Marathi Bandhkam Vyavsayik Association, Pune V. Income-tax Officer, (Exemption) Ward-1, Pune

ITA 1613/PUN/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 5166 (ITAT-PUNE)
• Duration Of Justice: 3 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-02-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 08-10-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: M K VERMA

Judgement Text

- IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, P UNE BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI PARTHA SARATHI CHAUDHURY, JM / ITA NO.1613/PUN/2018 / ASSESSMENT YEAR : 2014-15 MARATHI BANDHKAM VYAVSAYIK ASSOCIATION, 2 ND FLOOR, PRO ONE BUSINESS CENTRE, S.B. ROAD, PUNE-16 PAN : AACTM0747L .... / APPELLANT ! / V/S. THE INCOME TAX OFFICER, (EXEMPTION) WARD-1, PUNE. / RESPONDENT ASSESSEE BY : SHRI SUHAS BORA REVENUE BY : SHRI M.K. VERMA / DATE OF HEARING : 04.02.2019 / DATE OF PRONOUNCEMENT : 04.02.2019 ' / ORDER PER PARTHA SARATHI CHAUDHURY, JM : THIS APPEAL PREFERRED BY THE ASSESSEE EMANATES FROM TH E ORDER OF LD. CIT(APPEALS), PUNE-10 DATED 23.07.2018 FOR THE ASSESSMENT YEAR 2014-15 AS PER FOLLOWING GROUNDS OF APPEAL ON RECORD: 1.THE LEARNED CIT(A) ERRED IN SETTING ASIDE THE APP EAL BY GIVING DIRECTION TO THE A.O TO ALLOW/NOT ALLOW THE CLAIM OF THE APPE LLANT AS MUTUAL SOCIETY 2 ITA NO.1613/PUN/2018 A.Y.2014-15 SUBJECT TO VERIFICATION AS APPELLANT HAD NOT FILED RETURN OF INCOME AS MUTUAL ASSOCIATION AND HAD FILED THE RETURN OF INCO ME WHERE IN EXEMPTION U/S.11 IS CLAIMED. 2. THE LEARNED CIT(A) WHILE SETTING ASIDE THE APPEA L OF THE APPELLANT HAD FAILED TO APPRECIATE THAT WHEN HE HIMSELF HAD HOLD THAT: A. THE AO HAD NOT ANALYZED THE NATURE OF RECEIPTS AS W ELL AS EXPENSES OF THE ASSOCIATION. B. THE AO HAD ACCEPTED THE APPELLANT IS A TRADE ASSOCI ATION OF BUILDERS IN MAHARASHTRA AND CONDUCTED THE ACTIVITIE S. C. THE AO HAD NOT GIVEN ANY ADVERSE FINDINGS ABOUT THE CLAIM OF THE APPELLANT THAT IT IS MUTUAL ASSOCIATION AND INC OME OF THE ASSOCIATION IS NOT LIABLE FOR TAX. 3. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND OR DELETE ANY OF THE ABOVE GROUNDS OF APPEAL. 2. THE BRIEF FACTS IN THIS CASE ARE THAT THE ASSESSEE IS AN AOP (TRUST) [AS MENTIONED IN SR. NO.4 FIRST PAGE OF THE ASSESSMENT ORDER]. THE ASSESSEE FILED RETURN OF INCOME FOR ASSESSMENT YEAR 2014-15 ON 26.09.20 14 DECLARING NIL INCOME. THE ASSESSMENT WAS COMPLETED U/S.143(3) OF THE INC OME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) ON 26.12.2016 AT A TOTAL INCOME OF RS.45,84,780/-. THE ASSESSING OFFICER HAD COMPUTED THE TOTA L INCOME AT RS.45,84,780/- THEREBY DENYING THE ASSESSEES CLAIM OF COR PUS DONATION OF RS.4,95,000/- AS NOT EXEMPT U/S.11(1)(D) BEING THE ASSESSEE AS NOT REGISTERED U/S.12AA OF THE ACT. THE ASSESSING OFFICER HAD ALSO CONSIDE RED THE GROSS RECEIPT OF RS.2,95,27,349/- AND ALLOWED THE EXPENDITURE CLAIME D BY ASSESSEE OF RS.2,54,37,566/-. 