M/s. SICA EDUCATION TRUST (REGD.), Indore V. THE ACIT 3(1), Indore

ITA 124/IND/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 8426 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 10 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-01-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 26-12-2018
• Assessment Year: 2003-2004
• Appeal Filed On: 17-02-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RAJEEB JAIN
• Assessee Lawyers: T N UNNI; PAVITHRAN NAMBIAR ARS
• Keywords: Depreciation
• Section: 143(3); 12A

Judgement Text

SICA EDUCATIONAL TRUST ITA NO.123 & 124/IND/2017 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE HON'BLE KUL BHARAT, JUDICIAL MEMBER AND HON'BLE MANISH BORAD, ACCOUNTANT MEMBER ITA NO.123 & 124/IND/2017 ASSESSMENT YEARS 2002-03 & 2003-04 REVENUE BY S HRI RAJEEB JAIN, SR.DR ASSESSEE BY S/ SHRI T.N. UNNI & PAVITHRAN NAMBIAR, ARS DATE OF HEARI NG 26 .12 . 2018 DATE OF PRONOUNCEMENT 02.01.2 01 9 O R D E R PER MANISH BORAD, AM. THE ABOVE CAPTIONED TWO APPEALS ARE FILED AT THE I NSTANCE OF ASSESSEE PERTAINING TO ASSESSMENT YEAR 2002-03 AN D 2003-04 AND ARE DIRECTED AGAINST THE ORDERS OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-II (IN SHORT LD.CIT(A)], INDORE DATED 21.11.2016 WHICH IS ARISING OUT OF THE ORDER U/S 143(3) OF THE INCOME T AX ACT 1961(IN SHORT THE ACT) DATED 15.02.2015 AND 27.03.2006 R ESPECTIVELY FRAMED BY ACIT (3)1, INDORE. SICA EDUCATIONAL TRUST, SCHEME NO.54, VIJAY NAGAR, INDORE VS. A CIT ( 3 ) 1, INDORE ( APPELLANT ) (RESPONDENT ) PAN NO. A ADTS2522G SICA EDUCATIONAL TRUST ITA NO.123 & 124/IND/2017 2 2. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APP EAL; ASSESSMENT YEAR 2002-03 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) ERRED IN HOLDING THAT THE UTILIZATION OF INCOME TO THE EXTEN T OF 899.28 SQ.M BELONG TO THE ASSOCIATION (SICA) WHICH IN MONETARY TERMS WORK RS.38,86,476/- IS NOT PROPER AND IN CONFIRMING THE DISALLOWING THE SA ME. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) ERRED IN CONFIRMING THE DISALLOWANCE OF DEPRECIATION AMOUNT TO RS.1,94,324/- A CONSEQUENCE TO THE DISALLOWANCE OF THE ABOVE CLAIM. 3. THE APPELLANT PRAYS TO GIVE PERMISSION TO ADD, T O ELABORATE, OR REVISED THE ABOVE GROUNDS OF APPEAL AS AND WHEN OCCASION AR ISES. ASSESSMENT YEAR 2003-04 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) ERRED IN CONFIRMING THE DISALLOWANCE OF RS.5,80,020/- AS ANN UAL VALUE OF RS.4,06,000/- AS NET INCOME OF THE SIX CLASS ROOM. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) ERRED IN CONFIRMING THE DISALLOWANCE OF RS.2,74,043/- BEING THE CLASS ROOM FURNITURE AND FACILITIES WHICH HAS BEEN PAID BY THE TRUST TO THE ASSOCIATION (SICA). CLAIM. 3. THE APPELLANT PRAYS TO GIVE PERMISSION TO ADD, T O ELABORATE, OR REVISED THE ABOVE GROUNDS OF APPEAL AS AND WHEN OCCASION AR ISES. 3. AS THE ISSUES RAISED IN THESE APPEALS ARE COMMON THESE WERE HEARD TOGETHER AND BEING DISPOSED OFF BY THIS COMMO N ORDER FOR THE SAKE OF CONVENIENCE AND BREVITY. SICA EDUCATIONAL TRUST ITA NO.123 & 124/IND/2017 3 4. AT THE OUTSET LD. COUNSEL FOR THE ASSESSEE SUBMI TTED THAT LD. CIT(A) HAS NOT REFERRED TO THE SUBMISSIONS GIVEN B Y THE ASSESSEE DURING THE COURSE OF APPELLATE PROCEEDINGS ON VARIO US GROUNDS RAISED BEFORE HIM AND IT SEEMS THAT THE CONTENTIONS OF THE ASSESSEE HAVE NOT BEEN CONSIDERED WHILE DECIDING THE ISSUES RAISED IN VARIOUS GROUNDS. HE THEREFORE REQUESTED FOR PROVID ING ONE MORE OPPORTUNITY GO BEFORE THE LD.CIT(A) TO GET VARIOUS ISSUES ADJUDICATED AFTER CONSIDERING THE SUBMISSIONS OF TH E ASSESSEE. 