Appeal details
Counselvise Citation
[2021] 107 COUNSELVISE.COM (IT) 4959 (ITAT-DELHI)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
3 year(s) 6 month(s) 21 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
27-09-2021
Appeal Filed By
Department
Order Result
Dismissed
Bench Allotted
G
Assessment Year
2013-2014
Appeal Filed On
08-03-2018
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B, NEW DELHI BEFORE SH. ANIL CHATURVEDI, ACCOUNTANT MEMBER AND SH. SANJAY GARG, JUDICIAL MEMBER (THROUGH VIDEO CONFERENCING) ITA NO. 1658/DEL/2018 (ASSESSMENT YEAR : 2013-14) ACIT(E) CIRCLE 2(1) NEW DELHI PAN : AABAS 8148 P VS. SHIKSHANTAR WELFARE SOCIETY, S-518, LOWER GROUND FLOOR GREATER KAILASH-1 NEW DELHI - 110048 (APPELLANT) (RESPONDENT) ASSESSEE BY -- NONE -- REVENUE BY MS. NIDHI SRIVASTAVA , CIT - D.R. DATE OF HEARING: 2 2 .0 9 .2021 DATE OF PRONOUNCEMENT: 27 .0 9 .2021 ORDER PER ANIL CHATURVEDI, AM: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 15.12.2017 OF THE COMMISSIONER OF INCOME TAX (APPEALS)-40, DELHI RELATING TO ASSESSMENT YEAR 2013-14. 2. THE RELEVANT FACTS AS CULLED FROM THE MATERIAL ON RECORDS ARE AS UNDER : 3. ASSESSEE IS A SOCIETY REGISTERED UNDER SOCIETIES REGISTRATION ACT, 1860 AND ALSO REGISTERED U/S 12A(A) OF THE ACT AND NOTIFIED 2 U/S 80G OF THE ACT. ASSESSEE FILED ITS RETURN OF INCOME FOR A.Y. 2013-14 ON 26.09.2013 DECLARING TOTAL INCOME OF RS. NIL. THE CASE WAS SELECTED FOR SCRUTINY AND THEREAFTER ASSESSMENT WAS FRAMED U/S 143(3) OF THE ACT VIDE ORDER DATED 29.03.2016 AND EXCESS APPLICATION OVER INCOME WAS DETERMINED AT RS.11,77,102/-. AGGRIEVED BY THE ORDER OF AO, ASSESSEE CARRIED THE MATTER BEFORE THE CIT(A) WHO VIDE ORDER DATED 15.12.2017 IN APPEAL NO.479/2016-17 GRANTED SUBSTANTIAL RELIEF TO THE ASSESSEE. AGGRIEVED BY THE ORDER OF CIT(A), REVENUE IS NOW IN APPEAL BEFORE US AND HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. ON THE BASIS OF FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN ALLOWING THE ASESSEE'S CLAIM OF CARRY FORWARD OF CURRENT YEAR'S LOSS AND SET-OFF OF EXCESS DEFICIT PERTAINING TO EARLIER YEARS WITHOUT APPRECIATING THE FACT THAT THE SCHEME OF TAXATION OF CHARITABLE OR RELIGIOUS TRUST/INSTITUTION AS CODIFIED U/S 11, 12 AND 13 THERE IS NO PROVISION FOR COMPUTING LOSS FROM PROPERTY HELD UNDER TRUST/INSTITUTION ON ACCOUNT OF EXCESS APPLICATION OF INCOME/FUNDS OF THE TRUST. 2. ON THE BASIS OF FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN ALLOWING THE ASESSEE'S CLAIM OF CARRY FORWARD OF CURRENT YEAR'S LOSS AND SET-OFF OF EXCESS DEFICIT PERTAINING TO EARLIER YEARS WITHOUT APPRECIATING THE FACT THAT THE NORMAL COMPUTATION OF INCOME UNDER RESPECTIVE HEADS AS ENVISAGED U/S. 15 TO 59 ARE NOT APPLICABLE TO THE COMPUTATION OF INCOME IN RESPECT OF CHARITABLE TRUST/ INSTITUTION FOR THE PURPOSE OF CLAIMING EXEMPTION UNDER SECTION 11, 12 AND 13 AND, THEREFORE THE PROVISIONS RELATING TO SET-OFF OF LOSS FROM ONE SOURCE AGAINST THE INCOME FROM ANOTHER SOURCE, SET-OFF OF LOSS FROM ONE HEAD AGAINST INCOME FROM ANOTHER HEAD AND CARRY FORWARD AND SET-OFF OF LOSS AGAINST THE INCOME OF SUBSEQUENT YEARS AS ENVISAGED U/S. 70 TO 79 ARE ALSO NOT APPLICABLE TO THE CHARITABLE TRUSTS/ INSTITUTIONS. 