M/s Sri Yoginareyana Yathindra Mutt , Bangalore V. Income Tax officer Ward-3 (Exemption) , Bangalore

ITA 1712/BANG/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 5557 (ITAT-BANGALORE)
• Duration Of Justice: 6 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-02-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 21-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B R RAMESH
• Keywords: Charitable institution
• Section: 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORESHRI ARUN KUMAR GARODIA, ACCOUNTANT MEMBER AN D SHRI LALI T KUMAR, JUDICIAL MEMBER ITA NO. 1712 /BANG/2017 ASSESSMENT YEAR : 2012 - 13 M/S. SRI YOGINAREYANA YATHINDRA MUTT, KAIWARA, CHINTAMANI TALUK, KOLAR DISTRICT KOLAR 563 218. PAN: AAFTS 7445E VS. THE INCOME TAX OFFICER (EXEMPTIONS), WARD 3, BANGALORE. APPELLANT RESPONDENT ASSESSEE BY : SHRI RAVISHANKAR, ADVOCATE REVENUE BY : SHRI B.R. RAMESH, JCIT (DR) DATE OF HEARING : 1 4 . 0 2 .201 8 DATE OF PRONOUNCEMENT : 23 . 0 2.201 8 O R D E R PER SHRI A.K. GARODIA, ACCOUNTANT MEMBER; THIS APPEAL IS FILED BY THE ASSESSEE WHICH IS DIREC TED AGAINST THE ORDER OF LD. CIT(A) 14, LTU, BANGALORE DATED 31.05.2017 FOR AS SESSMENT YEAR 2012-13. 2. THE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER. 1. THE ORDER PASSED BY THE LEARNED HON'BLE COMMISSI ONER OF INCOME TAX [APPEAL] -14 IN SO FAR AS IT IS AGAINST THE APPELLANT IS OPP OSED TO LAW, EQUITY, WEIGHT OF EVIDENCE, PROBABILITIES AND THE FACTS AND CIRCUMSTA NCES IN THE APPELLANT'S CASE. 2. THE LEARNED CIT [A] FAILED TO APPRECIATE THAT TH E DEDUCTION OF 15% UNDER SECTION 11 [1][A] IS TO BE CALCULATED ON THE GROSS RECEIPTS AND NOT ON AMOUNT LEFT AFTER APPLICATION TOWARDS EXPENSES INCURRED FOR THE OBJEC TS OF THE TRUST, UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. THE LEARNED CIT [A] FAILED TO APPRECIATE THAT TH E ISSUE WHETHER THE PROVISIONS OF THE GROSS RECEIPTS OR ON THE NET RECEIPTS HAS BEEN DECIDED BY THE HON'BLE CO- ORDINATE BENCH OF DECISION OF THIS HON'BLE TRIBUNAL IN THE CASE OF JYOTHI CHARITABLE TRUST IN 662/ BANG/2015, ORDER DATED 14/08/2015, CA PUCHIN FRIAR SERVICES OF SOCIETY [ITA NO.367/BANG/2015], ST.CHARLES MEDICAL SOCIETY NIRMAL HOSPITAL [ITA NO.364/BANG/2015] AND MARY IMMACULATE SOCIETY [ITA NO.240 ET 241/BANG/2015] WHICH HAS HELD THAT THE ACCUMULATION OF 15% UNDER S ECTION 11[1][A] OF THE ACT HAS TO BE COMPUTED ON THE GROSS RECEIPTS AND NOT ON THE NET RECEIPTS, WHICH IS SQUARELY COVERED IN FAVOUR OF THE APPELLANT AND FAILED TO AP PLY A BINDING DECISION IS NOT CORRECT IN LAW ON THE FACTS AND CIRCUMSTANCES OF TH E CASE. ITA NO.1712/BANG/2017 PAGE 2 OF 3 4. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, DELETE OR SUBSTITUTE ANY OF THE GROUNDS URGED ABOVE. 5. IN THE VIEW OF THE ABOVE AND OTHER GROUNDS THAT MAY BE URGED AT THE TIME OF THE HEARING OF THE APPEAL, THE APPELLANT PRAYS THAT THE APPEAL MAY BE ALLOWED IN THE INTEREST OF JUSTICE AND EQUITY. 3. IT WAS SUBMITTED BY LD. AR OF ASSESSEE THAT ONLY ONE ISSUE IS INVOLVED IN PRESENT APPEAL AS TO WHETHER THE DEDUCTION OF 15% U /S. 11(1)(A) IS TO BE CALCULATED ON THE GROSS RECEIPTS OR NET INCOME. HE SUBMITTED THAT THIS ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE T RIBUNAL ORDER RENDERED IN THE CASE OF JYOTHY CHARITABLE TRUST VS. DCIT(E) IN ITA NO. 662/BANG/2015 DATED 14.08.2015. HE SUBMITTED A COPY OF THIS TRIB UNAL ORDER AND DRAWN OUR ATTENTION TO PARA NOS. 15 TO 18 OF THIS TRIBUNAL OR DER. THE LD. DR OF REVENUE SUPPORTED THE ORDERS OF AUTHORITIES BELOW. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FI ND THAT THE LD. CIT(A) HAS STATED ON LAST PAGE OF HIS ORDER THAT HE RESPECTFUL LY DIFFERS FROM THE DECISIONS IN THE CASE LAWS NOTED BY HIM IN HIS ORDER WHICH INCLU DES THIS TRIBUNAL ORDER ALSO RENDERED IN THE CASE OF JYOTHY CHARITABLE TRUST VS. DCIT(E) (SUPRA) AND DECIDED THE ISSUE AGAINST THE ASSESSEE. WE HAVE TO OBSERVE THAT CIT(A) WAS NOT PROPER IN TAKING A DIFFERENT VIEW WITHOUT POINT ING OUT ANY DIFFERENCE IN FACTS. WE RESPECTFULLY FOLLOW THE TRIBUNAL ORDER OF THE CO ORDINATE BENCH RENDERED IN THE CASE OF JYOTHY CHARITABLE TRUST VS. DCIT(E) (SU PRA) AND DECIDE THE ISSUE IN FAVOUR OF THE ASSESSEE AND THE AO IS DIRECTED TO AL LOW DEDUCTION U/S. 11(1)(A) OF THE ACT TO THE EXTENT OF 15% OF THE GROSS RECEIP TS. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE MENT IONED ON THE CAPTION PAGE. SD/- SD/- (LALIT KUMAR) (ARUN KUMAR GAROD IA) JUDICIAL MEMBER ACCOUNTANT MEMBER BANGALORE, DATED, THE 23 RD FEBRUARY, 2018. /MS/ ITA NO.1712/BANG/2017 PAGE 3 OF 3 COPY TO: 1. APP ELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.