INCOME TAX OFFICER, CHENNAI V. BRINDAVAN EDUCATIONAL TRUST, NATRAMPALLI, VELLORE

ITA 1998/CHNY/2024

AI Insights

The case involves the Income Tax Officer (Exemptions), Ward-3, Chennai as the appellant and Brindavan Educational Trust as the respondent. The dispute centered on the correct computation of taxable income for the assessment year 2018-19. The primary issue was whether the entire gross receipts or only the surplus of income over expenditure should be considered for taxation. The Learned Commissioner of Income Tax (Appeals) had directed the Assessing Officer to tax only the surplus, which the Revenue challenged. The Tribunal agreed with the Departmental Representative that the CIT(A) did not have the power to direct such a computation and thus set aside the CIT(A)'s order.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 107276 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-10-2024
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 17-10-2024
• Assessment Year: 2018-2019
• Appeal Filed On: 25-07-2024
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: K.S. BALAKRISHNAN; R.ANITA
• Keywords: Set aside
• Section: 154; 143(1); 11

Judgement Text

"आयकर अपीलीय अिधकरण, ‘सी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI \u0019ी महा वीर िसंह, उपा \u001f एवं \u0019ी जगदीश, लेखा सद' क े सम BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.1998/Chny/2024 िनधा :रण वष: /Assessment Year: 2018-19 The Income Tax Officer (Exemptions), Ward-3, Chennai. Vs. Brindavan Educational Trust, Gandhipuram, Natrampalli – 635 852. [PAN: AACTB 9587H] (अपीलाथ\u0007/Appellant) (\b\tयथ\u0007/Respondent) अपीला थF की ओर से/ Assessee by : Shri K.S.Balakrishnan, Advocate HIथF की ओर से /Respondent by : Ms. R. Anita. Addl. CIT सुनवा ई की ता रीख/Date of Hearing : 17.10.2024 घोषणा की ता रीख /Date of Pronouncement : 17.10.2024 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the Revenue is against the order of Learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [hereinafter “CIT(A)”] dated 15.06.2024 directing the Assessing Officer (A.O) to re-compute the total income by taking into account the surplus shown in the income and expenditure account for the year and not the entire gross receipts. ITA No.1998/Chny/2024 :- 2 -: 2. The assessee is a trust and engaged in the educational activities and filed return of income declaring total income at Nil on 31.03.2019. The CPC, Bengaluru in the intimation u/s. 143(1) of the Income-tax Act, 1961 (hereinafter “the Act”) has determined the total income at gross receipts of Rs. 2,06,47674/-. The assessee filed rectification u/s. 154 of the Act which has been rejected by the A.O. The assessee has filed appeal before Ld. CIT(A) and the Ld. CIT(A) held that only the surplus of income over expenditure should be brought to tax and directed the jurisdictional A.O to re-compute the total income by taking into account of the surplus shown in the audited income and expenditure account. Now, the Revenue is in appeal against the direction of Ld. CIT(A). 3. The Ld. Departmental Representative (DR) has argued that the Ld. CIT(A) does not have power to give direction and he can only confirm to reduce or onus or annual the assessment and therefore, the order of Ld. CIT(A) be set aside. 4. The Ld. Authorized Representative (A.R) of the assessee, on the other hand, has supported the order of Ld. CIT(A) and submitted that there is nothing wrong in the direction of Ld CIT(A), as even if the ITA No.1998/Chny/2024 :- 3 -: assessee is not eligible for exemption u/s. 11 of the Act, only the surplus of income over expenditure can be taxed not the gross receipt . 5. We have heard the rival submissions, and perused the materials available on record. We agree with the submissions of the Ld. AR that only surplus of income over expenditure is to be taxed not the gross receipts. We also agree with the Ld. DR that the CIT(A) can only confirm, reduce, enhance or annul the assessment but does not have power to give the direction. We accordingly set aside the orders of Ld. CIT(A) and remit the matter back to the file of AO to re-compute the income by taking into account the surplus shown in the audited income and expenditure account for the relevant year. Hence, the appeal filed by the Revenue is allowed for statistical purposes. 6. In the result, the appeal filed by the Revenue is allowed for statistical purposes. Order pronounced in the Open Court on 17th October, 2024. Sd/- Sd/- (महा वीर िसंह) (Mahavir Singh) उपा \u001f / Vice President (जगदीश) (Jagadish) लेखा लेखा लेखा लेखा सद\u0003य सद\u0003य सद\u0003य सद\u0003य /Accountant Member चे\u0003ई/Chennai, \u0005दनांक/Dated: 17th October, 2024. EDN/- ITA No.1998/Chny/2024 :- 4 -: आदेश क\u0002 \u0003ितिलिप अ\tेिषत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b\tथ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Chennai 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF "