Sou. Sushila Danchand Ghodawat Charitable Trust, Kolhapur V. Deputy Commissioner of Income-tax, (Exemptions), Circle, Pune

CO 46/PUN/2022

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 0450 (ITAT-PUNE)
• Duration Of Justice: 2 month(s) 1 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 17-10-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 10-10-2022
• Assessment Year: 2011-2012
• Appeal Filed On: 15-08-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution
• Section: 11; 143(3); 12AA

Judgement Text

आयकर अपीलीय अधधकरण “बी” न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, PUNE BEFORE SHRI S.S.GODARA, JM AND SHRI DR. DIPAK P. RIPOTE, AM आयकर अपील सं./ ITA No.1580/PUN/2019 with CO No.46/PUN/2022 धनधाारण वषा / Assessment Year : 2011-12 DCIT, (Exemptions) Circle, Pune .......अपीलाथी / Appellant बनाम / V/s. Sou. Sushila Danchand Ghodawat Charitable Trust, 2549, Yashwant Co-operative Housing Society, Jaysingpur, Tal. Hatkangale, Dist.Kolhapur Pune – 416 118 PAN : AAATS5501N ......प्रत्यथी /Respondent/Cross -Objector Assessee by : Shri S.N.Puranik Revenue by : Shri Sardar Singh Meena सुनवाई की तारीख / Date of Hearing : 11.10.2022 घोषणा की तारीख / Date of Pronouncement : 18.10.2022 आदेश / ORDER PER S. S. GODARA, JM : 1. This Revenue’s appeal ITA No. 1580/PN/19 with assessee’s Cross Objection CO.No. 46/PN/22, arise against the CIT(A)-11, Pune’s order dated 30/07/2019, passed in case No. PN/CIT(A)-11/ACIT, Cen. Cir. /KOP /742 /2015-16, involving proceeding u/s. 143(3) of the Income Tax Act, 1961; in short "the Act”. Heard both the parties. Case file perused. 2 ITA No.1580/PUN/2019 & CO.No. 46/PN/2022 A.Y. : 2011-12 Sou. Sushila Danchand Ghodawat Charitable Trust, 2. It emerges during the course of hearing Revenue has pleaded two main substantive ground followed by it’s additional ground that the CIT(A) has erred in law and on facts in holding that the assessee is eligible u/s. 11 exemption; since carrying section 12AA registration and that the Assessing Officer had rightly added disallowed/ added it’s education building fund claim of Rs.8,02,67,000/- in the nature of corpus donation u/s.11(1)(d) of the Act; respectively. The assessee’s cross-objection CO. No.46/PN/22 on the other hand seeks correct computation of it’s application of income. 3. We notice in this factual backdrop so far as the Revenue’s former twin substantive grounds regarding assessee’s eligibility of section 11 exemption based on the section 12AA registration is concerned, the issue is no more re integra in principle as this tribunal’s co-ordinate bench’s order dated 31.12.2012 has already adjudicated the same against the department. And Revenue’s Tax Appeal no. 1017 of 2014 stands admitted before the hon’ble jurisdictional high court on 16.01.2017. We thus reject the Revenue’s instant former twin substantive grounds. 4. Next comes the issue of correctness of corpus donation disallowance / addition of Rs.8,02,67,000/- on merits. A perusal of the assessment order dated 26.03.2014 reveals that the assessee could not prove all the relevant details thereof before the Assessing Officer. Coming to the CIT(A) order, Mr. Puranik could hardly dispute that the lower appellate discussion under 3 ITA No.1580/PUN/2019 & CO.No. 46/PN/2022 A.Y. : 2011-12 Sou. Sushila Danchand Ghodawat Charitable Trust, challenge has nowhere commented on merits thereof right from para no. 2 to para 7 as it has simply gone by assessee’s registration u/s.12AA only. Suffice to say, section 250(C) of the Act stipulates that the CIT(A) has to frame his point of determination followed by a detailed adjudication thereupon in lower appellate proceedings. We do not find any discussion at all much less a detailed one dealing with the impugned issue of corpus donation in the CIT(A)’s order. The assessee’s paperbook running into 141 prima facie suggests that it had made additional submissions before the CIT(A) over and above the material which was placed before the Assessing Officer. Faced with this situation, we deem it fit appropriate the Revenue’s instant third substantive ground on merits deserts to be reverted back to the CIT(A) for his afresh adjudication on merits as per law within three effective opportunities of hearing. Ordered accordingly. 5. This Revenue’s appeal ITA No. 1580/PN/19 stands partly allowed for statistical purposes therefore. 6. The assessee’s Cross Objection CO no.46/PN/22 (supra) also follows suit as the necessary corollary. 7. This Revenue’s appeal ITA No. 1580/PN/19 is partly allowed for statistical purposes and assessee’s Cross Objection CO no.46/PN/22 is 4 ITA No.1580/PUN/2019 & CO.No. 46/PN/2022 A.Y. : 2011-12 Sou. Sushila Danchand Ghodawat Charitable Trust, accepted for statistical purposes in above terms. A copy of this common order be placed in respective files. Order pronounced in the Open Court on this 18 th day of October, 2022. Sd/- Sd/- (DR.DIPAK P.RIPOTE) (S.S. GODARA) लेखा सदस्य/ ACCOUNTANT MEMBER न्याधयक सदस्य/JUDICIAL MEMBER पुणे / Pune; ददनांक / Dated : 18 th October, 2022. Ashwini आदेश की प्रधतधलधप अग्रेधषत / Copy of the Order forwarded to : 1. अपीलाथी / The Appellant. 2. प्रत्यथी / The Respondent. 3. The CIT(A)-11, Pune. 4. The Pr.CIT (Central), Pune. 5. धवभागीय प्रधतधनधध, आयकर अपीलीय अधधकरण, “बी” बेंच, पुणे / DR, ITAT, “B” Bench, Pune. 6. गार्ा फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अधधकरण, पुणे / ITAT, Pune. 5 ITA No.1580/PUN/2019 & CO.No. 46/PN/2022 A.Y. : 2011-12 Sou. Sushila Danchand Ghodawat Charitable Trust, S.No. Details Date Initials 1 Draft dictated on 11.10.2022 2 Draft placed before author 17.10.2022 3 Draft proposed & placed before the Second Member 4 Draft discussed/approved by Second Member 5 Approved Draft comes to the Sr. PS/PS 6 Kept for pronouncement on 7 Date of uploading of Order 8 File sent to Bench Clerk 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R. 11 Date of Dispatch of order