DCIT, C-1 (E), Chandigarh V. M/s Shri Aurobindo Socio Economic & Management Research Institute, Ludhina

ITA 1375/CHANDI/2019

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 2594 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 year(s) 6 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 11-03-2024
• Assessment Year: 2015-2016
• Appeal Filed On: 20-10-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KUSUM BA NSAL
• Assessee Lawyers: WAY OF GROUND NO. IS ACCEPTED; ACCUMULATION OR SET
• Keywords: Capital expenditure
• Section: 12; 11; 12A; 20

Judgement Text

आयकर अपील य अ धकरण,च डीगढ़ यायपीठ , च डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH ‘B’ CHANDIGARH BEFORE: SHRI A.D.JAIN, VICE PRESIDENT AND SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 1348/CHD/2019 नधा रण वष / Assessment Year : 2015-16 Sri Aurobindo Socio Economic & Management Research Institute, Vardhman Complex, Ludhiana. बनाम VS The DCIT, Circle-1(Exemptions), Chandigarh. थायी लेखा सं./PAN /TAN No: AABTS9004P अपीलाथ /Appellant यथ /Respondent & आयकर अपील सं./ ITA No. 1375/CHD/2019 नधा रण वष / Assessment Year : 2015-16 The DCIT, Circle-1(Exemptions), Chandigarh. बनाम VS Sri Aurobindo Socio Economic & Management Research Institute, Vardhman Complex, Ludhiana. थायी लेखा सं./PAN /TAN No: AABTS9004P अपीलाथ /Appellant यथ /Respondent नधा रती क ओर से/Assessee by : Shri Tej Mohan Singh, Advocate, Shri Pankaj Gupta, Advocate, and Shri Rishit Dhingra, CA राज व क ओर से/ Revenue by : Smt. Kusum Bansal, CIT, DR तार"ख/Date of Hearing : 12.03.2024 उदघोषणा क तार"ख/Date of Pronouncement : 01.05.2024 HYBRID HEARING आदेश/ORDER PER A.D.JAIN, VICE PRESIDENT ITA No. 1348/CHD/2019 is assessee's appeal against the order of the ld. Commissioner of Income Tax (Appeals)-4, ITA 1348 & 1375/CHD/2019 A.Y. 2015-16 2 Ludhiana [in short ‘the ld. CIT(A)’] dated 30.07.2019 for 2015-16 assessment year. 2. The assessee has raised the following grounds of appeal: “1 . That the or d e r passed by Ld.CIT(A) is contrary to law and facts of the case. 2. That the Ld. CIT(A) erred in law and on facts in not allowing exemption u/s 11 of the Income Tax Act, 1961 and taxing the assessee as AOP. 3. Without prejudice to ground no. 2, the Ld. CIT(A) erred in law and on facts in not allowing setoff of excess expenditure/loss from A.Y 2014-15 with the income of A.Y 2015-16. 4. Without prejudice to ground no. 2, the Ld. CIT(A) erred in law and on facts in not allowing Rs.33,39,384/- as expenditure i nc u r re d by the assessee on capital items. 5. That the Ld. CIT(A) had erred in law and on facts in not allowing exemption u/s 11(l)(d) on the corpus donations of Rs.6 ,00 , 0 0, 0 0 0/ - r e c e i v e d during the year under consideration. 6. That the Ld. CIT(A) had erred in law and on facts in not allowing exemption u/s 11(l)(d) on the corpus donations of Rs.26,40,000/- received during the year under c on s i d e r at i on. 7. That the Ld. CIT(A) had erred in law and on facts in not allowing accumulation or set apart of funds amounting to Rs. 1,20,93,334/- as per provisions of section 11(2) for a period of 5 years. 3. Ground No. 1 is general in nature and needs no adjudication. 4. Apropos Ground No.2, the assessee contends that the ld. CIT(A) has erred in not allowing exemption u/s 11 of the Income Tax Act, 1961 to the assessee and in taxing the assessee as an AOP. ITA 1348 & 1375/CHD/2019 A.Y. 2015-16 3 5. The Assessing O fficer (in short ‘the AO’) noted that the surplus generated by the assessee during the year, being excess of income over expenditure, was of Rs.8,92,79,605/-, i.e., 53.17% of the gross receipts; that the assessee was earning huge profits from its activities, charging huge fees from the students and collecting charges in various forms, resulting in surplus; that the assessee was spending only from 60% to 70% of its gross receipts for the claimed charitable activity and, over the years, huge surplus had been accumulated by the assessee, which had been kept in the form of FDRs and capital investments; that the large scale accumulation being generated was not being ploughed back into the stated objects of the assessee, mainly education; that the assessee had given buses on rent of Rs.4.98 lacs to M/s Vardhman Textiles Ltd.; that the charges received for usages had earned income of Rs.18,25,575/-; that during the year, income of Rs.2,48,02,031/- had been generated in the form of buses rental income, DG Set usages receipt, interest income, and miscellaneous income; that the assessee was, thus, earning huge surplus from activities other than education; that the assessee was not fulfilling the conditions of Section 11(1) of the Income Tax Act and was not doing charitable activities; that so, the status of ITA 1348 & 1375/CHD/2019 A.Y. 2015-16 4 charitable activities was being denied to the assessee and the income of the assessee was being assessed as an AOP. The AO made addition of surplus of Rs.2,92,18,989/-. 6. By virtue of the impugned order, the ld. CIT(A) confirmed the assessment order. 7. The ld. Counsel for the assessee has contended that the issue stands covered by the decision of the Tribunal in the assessee's own case, for assessment year 2014-15, vide order (APB 66 to 87) dated 27.02.2020, passed in ITA No. 1599/CHD/2018, holding that there was no basis to hold the activities of the assessee Trust to be commercial in nature; that the assessee is claiming exemption u/s 11 of the Act from assessment year 1994-95 and as per the principle of consistency, there was no reason to deny the exemption claimed; and that for the purpose of calculation of surplus, corpus donation should not be included. It has been contended that since there is no difference in the facts for the year under consideration, the decision of the Tribunal for assessment year 2014-15 be followed. 8. The ld. DR, on the other hand, has placed strong reliance on the impugned order. Though it has not been ITA 1348 & 1375/CHD/2019 A.Y. 2015-16 5 disputed that this issue has been elaborately dealt with by the Tribunal in the assessee's case for A.Y. 2014-15., it has been contended that as rightly observed by the ld. CIT(A), that since assessee has earned huge surplus @ 72.72% (wrongly taken by the AO at 53.17%) of the total receipts, it cannot but be said that the assessee is running its Institution purely on a commercial basis for earning huge profit in a manner that is not at all transparent and the affairs of the assessee do not reflect any charitable purpose being carried out. It has been contended that accordingly, the disallowance of the claim u/s 11 of the Act and taxation of surplus as AOP, as upheld by the ld. CIT(A), be confirmed and Ground No.2 raised by the assessee be rejected. 8.1 The matter, it is seen, has been dealt with elaborately by the Tribunal in the assessee's own case for assessment year 2014-15, in the order dated 27.02.2020, a copy whereof has been placed at APB 66 to 87. For ready reference, the relevant portion thereof is reproduced hereunder : “1 1 . W e ha v e h e a r d h e r i v al c on t e nt i o n s c a r e f u l ly , p e r u s e d t h e or d e r s o f t he a ut h o r i t i e s be l o w . I t i s un c on t r o v e r te d f ac t t ha t th e , , c o r p us do na t i o n s w e r e r e c e i v e d t hr o u g h b an k i ng c ha n ne l 's by a c c ou nt s pa y e e c h e q ue a nd P A N nu m b e r s o f th e d ono r s i n m os t of t he c a s e s h a d be e n f i l e d. F u r t he r l e t t e r s an d o ri gi n a l e x t r a c t s of B o a r d 's M i n u t e s ha d be e n r e c e i v e d i n c a s e o f al l t h e do n or s s ub m i t t i n g th a t t he do n at i o n w a s to w ar d s c or pu s o f t h e a s s e s s e e tr us t. Th e o n l y b as i s w i t h t h e R e v e n ue f or t r e a t i ng t he c on at i o n s ITA 1348 & 1375/CHD/2019 A.Y. 2015-16 6 as n ot e l i gi b l e a s c o r p u s d o na t i on s i s t h a t t h e y w er e no t g e n ui n e do na t i on s s i n c e t he y w e r e r e c e iv e d f r o m si s t e r c o n c e r ns or t h e i r e m p l oy e e s f o r m a l af i d e r e a s on s . W e d o n ot f i n d a ny m e r i t in t h i s a r g u m e n t o f t he R e v e n u e s i n c e it i s n ot b a ck e d w i t h a n y e v i d e nc e b u t m e r e a l l e g at i o n l e v e l e d on t he a s s e s s ee t r u s t . Th e fa c t t ha t t he d on o r s e nj o y e d t h e b e n e f i t u / s 8 0 G o f t h e A c t o n ac c o un t of th e s e d o n a t i o n s d oe s n o t t ak e a w ay t h e ch a r a c t e r o f th e d o n at i o ns m a d e by t h e do n o r s as c o r p u s d o na t i ons . M e r e l y be c a us e i t i s t he e m p l oy e e s o f t h e do n o r c o m p a n i e s w h o m a d e do na t i on s d oe no t e s t ab l i s h t h a t i t w a s a m od e of ta k i n g b a c k t h e s al a r i e s pa i d t o t he m b y t h e s i s t e r c on c e r n s . The s e a p p e ar t o b e v e r y f a r f e t c he d a l l e ga t i on s a n d d e s e r v e d t o b e r e j ec t e d ou t r i gh t l y . I n v i e w o f t h e a bo v e , w e d o no t f i n d any i n f ir m i t y i n th e or de r o f t he Ld . C I T ( A ) h o ld i ng t he c o r p us d on a tio n s t o b e e l i g i bl e f o r e x e m pt i o n u / s l l ( l ) (d ) r . w . s . 2 ( 24 ) (i ia ) o f t h e A c t . G r o u n d N o . l r a i s e d b y t he R e v e n ue i s , th e r e f o r e , d is m i s s e d ”. .................. “1 5 . W e h av e he a r d t h e r i v a l c o nt e n t i o n s a n d c ar e f ul l y pe r u s e d th e or d e r s o f t h e a u t h or i t ie s b e l o w . O n g oi n g t h r ough t he or d e r s of t he A O a nd t h e C I T ( A ), w e fi n d t h at t h e R e v e nu e r e s t s i t s c as e fo r d e n y i n g t he e x e m p t i o n u /s 1 1 o f t h e A c t t o t he a s s e s s e e f or tw o f o l d r e a s o n s ; i ) t ha t i t s a c t iv i t i e s w e r e c o m m er c ia l i n na t ur e fo r e ar ni n g hu g e pr of i t s t o t he t u n e o f 5 3. 1 7 % fo r t he im pu g ne d y e a r an d ; i i ) t ha t i t w as e a r ni n g i n c om e f r o m s o u r ce s o t he r t ha n th e e d uc a t i o n as u n d e r : As on 31.03.2014 As on 31.03.2013 Other Receipts Schedule - IX Schedule - IX Bus Rental Income 23,31,050.00 21,02,100.00 D.G. Set Usages Receipt 20,00,544.00 - In c o m e fro in U TI Liquid Fund 4,97,121.04 2,74,761.52 Interest Income 1,24,96,330.48 1,32,05,294.30 Interest Income 11,28,244.00 Misc. Income 93,943.00 2,49,805.00 Prospectus Receipts 5,65,100.00 5,25,150.00 Rental Income 11,850.00 15,875.00 Sanitation & Sewerages Charges 4,80,900.00 Short & Excess 2,792.00 3,112.00 Re-Admission Fee 610.00 Fine 4,01,294.00 Industrial Training 4,66,800.00 Animal Scholarship Function 15,40,440.00 Run for Fitness 93,515.00 ITA 1348 & 1375/CHD/2019 A.Y. 2015-16 7 Teaching Through Multimedia 4,66,800.00 Honours Fee 7,70,000.00 Total 1,96,07,874.52 2,01,15,556.82 1 6 . T h e c al c u l a t i o n o f s u r pl u s o f 53 . 1 7 % i s a s un d e r : Particulars AY. 2013-14 A.Y. 2014-15 Total Receipts 6,67, 40,319/- 7,17,85, 575/- Revenue Expenditure 2,30, 29,1 41/- 3.02.01.080/- Capital Expenditure 5,91,92,922/- 34.15.376/- Total Expenditure 8,22,22,063/- 3,36,16,456/- Profit (-)!, 54,81, 744/- 3,81,69,1 19/-(53.17%) 1 7 . I t w a s a l s o t h e c as e o f t he R e v e n ue t h a t t he a ss e s s e e w as c o l l e c t in g hu ge a m o un t fr o m s t ud e nt s u n de r v a r i ou s h e ad s l i k e A nn u a l S c h ol a r s h i p F e e s , C o m p ut e r L a b C ha r g e s , E x ten s i o n ' ' Le c t ur e F e e s , C a s e St u dy & M a n ag e m e n t G am e s F e e s , St u de n t & Ma n a g e m e nt S of t w a r e , S t u de n t Pe r s o n a l i t y D e v e l o pm e nt , e t c . an d w a s i n c u r r i ng h u ge e x p e n s e s a g ai n s t t h e s a m e an d e ar ni n g h u g e pr o f i t s . Th e Ld . C ou n s e l f or t he a s s e s s e e , o n t h e o th e r h a n d , w e fi n d , ha s c on t r o v e r t e d t h e b a s i c p r e m i s e of t h e D e pa r t m e n t f or ho l di n g i t s ac t i v i t i e s a s c o m m e r c i a l i n n a t u r e a s th e ge n e r a t i o n of hu ge pr of i t s by d e m o n s t r a t in g t h e f a c t t o b e i n c or r e c t s ub m i t t i n g i t is c a l c u la t i on o f s ur p l u s ge n e r ate d an d s h o w i n g a ne g at i v e f i g ur e i n t he s am e . T h e o n l y di s ti n c t i on i n t h e c a l c ul a t i o n o f t he a s s e s s e e v i s a v i s t h a t o f t h e Re v e n u e , i s t h e e x c l u s i o n o f c o r p us do na t i on s i n t he r e c e i p ts , w h i ch w e f i nd t o b e in or d e r s i nc e as h e ld by us i n t he e a r li e r p ar a g r ap h o f o ur or d e r , t h e do n at i o ns w e r e f ou n d t o b e i n th e n a t u r e o f c o r p u s d o na t i on s an d , t h e r e f or e , t h e y a r e e nt i r e l y e x e m pt u / s ll (l )( d ) o f t he A c t a n d w e r e n o t t o b e i n c l ud e d f o r t h e pu r p os e o f c a l c ul a t i n g t he s u r p l u s g e ne r a t e d. Th e r e f or e , t h e ve r y p r e m i s e o f th e R e v e nu e f or ho l d in g t he a c t i v it i e s o f t h e as s e ss e e t o b e c o m m e r c i al i n n at u r e is d e m o l i s he d on ac co un t of t he f a c t de m o n s t r a te d by t h e as s e s s e e t ha t i t w a s ac t u a ll y not e a r n in g an y pr o f i t s . E v e n ot h e r w is e , a s p o i n te d o u t b y th e Ld . Co un s e l f or t h e as s e s s e e a nd n ot c o nt r o v e r t e d by t h e R e v e nu e b e f or e us , th e as s e s s e e t r u s t ha s b e e n c l a i m i n g e x e m pt i o n u/ s 11 r ig h t fr om a s s e s s m e n t y e a r 1 9 94 -9 5 t o t h e i m m e di a t e ly p r ec e di n g y e ar an d t h e s am e h a s no t b e e n d e n i e d t o i t . Th er e f o r e i n t h e ab s e n c e of a ny d i s t i n g u i s hi n g fa c t s , a s p e r t h e p r i n c i pl e o f c o n s i s t e n c y al s o t h e r e i s no r e a s o n t o de n y e xe m p ti o n u/ s 11 / 12 to t he a s s e s s e e . A s f or th e i nv o k i ng of t h e p r o v i s i o n s o f s e c t io n 1 3 ( l (c ) o f t h e A c t o n a c c o u nt of gi v i n g un d u e b e n e f i t to a r e l a t e d c o nc e r n o f t he a s s e s s e e t r u s t b y w a y of l e t t i n g ou t bu s e s t o t he m f o r t h e r e nt a l of R s . 4 , 9 8, 0 0 0/ - , w e ar e i n a g r e e m e n t w i t h t h e L d . C o u ns e l f o r t he a s s e s s e e t h at i t w a s n ot a c a s e o f ITA 1348 & 1375/CHD/2019 A.Y. 2015-16 8 gi v i ng a n y un d ue be n e f i t t o t he r e l a t e d c on c e r n b u t o n t h e c o n t r ar y , it w as e ff i c i e n t u t i l i z at i o n o f t h e bu s e s d u r i ng t he i r i d l e ti m e w he n n o t b e i ng r un f o r t he s c h oo l p ur p o s e s t hus ge n e r a t in g fu r t h e r i n c o m e t o b e us e d i n t he c h a r it a b le a c t i v i ti e s o f t h e as s e s s e e t r us t . E v e n ot h e r w i s e , w e f i n d t ha t t h e R ev e n ue ha s n o t de m o n s t r a te d a s t o h ow a n y b e n e f i t w as gi v e n t o t he r e l at e d c o n c e r n b y r e n t in g ou t bu s e s f o r a s um o f R s . 4 , 9 8, 000 / - . The r e fo r e , w e di s m i s s t h i s c o nt e n t i o n of t h e R e v e n ue . 18 . O n c o n s i d e r i n g t he e n ti r e f a c t s an d c i r c u m s t a nce s o f th e c as e a s ab o v e , w e h o l d t ha t t he r e w as n o b a s i s a t al l f or ho l di n g t h e a c t i v i t i e s o f t he a s s e s s e e tr us t a s c o mm e r c i al i n na t ur e a n d f u r t he r w e ho l d t h a t t h e as s e s s e e h ad not gi v e n an y b e ne f i t t o -, / a n y o f i t s r e l a t e d c o n c e r n. Th e de ni a l o f e x e m pt i o n. ; u /s 1 1 ( 1 ) o f t h e A c t i s , t he r e fo r e , s e t as i d e an d th e A O i s " d i r e c t e d t o g r an t e x e m p t io n t o t h e a s s e ss e e t r us t as pe r l a w . Th e g r ou n ds o f ap p e al r ai s e d b y t h e a s se s s e e ar e , t h e r e f o r e , al l o w e d . ” 8.2 For the year under consideration also, w e find that whereas the taxing authorities have taken the surplus to be @ 72.72% of the total receipts, as per the comparative chart of surplus generated by the assessee from educational activity for assessment year 2014-15 and 2015-16 (APB 178), the surplus for the year under consideration in fact comes to 5.26% of the total receipts. This, in no manner, can be said to be excessive. 8.3 As for assessment year 2014-15, the only basis for treating the donations as not eligible for corpus donations is that they were not genuine donations, having been received from sister concerns, or their employees, for malafide reasons. How ever, such a reason had not been backed with any evidence and so, as found by the Tribunal in the earlier ITA 1348 & 1375/CHD/2019 A.Y. 2015-16 9 year, there is no merit therein. The corpus donations are, thus, eligible corpus donations, requiring exemption under the provisions of Section 11(1)(d) read with those of Section 2(24)(iia) of the Act. 8.4 Exemption u/s 11 of the Act has been denied to the assessee, as in the earlier year, for the reason that the activities of the assessee are commercial in nature, aimed at earning huge profits to the tune of 72.72% for the year under consideration and that the assessee was earning income from sources other than education. The case of the Revenue is that the assessee was collecting huge amounts from students under different heads, like Annual Scholarship Fees, Computer Lab Charges, Extension Lecture Fees, Case Study & Management Games Fee, Student & Management Software, Student Personality D evelopment etc., and that the assessee was incurring huge expenses against the same and was earning huge profits. On the other hand, it has been shown that corpus donations, which has been accepted by us and which, accordingly, cannot be included for the purpose of calculating the surplus generated. Thus, the assessee has successfully demonstrated that it was actually not earning any profit, as also held for assessment year 2014-15. ITA 1348 & 1375/CHD/2019 A.Y. 2015-16 10 Further, exemption u/s 11 has been claimed from assessment year 1994-95 and it has been allowed to it consistently over all these years. 9. Apropos the letting out of the buses to related concerns, thereby allegedly providing undue benefit to them, attracting the provisions of Section 13(1)(c) of the Act, for the year under consideration also, such letting out is found to be not giving of undue benefit, but effective utilization of the buses during their idle time, when they were not being run for the purposes of the school, thereby generating further income to be used in the charitable activities of the assessee Trust. The Department has not show n otherwise, and even apart from that, as to how the renting out of the buses amounts to giving of any undue benefit to the related concerns, has not been established. 10. Thus, following the Tribunal order (supra) in the assessee's own case for assessment year 2014-15, Ground No. 2 is accepted and the exemption claimed u/s 11 of the Act is directed to be allowed. 11. Ground Nos. 3-4 are grounds taken without prejudice to Ground No.2. Since Ground No.2 has been accepted by ITA 1348 & 1375/CHD/2019 A.Y. 2015-16 11 us, Ground Nos. 3 and 4 do not survive and they are rejected as infructuous. 12. As per Ground Nos. 5 and 6, the ld. CIT(A) has erred in not allowing exemption u/s 11(1)(d) of the Act on corpus donations of Rs.6 crores and Rs.26,40,000/- received by the assessee during the year. 13. The AO held that the assessee was providing undue tax benefit to its sister concern and accommodating them for reduced tax liability. It was also held that concerning donations from employees, the assessee was taking back salary from its persons in the mode of corpus donation. 14. The ld. CIT(A) allowed set off of expenditure of Rs.5,10,24,446/- out of the corpus donations received by the assessee. For support, the ld. CIT(A) placed reliance on the order dated 22.11.2017 passed by the Vishakhapatnam Tribunal in the case of ‘Touching H eart Ministries Vs ITO’, in ITA No. 101/viz/2015. 14.1 The contention on behalf of the assessee is that during the year, it had received an amount of Rs.6,26,40,000/- towards corpus of the Trust; that vide reply dated 04.09.2017, details of the donors had been ITA 1348 & 1375/CHD/2019 A.Y. 2015-16 12 provided to the AO; that also, letters sent by the donors had been filed before the AO; that further, vide reply dated 18.11.2017, the assessee had also filed before the AO, true copies of Resolutions passed by the donor companies; and that in the letters issued, the donors have clearly stated that the donations w ere towards the corpus of the Trust. It has been stated that the donations were received through proper banking channels and that the PANs of the donors were duly mentioned in the letters. ‘Touching H eart Ministries’ (supra) is stated to have been wrongly relied on by the ld. CIT(A), since in that case, the party w as not registered u/s 12A of the Income Tax Act. It has been contended that huge corpus donations were also received during assessment year 2014- 15 from the Vardhman Group of Industries and no adverse inference had been draw n; and that therefore, for the year under consideration, the ld. CIT(A) has erred in confirming the AO’s action in considering the corpus donations as part of the assessee's income. 15. The ld. DR has sought to place reliance on the impugned order in this regard, at the same time, not disputing that this matter too has been considered at length ITA 1348 & 1375/CHD/2019 A.Y. 2015-16 13 by the Tribunal in the assessee's case for the immediately preceding assessment year, i.e., A.Y. 2014-15. 16. For the assessment year 2014-15, in the preceding paragraphs, we have held the corpus donations to be eligible for exemption u/s 11(1)(d) read with Section 2(24)(iia) of the Act. In accordance therewith, on parity of facts in the year under consideration also, Ground No.6 is accepted and exemption on corpus donation of Rs. Six Crores and Rs.26,40,000/- received by the assessee during the year under consideration is directed to be allowed. 17. Ground No. 7 states that the ld. CIT(A) has erred in not allowing accumulation or setting apart of funds amounting to Rs.1,20,93,334/- as per the provisions of Section 11(2) of the Act for a period of five years. 17.1 The AO held that the accumulation of the amount of Rs.1,20,93,334/- could not be allowed u/s 11(2) of the Act to the assessee, since the objects stated in the Form 10 (APB 140) filed were not specific, but were general in nature. The ld. CIT(A) confirmed the AO s action, holding that since the exemption u/s 11 had been denied, set off and carry forward of funds could not be allowed. ITA 1348 & 1375/CHD/2019 A.Y. 2015-16 14 17.2 On behalf of the assessee, it has been contended that the objects mentioned in Form 10 are not general; that in fact, these are a few of the objects of the assessee as per its Trust Deed and out of its many objects, only a few were mentioned in Form 10; that the amount accumulated was to be spent on these stated objects, which mainly included establishment or maintenance of schools, libraries, Study Centers , Amusements, etc.; that the authorities below are, thus, not justified in refusing exemption u/s 11 on this accumulated amount. Reliance has been placed on : i) Director of Income Tax (Exemptions) Vs Envisions, 378 ITR 483 (Kar)”; ii) CIT Vs Gokula Education Foundation, 394 ITR 236 (Kar); and iii) Director of Income Tax (Exemption) Vs Daulat Ram Education Society, 278 ITR 260 (Del). 17.3 It has been stated that this issue did not arise in assessment year 2014-15, since in that year, there was no surplus. 17.4 The ld. DR has, here too, placed reliance on the impugned order. ITA 1348 & 1375/CHD/2019 A.Y. 2015-16 15 17.5 This Ground corresponds to Ground No. 8 before the ld. CIT(A). The ld. DR has placed reliance on the findings recorded by the ld. CIT(A) with regard thereto, wherein the ld. CIT(A) has held that the objects for which the funds were set apart by the assessee, as per the Form No.10 filed, are of a general nature; and that since exemption u/s 11 has been denied to the assessee and its surplus, w hich includes the accumulated amount, has been taxed, set aside and carry forward of the funds cannot be allowed. 17.6 The assessee has maintained that the purposes mentioned in the Form No. 10 filed are not general in nature and that there are only a few of the objects/purposes of the assessee as per its Trust Deed; that the assessee is running a premier Educational Institution and Business School and the objects mentioned in the Form 10 are in line with the objects mentioned in the Trust Deed and even in the subsequent years, amounts have been utilized for the same purposes. 17.7 We find the contention of the assessee to be correct. The objections mentioned in the Form No. 10 (APB 140) are as follows : ITA 1348 & 1375/CHD/2019 A.Y. 2015-16 16 17.8 The objects mentioned in the Trust Deed (APB 130 to 134) are as follows : ITA 1348 & 1375/CHD/2019 A.Y. 2015-16 17 ITA 1348 & 1375/CHD/2019 A.Y. 2015-16 18 ITA 1348 & 1375/CHD/2019 A.Y. 2015-16 19 ITA 1348 & 1375/CHD/2019 A.Y. 2015-16 20 ITA 1348 & 1375/CHD/2019 A.Y. 2015-16 21 ITA 1348 & 1375/CHD/2019 A.Y. 2015-16 22 17.9 Therefore, evidently, there is no force in the finding recorded that the objects of the Trust, as mentioned in Form No.10 are of general nature. 17.10 In this regard, in “CIT (Exemptions) Vs Bochasanwasi Shri Akshar Purshottam Public Charitable Trust”, 409 ITR 591 (Guj), it has been held that lack of declaration in Form No. 10 regarding specific purposes for which funds were accumulated by the assessee Trust would not be fatal to the exemption claimed u/s 11(2) of the Act. SLP against the said order stands dismissed. 17.11 “Bochasanwasi Shri Akshar Purshottam Public Charitable Trust” (supra) was followed by the Chennai Tribunal in “Arhatic Yoga Asharam Management Trust Vs ITO (Exemptions)”, 126 taxmann.com 76 (Chennai) (Trib), allowing exemption u/s 11(2) of the Act. 17.12 In “CIT Vs National Institute and Financial Management”, 322 ITR 694 (P&H), it has been held as follows: “2 . Th e as s e s s e e i s a s o c i e t y r e gi s t e r e d un d e r se c t io n 1 2 A o f t he A c t a n d i s e n ga g e d i n t he b u s i n e s s of im pa r t i n g p r of e s s i on a l tr ai n i ng t o p r o b a t i on e r s o f t h e C e n t r a l A c c o u n t s a nd F i na nc e Se r v i c e s . T he A s s e s s i ng O f f i c e r r e j e c t e d t h e c l a i m f or e x e m pt i o n un de r s e c t i on 1 1 o n t he g r o u nd t ha t t h e as s e s s e e a cc um ul a t e d pr o f i t s w it h o u t e x pl a n a t i o n . H ow e v e r , t he C om m i s s i one r of ITA 1348 & 1375/CHD/2019 A.Y. 2015-16 23 In c o m e - t a x ( A p pe a l s ) a c c e pt e d t he p l e a o f t he a s s e ss e e a n d h e l d th a t u t i l i s at i o n o f a c c um ul a t i on w a s on t he ag e n da of t he go v e r ni n g b o dy . T he Tr i b u n a l u p he l d t h e s a i d v i e w re l y i ng up o n th e j ud gm e nt of t he D e l h i H i g h C o ur t i n B h ar at K a l yan P r a t i s th a n v . D i r e c t or of I n c o m e - t ax ( E x e m p t i on ) [ 20 08] 2 9 9 I TR 4 0 6 . T he Tr i b un al he l d t h a t t h e a s s e s s e e w a s e n t i t l e d t o a c cu m ul a te t he in c o m e (f o r o b j e c t s o f t he i n s t i t ut i o n } . ” 17.13 In “Director of Income Tax (Exemptions) Vs Envisions”, (2015) 378 ITR 483 (Karnataka High Court), it has been held as follows : “The f a c t s of th i s c a s e w e r e t h at , " A f t e r ho l di n g t hat t h ou g h t he pu r p os e s t a t e d i n F o r m - 10 by t h e a s s e s s e e m ay be in t e r m s of s om e o f t h e 1 4 o bj e c t s of t he t r us t d e e d , t he A s s e ss in g O f f i c e r di s a l l ow e d t h e a c c u m ul a t i on h o l d i n g t he p ur p o s e s t at e d w a s v a g ue an d t h us t h e be n e f i t o f Se c t i o n 1 1 ( 2 ) o f t h e A c t w as d e n i e d . R e l i a nc e i n t h i s r e g a r d w as p l ac e d b y t he l e ar n e d As s e s s i n g O f f i c e r o n t h e d e c i s i o n of t h e C al c u t t a H i g h C ou r t r e n de r e d i n t he c a s e of D I T (E x e m p t i on ) v . T r u s t e e s o f S i ng h a n i a C h ar i t a b l e Tr us t [ 19 9 3] 1 9 9 I T R 8 19 . ...................... In t h e p r e s e n t c as e , w e f i nd t h a t t he r e v e nu e d o e s n ot di s p u t e t he fa c t t h at al l th e t h r e e p u r po s e s s p e c if i e d b y t h e As s e s s e e i n F o r m 10 ar e f o r ac h i e v i n g t h e ob j e c t s o f t he t r u s t , a n d t h at t h e p u r po s e s as w e l l as o bj e c t s , a r e b o th c h a r i t ab l e . M e r e l y b e cau s e m o r e t h a n on e p ur p o s e ha s be e n s pe c i f i e d an d d e t a i l s ab o u t the pl a n of s u c h e x p e nd i t u r e h as n o t b e e n gi v e n , t he s a m e w ou l d no t , i n o ur v i e w , be s u f f ic i e n t t o de n y th e be n e f i t u / s 11 ( 2 ) o f t he A c t t o t he A s s e s s e e . A s l o n g a s t he o b j e c t s o f t he t r us t a r e ch ar it a bl e i n c h a r a c t e r a nd as l o n g a s t h e pu r p o s e o r p u r p os e s m ent i o ne d i n F or m 1 0 a r e f or a c h i e v i ng t he ob j e c t s of t he t r u s t , m e r e l y b e c au s e of no n - f u r ni s h i n g o f t h e d e t ai l s , as h ow t h e s ai d am o u n t i s pr o p os e d t o b e s p e n t i n f u t u r e , t h e as s e s s e e c a n no t b e d e n i e d t he e x e m pt i o n a s i s a d m i s s i bl e u nd e r s u b- s e c t i on 2 o f Se c t i o n 1 1 o f t he I. T A c t , 1 9 6 1 . " ITA 1348 & 1375/CHD/2019 A.Y. 2015-16 24 17.14 In “CIT Vs Gokula Education Foundation” (2017) 394 ITR 236 (Karnataka High Court), it has been held as follows : "T he A s s e s s i ng O f f i c e r f o un d t ha t t he r e i s no s p e c ifi c a c t i v it y m e nt i o ne d an d t he l a ng u a g e u s e d i s g e n e r a l an d th e re f o r e he di s a l l ow e d t h e c l a i m . T h e m at t e r w as c a r r i e d in ap pe al be f o r e C I T (A p pe a l s ) a nd he c o n c ur r e d w it h th e v i e w o f t he A s se s s in g O f f i c e r an d a l l ow e d t h e ap p e al i n pa r t on o t he r a s p e c t w h i ch i s n o t to u c hi n g t o t he q u e s t i o n i nv o l v e d . T h e I nc o m e Tax Ap p e l l at e Tr i b un al i n f u r t he r ap p e al ha s m o r e o r l e s s r e c or ded t h e s a m e r e as on i ng an d it r e li e d up o n i t s e a r l i e r d e c i s i o n in c a s e of D y . D I T (E ) v . G ok u l a E d u c a t i on F o u n d at i o n in I T A N o . l 09 1/ Ba ng / 20 1 4 da t e d 3 0 . 12 . 20 1 4 ( w hi c h i s s u b j e c t m a t t e r o f I T A N o. 3 0 0 / 20 1 5 be i n g s i m u l t a n e ou s l y h e a r d a nd c o n s i de r e d ) a n d th e Tr i b un a l th e r e a f t e r f o un d t h a t th e is s u e c o ul d b e s a i d a s c ov e r e d b y i t s e a r l i e r d e c i s i on , w h e r e i n th e r e l i an c e w a s p l ac e d up o n t he de c i s i o n o f D e lh i H i g h C o u r t i n c a s e of D I T ( Ex e m pti o n ) v . D au l at R am E du c a ti o n S oc i e t y [ 2 0 05] '2 78 I TR 26 0 /[ 20 0 6] 15 6 Ta x m a n 39 9 a n d t he r e f o r e ul t i m a t e l y a l l ow e d t h e a pp e a l o f t h e as s e s s e e by th e i m p u gn e d or d e r . U nd e r t h e c i r c u m s t a nc e s , t he p re s e n t a pp e al be f o r e t hi s C o ur t. ... ... ... ... ... ... ... ... ... ... A t t hi s s t a g e w e m a y r e f e r t o t h e d e c i s i on of t hi s C o u r t i n c a s e of D I T , E x e m p t i o n s v . E nv i s i o ns [ 2 01 5] 3 78 I TR 4 8 3 / 2 3 2 T a x m a n 16 4/ 5 8 t a x m a n n . c o m 1 8 4, w he r e in t he d e c i s i on of C alc u tt a H i g h C o ur t w a s a l s o r e l i e d up on b y t h e R e v e n u e an d t hi s C o u r t at pa r a gr a p h - 10 h a d o b s e r v e d t hu s : — " 1 0. I n t he p r e s e n t c a s e , w e f i nd t ha t t he r e v e n ue d o e s no t d i s pu t e t he f a c t t ha t al l t h e t hr e e p u r po s e s s pe c i fi e d b y t h e A s s e s s e e i n F o r m 10 a r e f o r ac h i e v in g t h e o bj e ct s o f t h e t r u s t , a n d t h a t t he p u r po s e s a s w e l l a s o bj e c t s, a r e b ot h c ha r i t a bl e . M e r e l y be c a us e m or e t h an o ne p ur pos e h as b e e n s pe c i f i e d an d de t a i l s a bo u t t he pl a n of s uc h e x pe n d i tu r e h as no t be e n gi v e n , t he s a m e w ou l d n o t, in o ur v i e w , be s u f f i c i e n t t o d e ny t he b e ne f i t u/ s 1 1 (2 ) o f th e A c t t o t h e A s s e s s e e . A s lo n g a s t h e o b j e c t s of t h e t r us t a r e c h ar i t a bl e i n c ha r a c t e r a n d as l o ng a s t he pu r p o s e o r p ur p o s e s m e n ti o n e d in F or m 1 0 f o r a c h i e v i n g t he ob je c t s ITA 1348 & 1375/CHD/2019 A.Y. 2015-16 25 o f t h e t r u s t , m e r e l y be c a us e o f no n -f u r n is hi n g o f th e d e ta i l s , a s h o w t he s a i d a m o u n t i s p r op o s e d t o be spe n t i n f u tu r e , t he a s s e s s e e c an n ot be d e n i e d t h e e x e m p t i on a s i s a dm i s s i bl e u nd e r s u b - s e c t i o n ( 2 ) of S e c t i o n 1 1 o f the I . T. A c t , 1 96 1 . " The a f o r e s a id s h o w s t h a t a s p e r t h e v ie w t a k e n b y thi s C o u r t a s lo n g as t h e o bj e c t s of t he t r u s t a r e c ha r i t ab l e i n c h a r a c t e r a nd a s lo n g a s t he p u r p o s e o r p ur p o s e s m e n ti o n e d i n F o r m No . 1 0 a r e f o r ac h i e v i n g t he ob j e c ts o f t h e Tr u s t , m e r e l y b e c a u s e t h e d e ta i l s a r e no t f u r ni s h e d, th e a s s e s s e e c an no t b e de n i e d b e ne f it o f t he e x e m pt i o n u nd e r S e c t i on 11 ( 2 ) of t h e A c t . " 17.15 In “Director of Income Tax (Exemptions) Vs Daulat Ram Education Society” (2005) 278 ITR 260 (Delhi High Court), it has been held as follows : “H e r e to o , o u t of 2 9 pu r p os e s / ob j e c t s s t i p ul a t e d i n t he m e m o r a nd um o f as s oc i a t i o n , t h e as s e s s e e h a s s p e c i f ie d e i g ht pu r p os e s i n Fo r m N o . 1 0 f o r w h i c h i t w a s ac c u m u l at in g t he un s p e nt i n c om e w h i l e c l ai m in g b e n e f i t u n d e r s e c t i o n 1 1 . I t i s n ot th e c as e o f t he r ev e n u e t h at a n y o f t he s e e i g ht p urp o s e s n ot c h a r i t a b l e or t h a t t h e s a m e d o n o t fi g u r e i n t h e m em o r a n d um of as s oc i a t io n . I n t he c i r c u m s ta n c e s , j us t b e c au s e m o re t h a n o ne pu r p os e h av e be e n s p e c i f ie d an d j u s t b e c a u s e d e t ai ls a bo u t t he pl a ns w h i c h t h e a s s e s s e e ha s f o r s p e n d i ng o n s u c h pu r p os e s a r e no t gi v e n m ay n ot b e s uf f i c i e nt t o de n y t he e x e m p t ion ad m i s s i b l e t o it u n de r s e c ti o n 11 . S o l o n g a s o ne o r m o r e o f t he p ur po s e s s pe c i f i e d b y t he a s s e s s e e fi n d pl a c e i n t he o b je c t s f o r w hi c h t he s oc i e t y ha s be e n i n c o r po r a t e d a n d s o l o n g a s t he s ai d p u r p o s e a r e c h a r i t a b l e i n c h ar ac t e r , t he be n e f i t a dm i s s i b l e u nde r I on 1 1 m u s t fl o w t o t h e as s e s s e e . 5. I n t he l i gh t of w h a t i s s t a t e d a b o v e , n o s ub s t an t i a l q ue s ti o n of l aw ar i s e s f or c o ns i de r a t i o n . Th e a p pe a l f a i l s an d i s h e r e by di s m i s s e d . " 18. Reliance by the ld. DR on “Maharaja Ranjit Singh War Museum Society, Ludhiana Vs CIT”, rendered by the Hon'ble ITA 1348 & 1375/CHD/2019 A.Y. 2015-16 26 Punjab & Haryana High Court in ITA No.259/2019, as rightly contended, is in-act, since the facts therein are different. Therein, the assessee raised the following question of law before the Hon'ble High Court : “a. W he t h e r t h e ld . I T A T w a s j u s t i f i e d i n u ph ol d i n g t ha t t h e a m o un t g i v e t o P S W H M M i s th e i nc o m e of t h e a p pe l l a nt - s o c i e t y in t e r m s of S e c t i on 1 1 ( 3 ) (d ) by u ph o l d i n g th at t h e s t a t us of t h e r e c i pi e n t- s o c i e t y is i m m a t e r i al f o r th e pu r p os e s o f a pp l i c a t i on o f s e c t i o n l l (3 ) ( d ) , w h e n t he d e p ar tm e nt a l c i r c u l ar i t s e l f di f f e r e n t i at e be t w e e n t h e s oc i e t i e s as e n um e r at e d i n s e c t i o n l l ( 3 ) (d ) an d ot h e r s o c ie t i e s ? b. W he t h e r i n t h e pr e s e nt c i r c u m s t a nc e s t h e Id . I TAT w as j u s t i f ie d i n r e j e c t i n g t he r e v i s i o n o f f or m N o . 10 w he n t h e c a lc u l at i o ns ha v e be e n c ha n ge d by t h e a u t h or i t i e s be l ow ? c . W he t h e r i n t he pr e s e nt f ac t s a nd c i r c u m s t an c e s of t he c as e t h e or d e r o f t he L d . I TA T i s p e r v e r s e ? " 18.1 It was held that the amount accumulated had not been utilized in accordance with the purpose mentioned in the Form 10 filed. No purpose had been specified by that assessee in the Form 10 filed w ith regard to payment made to the other society. It was held as follows : " 1 0. T he r e i s f a ll a c y i n t he c o nt e n ti o n r a i s e d by le ar ne d c o u n s e l f o r t h e ap p e ll a n t . Th e r e q ui r e m e nt o f s e c t i o n 1 1 i s t h a t a t le a s t 85 % of t he i n c o m e i s t o be ap p l i e d f o r r e l ig i o u s o r c h ar i t a bl e p u r p o s e i n y e ar o f r e c e i p t a n d t h e a c c u mu l at i o n c a nn ot b e m o r e th a n 1 5 %. H o w e v e r , s u b s e c t i on (2 ) p ro v i de s f o r a c c u m u l a t i o n ou t o f 8 5 % i n c o m e b ut t he s a m e ha s t o b e f o r a s p e c i fi e d pu r p os e a n d f or a s p e c i f i c pe r i od . Th e r e a s o ns b e hi n d al l o w i n g s u c h a n ac c u m u l at i o n i s t h at i n c a s e th e r e i s a f u t u r e p r o j e c t f o r w h i c h la r g e r am ou n t i s r e q ui r e d , t he s am e m a y be ac c u m u la t e d a nd t h e r e af t er a pp l i e d . A s a b u i l t - i n m e c h a n is m i n s e c t i on 1 1 i t s el f , s u b - s e c t i o n (3 ) p r ov i d e s t h a t i n c a s e e v e n t ua l i ti e s m e nt i on e d i n ITA 1348 & 1375/CHD/2019 A.Y. 2015-16 27 c l au s e s ( a ) t o (d ) , t h e in c o m e s ha l l b e de e m e d t o be i n c o m e o f th e p e r s o n i n r e c e i pt , i n t he p r e v i ou s y e a r i n wh i c h i t w as t o be a pp l i e d o r c e a s e d t o b e ac c u m u la t e d . 11 . B y i ns e r t i o n of e x p l a n at i o n t o s u b s e c t i o n (2 ) an d c l a u s e (d ) i n s u b - s e c t i o n (3 ) by t he F i na nc e A c t, 2 00 2, t h e a c c u m u l a t e d a m ou n t c a n no t be t r a n s f e r r e d t o a r e g i st e r e d Tr us t o r i n s t i tu t i on o r t o t h e T r u s t or I n s t i tu t i on o r f un d s as s p e c i f ie d i n s u b - c l a u s e (i v ), (v ) , (v i ) a nd (v i a ) to s e c t i o n 1 0 ( 23 C ). I n c a s e of s u c h c r e di t pa y m e n t, s a m e s ha l l n o t b e t r e a t e d as ap p l ic a t i on f o r c h a r i t ab l e a n d r e l i g i o u s p u r p os e a nd f ur t he r , it w o ul d b e tr e at e d as i nc o m e o f s u c h p e r s o n i . e . t h e pe r s o n w h o h a d m ad e t he p a y m e nt . 12 . F r o m s u b - s e c t i on (2 ) a nd s ub - s e c t io n ( 3 ), i t i s c l ear t h at a c c u m u l a t i o n h a s t o b e fo r a s p e c i f i e d pu r p os e a n d t h e s a m e i s t o be u t i l iz e d w i t h i n t he t i m e f r am e . 13 . Th e ai m s an d o b je c t s o f t he Tr us t c a nn o t b e r e p r od uc e d a s a s p e c i fi c p ur p o s e . Th e p ur p o s e m u s t h a v e s o m e i n di v id ua l i ty , i t i s s o b e c a u s e o n l y f r o m t he p u r p o s e , t h e as s e s s in g o f fi c e r w ou l d b e a bl e t o m o n i t or t he a m o un t s o ac c u m u l a t e d . 14. In the present c as e , i t w a s no t t h e c l a i m o f t he a p p e l l an t t h a t t h e a m o un t w a s b e i ng ac c u m u la t e d f o r t h e p a y m e nt t o P S W H MM S. A t t hi s s t a g e , w e ar e n ot d i la t i ng as t o wh e t he r f o r s uc h pu r p o s e t h e r e c o u ld be a c c u m u l at i o n o r H o t. I n s u c h c i r c u m s ta n c e s , t he r e i s a c l e ar v io l a ti o n of th e c o nd i t io n s r e f e r r e d i n s u b - s e c t i o n (2 ) a n d s u b s e c t ion (3 ) o f s e c t i o n 1 1. T he a m o un t ha s b e e n s p e nt f o r t h e p u r pos e o t he r t h an fo r w h a t i t w as ac c u m u l a t e d, i t c om e s w i t h i n th e m i s c h i e f o f s e c t i o n ll( 3 ) ( c ) . " 18.2 The Hon'ble High Court thus, held that the amount had been spent for a purpose other than for which it had been accumulated and, therefore, it came within the mischief of Section 11(3)(c). 19. Evidently, the facts in the two cases are entirely different. There, the amount accumulated had been used for a purpose other than for w hich it had been accumulated, ITA 1348 & 1375/CHD/2019 A.Y. 2015-16 28 which is not so in the case of the present assessee. Rather, it has not been disputed that out of the total accumulation of Rs.1,20,93,335/-, an amount of Rs.83,84,603/- was spent during assessment year 2016-17 and an amount of Rs.37,08,732/- was spent in assessment year 2017-18, i.e., that it is unchallenged that the assessee had also utilized the amount for the same purposes, as mentioned in the Form 10 filed, which objects are only a part of the objects mentioned in the Trust Deed of the assessee, in the subsequent years. 19.1 It has further been contended on behalf of the assessee and not disputed on behalf of the Department that in the assessment proceedings completed in the assessee's case for assessment year 2018-19, (APB 17-23) in scrutiny assessment proceedings, similar questions had been raised, but the matter was decided in favour of the assessee, allowing accumulation u/s 11(2) of the Act, as is evident from Form No. 10 ( APB 15) for assessment year 2018-19. 20. In view of the above, the grievance of the assessee by way of Ground No. 7 is accepted and accumulation or set apart of funds amounting to Rs.1,20,93,334/- is directed to ITA 1348 & 1375/CHD/2019 A.Y. 2015-16 29 be allowed for a period of five years, in accordance with the provisions of Section 11(2) of the Act. 21. Accordingly, the appeal of the assessee is partly allowed. ITA 1375/CHD/2019 22. This is Department’s appeal filed against the order of the ld. CIT(A)-4, Ludhiana dated 30.07.2017 pertaining to 2015-16 assessment year. 23. The D epartment has raised the following grounds : “1 . T h a t on t he f a c t s an d c i r c u m s t a n c e s o f th e c as e , t he L d . C I T ( A ) h a s e r r e d i n l a w i n a l l o w i n g b e ne f i t o f u t i li z at i o n of R s . 5 , 10 , 2 4 , 4 4 5/ - i n th e F . Y . 20 1 4 - 1 5 o u t o f d on a ti o n r e c e i v e d f r o m M/ s V a r d h m a n T e x t i l e Lt d. w he n t h e as s e s s e e had f a i l e d t o s u bm i t a ny p r o of of t he s a m e a nd w h e n t h e r e s ol u t i on b y t he d on o r f o r a p pr o v i ng a nd r a t i f y i n g t h e d o n at i o n w a s p as s e d i n t he s u bs e q u e nt F i n a n c i a l Y e a r . 2 . Th at o n th e f a c t s an d c i r c u m s t an c e s of t h e c as e , t he L d . C I T ( A ) ha s e r r e d i n l a w i n , h o ld i n g t h at t h e do n at io n s f o r s e t t i n g u p o f s c h o o l r e c e i v e d f r o m M / s V a r d h m a n Te x t i l e Lt d. ar e t i e d u p gr a n t s a nd a r e no t i n c om e u / s 2 (2 4 ) (i i a ) w h e n "i nc o m e " d e f i n e d s e c ti o n 2 ( 24 ) (i i a ) c l e a r l y s t at e s th a t i t in c l u d e s v ol u n ta r y c o nt r i b ut i o ns r e c e i v e d by a t r us t c r e a t e d w ho l l y f o r c ha r i t a bl e or r e l i g i ou s p u r p os e a n d d o e s n o t q ua l i fy t h at t he s p e c if i c - pu r p o s e v o l un t ar y c o n t r i bu t io n s ar e t o b e e x c l u d e d . Th at t h e a pp e l l an t c r av e s t o l e a v e , a d d o r am e n d t he g r o u n d s of a pp e al o n o r b e f or e t h e a pp e a l h e a r d a n d d i s p o s e d of f . ” 24. The ground raised by the Department corresponds to Ground Nos. 5 and 6 raised by the assessee which we have ITA 1348 & 1375/CHD/2019 A.Y. 2015-16 30 decided in respect of the assessee, in the relevant preceding paragraphs. In accordance therewith, the grounds raised by the D epartment are rejected. 25. Accordingly, the appeal filed by the Department is dismissed. 26. In the result, whereas the assessee's appeal in ITA No.1348/CHD/2019 is partly allowed, as indicated, Department’s appeal in ITA No.1375/CH D/2019 is dismissed. Order pronounced on 01.05.2024. Sd/- Sd/- (VIKRAM SINGH YADAV) (A.D.JAIN ) ACCOUNTANTMEMBER VICE PRESIDENT “Poonam” आदेश क琉 灹ितिलिप अ灡ेिषत/ Copy of the order forwarded to : 1. अपीलाथ牸/ The Appellant 2. 灹瀄यथ牸/ The Respondent 3. आयकर आयु猴/ CIT 4. िवभागीय 灹ितिनिध, आयकर अपीलीय आिधकरण, च瀃डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड榁 फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar