Nangia Foundation, Kolkata V. ITO, (Exemption) -I, Kolkata

ITA 1039/KOL/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 1848 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 10 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-04-2017
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Next Hearing Date: 30-01-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 16-05-2014
• Court: TRIBUNAL
• Department Lawyers: MD GHAYAS UDDIN
• Keywords: Charitable institution; Maximum Marginal Rate
• Section: 12A

Judgement Text

ITA NO.1039/KOL/2014-NANGIA FOUNDATION A.Y.2008-09 1 IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCHE S : SMC : KOLKATA BEFORE SHRI J.SUDHAKAR REDDY, ACCOUNTANT MEMBER ITA NO.1039/KOL/2014 ASSESSMENT YEAR: 2008 - 09 NANGIA FOUNDATION P-15/1, SOUTHERN AVENUE, KOLAKTA- 700029. PAN : AAATN 4631 N VS. I.T.O., EXEMPTION-1, 10-B, MIDDLETON ROW, KOLKATA-700071. (APPELLANT) (RESPONDENT) FOR THE APPELLANT : SHRI ANIL KOCHAR, ADVOCATE FOR THE RESPONDENT : MD. GHAYAS UDDIN, JCIT DATE OF HEARING : 03.04.2017. DATE OF PRONOUNCEMENT : 12.04.2017. ORDER THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AG AINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-XIV, KOLKATA D T.03.02.2014 RELATING TO A.Y.2008-09. 2. FACTS IN BRIEF : THE ASSESSEE IS A CHARITABLE TRUST REGISTERED ON 1 4.08.1969 U/S 12A OF THE INCOME TAX ACT, 1961 (ACT). THE ISSUE BEFORE ME IS THE DIS ALLOWANCE OF EXEMPTION TO THE ASSESSEE U/S 11(2) OF THE INCOME TAX ACT, 1961 (ACT ). 3. AFTER HEARING THE RIVAL SUBMISSIONS I FIND TH AT THE ASSESSEE HAS NOT SPENT THE AMOUNT FOR WHICH AN OPTION WAS EXERCISED BY IT U/S 11(2) O F THE ACT WITHIN THE TIME PRESCRIBED. THE AO HAD TREATED THIS AMOUNT AS INCOME OF THE ASS ESSEE. ON APPEAL THE LD. CIT(A) FINDS NO MERIT IN THIS CASE. ITA NO.1039/KOL/2014-NANGIA FOUNDATION A.Y.2008-09 2 4. I FIND NO MERIT IN THE ASSESSEES APPEAL. TH E PERIOD OF TEN YEARS FOR ACCUMULATION U/S 11(2) OF THE ACT PRIOR TO 31.03.1998 EXPIRES THIS Y EAR AND THE AMOUNT DETERMINED WAS RS.4,31,816.38. SIMILARLY FOR ACCUMULATION PRIOR TO 31.03.2003 AND AFTER 01.01.1998, THE PERIOD OF FIVE YEARS EXPIRES THIS YEAR FOR RS.1,60, 000/-. AS THE AMOUNT COULD NOT BE SPENT WITHIN THE SPECIFIC PERIOD IT HAS RIGHTLY GONE TO T AX BY THE ASSESSING AUTHORITY. HENCE THESE GROUNDS OF APPEAL ARE DISMISSED. 5. THE ASSESSEE HAS RAISED AN ADDITIONAL GROUND ON THE ISSUE OF RATE OF TAX. AS IT IS A LEGAL GROUND THE SAME IS ADMITTED. IT IS THE CASE O F THE ASSESSEE THAT TAX SHOULD BE CHARGED AT THE NORMAL RATES AND NOT AT THE MAXIMUM MARGINAL RATE. THIS GROUND HAS NOT BEEN ADJUDICATED BY THE LD. CIT(A). AS THIS CLAIM REQUIR ES VERIFICATION I SET ASIDE THE MATTER THIS ISSUE OF RATE OF TAX TO THE FILE OF AO FOR FRE SH ADJUDICATION DENOVO IN ACCORDANCE WITH LAW. 6. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLOWED IN PART. SD/- [J.SUDHAKAR REDDY] ACCOUNTANT MEMBER DATED : 12.04.2017. RG.PS COPY OF THE ORDER FORWARDED TO: APPELLANT/ASSESSEE- NANGIA FOUNDATION RESPONDENT-I.T.O.(EXEMPTION-1, KOLKATA. CIT-V, KOLKATA CIT (A)-XIV, KOLKATA CIT (DR), KOLKATA BENCHES, KOLKATA TRUE COPY BY ORDER ASS TT. REGISTRAR, ITAT, KOLKATA . ITA NO.1039/KOL/2014-NANGIA FOUNDATION A.Y.2008-09 3