESSEE BY : SHRI C.SUMAN LUNKAR, ADVOCATE DATE OF HEARING : 26/09/2017 DATE OF PRONOUNCEMENT : 26 /12/2017 O R D E R PER BENCH : TH E APPEAL BY THE REVENUE AND CROSS OBJECTIONS BY THE ASSESSE E ARE DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME - ITA NO . 805 & 885 /BANG/201 6 & CO NO.30/BANG/2017 PAGE 2 OF 8 TAX (APPEALS), LTU, BENGALURU [ CIT(A) ] DATED 10/02/2016 FOR THE ASSESSMENT YEAR 2011 - 12. THE ASSESSEE ALSO FILED CROSS OBJECTIONS IN CO NO.30/BANG/2017. 2. BRIEFLY FACTS OF THE CASE ARE AS UNDER: THE RESPONDENT - ASSESSEE IS A PUBLIC CHARITABLE TRUST REGISTERED UNDER THE PROVISIONS OF SECTION 12AA OF THE INCOME - TAX ACT, 1961 [HEREINAFTER REFERRED TO AS THE ACT ] WITH THE OBJECT OF RENDERING SERVICES IN MEDICAL EDUCATION. THE R E TURN OF INCOME FOR THE ASSESSMENT YEAR 2011 - 12 WAS FILED ON 30/03/2013 DECLARING NIL INCOME. AFTER PROCESSING THE RETURN OF INCOME UNDER THE PROVISIONS OF SECTION 143(1) OF THE ACT, THE ASSESSMENT WAS COMPLETED U/S 143(3) OF THE ACT VIDE ORDER DATED 26/03 /2014 AT TOTAL INCOME AT NIL . WHILE DOING SO, THE A SSESSING OFFICER ALLOWED ACCUMULATION OF INCOME AT 15% OF THE NET INCOME AS AGAINST CLAIM OF THE ASSESSEE THAT IT SHOULD BE ON GROSS RECEIPT . 3 . BEING AGGRIEVED, AN APPEAL WAS FILED BEFORE THE CIT (A), WHO VIDE IMPUGNED ORDER, HAD ALLOWED THE ACCUMULATION OF 15% OF GROSS RECEIPTS FOLLOWING THE DECISION OF TRIBUNAL IN THE CASE OF M/S.JYOTHI CHARITABLE TRUST IN ITA NO.662/BANG/2015 AND ST.CHARLES MEDICAL SOCIETY NIRMAL HOSPITAL VS. DDIT(EXEMPTION) IN ITA NO.364/BANG/2015 DATED 09/10/2015. 4 . BEING AGGRIEVED BY THIS ORDER, THE REVENUE IS IN APPEAL BEFORE US IN THE PRESENT APPEAL RAISING THE FOLLOWING GROUNDS OF APPEAL IN ITA NO.885/BANG/2016: ITA NO . 805 & 885 /BANG/201 6 & CO NO.30/BANG/2017 PAGE 3 OF 8 5. WE HEARD RIVAL SUBMISSIONS AND PERUSED THE M ATERIAL ON RECORD. THE ISSUE RAISED IN THE PRESENT APPEAL IS SQUARELY COVERED BY THE ORDER OF THE CO - ORDINATE BENCH OF TRIBUNAL IN ITA NO.899/BANG/2016 DATED 07/04/2017 IN THE CASE OF ITO VS. SHRADDHA TRUST . THE RELEVAN T PARAGRAPH IS REPRODUCED BELOW: 7. THE OTHER GROUNDS OF APPEAL RELATES TO WHETHER ACCUMULATION OF INCOME SHOULD BE ON GROSS RECEIPT OR NET INCOME AFTER DEDUCTING THE EXPENDITURE, IS COVERED BY THE DECISION OF THE HON BLE SUPREME COURT IN THE CASE OF CIT VS. PROGRAMME FOR COMMUNITY ORGANISATION (248 ITR 1)(SC) WHEREIN IT WAS HELD THAT 25% SHOULD BE CALCULATED ON THE GROSS RECEIPTS OF ITA NO . 805 & 885 /BANG/201 6 & CO NO.30/BANG/2017 PAGE 4 OF 8 INCOME AND NOT ON THE NET INCOME. THEREFORE, THESE GROUNDS OF APPEAL RAISED BY THE REVENUE ARE DISMISSED. RESPECTFULLY FOLLOWING THE RATIO LAID DOWN IN THE ABOVE DECISION WE DISMISS THE GROUND S OF APPEAL RAISED BY THE REVENUE . 6 . IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED . 7. THE ASSESSEE RAISED THE FOLLOWING GROUNDS OF APPEAL IN ITA NO.8 0 5/BANG/2016: ITA NO . 805 & 885 /BANG/201 6 & CO NO.30/BANG/2017 PAGE 5 OF 8 ITA NO . 805 & 885 /BANG/201 6 & CO NO.30/BANG/2017 PAGE 6 OF 8 ITA NO . 805 & 885 /BANG/201 6 & CO NO.30/BANG/2017 PAGE 7 OF 8 8. WE OBSERVE FROM THE GROUNDS OF APPEAL FILED BY THE ASSESSEE THAT NO GRIEVANCE IS POINTED OUT BY THE ASSESSEE. IN FACT, THE GROUNDS OF APPEAL ARE IN SUPPORT OF THE ORDER OF THE CIT(A). HENCE, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. 9 . THE CROSS OBJE CTIONS FILED BY THE ASSESSEE ARE IN SUPPORT OF THE ORDER OF THE CIT(A). SINCE THE APPEAL OF REVENUE IS DISMISSED, THE CROSS OBJECTIONS BECOME INFRUCTUOUS AND HENCE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 26 TH DECEM BER , 201 7 S D/ - SD/ - ( VIJAY PAL RAO ) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE : B EN GAL URU D ATE : 26 / 1 2 /2017 SRINIVASULU, SPS ITA NO . 805 & 885 /BANG/201 6 & CO NO.30/BANG/2017 PAGE 8 OF 8 COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A) 4 CIT 5 DR, ITAT, B ANGALORE. 6 GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY INCOME - TAX APPELLATE TRIBUNAL BANGALORE