M/s. Vidyanidhi Education Trust, Bangalore V. Assistant Commissioner of Income Tax, Circle-1, Bangalore

ITA 1380/BANG/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 5580 (ITAT-BANGALORE)
• Duration Of Justice: 7 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-02-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 15-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution

Judgement Text

ITA.1380/BANG/2017 PAGE - 1 IN THE INCOME TAX APPELLATE TRIBUNAL BENGALURU BENCH 'B', BENGALURU BEFORE SHRI. JASON P. BOAZ, ACCOUNTANT MEMBER AND SHRI. LALIET KUMAR, JUDICIAL MEMBER I.T.A NO.1380/BANG/2017 (ASSESSMENT YEAR : 2012-13 M/S. VIDYANIDHI EDUCATION TRUST, NO.42/3, SHIVANAHALLI, YELAHANKA HOBLI, BENGALURU 560 064 .. APPELLANT PAN : AAATV0825G V. ASST. COMMISSIONER OF INCOME-TAX (EX), CIRCLE -1, BENGALURU .. RESPONDENT ASSESSEE BY : SHRI. NARENDRA SHARMA REVENUE BY : SMT. PADMAMEENAKSHI, JCIT HEARD ON : 01.02.2018 PRONOUNCED ON : 02.02.2018 O R D E R PER LALIET KUMAR, JUDICIAL MEMBER : THE PRESENT APPEAL IS FILED BY THE ASSESSEE TRUST AGAINST THE ORDER OF THE CIT (A)-14, LTU, BENGALURU, DT.06.03.2017, FOR THE ASSESSMENT YEAR 2012-13, ON THE FOLLOWING GROUNDS : ITA.1380/BANG/2017 PAGE - 2 02. THE ISSUE OF DEDUCTION OF 15% U/S.11(1)(A) WHET HER TO BE CALCULATED ON THE GROSS RECEIPTS AND NOT ON AMOUNT LEFT AFTER APPLICATION TOWARDS EXPENSES INCURRED FOR OBJECTS OF THE TRUST, HAD COM E UP BEFORE THE COORDINATE BENCH OF THIS TRIBUNAL IN THE ASSESSEES OWN CASE, IN ITA NO.1777/BANG/2016, FOR THE ASSESSMENT YEAR 2011-12, WHICH WAS DECIDED IN FAVOUR OF THE ASSESSEE. THE TRIBUNAL IN PARAS 3 TO 5 HAD OBSERVED AS UNDER : 3. IT WAS SUBMITTED BY LD. AR OF ASSESSEE THAT ALTH OUGH THE ASSESSEE HAS RAISED AS MANY AS 7 GROUNDS OF APPEAL BUT THE ONLY ISSUE INVOLVED IN THIS APPEAL IS THIS THAT WHETHER THE ASSESSEE IS ELIGIBLE FOR ACCUMULATION U/S. 11(1)(A) OF THE IT A CT TO THE EXTENT OF 15% OF GROSS RECEIPTS OR NET RECEIPTS. IN THIS R EGARD, HE PLACED RELIANCE ON TRIBUNAL ORDER RENDERED IN THE CASE OF JYOTHY CHARITABLE TRUST VS. DCIT (EXEMPTIONS) IN ITA NO. ITA.1380/BANG/2017 PAGE - 3 662/BANG/2015 DATED 14.08.2015. HE SUBMITTED A COPY OF THIS TRIBUNAL ORDER AND DRAWN OUR ATTENTION TO PAGE NOS. 10 & 11 OF THIS TRIBUNAL ORDER AND POINTED OUT THAT THE TRIBUN AL IN THIS CASE HAS FOLLOWED THE DECISION OF SPECIAL BENCH OF THE T RIBUNAL RENDERED IN THE CASE OF BAI SONABAI HIRJI AGIARY TR UST VS. ITO AS REPORTED IN 93 ITD 70 (SB). HE ALSO SUBMITTED TH AT THE RELEVANT PORTION OF THIS TRIBUNAL ORDER HAS BEEN RE PRODUCED BY THE TRIBUNAL AND AS PER THE SAME, THE TRIBUNAL HAS FOLLOWED THE JUDGMENT OF HONBLE KERALA HIGH COURT RENDERED IN T HE CASE OF CIT VS. PROGRAMME FOR COMMUNITY ORGANISATION AS REP ORTED IN 228 ITR 620 (KERALA). 4. THE LD. DR OF REVENUE SUPPORTED THE ORDER OF AU THORITIES BELOW. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FI ND THAT AS PER THE ASSESSMENT ORDER, THIS IS THE ONLY OBJECTION OF THE AO THAT INSTEAD OF THE ASSESSEES CLAIM FOR ACCUMULATION U/ S. 11(1)(A) OF THE IT ACT TO THE EXTENT OF 15% OF GROSS RECEIPTS O F THE ASSESSEE, THE ASSESSEE IS ELIGIBLE FOR SUCH ACCUMULATION ONLY TO THE EXTENT OF 15% OF NET RECEIPTS. ON THIS ASPECT, THE JUDGMEN T OF KERALA HIGH COURT RENDERED IN THE CASE OF CIT VS. PROGRAMM E FOR COMMUNITY ORGANISATION (SUPRA) SUPPORTS THE CASE OF THE ASSESSEE BECAUSE IT WAS HELD IN THIS CASE THAT THE ACCUMULATION U/S. 11(1)(A) OF THE IT ACT HAS TO BE COMPUTED AT 2 5% OF GROSS RECEIPTS. NOW AS PER THE AMENDMENTS IN THE LAW, PER CENTAGE IS REDUCED TO 15% BUT THE OTHER THINGS REMAINS SAME. T HEREFORE, RESPECTFULLY FOLLOWING THIS JUDGMENT OF THE TRIBUNA L AND IN TURN FOLLOWING THE JUDGMENT OF SPECIAL BENCH OF THE TRIB UNAL AND IN TURN FOLLOWING THE JUDGMENT OF HONBLE KERALA HIGH COURT, WE DIRECT THE AO TO ALLOW ACCUMULATION U/S. 11(1)(A) O F THE IT ACT TO THE EXTENT OF 15% OF GROSS RECEIPTS IN PLACE OF 15% OF NET INCOME ALLOWED BY HIM. FOLLOWING THE ABOVE DECISION OF THE COORDINATE BENC H, WE DIRECT THE AO TO ALLOW ACCUMULATION U/S.11(1)(A) OF THE IT ACT TO TH E EXTENT OF 15% OF GROSS RECEIPTS IN PLACE OF 15% OF NET INCOME. ITA.1380/BANG/2017 PAGE - 4 03. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D. ORDER PRONOUNCED IN THE OPEN COURT ON 2 ND DAY OF FEBRUARY, 2018 SD/- SD/- (JASON P. BOAZ) (LALIET KUMAR) ACCOUNTANT MEMBER JUDICIAL M EMBER MCN* COPY TO: 1. THE ASSESSEE 2. THE ASSESSING OFFICER 3. THE COMMISSIONER OF INCOME-TAX 4. COMMISSIONER OF INCOME-TAX(A) 5. DR 6. GF, ITAT, BANGALORE BY ORDER SENIOR PRIVATE SECRETARY, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.