3. DURING THE FIRST APPELLATE PROCEEDINGS, THE LD. CIT(APPE ALS) WHILE DECIDING THE ISSUE OBSERVED THAT ON PERUSAL OF THE ASSE SSMENT ORDER AND THE SUBMISSIONS OF THE ASSESSEE, THE ASSESSING OFFICER WITHOUT M AKING ANY DISCUSSION ABOUT THE INFORMATION OF THE ASSESSEE ASSOCIATIO N AND WITHOUT 3 ITA NO.1613/PUN/2018 A.Y.2014-15 ANALYZING THE NATURE OF RECEIPTS VIS--VIS THE EXPENSES CLAIMED IN THE RETURN AND ACCOUNTS FILED BY THE ASSESSEE HAD CONCLUDED THAT T HE ASSESSEE IS A AOP (TRUST) AND FOR THE REASON THAT IT WAS NOT REGISTERED U/S.12AA OF THE ACT, HAD COMPUTED THE TOTAL INCOME BY ADDING THE SURPLUS OF RS.4 0,89,783/- AND ALSO ADDED THE AMOUNT OF RS.4,95,000/- ON ACCOUNT OF CORPUS D ONATION BEING NOT EXEMPT U/S.11(1)(D) OF THE ACT. THE LD. CIT(APPEALS) FURTHER OB SERVED THAT ACCOUNTS OF THE ASSESSEE TRUST WAS ALSO NOT EXAMINED N EITHER ANALYZED. THAT THEREAFTER, THE LD. CIT(APPEAL) HELD THAT THE ASSESSING OFF ICER IS DIRECTED TO ALLOW/ NOT TO ALLOW THE CLAIM OF THE ASSESSEE AS A MUTUAL S OCIETY SUBJECT TO VERIFICATION OF THE RECEIPTS, EXPENDITURES AND THE CRITERIA M ENTIONED ABOVE, WHETHER FULFILLED OR NOT. THE ASSESSEE IS REQUESTED TO SU BMIT ALL THE RELEVANT DOCUMENTS BEFORE THE ASSESSING OFFICER AND ALSO TO PRESEN T THE CASE PROPERLY ON MERITS. 4. WE HAVE PERUSED THE CASE RECORD AND HAVE GIVEN TH OUGHTFUL CONSIDERATION TO THE ORDERS OF THE REVENUE AUTHORITIES. THE FACTS ON RECORD SUGGESTS, SPECIFICALLY IN THE OBSERVATION OF THE LD. CIT(APPE ALS) THAT THE ASSESSING OFFICER IN THIS CASE HAS NEITHER DISCUSSED ANYTHIN G ABOUT FORMATION OF THE ASSESSEES ASSOCIATION NOR HAS ANALYZED THE NAT URE OF RECEIPTS ABOUT EXPENSES CLAIMED IN THE RETURN AND THE ACCOUNTS FILED BY THE ASSESSEE. WITHOUT ENTERING INTO THIS DISCUSSION, THE ASSESSING OFFICER H AS SUO-MOTO CONCLUDED THAT THE ASSESSEE IS AOP (TRUST). SINCE THE EX ERCISE OF THE ASSESSING OFFICER WAS NOT IN ACCORDANCE WITH THE RULES OF J USTICE AS PER INCOME TAX ACT, 1961, THE LD. CIT(APPEALS) IN HIS ORDER HAS GIVEN REQUISITE DIRECTION. 4 ITA NO.1613/PUN/2018 A.Y.2014-15 CONSIDERING THE ENTIRETY OF FACTS AND CIRCUMSTANCES, WE D O NOT FIND ANY INFIRMITY IN THE FINDINGS OF THE LD. CIT(APPEAL) WHICH IS THEREBY, UPHELD. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED ON 04 TH DAY OF FEBRUARY, 2019. SD/- SD/- D. KARUNAKARA RAO PARTHA SARATHI CHAUDHURY ACCOUNTANT MEMBER JUDICIAL MEMBER / PUNE; / DATED : 04 TH FEBRUARY, 2019. SB '#$%&'(' % / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(APPEALS), PUNE-10. 4. THE CIT (EXEMPTION), PUNE. 5. '#$ %%&' , ( &' , - )*+ , / DR, ITAT, SMC BENCH, PUNE. 6. $,- ./ / GUARD FILE. // TRUE COPY // (0 / BY ORDER, %1 &+ / PRIVATE SECRETARY ( &' , / ITAT, PUNE. 5 ITA NO.1613/PUN/2018 A.Y.2014-15 DATE 1 DRAFT DICTATED ON 0 4 .0 2 .2019 SR.PS/PS 2 DRAFT PLACED BEFORE AUTHOR 04 .0 2 .201 9 SR.PS/PS 3 DRAFT PROPOSED AND PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/JM 5 APPROVED DRAFT COMES TO THE SR. PS/PS SR.PS/PS 6 KEPT FOR PRONOUNCEMENT ON SR.PS/PS 7 DATE OF UPLOADING OF ORDER SR.PS/PS 8 FILE SENT TO BENCH CLERK SR.PS/PS 9 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 10 DATE ON WHICH FILE GOES TO THE A.R 11 DATE OF DISPATCH OF ORDER