BETHEL FAMILY GOSPEL MINISTRIES AND CHARITABLE TRUST, CHENNAI V. DDIT (EXCEMPTIONS) II, CHENNAI

ITA 1542/CHNY/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 6432 (ITAT-CHENNAI)
• Duration Of Justice: 8 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-01-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 08-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: K MEENAKSHISUNDARAM ITP
• Keywords: Charitable institution
• Section: 143(3); 12; 11

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , C BENCH, CHENNAI . , . , BEFORE SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI DUVVURU RL REDDY, JUDICIAL MEMBER ./ I.T.A.NOS.1542 & 1543/CHNY/2018 / ASSESSMENT YEARS: 2011-12 & 2012-13) M/S. BETHEL FAMILY GOSPEL MINISTRIES AND CHARITABLE TRUST, NO.6, D.B. SHANMUGAM STREET, AYANAVARAM, CHENNAI 600 023. VS THE DEPUTY COMMISSIONER OF INCOME TAX (EXEMPTIONS)-III, CHENNAI PAN: AAATB3186C ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI K. MEENAKSHISUNDARAM, ITP / RESPONDENT BY : SHRI CLEMENT RAMESH KUMAR, ADDL.CIT /DATE OF HEARING : 16.01.2019 /DATE OF PRONOUNCEMENT : 18.01.2019 / O R D E R PER A. MOHAN ALANKAMONY, AM:- THESE APPEALS BY THE ASSESSEE ARE DIRECTED AGAINST THE COMMON ORDER PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-17, CHENNAI, DATED 16.02.2018 IN ITA NOS.186/14-15, 05/15-16 & 08/16-17 FOR THE ASSESSMENT YEARS 2011-12 & 2012-13 PASSED U/S.250(6) R.W.S. 143(3) OF THE ACT. 2 ITA NOS.1542 & 1543/CHNY/2018 2. THE ASSESSEE HAS RAISED SEVERAL IDENTICAL GROUNDS IN ITS APPEALS HOWEVER THE CRUX OF THE ISSUE IS THAT THE LD.CIT(A) HAS ERRED BY UPHOLDING THE ORDER OF THE LD.DCIT(EXEMPTIONS) THAT THE AMOUNT OF RS.20,00,000/- PAID AS ADVANCE TOWARDS PURCHASE OF LAND IS IN VIOLATION OF THE PROVISIONS OF SECTION 13(1)(D) R.W.S. 11(5) OF THE ACT AND THEREBY DENIED EXEMPTION TO THE ASSESSEE U/S.11 & 12 OF THE ACT. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A PUBLIC CHARITABLE TRUST REGISTERED U/S.12AA OF THE ACT, FILED ITS RETURN OF INCOME FOR THE ASSESSMENT YEARS 2011-12 & 2012-13 ON 30.01.2013 & 15.05.2013 ADMITTING NIL INCOME FOR BOTH THE ASSESSMENT YEARS. THE CASE WAS SELECTED FOR SCRUTINY AND NOTICE U/S.143(2) OF THE ACT OF THE ACT WAS ISSUED ON 07.08.2013 & 02.09.2014 FOR THE ASSESSMENT YEARS 2011-12 & 2012-13 RESPECTIVELY. FINALLY ASSESSMENT ORDER WAS PASSED U/S.143(3) OF THE ACT ON 24.03.2014 & 05.03.2015 FOR THE ASSESSMENT YEARS 2011-12 & 2012-13 RESPECTIVELY WHEREIN THE LD.DCIT(EXEMPTIONS) HELD THAT THE ASSESSEE HAD VIOLATED THE PROVISIONS OF SECTION 13(1)(D) R.W.S. 11(5) OF THE ACT AND THEREBY DENIED EXEMPTION U/S.11 & 12 OF THE ACT BECAUSE THE ASSESSEE HAD PAID A SUM OF 3 ITA NOS.1542 & 1543/CHNY/2018 RS.20 LAKHS AS ADVANCE FOR PURCHASE OF LAND AND HAD NOT PRODUCED ANY EVIDENCE FOR THE PURCHASE OF LAND. 4. AT THE OUTSET THE LD.AR SUBMITTED BEFORE US THAT THE LD.CIT(A) HAS ERRED IN UPHOLDING THE ORDER OF THE LD.DCIT(EXEMPTIONS) FOR TREATING THE INVESTMENT MADE BY THE ASSESSEE FOR RS.20 LAKHS BEING THE ADVANCE PAID FOR ACQUIRING IMMOVABLE PROPERTY TO BE IN VIOLATION OF SECTION 13 & 11 OF THE ACT BECAUSE THE ASSESSEE WAS UNABLE TO PRODUCE THE SALE DEED DURING THE PROCEEDINGS BEFORE THE LD.REVENUE AUTHORITIES. THE LD.AR FURTHER SUBMITTED THAT THE ASSESSEE HAD EXECUTED THE SALE DEED FOR THE PURCHASE OF THE LAND AND THEREFORE THE APPEAL OF THE ASSESSEE FOR BOTH THE ASSESSMENT YEARS MAY BE REMITTED BACK TO THE FILE OF LD.AO FOR DENOVA CONSIDERATION IN THE LIGHT OF THE SALE DEED BEING EXECUTED. THE LD.DR THOUGH ARGUED AGAINST THE SUBMISSIONS OF THE LD.AR, DID NOT RAISE ANY SERIOUS OBJECTIONS. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULLY PERUSED THE MATERIALS ON RECORD. WE FIND MERIT IN THE CONTENTION OF THE LD.AR. NOW SINCE THE LD.AR HAS VOUCHED BEFORE US THAT THE SALE DEED FOR THE PURCHASE OF THE LAND HAS BEEN EXECUTED, WE ARE OF THE 4 ITA NOS.1542 & 1543/CHNY/2018 CONSIDERED VIEW THAT THE SAME SHOULD BE EXAMINED BY THE LD.DCIT(EXEMPTIONS) IN ORDER TO DECIDE THE ISSUE AFRESH. ACCORDINGLY WE HEREBY REMIT THE MATTER BACK TO THE FILE OF LD.DCIT (EXEMPTIONS) WITH DIRECTION TO ADMIT THE FRESH EVIDENCE PRODUCED BY THE ASSESSEE AND THEREAFTER DECIDE THE MATTER IN ACCORDANCE WITH LAW AND MERIT. 6. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 18 TH JANUARY, 2019 AT CHENNAI. SD/- SD/- ( ) (DUVVURU R.L REDDY) /JUDICIAL MEMBER ( . ) (A. MOHAN ALANKAMONY) / ACCOUNTANT MEMBER /CHENNAI, /DATED 18 TH JANUARY, 2019 RSR /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. ( )/CIT(A) 4. /CIT 5. /DR 6. /GF