5. PER CONTRA LEARNED DEPARTMENTAL REPRESENTATIVE T HOUGH SUBMITTED THAT THE LD.CIT(A) HAS GIVEN FINDING OF F ACT DEALING WITH THE MERITS OF THE ISSUE HOWEVER HE RAISED NO OBJECT ION IF ALL THE ISSUES RAISED IN BOTH THE APPEALS ARE SET ASIDE TO THE FILE OF LD.CIT(A) FOR AFRESH ADJUDICATION. 6. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE RECORDS PLACED BEFORE US. WE FIND THAT THE ASSESSEE IS AN EDUCATIONAL TRUST RUNNING SCHOOLS AND IS REGISTERED AS CHARITABLE ORG ANIZATION U/S 12A OF THE I.T. ACT. ASSESSMENT U/S 143(3) OF THE ACT WERE FRAMED ON 15.2.2005 AND 27.3.2006 AFTER MAKING VARIOUS ADD ITIONS TO THE SICA EDUCATIONAL TRUST ITA NO.123 & 124/IND/2017 4 INCOME DECLARED BY THE ASSESSEE. IN THE APPEAL FILE D BEFORE LD.CIT(A) ASSESSEE FAILED TO SUCCEED IN ASSESSMENT YEAR 2002- 2003 AND PARTLY SUCCEEDED IN THE APPEAL FOR ASSESSMENT YEAR 2003-04. NOW THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL FOR B OTH THE YEARS. 7. LD. COUNSEL FOR THE ASSESSEE HAS COMMONLY SUBMIT TED FOR BOTH THE YEARS THAT THE SUBMISSIONS WITH REGARD TO THE G ROUNDS RAISED SEEMS NOT HAVE BEEN CONSIDERED BY LD.CIT(A) WHILE A DJUDICATING THE ISSUE AND ONE MORE OPPORTUNITY WAS SOUGHT TO GO BEF ORE THE LD.CIT(A) FOR AFRESH ADJUDICATION. THE REQUEST OF L D. COUNSEL FOR THE ASSESSEE GOES UNOPPOSED BY LD. DEPARTMENTAL REPRESE NTATIVE. 8. FROM PERUSAL OF THE APPELLATE ORDER OF THE FIRST APPELLATE AUTHORITY WE FIND THAT THE LD.CIT(A) AFTER MENTIONI NG THE BRIEF FACTS IN PARA-1 HAS REPRODUCED RELEVANT PORTION OF ASSESS MENT ORDER IN PARA-2 AND THEN DIRECTLY DECISION HAS BEEN GIVEN FO R EACH OF THE GROUND IN PARA 3, 4 & 5. NOWHERE THE CONTENTIONS A ND SUBMISSIONS OF THE ASSESSEE HAVE BEEN MENTIONED NOR HAVE BEEN D ISCUSSED. SICA EDUCATIONAL TRUST ITA NO.123 & 124/IND/2017 5 9. WE THEREFORE IN THE GIVEN FACTS AND CIRCUMSTANCE S OF THE CASE ARE OF THE CONSIDERED VIEW THAT ALL THE ISSUES RAIS ED IN BOTH THE APPEALS NEEDS TO BE SET ASIDE TO THE FILE OF LD.CIT (A) FOR AFRESH ADJUDICATION. NEEDLESS TO MENTION THAT PROPER OPPO RTUNITY OF BEING HEARD SHOULD BE GIVEN TO THE ASSESSEE FOR PROVIDING NECESSARY SUBMISSIONS AND DETAILS IN SUPPORT OF THE GROUNDS R AISED AND THE SAME WILL HAVE TO BE CONSIDERED BY LD.CIT(A) WHILE ADJUDICATING THE ISSUES SO AS TO PASS A SPEAKING ORDER GIVING REFERE NCE TO THE SUBMISSIONS THE ASSESSEE. 10. IN THE RESULT BOTH THE APPEALS OF THE ASSESSEE PERTAINING TO ASSESSMENT YEARS 2002-03 & 2003-04 ARE ALLOWED FOR STATISTICAL PURPOSES. THE ORDER PRONOUNCED IN THE OPEN COURT ON 02.01.20 19. SD/- SD/- ( KUL BHARAT) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER / DATED : 2 ND JANUARY, 2019 /DEV COPY TO: THE APPELLANT/RESPONDENT/CIT CONCERNED/CIT (A) CONCERNED/ DR, ITAT, INDORE/GUARD FILE. SICA EDUCATIONAL TRUST ITA NO.123 & 124/IND/2017 6 BY ORDER, ASSTT.REGISTRAR, I.T.A.T., INDORE