Katiani Educational Society, Kullu V. ACIT, Circle , Mandi

ITA 1326/CHANDI/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 4883 (ITAT-CHANDIGARH)
• Duration Of Justice: 7 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-04-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 05-09-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Assessee Lawyers: AMITOZ SINGH KAMBOZ

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, A CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND DR. B.R.R. KUMAR, ACCOUNTANT MEMBER ITA NO. 1326/CHD/2017 ASSESSMENT YEAR : 2010-11 M/S KATIANI EDUCATIONAL SOCIETY, VS. THE ACIT, CABRIDGE INTERNATIONAL SCHOOL, MANDI CIRCLE, NH-21, MOHAL, MANDI, BHILUI, DISTT. KULLU (H.P) DISTT. MANDI, HP-175001 PAN NO. AABTK3076H (APPELLANT) (RESPONDENT) APPELLANT BY : SH. AMITOZ SINGH KAMBOZ, CA RESPONDENT BY : SH. MANJIT SINGH, SR.DR DATE OF HEARING : 09.04.2018 DATE OF PRONOUNCEMENT: 09.04.2018 ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 28.06.2017 OF THE COMMISSIONER OF I NCOME TAX [HEREINAFTER REFERRED TO AS CIT(A)], PALAMPUR, H.P. 2. THE ASSESSEE HAS TAKEN THE FOLLOWING GROUNDS OF APPEAL:- 1. THAT UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, LD CIT (A) HAS ERRED IN CHARGING THE 'EXCESS OF INCOME OVER EXPENDITURE' TO TAX TO THE TUNE OF RS. 1,32,814/- BY DRAWING THE INFERENCE THAT THE SOCIETY WAS EXISTING FOR THE MOTIVE OF PROFIT AND PROFIT IS BEING SIPHONED THROUGH INFLATIONS OF THE EXPENSES AND EXCESSIVE PAYMENTS, IGNORING THE FACT THAT THE SOCI ETY IS RUNNING EDUCATIONAL INSTITUTION FOR THE SOLE PURPOSE OF IMPARTING EDUCATION. ITA NO.1326/CHD/2017- KATIANI EDUCATIONAL SOCIETY, KULLU 2 2. THAT THE LD CIT(A) HAS ERRED IN DISALLOWING THE DEDUCTION ON ACCOUNT OF EXPENDITURE AS CLAIMED BY THE ASSESSEE IN RESPECT TO THE 'CONCESSION OF' FEES' AMOUNTING TO RS 53,000/-- FOR THE A.Y. 2010- 11 AND ADDING IT BACK TO THE INCOME OF THE ASSESSEE BY DISREGARDING THE FACT THAT SUCH EXPENDITURE IS PERMISSIBLE UNDER THE INCOME TAX ACT. 1961. 3. THAT THE LD CIT (A) IS WRONG IN DISALLOWING THE EXPENDITURE CLAIMED BY THE ASSESSEE ON ACCOUNT OF REPAIRS DEBITED IN THE INCOME & EXPENDITURE ACCOUNT TO THE TUNE OF RS. 27,172/- ON THE MERE GROUND THAT THE ASSESSEE COULD NOT PRODUCE THE BILLS AND VOUCHERS IN SUPPORT OF THE SAME, IGNORING THE FACT THAT THE ASSESSEE HAD PRODUCED VARIOUS BILLS ASSESSEE HAD PRODUCED VARIOUS BILLS ON RECORD TO THE LD.CIT(A). 4. THAT THE LD CIT (A) ADDED BACK TO THE INCOME OF THE ASSESSEE. THE EXPENDITURE AMOUNTING TO RS 97,783/- CLAIMED ON ACCOUNT OF FUEL EXPENSES AND IGNORED THE FACT THAT SUCH EXPENDITURES WERE GENUINE AND NOT VAGUE. 5. THE LD. CIT(A) IS WRONG IN AFFIRMING THE ORDER OF LD. ASSISTANT COMMISSIONER OF INCOME TAX. MANDI IN RESTRICTING THE CLAIM OF APPELLANT OF DEDUCTION OF EXPENDITURE CLAIMED ON ACCOUNT OF PRINTING & STATIONARY FOR AN AMOUNT OF RS. 85,392/-. 6. THE APPELLANT CRAVES PERMISSION TO ADD OR AMEND ANY OTHER GROUND OF APPEAL WITH PRIOR APPROVAL OF THE BENCH AT THE LIME OF HEARING. 2. AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE HAS STATED AT BAR THAT AS PER THE INSTRUCTIONS OF HIS CLIENT, HE DOES NOT WANT TO PRESS GROUND NO./1, THEREFORE, THE GROUND NO.1 IS DISMISS ED AS NOT PRESSED. 3. THE LD. COUNSEL HAS INVITED OUR ATTENTION TO GRO UND NOS. 2 TO 5 OF THE APPEAL AND STATED THAT THE DISALLOWANCE RELA TING TO THE ITEMS AS STATED IN GROUND NOS. 2 TO 5, SUCH AS, CONCESSION O F FEES, REPAIRS, ITA NO.1326/CHD/2017- KATIANI EDUCATIONAL SOCIETY, KULLU 3 FUEL EXPENSES, PRINTING AND STATIONERY ETC., HAS BE EN MADE BY THE ASSESSING OFFICER FOR WANT OF BILLS, VOUCHERS AND CONFIRMATION FROM THE PARTIES. AT THIS STAGE, THE LD. COUNSEL FOR TH E ASSESSEE STATED THAT IN FACT THE ASSESSEE PRODUCED THE BILLS AND VOUCHER S BEFORE THE ASSESSING OFFICER, HOWEVER, IT WAS NOT POINTED OUT TO THE ASSESSEE AS ABOUT TO WHICH BILLS AND VOUCHERS THE ASSESSING OFF ICER WAS NOT SATISFIED. THE LD. COUNSEL FOR THE ASSESSEE HAS ST ATED THAT THE ASSESSEE MAY BE GIVEN AN OPPORTUNITY TO PRODUCE THE RELEVANT BILLS AND VOUCHERS. HE HAS CLAIMED THAT ASSESSEE HAS RELE VANT VOUCHERS WITH EVIDENCE AND CAN PROVE THE ACTUAL INCURRING OF THE AFORESAID EXPENDITURE FOR BUSINESS PURPOSES OF THE ASSESSEE. HOWEVER, THE LD. DR HAS RELIED UPON THE FINDINGS OF THE LOWER AUTHOR ITIES. 4. IN OUR VIEW, THE INTEREST OF JUSTICE WILL BE WEL L SERVED IF THE ASSESSEE IS ALLOWED TO DEMONSTRATE BEFORE THE ASSES SING OFFICER ABOUT THE ACTUAL INCURRING OF THE AFORESAID EXPENSES AS D ETAILED IN GROUND NOS. 2 TO 5 OF THE APPEAL. WE, THEREFORE, RESTORE THE GROUNDS BEARING NOS. 2 TO 5 OF THE APPEAL TO THE FILE OF THE ASSESS ING OFFICER WITH A DIRECTION TO EXAMINE THE RELEVANT EVIDENCES, RECORD S AS MAY BE FURNISHED BY THE ASSESSEE IN THIS RESPECT AND THEN TO PASS THE ORDER AFRESH IN ACCORDANCE WITH LAW. IT IS ALSO DIRECTED TO THE ASSESSEE TO SUBMIT THE EVIDENCES PROMPTLY, AS AND WHEN CALLED F OR BY THE ASSESSING OFFICER, AND NOT TO SEEK UNNECESSARY ADJO URNMENTS, FAILING WHICH, THE ASSESSING OFFICER WILL BE AT LIBERTY TO TAKE APPROPRIATE VIEW AS HE MAY DEEM FIT IN THE FACTS AND CIRCUMSTAN CES OF THE CASE. 5. GROUND NOS. IS GENERAL IN NATURE AND NEEDS NO AD JUDICATION. ITA NO.1326/CHD/2017- KATIANI EDUCATIONAL SOCIETY, KULLU 4 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TRE ATED AS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (B.R.R.KUMAR) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 09.04.2018 RKK COPY TO: THE APPELLANT THE RESPONDENT THE CIT THE CIT(A) THE DR