Bharat Lok Shisksha Parisad Through N.P.Singj, Varanasi V. DCIT, Varanasi

ITA 129/ALLD/2013

• Counselvise Citation: [2015] 120 COUNSELVISE.COM (IT) 9619 (ITAT-ALLAHABAD)
• Duration Of Justice: 1 year(s) 11 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 03-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: UMESH PATHAK
• Assessee Lawyers: SUBHASH CHA ND
• Keywords: Business expenditure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, ALLAHABAD BENCH, ALLAHABAD BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER AN D SHRI C. N. PRASAD, JUDICIAL MEMBER ITA NO. 129/ALLD/2013 ASSESSMENT YEAR: 2009-10 BHARAT LOK SHIKSHA PARISHAD THROUGH N.P. SINGH, SECRETARY D. 32/4, VIDYAPEETH ROAD, VARANASI PAN:-AABTB5774F VS. DCIT CIRCLE-3 VARANASI (APPELLANT) (RESPO NDENT) ASSESSEE BY : SHRI SUBHASH CHAND REVENUE BY : SHRI UMESH PATHAK DATE OF HEARING : 27.04.2015 DATE OF PRONOUNCEMENT : 30.04.2015 O R D E R PER D. KARUNAKARA RAO, AM: THIS APPEAL FILED BY THE ASSESSEE, AGAINST THE ORD ER OF THE LD. CIT(A) VARANASI, DATED 22.02.2013 FOR THE A.Y. 2009-10. 2. GROUNDS OF APPEAL ARE ARGUMENTATIVE AND THE ISSU E THAT ARISES FROM THE GROUNDS RELATES TO THE ADDITION OF RS.25,97,200/-, THE AMOUNT RECEIVED FROM BHARAT LOK SHIKSHA PARISHAD, NEW DELHI. AO MADE ADDITION O F THE SAME FOR THE REASONS GIVEN IN PARA 4 AND 5 OF THE ASSESSMENT ORDER. 3. THE FACTS ARE THAT THE ASSESSEE RECEIVED RS.28,2 2,280/- FROM THE BHARAT LOK SHIKSHA PARISHAD, NEW DELHI. AO FOUND THE ASSESSEE IS NOT A UNIVERSITY OR OTHER EDUCATIONAL INSTITUTION AND HAS ALSO NOT CLAIMED AN Y EXEMPTION U/S 10(23C) OF THE ACT. AO FOUND THE EXPENSES CLAIMED IN THE FINANCIAL STATEMENT ARE UNCONNECTED TO THE SAID RECEIPT OF RS.28,22,280/- RECEIVED FROM TH E BHARAT LOK SHIKSHA PARISHAD, NEW DELHI. AO IS OF THE OPINION THE EXPENSES CLAIME D OR NOT INCURRED FOR EARNING THE ABOVE RECEIPT OF RS.28,22,280/-. HE ACCORDINGLY MAD E THE NET ADDITION OF RS.26,82,610/- [RS.28,22,280-RS.1,39,670 RETURNED I NCOME]. ASSESSEE SUBMITTED THAT HE DOES NOT ENJOY ANY DEDUCTIONS OR EXEMPTIONS . THE ASSESSMENT HAS TO BE ITA NO. 129/ALLD/2013 ASSESSMENT YEAR: 2009-10 2 COMPLETED TREATING THE ASSESSEE LIKE ANY OTHER BUSI NESS ENTITY. DURING THE FIRST APPELLATE PROCEEDINGS, ASSESSEE COULD NOT IMPROVE H IS CASE. CONTENTS OF PARA 6 OF THE IMPUGNED ORDER IS RELEVANT. THE LD. CIT(A) CONF IRMED THE ADDITION MADE BY THE AO WITHOUT APPRECIATING THE FACTS OF THE CASE. AGGR IEVED WITH THE SAME, THE ASSESSEE IS IN APPEAL WITH THE ISSUE SUMMARIZED ABO VE. 4. BEFORE US, LEARNED COUNSEL FOR THE ASSESSEE DEMO NSTRATED THAT THE ASSESSEE IS ENGAGED IN THE EDUCATIONAL ACTIVITIES. ASSESSEE REC EIVED FINANCIAL ASSISTANCE FROM THE BHARAT LOK SHIKSHA PARISHAD, NEW DELHI. ASSESSEE IN CURRED THE SAID AMOUNT FOR THE PURPOSE OF THE EDUCATION AND THE SAME IS NOT APPREC IATED BY THE LOWER AUTHORITIES. 5. ON THE OTHER HAND, LD. DR FOR THE REVENUE RELIED THE ORDER OF THE AO AND THE LD. CIT(A). LD. DR MENTIONED THAT THE ASSESSEE FAIL ED TO EVIDENCE THE EXPENDITURE IS CONNECTED TO THE RECEIPT RECEIVED FROM THE BHARAT LOK SHIKSHA PARISHAD, NEW DELHI. 6. AFTER HEARING BOTH THE PARTIES AND PERUSING THE ORDERS OF THE REVENUE, WE FIND THAT THERE IS NO DISPUTE OF THE RECEIPT OF A SUM OF RS.28,22,280/-. FROM BHARAT LOK SHIKSHA PARISHAD, NEW DELHI. HOWEVER, THE EXPENDITU RE INCURRED BY THE ASSESSEE IS REQUIRED TO BE EXAMINED WITH EVIDENCES. THERE IS NO CLARITY IN THE ORDERS OF THE REVENUE ABOUT THE BUSINESS CONNECTIONS OF THE ASSES SEE BHARAT LOK SHIKSHA PARISHAD, NEW DELHI. AO IS REQUIRED TO EXAMINE THE EXPENDITURE TREATING THE ASSESSEE AS INDEPENDENT BUSINESS ENTITY. THE ASSESS EE IS REQUIRED TO EARN INCOME AND INCUR THE EXPENDITURE LIKE ANY BUSINESS ENTITY. THIS IS THE CLAIM OF THE ASSESSEE THAT THE EXPENDITURE INCURRED BY THE ASSESSEE SHOUL D BE CONSTRUED ON BUSINESS EXPENSES. IN OUR OPINION, THE MATTER SHOULD BE REMA NDED TO THE FILE OF THE AO FOR FRESH ADJUDICATION OF THE ISSUE AFTER GIVING AN OPP ORTUNITY OF BEING HEARD TO THE ASSESSEE. ASSESSEE SHOULD DEMONSTRATE THAT EXPENDIT URE IN INCURRED FOR BUSINESS OF THE ASSESSEE ONLY. ACCORDINGLY, THE GROUNDS RAISED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ITA NO. 129/ALLD/2013 ASSESSMENT YEAR: 2009-10 3 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 30 TH DAY OF APRIL, 2015. SD/- SD/- (C. N. PRASAD) (D. KARUNAKARA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER ALLAHABAD, DATED: 30.04.2015 *SRIVASTAVA COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, ALLAHABAD THE CIT(A) CONCERNED, ALLAHABAD THE DR BENCH //TRUE COPY// BY ORDER DY/ASSTT. REGISTRAR, ITAT, ALLAHABAD.