ACIT, Dehradun V. M/s. Uttaranchal Sabhi ke liye shiksha Parishad, Dehradun

ITA 1/DEL/2013

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 4117 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 9 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 03-05-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 01-01-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIJAY VARMA
• Assessee Lawyers: VK TULISHYAN
• Keywords: Charitable institution; Reasonable cause
• Section: 12; 11

Judgement Text

INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D : NEW DELHI BEFORE SHRI H. S. SIDHU , JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ITA NO. 01/DEL/2013 (ASSESSMENT YEAR: 2009 - 10 ) ACIT, CIRCLE - 2, DEHRADUN VS. UTTARANCHAL SABHI KE LIYE SHIKSHA PARISHAD, SHIKSHA SANKUL, MAYUR VIHAR, SAHASTRADHARA ROAD, DEHRADUN PAN:AAATU2681H (APPELLANT) (RESPONDENT) REVENUE BY : SHRI VIJAY VARMA, CIT DR ASSESSEE BY: SHRI VK TULISHYAN, CA DATE OF HEARING 16/08 /2017 DATE OF PRONOUNCEMENT 16 /1 0/2017 O R D E R PER PRASHANT MAHARISHI, A. M. 1. THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE LD CIT ( A) - 1, DEHRADUN DATED 18.10.2012 FOR THE ASSESSMENT YEAR 2009 - 10. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: - 1. THE LD CIT(A) WAS NOT JUSTIFIED IN ALLOWING THE EXEMPTION U/S 11 OF THE IT ACT AS FORFEITED BY THE AO FOR THE INSTANT YEAR LOOKING TO THE VARIOUS DEFICIENCIES POINTED OUT BY THE AO ON THE DIFFERENT LEVEL OF AUDIT REPORT. 2. THE LD CIT(A) WAS NOT JUSTIFIED IN OVER LOOKING THE FACTS THAT THE ASSESSEE HAD MISAPPROPRIATED THE FUNDS GRANTED BY THE GOVERNMENT FOR SPECIFIED P U R POSE, WHICH IS PURELY IN CONTRAVENTION OF SECTION 11 OF IT ACT, 1961. 3. FACTS OF THE CASE IS THAT ASSESSEE IS A SOCIETY GRANTED REGISTRATION UNDER SOCIETIES REGISTRATION ACT 1860 W.E.F. 17/02/2001 AND ALSO REGISTERED UNDER SECTION 12 AA OF THE ACT W.E.F. 12/07/2005. THE ASSESSEE IS CARRYING ON THE IMPLEMENTATION ACTIVITY OF SA RVA SHIKSHA ABHIYAN AND INTEGRATED FLAGSHIP PROGRAMME FOR ACHIEVEMENT OF UNIVERSAL ELEMENTARY EDUCATION AND ITS AIM TO PROVIDE USEFUL AND RELEVANT EDUCATION TO ALL CHILDREN IN THE AGE GROUP OF 6 TO 14. THE PROGRAM WAS LAUNCHED WITH THE PARTNERSHIP WITH STA TE PAGE | 2 GOVERNMENT AND LOCAL SELF - GOVERNMENTS. THERE ASSESSEE FILED ITS RETURN OF INCOME ON 11.1. 2010 DECLARING NIL INCOME. 4. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE LD. ASSESSING OFFICER ON EXAMINATION OF THE MANUAL OF FINANCIAL MANAGEMENT AND PROCURE MENT AND PERUSAL OF THE BOOKS OF ACCOUNTS BILLS AND VOUCHERS PRODUCED RAISED CERTAIN ENQUIRY ON THE ACTIVITIES OF THE ASSESSEE, REFERRED TO THE PERUSAL OF THE AUDITORS REPORT, WHEREIN CERTAIN DEFICIENCIES WERE POINTED OUT ISSUED SHOW CAUSE NOTICE THAT WHI LE THE EXEMPTION GRANTED TO THE TRUST UNDER SECTION 11 OF THE INCOME TAX ACT SHOULD NOT BE WITHDRAWN. THE ASSESSEE REPLIED TO THE NOTICE ON 29/12/2011 FURNISHING THE COMPLIANCE REPORT FROM DISTRICT AND SUBMITTED THAT THE ASSESSEE HAS COMPLIED WITH THE AUDI T QUERIES. THE LD. ASSESSING OFFICER NOT SATISFIED WITH THE EXPLANATION HELD THAT THE ASSESSEE BOOK THE EXPENDITURE WITHOUT ACTUALLY CARRYING OUT ACTIVITIES HOLDING THAT ASSESSEE HAS FAILED TO APPLY ITS INCOME FOR THE CHARITABLE PURPOSES. LD. ASSESSING OFF ICER WITHDREW THE EXEMPTION GRANTED TO THE ASSESSEE UNDER SECTION 11 OF THE INCOME TAX ACT AND TOTAL INCOME WAS ASSESSED AT RS. 7 2180 4891/ VIDE ASSESSMENT ORDER DATED 29/12/2011 UNDER SECTION 143 (3) OF THE INCOME TAX ACT, 1961. 5. ASSESSEE AGGRIEVED WITH THE ORDER OF THE LD. ASSESSING OFFICER PREFERRED AN APPEAL BEFORE THE LD. CIT (A). THE LD. CIT (A) ALLOWED THE CLAIM OF THE ASSESSEE. THEREFORE, REVENUE AGGRIEVED WITH THE ORDER OF THE LD. 1 ST APPELLATE AUTHORITY PREFERRED APPEAL BEFORE US. 6. LD. DEPARTMENTA L REPRESENTATIVE VEHEMENTLY SUPPORTED THE ORDER OF THE LD. ASSESSING OFFICER AND SUBMITTED THAT IN VIEW OF THE AUDIT REPORT ON THE ACTIVITIES OF THE ASSESSEE THE LD. ASSESSING OFFICER HAS DENIED THE EXEMPTION UNDER SECTION 11 OF THE ACT TO THE ASSESSEE. HE FURTHER SUBMITTED THAT THE LD. CIT (A) HAS ADDED IN ALLOWING THE CLAIM OF THE ASSESSEE. 7. LD. AUTHORIZED REPRESENTATIVE SUBMITTED BEFORE US PAPER BOOK WHEREIN THE WRITTEN SUBMISSIONS MADE BEFORE THE LD. CIT (A) AND STATED THAT THE LD. CIT APPEAL HAS ALLOWED THE CLAIM OF THE ASSESSEE ON THE BASIS OF THE VARIOUS COMPLIANCE REPORT SUBMITTED BY THE ASSESSEE TO THE AUDITORS AND THE QUERIES ON WHICH THE LD. ASSESSING OFFICER DENIED THE EXEMPTION WERE SATISFIED AND COMPLIED WITH. HE THEREFORE SUBMITTED THAT THE ORD ER OF THE LD. CIT (A) IS IN ORDER. PAGE | 3 8. WE HAVE CAREFULLY CONSIDERED THE RIVAL CONTENTIONS AND ALSO PERUSED THE ORDERS OF THE LOWER AUTHORITY AS WELL AS THE PAPER BOOK FURNISHED BY THE LD. AUTHORIZED REPRESENTATIVE BEFORE US. WE ALSO CAREFULLY PERUSED THE SUMMA RY OF DISTRICT WISE REPORT COMPLIANCE PLACED AT PAGE NO. 64 122 OF THE PAPER BOOK WHEREIN IT HAS BEEN CERTIFIED THAT THE EXPENDITURE INCURRED BY THE ASSESSEE IS FOR THE OBJECT OF THE TRUST BY IMPLEMENTING GOVERNMENT AUTHORITIES. THE LD. CIT APPEAL HAS NO TED IN PARAGRAPH NO. 1.3 OF HIS ORDER THAT THE ASSESSEE SUBMITTED THAT THERE WAS REASONABLE CAUSE FOR THE DEFICIENCIES WHICH WERE POINTED OUT BY THE AUDITORS BECAUSE THE ASSESSEES OPERATIONS ARE LOCATED THROUGHOUT THE STATED AT MULTIPLE LEVELS. IT WAS FURT HER SUBMITTED THAT THE REQUIRED COMPLIANCE REPORT WHAT SUBMITTED BY ASSESSEE AND THE OBJECTIONS STOOD SETTLED. THE LD. DEPARTMENTAL REPRESENTATIVE COULD NOT CONTROVERT THE FINDINGS GIVEN BY THE LD. CIT APPEAL IN PARA NO. 1.3 OF HIS ORDER. THEREFORE, WE CON FIRM THE FINDING OF THE LD. CIT (A) IN ALLOWING THE ASSESSEE CLAIM OF THE EXEMPTION UNDER SECTION 11 AND 12 OF THE INCOME TAX ACT. IN VIEW OF THIS GROUND NO. 1 AND 2 OF THE APPEAL OF THE REVENUE IS DISMISSED. 9. IN THE RESULT APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON 1 6 / 1 0/2017. - S D / - - S D / - ( H.S.SIDHU ) (PRASHANT MAHARISHI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 1 6 / 1 0/2017 A K KEOT COPY FORWARDED TO 1. APPLICANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI