DCIT, C-2 (Exemption), Chandigarh V. M/s SD Public School, Yamunanagar

ITA 1338/CHANDI/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 4533 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 8 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-05-2019
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 09-10-2018
• Assessment Year: 2013-2014
• Appeal Filed On: 07-09-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Charitable institution
• Section: 143(3); 12AA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BE NCH B, CHANDIGARH !, ' # $ , . .. . & , '( # BEFORE: SMT. DIVA SINGH, JM & DR. B.R.R. KUMAR , A M ./ ITA NO. 1338/CHD/2017 / ASSESSMENT YEAR : 2013-14 THE DCIT CIRCLE-2 (EXEMPTION) CHANDIGARH M/S S.D. PUBLIC SCHOOL CHHOTI LINES JAGADHARI YAMUNA NAGAR (HRY) ./ PAN NO: AAAFTS4465A / APPELLANT / RESPONDENT ! ' / ASSESSEE BY : SHRI. TEJ MOHAN SINGH # ! ' / REVENUE BY : SHRI. RAM MOHAN SINGH $ % ! &/ DATE OF HEARING : 30/05/2019 '()* ! &/ DATE OF PRONOUNCEMENT : 30/05/2019 ')/ ORDER PER DR. B.R.R. KUMAR, A.M: THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE AG AINST THE ORDER OF THE LD. CIT(A), PANCHKULA DT. 20/06/2017. 2. IN THE PRESENT APPEAL REVENUE HAS RAISED THE FOL LOWING GROUNDS: I. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE, TH E LD. CIT(A) HAS ERRED IN LAW IN DELETING THE ADDITION OF RS. 1,80,13,117/ - WHEN THE ASSESSEE FAILED TO FULFILL THE CONDITION LAID DOWN UNDER SECTION 11(2)(A) OF T HE INCOME TAX ACT, 1961. II. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE, TH E LD. CIT(A) HAS ERRED IN LAW IN ALLOWING INVESTMENT IN FDR AS APPLICATION OF INCOME RELYING ON JUDGMENT IN THE CASE OF M/S VED PRAKASH MUKAND LAL EDUCATION AL SOCIETY, AS THE FACTS OF THE CASE REFERRED BY THE LD. CIT(A) ARE DISTINGUISH ABLE. 3. THE ASSESSEE SOCIETY IS REGISTERED SOCIETY UNDER SECTION 12AA OF THE ACT. THE ASSESSEE FILED ITS RETURN OF INCOME ON 29. 09.2013 DECLARING NIL INCOME AND THE ASSESSMENT WAS FINALIZED BY ADDITION OF I NVESTMENT OF RS. 1,11,00.000/- MADE BY THE TRUST IN FIXED DEPOSITS TREATING IT AS NOT APPLICATION OF MONEY BY THE TRUST AND NOT UTILIZED FOR CHARITABLE PURPOSE IN VI EW OF THE SPECIFIC PROVISIONS OF SECTION 11(1)(A) OF THE ACT. 4. BEFORE THE LD. CIT(A) AND THE ASSESSING OFFICER IT WAS SUBMITTED THAT ONE OF THE OBJECTS OF THE SOCIETY IS TO INVEST THE FUND S IN SECURITIES AS UNDER THE INCOME TAX ACT AS EVIDENT FROM THE MEMORANDUM OF AS SOCIATION AND ITS 2 GOVERNING RULES AND REGULATIONS. IT WAS SUBMITTED T HAT THE ASSESSEE HAS CLAIMED SIMILAR INVESTMENTS AS ITS APPLICATION OF I NCOME IN THE A.Y. 2008-09 TO A.Y. 2010-11AND FOR A.Y. 2009-10 SUCH INVESTMENTS WERE ACCEPTED BY THE DEPARTMENT IN THE ORDER PASSED UNDER SECTION 143(3) . SECTION 11(2)(A) OF THE INCOME TAX ACT,1961 READS AS UNDER: WHERE EIGHTY-FIVE PER CENT OF THE INCOME REFERRED T O IN CLAUSE (A) OR CLAUSE (B) OF SUB-SECTION (1) READ WITH THE EXPLANATION TO THAT S UB-SECTION IS NOT APPLIED, OR IS NOT DEEMED TO HAVE BEEN APPLIED, TO CHARITABLE OR R ELIGIOUS PURPOSES IN INDIA DURING THE PREVIOUS YEAR BUT IS ACCUMULATED OR SET APART, EITHER IN WHOLE OR IN PART, FOR APPLICATION TO SUCH PURPOSES IN INDIA, SU CH INCOME SO ACCUMULATED OR SET APART SHALL NOT BE INCLUDED IN THE TOTAL INCOME OF THE PREVIOUS YEAR OF THE PERSON IN RECEIPT OF THE INCOME, PROVIDED THE FOLLO WING CONDITIONS ARE COMPLIED WITH, NAMELY: (A) SUCH PERSON FURNISHES A STATEMENT IN THE PRESCR IBED FORM AND IN THE PRESCRIBED MANNER TO THE ASSESSING OFFICER, STATING THE PURPOSE FOR WHICH THE INCOME IS BEING ACCUMULATED OR SET APART AND THE PE RIOD FOR WHICH THE INCOME IS TO BE ACCUMULATED OR SET APART, WHICH SHALL IN NO C ASE EXCEED TEN YEARS; 5. THE SIMILAR MATTER OF THE ASSESSEE FOR A.Y. 2011 -12 HAS BEEN RESTORED BACK TO THE FILE OF THE CIT(A) TO DECIDE THE ISSUE AFRES H IN ACCORDANCE WITH THE LAW AS PER THE RATIO LAID DOWN BY THE TRIBUNAL IN THE CASE OF VED PRAKASH MLE SOCIETY IN ITA NO. 952/CHD/2011 DT. 25/01/2011. 6. SINCE THE ISSUE BEFORE US IS AKIN TO THE MATTER ALREADY DECIDED, WE HEREBY RESTORE THE MATTER BACK TO THE FILE OF THE LD.CIT( A) TO DECIDE THE ISSUE IN ACCORDANCE WITH THE PROVISIONS OF THE LAW TAKING IN TO CONSIDERATION THE RATIO LAID DOWN IN THE CASE OF VED PRAKASH MLE SOCIETY(S UPRA). 7. AS A RESULT, APPEAL OF THE REVENUE IS ALLOWED FO R STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- ! . .. . & , (DIVA SINGH) (DR. B.R.R. KUMAR) ' #/ JUDICIAL MEMBER '( #/ ACCOUNTANT MEMBER AG DATE: 30/05/2019 (+ ! ,- .- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. $ / / CIT 4. $ / ()/ THE CIT(A) 5. -23 4, & 4, 67839/ DR, ITAT, CHANDIGARH GUARD FILE