3. THE APPELLANT CRAVES LEAVE TO ADD, TO ALTER OR AMEND ANY GROUND OF APPEAL RAISED ABOVE AT THE TIME OF HEARING. 3 4. ON THE DATE OF HEARING NONE APPEARED ON BEHALF OF THE ASSESSEE THOUGH THE NOTICE DATE OF HEARING WAS ISSUED TO THE ASSESSEE. THE CASE FILE ALSO REVEALS THAT THE NOTICE OF HEARING WAS RETURNED BACK BY THE POSTAL AUTHORITIES WITH THE REMARK NO SUCH PERSON IN THIS ADDRESS. IN VIEW OF THESE FACTS, WE PROCEED TO DISPOSE OF THE APPEAL EX PARTE QUA THE ASSESSEE AFTER CONSIDERING THE MATERIAL ON RECORD AND AFTER HEARING BY THE LEARNED DR. 5. AO DURING THE COURSE OF ASSESSMENT PROCEEDINGS NOTED THAT AFTER SETTING APART 15% OF THE RECEIPT/INCOME, THE BALANCE AMOUNT THAT SHOULD HAVE BEEN APPLIED TOWARDS THE OBJECTS OF TRUST WAS RS.11.82 CRORE (ROUNDED OFF). AFTER DISALLOWING THE CLAIM OF DEPRECIATION OF RS.1.65 CRORE (ROUNDED OFF) AND LOSS ON SALE OF VEHICLES OF RS.2.13 LAKHS (ROUNDED OFF), FOR THE REASONS MENTIONED IN THE ASSESSMENT ORDER, HE DETERMINED THE AMOUNT THAT WAS APPLIED FOR CHARITABLE PURPOSES AT RS.11,94,24,420/-. HE THEREAFTER CALCULATED THE EXCESS OF APPLICATION OF THE INCOME/DEFICIT OF RS.11,77,102/-. THE AFORESAID EXCESS OF INCOME/DEFICIT WAS DENIED FOR CARRY FORWARD AS HE WAS OF THE VIEW THAT CARRY FORWARD OF DEFICIT/LOSS WAS APPLICABLE ONLY TO INCOME UNDER THE HEAD PROFITS AND GAINS OF BUSINESS AND PROFESSION AND WAS NOT PERMISSIBLE IN CASE OF INCOME UNDER SECTION 11 TO 13 OF THE INCOME TAX ACT, 1961. WHEN THE MATTER WAS CARRIED BEFORE THE CIT(A), CIT(A) AFTER RELYING ON THE DECISION RENDERED BY HONBLE DELHI HIGH COURT IN THE CASE OF DIT VS. RAGHUVANSHI CHARITABLE TRUST, 197 TAXMAN 170 (DELHI) 2011 AND OTHER DECISIONS CITED IN THE ORDER, DIRECTED THE AO TO ALLOW THE SET OFF OF 4 CARRY FORWARD DEFICIT. AGGRIEVED BY THE ORDER OF CIT(A), REVENUE IS IN APPEAL BEFORE US. 6. BEFORE US, LEARNED DR SUPPORTED THE ORDER OF AO. 7. WE HAVE HEARD THE LEARNED DR AND PERUSED THE MATERIALS AVAILABLE ON RECORD. THE ISSUE IN THE PRESENT GROUND RAISED BY THE REVENUE IS THE DIRECTIONS OF CIT(A) TO ALLOW THE SET OFF OF CARRY FORWARD DEFICIT. WE FIND THAT CIT(A) AFTER RELYING ON THE VARIOUS DECISIONS CITED IN THE ORDER INCLUDING THE DECISION RENDERED BY THE DELHI HIGH COURT IN THE CASE OF DIT VS. RAGHUVANSHI CHARITABLE TRUST (SUPRA) DIRECTED THE AO TO ALLOW THE SET OFF OF CARRIED FORWARD DEFICIT. BEFORE US, NO FALLACY IN THE FINDINGS OF CIT(A) HAS BEEN POINTED OUT BY THE REVENUE. REVENUE HAS ALSO NOT PLACED ON RECORD ANY CONTRARY BINDING DECISION IN ITS SUPPORT. IN VIEW OF THE AFORESAID FACTS, WE FIND NO REASON TO INTERFERE TO THE ORDER OF CIT(A) AND THUS THE APPEAL OF THE REVENUE IS DISMISSED. 8. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 27.09.2021 SD/- SD/- (SANJAY GARG) (ANIL CHATURVEDI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATE:- 27.09.2021 PY* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI
