Income Tax Officer (Exemptions), Bangalore V. M/s. Samputa Trust, Bangalore

ITA 1379/BANG/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 7684 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-08-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 09-08-2017
• Assessment Year: 2011-2012
• Appeal Filed On: 01-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B R RAMESH J
• Assessee Lawyers: K M HARSHA
• Section: 143(3); 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, B E NGAL U R U BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ITA NO. 13 79 / BANG/20 1 6 (ASSESSMENT YEAR: 20 11 - 12 ) INCOME - TAX OFFICER (EXEMPTIONS) WARD - 3, BENGALU RU . VS. APPELLANT M/S.SAMPUTA TRUST, NO.23/57, 41 ST CROSS, EAST END C MAIN ROAD, 9 TH BLOCK , JAYANAGAR, BENGALURU - 560069 . PAN: AAETS 5235 K RESPONDENT APPELLANT BY : SHRI B.R.RAMESH, JCIT(DR). RESPONDENT BY : SHRI K.M.HARSHA , CA. DATE OF HEARING : 09/08/2017 DATE OF PRONOUNCEMENT : 11 /08/2017 O R D E R PER I NTURI RAMA RAO, AM : TH IS AN APPEAL FILED BY THE REVENUE DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME - TAX (APPEALS) - 14, [ CIT(A) ] , BENGALURU DAT ED 12/ 0 5 /2016 FOR THE ASSESSMENT YEAR 20 0 9 - 10. 2. THE REVENUE RAISED THE FOLLOWING GROUNDS OF APPEAL IN ALL THE APPEALS: ITA NO . 1379 /BANG/201 6 PAGE 2 OF 4 ITA NO . 1379 /BANG/201 6 PAGE 3 OF 4 3. BRIEF FACTS OF THE CASE ARE AS UNDER: THE RESPONDENT - ASSESSEE IS A TRUST REGISTERED UNDER THE PROVISIONS OF SECTION 12A A OF THE INCOME - TAX ACT, 1961 [HEREINAFTER REFERRED TO AS THE ACT ] WITH THE OBJECT OF RENDERING SERVICES IN EDUCATION . RETURN OF INCOME FOR THE ASSESSMENT YEAR 2011 - 12 WAS FILED ON 30/09/2011 DECLARING NIL INCOME. AFTER PROCESSING THE RETURN OF INCOME UN DER THE PROVISIONS OF SECTION 143(1) OF THE ACT, ASSESSMENT W AS COMPLETED U/S 143(3) O F THE ACT AT TOTAL INCOME AT NIL. WHILE DOING SO, THE AO ALLOWED THE ACCUMULATION INCOME @ 15% OF NET INCOME AS AGAINST CLAIM ON GROSS INCOME. 4. BEING AGGRIEVED, A N APPEAL WAS PREFERRED BEFORE THE CIT(A), WHO VIDE IMPUGNED ORDER, ALLOWED THE ACCUMULATION OF 15% OF GROSS RECEIPTS. 5. BEING AGGRIEVED BY THIS ORDER, THE REVENUE IS IN APPEAL BEFORE US IN THE PRESENT APPEAL. 6. WE HEARD RIVAL SUBMISSIONS AND PER USED THE MATERIAL ON RECORD. T HE ISSUE RAISED IN THE PRESENT APPEAL IS SQUARELY COVERED BY THE ORDER OF THE CO - ORDINATE BENCH IN ITA NO.899/BANG/2016 DATED 07/04/2017 IN THE CASE OF ITO VS. SHRADDHA TRUST . THE RELEVANT PARAGRAPHS ARE REPRODUCED BELOW: 7 . THE OTHER GROUNDS OF APPEAL RELATES TO WHETHER ACCUMULATION OF INCOME SHOULD BE ON GROSS RECEIPT OR NET INCOME AFTER DEDUCTING THE EXPENDITURE, IS COVERED BY THE DECISION OF THE HON BLE SUPREME COURT IN THE CASE OF CIT ITA NO . 1379 /BANG/201 6 PAGE 4 OF 4 VS. PROGRAMME FOR COMMUNITY OR GANISATION (248 ITR 1)(SC) WHEREIN IT WAS HELD THAT 25% SHOULD BE CALCULATED ON THE GROSS RECEIPTS OF INCOME AND NOT ON THE NET INCOME. THEREFORE, THESE GROUNDS OF APPEAL RAISED BY THE REVENUE ARE DISMISSED. RESPECTFULLY FOLLOWING THE RATIO LAID DOWN IN THE ABOVE DECISION WE DISMISS THE GROUND S OF APPEAL RAISED BY THE REVENUE ORDER PRONOUNCED IN THE OPEN COURT ON THIS 11 TH AUGUST, 201 7 S D/ - SD/ - (VIJAY PAL RAO) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE : B EN GAL URU D A T E D : 11 /0 8 /2017 SRINIVASULU, SPS COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A) 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY INCOME - TAX APPELLATE TRIBUNAL BANGALORE