D.L. Ashish Foundation Trust, Ahmedabad V. The ITO, (Exemptions) Ward-1, Ahmedabad

ITA 1017/AHD/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 7997 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-06-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 23-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAURABH SINGH
• Keywords: Depreciation
• Section: 12AA; 144

Judgement Text

ITA NO. 1017/AHD/2018 DL ASHISH FOUNDATION TRUST VS. ITO ASSESSMENT YEAR: 2014-15 PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH, AHMEDABAD [CORAM: PRAMOD KUMAR, AM AND MS. MADHUMITA ROY, JM] ITA NO. 1017/AHD/2018 ASSESSMENT YEAR: 2014-15 D.L. ASHISH FOUNDATION TRUST .............. ....APPELLANT C/O. JATIN JANI, 64, ASOPALAV BUNGLOWS, NEAR VISHWA BHARTI SCHOOL, THALTEJ, AHMEDABAD-380059 [PAN : AAATD 3625 Q] VS. INCOME TAX OFFICER ...........................RESPONDENT EXEMPTION, WARD-1, AHMEDABAD APPEARANCES BY: NONE FOR THE APPELLANT SAURABH SINGH FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : 22.06.2018 DATE OF PRONOUNCING THE ORDER : 26.06.2018 O R D E R PER PRAMOD KUMAR, AM: 1. BY WAY OF THIS APPEAL, THE ASSESSEE-APPELLANT HA S RAISED THE GRIEVANCES, AS SET OUT BELOW, AGAINST THE EX-PARTE ORDER DATED 14 TH NOVEMBER, 2017 PASSED BY THE BY THE LEARNED CIT(A)-7, AHMEDABAD IN THE MATTER OF ASSESSMENT UNDER SECTION 144 OF THE INCOME-TAX ACT, 1961, FOR THE ASSESSMENT YEA R 2010-11:- 1. ORDER WITHOUT DISPOSING OFF ALL GROUNDS OF AP PEAL: THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) GR OSSLY ERRED IN PASSING ORDER UNDER SECTION 250 OF THE INCOME-TAX ACT, WITH OUT DISPOSING OFF ALL GROUNDS OF APPEAL BEFORE HIM. THE ORDER IS PASSED IS NOT A SPEAKING ORDER FOR EACH GROUND OF APPEAL AND THUS ORDER IS PASSED WITH OUT OBSERVING CONDITIONS LAID DOWN IN SECTION 250(6) OF THE ACT. 2. ORDER ON THE BASIS OF DOUBT AND GUESS WORK: THE LEARNED ASSESSING OFFICER HAS OBSERVED FROM AUD ITORS REPORT THAT THE ASSESSEE TRUST HAS CARRIED OUT CHARITABLE ACTIVITIE S AND INCURRED EXPENSES TO CARRY OUT SUCH CHARITABLE ACTIVITIES. THE LEARNED AO GROSSLY ERRED IN CONSIDERING 80% EXPENSES FOR CHARITABLE AND 20% OF EXPENSES INCURRED ARE FOR OTHER OBJECTS WITHOUT REJECTING AUDITED BOOKS A ND REPORTS OF AUDITORS. 3. APPROVAL UNDER SECTION 12A/AA AND CHARITABLE ACT IVITIES: THE LEARNED AO HAS FAILED TO OBSERVE THE FACT THAT THE ASSESSEE TRUST IS HAVING REGISTRATION UNDER SECTION 12AA OF THE ACT A ND IS ENGAGED IN CHARITABLE ITA NO. 1017/AHD/2018 DL ASHISH FOUNDATION TRUST VS. ITO ASSESSMENT YEAR: 2014-15 PAGE 2 OF 2 ACTIVITIES AS DEFINED IN SECTION 2(15) OF THE ACT D URING THE YEAR. THUS ORDER PASSED BY AO IS UNLAWFUL AND HAS NO LEGS TO STAND. 4. DISALLOWANCE OF DEPRECIATION : THE LEARNED AO AND CIT APPEALS HAS GROSSLY ERRED IN DISALLOWING DEPRECIATION OF RS.1,17,094/- AS APPLICATION OF INC OME. 5. SECTION 13 OF THE INCOME TAX ACT: THE LEARNED ASSESSING OFFICER HAS OBSERVED THAT INC OME OF THE ASSESSEE TRUST IS ADVANCED TO PERSONS REFERRED TO SECTION 13 (3) OF THE ACT. HOWEVER, AS A MATTER OF FACT, SAID ADVANCES ARE GIVEN TO SUCH P ERSONS FOR CONSTRUCTION OF NEW SCHOOL BUILDING. THEREFORE UNDER THE CIRCUMSTA NCES, SUCH ADVANCES WERE NOT IN VIOLATION OF SECTION 13 OF THE ACT. 2. WHEN THIS APPEAL WAS CALLED OUT FOR HEARING, IT HAS BEEN NOTICED THAT THE APPEAL HAS BEEN DISMISSED EX-PARTE AND AS SUCH THE ISSUES RAISED BY THE ASSESSEE, AS REFLECTED IN THE GROUNDS OF APPEAL, HAVE NOT BEE N EXAMINED ON MERITS BY THE LEARNED CIT(A). IN THIS VIEW OF THE MATTER AND WIT H THE CONSENT OF LEARNED DEPARTMENTAL REPRESENTATIVE, THE MATTER IS REMITTED TO THE FILE OF THE LEARNED CIT(A) FOR THE LIMITED PURPOSE OF ADJUDICATING ABOVE GRIEV ANCES. WHILE DOING SO, LEARNED CIT(A) WILL GIVE YET ANOTHER OPPORTUNITY OF HEARING TO THE ASSESSEE AND DECIDE THE MATTER ON MERITS IN ACCORDANCE WITH LAW. 3. IN THE RESULT, APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT TODAY ON THE 26 TH JUNE, 2018 SD/- SD/- MS. MADHUMITA ROY PRA MOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) AHMEDABAD, THE 26 TH DAY OF JUNE, 2018 **BT COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER TRUE COPY ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD 1. DATE OF DICTATION: ................COVERED MATT ER...26.06.2018... 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE T HE DICTATING MEMBER: .. 26.06.2018..... 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR . P.S./P.S.: .26.06.2018.. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE TH E DICTATING MEMBER FOR PRONOUNCEMENT: ..... 26.06.2018.. 5. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK : . 29.06.2018. 6. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK : . 7. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER : . 8. DATE OF DESPATCH OF THE ORDER: ......