New Delhi Young Men's Christian Association, New Delhi V. ITO (E), New Delhi

ITA 1029/DEL/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 4812 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2013-2014
• Appeal Filed On: 23-02-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHEFALI SWAROOP
• Keywords: Maximum Marginal Rate; Set aside
• Section: 12A; 13; 12; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH E : NEW DELHI) BEFORE HONBLE PRESIDENT, SHRI G.D. AGRAWAL AND SHRI KULDIP SINGH, JUDICIAL MEMBER ITA NO.1029/DEL./2017 (ASSESSMENT YEAR : 2013-14) NEW DELHI YOUNG MENS CHRISTIAN ASSOCIATION, VS. IT O (E), 1, JAI SINGH ROAD, WARD 1 (2), NEW DELHI 110 001. (PAN : AAATN1200H) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI RAJ KUMAR, ADVOCATE REVENUE BY : MS. SHEFALI SWAROOP, CIT DR DATE OF HEARING : 07.08.2017 DATE OF ORDER : 21.08.2017 O R D E R PER KULDIP SINGH, JUDICIAL MEMBER : APPELLANT, NEW DELHI YOUNG MENS CHRISTIAN ASSOCIA TION (HEREINAFTER REFERRED TO AS THE ASSESSEE), BY FIL ING THE PRESENT APPEAL SOUGHT TO SET ASIDE THE IMPUGNED ORDER DATED 31.01.2017 PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS)- 40, NEW DELHI, FOR THE ASSESSMENT YEAR 2013-14 ON THE GROUN DS INTER ALIA THAT :- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT (A) ERRED IN:- ITA NO.1029/DEL./2017 2 1. TREATING THE PAPER APPEAL FILED BY THE ASSESSEE AS NON-EST AND DISMISSING THE SAME IN LIMINE; 2. CONFIRMING THE TAXABLE INCOME OF THE ASSESSEE AT RS.8,98,66,875/-AGAINST 'NIL' RETURNED; 3. HOLDING- I) THAT THE ASSESSEE TRUST WAS HIT BY THE PROVISIONS OF SECTION 13 (1 )(B), 13 (1) (D) AND SECTION 13 (8) AND SO THE EXEMPTIONS U/S 11 AND 12 WERE TO BE DENIED TO IT; II) THAT THE ASSESSEE'S ACTIVITIES WERE COMMERCIAL SUCH THAT IT WAS INTO BUSINESS; III) THAT ITS MAJOR ACTIVITIES FELL UNDER THE LAST LIMB OF S. 2( 15) CONCERNING OBJECTIVES OF GENERAL PUBLIC UTILITY AND ESPECIALLY TO THE PROVISO ATTACHING TO IT RENDERING IT TAXABLE AT THE MAXIMUM MARGINAL RATE. ALL THE ABOVE ACTIONS BEING ARBITRARY, GROSSLY MISCONCEIVED, PALPABLY ERRONEOUS AND WHOLLY UNJUST AND SO MUST BE QUASHED WITH DIRECTIONS FOR RELIEF. 2. BRIEFLY STATED THE FACTS NECESSARY FOR ADJUDICAT ION OF THE CONTROVERSY AT HAND ARE : ASSESSEE SOCIETY IS REGIS TERED UNDER SOCIETIES REGISTRATION ACT, 1861 AND FURTHER REGIST ERED UNDER SECTION 12A OF THE INCOME-TAX ACT, 1961 (FOR SHORT THE ACT) WITH AIMS AND OBJECTIVES, TO PROMOTE THE SPIRITUAL, INTELLECTUAL, PHYSICAL AND SOCIAL INTEREST OF PEOPLE ESPECIALLY Y OUTH, WITHIN THE TERRITORIAL JURISDICTION OF THE ASSOCIATION IRRESPE CTIVE OF THEIR CASTE, COLOUR AND CREED AND TO COOPERATE AND/OR TO ASSOCIA TE WITH ANY ITA NO.1029/DEL./2017 3 OTHER ASSOCIATION OR BODY OF PERSONS HAVING OBJECTS SIMILAR TO THE OBJECTS OF THE SOCIETY/ASSOCIATION. ASSESSING OFFICER, DURING ASSESSMENT PROCEEDINGS, NOTICED THAT ASSESSEE HAS P ROJECTED SURPLUS FUNDS FROM ITS ACTIVITIES AND TRANSFERRING THE SAME TO RESERVE AFTER ADJUSTMENT AND ASSESSED THE TOTAL TAXABLE INCOME TO RS.8.98,66,875/-. 3. ASSESSEE CARRIED THE MATTER BEFORE THE LD. CIT ( A) BY WAY OF FILING AN APPEAL WHO HAS DISMISSED THE APPEAL IN LI MINE. FEELING AGGRIEVED, THE ASSESSEE HAS COME UP BEFORE THE TRIB UNAL BY WAY OF CHALLENGING THE IMPUGNED ORDER PASSED BY LD. CIT. 4. WE HAVE HEARD THE LD. AUTHORIZED REPRESENTATIVES OF THE PARTIES TO THE APPEAL, GONE THROUGH THE DOCUMENTS R ELIED UPON AND ORDERS PASSED BY THE REVENUE AUTHORITIES BELOW IN T HE LIGHT OF THE FACTS AND CIRCUMSTANCES OF THE CASE. 5. BARE PERUSAL OF THE IMPUGNED ORDER PASSED BY LD. CIT (A) GOES TO PROVE THAT THE LD. CIT (A) HAS DISMISSED TH E APPEAL FILED BY THE ASSESSEE IN LIMINE ON THE SOLE GROUND THAT THE SAME HAS NOT BEEN FILED ELECTRONICALLY IN TERMS OF THE AMENDED RULE 4 5 READ WITH RULE 12(3) OF THE INCOME-TAX RULES, 1962 NOR THE ASSESSE E HAS SUBMITTED FORM NO.35 IN THE SPECIFIED FORMAT PRESCRIBED BY PR .DGIT OR THE DGIT (SYSTEMS) AS PER CIRCULAR NO.20/2016 DATED 26. 05.2016. ITA NO.1029/DEL./2017 4 6. APPEAL CANNOT BE DISMISSED IN LIMINE MERELY BECA USE OF THE FACT THAT THE SAME HAS NOT BEEN FILED THROUGH E-FI LING PARTICULARLY IN THE FACE OF THE UNDISPUTED FACT THAT SUBSEQUENTL Y ASSESSEE HAD FILED APPEAL THROUGH E-FILING UNDER RULES AND AS SUCH, IMPUGNED ORDER IS NOT SUSTAINABLE IN THE EYES OF LAW. SO, IN THESE CIRCUMSTANCES, WE DEEM IT NECESSARY TO RESTORE THE MATTER TO CIT (A) TO DECIDE AFRESH ON MERITS AFTER PROVIDING AN O PPORTUNITY OF BEING HEARD TO THE ASSESSEE. CONSEQUENTLY, THE APP EAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON THIS 21 ST DAY OF AUGUST, 2017. SD/- SD/- (G.D. AGRAWAL) (KULDIP SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED THE 21 ST DAY OF AUGUST, 2017 TS COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A)-40, NEW DELHI. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.