M/s. Hari Charitable Trust, V. The Income Tax Officer, Ward-2, Bhuj

CO 33/RJT/2012

• Counselvise Citation: [2013] 122 COUNSELVISE.COM (IT) 9185 (ITAT-RAJKOT)
• Duration Of Justice: 1 year(s) 1 month(s) 23 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 02-12-2013
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 18-10-2013
• Assessment Year: 2006-2007
• Appeal Filed On: 10-10-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: VILASH V SHINDE
• Assessee Lawyers: KALPESH DOSHIC A
• Keywords: Reopening of assessment; Charitable institution
• Section: 147; 148

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBULAL; RAJKOT BENCH, RAJKOT .. .. BEFORE SHRI T. K. SHARMA JM AND SHRI D. K. S RIVASTAVA AM ITA NO. 421/RJT/2012 / ASSESSMENT YEAR : 2006-2007 ITO, WARD-2 BHUJ ( / APPELLANT) SHRI HARI CHARITABLE TRUST, 4, B/2, DARJI COLONY, BHUJ-KUTCH PAN : AAFTS 1922 G / RESPONDENT CO NO. 33/RJT/2012 / ASSESSMENT YEAR : 2006-2007 SHRI HARI CHARITABLE TRUST, BHUJ-KUTCH PAN : AAFTS 1922 G ( / APPELLANT) ITO, WARD-2 BHUJ / RESPONDENT ! '# / REVENUE BY SHRI VILASH V. SHINDE, DR $% ! '# / ASSESSEE BY SHRI KALPESH DOSHI, CA ' & ' %( / DATE OF HEARING 18.10.2013 ) %( / DATE OF PRONOUNCEMENT 02.12.2013 / ORDER .. , / T. K. SHARMA, J. M. : THIS APPEAL BY THE REVENUE AND CROSS-OBJECTIONS BY THE ASSESSEE ARE AGAINST THE OR DER DATED 12.03.2012 OF THE CIT(A)-II, RAJKOT FOR THE ASSESSMENT YEAR 2006-07. THE ONLY GROUND RAISED THIS APPEAL ARE AS UNDER: 1. THE LD. CIT(A) HAS ERRED IN LAW AND IN FACTS IN DELETING THE ENTIRE ADDITION OF RS.45,51,835/- MADE ON ACCOUNT OF ALLEGED CORPUS DO NATION TREATED AS THE ASSESSEES INCOME LIABLE FOR TAXED. 2. REVENUE FILED THIS APPEAL ON 26.06.2012 WHICH IS BARRED BY LIMITATIONS OF 19 DAYS. FOR CONDONATION OF DELAY, THE REVENUE HAS FIL ED AN APPLICATION DATED 25.06.2012, WHEREIN IT IS MENTIONED THAT BHUJ IS A REMOTE STATION OF KUTCH DISTRICT, THEREFORE DUE TO CERTAIN COMMUNICATION PROBLEM, THI S DELAY IN FILING THE APPEAL BE CONDONED. LOOKING TO THE SMALL PERIOD OF DELAY AND THE REASONING GIVEN BY THE REVENUE, SMALL DELAY OF 19 DAYS IS CONDONED AND THE APPEAL OF THE REVENUE IS ADMITTED. 421-RJT-2012 - SHRI HARI CHARITABLE TRUST 2 3. SHRI KALPESH DOSHI, CA, APPEARED ON BEHALF OF TH E ASSESSEE, POINTED OUT THAT BEFORE THE LD CIT(A) THE ASSESSEE TOOK THE FOLLOWIN G TWO GROUNDS OF APPEAL:- 1. THAT THE LEARNED A.O. HAS WRONGLY RE-OPENED TH E ASSESSMENT U/S 148. 2. THAT, THE LEARNED A.O. HAS WRONGLY MADE AN ADDIT ION OF RS.45,51,835/- ON ACCOUNT OF CORPUS DONATION AS INCOME FROM UNDISC LOSED SOURCES. 4. IN THE AFORESAID FIRST GROUND OF APPEAL, THE AS SESSEE CHALLENGED THE REOPENING OF ASSESSMENT AND IN THE IMPUGNED ORDER, THE LD CIT (A) WHILE ADJUDICATING GROUND NO.1 IN PARAGRAPH 6.1 HELD THAT THE RE-ASSESSMENT P ROCEEDINGS ARE AB-INITIO INVALID AND THE ASSESSMENT MADE U/S 147 OF THE ACT IS REQUI RED TO BE QUASHED BEING BAD IN LAW. HE FURTHER SUBMITTED THAT NO SECOND APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE QUASHING OF ASSESSMENT; THEREFORE, THE PRESENT APPEAL OF THE REVENUE CHALLENGING THE DELETION OF ADDITION ON MERIT IS NOT MAINTAINAB LE. 5. SHRI VILASH V. SHINDE, DR, APPEARED ON BEHALF OF REVENUE, COULD NOT CONTROVERT THE AFORESAID SUBMISSIONS MADE BY THE LD COUNSEL OF THE ASSESSEE. 6. AFTER HEARING BOTH THE SIDES, WE HAVE CAREFULLY GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. ADMITTEDLY, IN ONE OF THE GROUND S OF APPEAL BEFORE THE LD CIT(A), THE ASSESSEE HAS CHALLENGED THE RE-OPENING OF THE ASSES SMENT AND THE LD CIT(A) HELD THAT THE RE-OPENING OF ASSESSMENT IS BAD IN LAW. THE REV ENUE HAS ACCEPTED THE ORDER OF LD CIT(A) ON THIS ISSUE. IN THIS VIEW OF THE MATTER, W E FOUND CONSIDERABLE FORCE IN THE SUBMISSION OF LD COUNSEL OF THE ASSESSEE AND ACCORD INGLY WE DISMISS THE APPEAL OF THE REVENUE. 7. THE GROUNDS RAISED BY THE ASSESSEE IN ITS CROSS- OBJECTIONS ARE AS UNDER:- 1. THAT, THE LEARNED CIT(A) HAS WRONGLY CONFIRMED THE REOPENING PROCEEDINGS U/S 148 OF THE I.T. ACT. 2. THAT, THE LEARNED CIT(A) HAS NOT GIVEN FINDINGS ON THE APPLICABILITY OF SECTION 115BBC OF THE I.T. ACT. 3. THAT, THE FINDINGS OF LEARNED CIT(A) ARE NOT JUS TIFIED AND BAD IN LAW. 421-RJT-2012 - SHRI HARI CHARITABLE TRUST 3 8. AT THE TIME OF HEARING BEFORE US, THE LD COUNSEL OF THE ASSESSEE SUBMITTED THAT THE AFORESAID GROUNDS ARE IN SUPPORT OF THE ORDER O F LD CIT(A), THEREFORE THESE ARE NOT PRESSED. 9. IN THE RESULT, THE APPEAL OF THE REVENUE AND CRO SS-OBJECTIONS FILED BY THE ASSESSEE-TRUST ARE DISMISSED. THIS ORDER PRONOUNCED IN OPEN COURT ON THE DATE MEN TIONED HEREINABOVE. SD/- SD/- ( *.#. , % D. K. SRIVASTAVA ) ( .#. -. / T. K. SHARMA) #( '/ / ACCOUNTANT MEMBER '/ /JUDICIAL MEMBER /#- 0/1/ ORDER DATE 02.12.2013 /RAJKOT *BT !'# $%'& / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT- ITO, WARD-2, BHUJ 2. / RESPONDENT- SHRI HARI CHARITABLE TRUST, 4, B/2, DARJI COLONY, BHUJ-KUTCH 3. '151 % & 6% / CONCERNED CIT-I, RAJKOT 4. & 6%- / CIT (A)-II, RAJKOT 5 . 9:; % , , / DR, ITAT, RAJKOT 6 . ;* <= / GUARD FILE /#- '# / BY ORDER TRUE COPY PRIVATE SECRETARY, ITAT, RAJKOT