Eastern Zonal Cultural Centre, Kolkata V. I.T.O.,Ward-1(2)(Exemption), Kolkata

ITA 1870/KOL/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 8810 (ITAT-KOLKATA)
• Duration Of Justice: 11 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-07-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 08-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GAUTAM BANERJEE FCA SHR
• Keywords: Charitable institution
• Section: 250; 13; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA C BENCH, KOLKATA (BEFORE SRI J. SUDHAKAR REDDY, HONBLE ACCOUNTANT MEMBER & SRI ABY T. VARKEY, HONBLE JUDICIAL MEMBER) [VIRTUAL COURT HEARING] ITA NO. 1870/KOL/2019 ASSESSMENT YEARS: 2014-15 EASTERN ZONAL CULTURAL CENTRE................................................................................APPELLANT IA-290, AIKATAN SEC-III SALT LAKE KOLKATA 700 097 [PAN : AAAAE 7190 E] VS. INCOME TAX OFFICER, WARD-1(2), EXEMPTION, KOLKATA................................. RESPONDENT APPEARANCES BY: SHRI GAUTAM BANERJEE, FCA, APPEARED ON BEHALF OF THE ASSESSEE. SHRI SUPRIYO PAL, JCIT D/R, APPEARING ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : JULY 20 TH , 2020 DATE OF PRONOUNCING THE ORDER : JULY 24 TH , 2020 ORDER PER J. SUDHAKAR REDDY, AM :- THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) 25, KOLKATA, (HEREINAFTER THE LD.CIT(A)), PASSED U/S. 250 OF THE INCOME TAX ACT, 1961 (THE ACT), DT. 10/05/2019 FOR THE ASSESSMENT YEAR 2014-15. 2. AT THE OUTSET WE FIND THAT THERE IS A DELAY OF 09 (NINE) DAYS IN FILING OF THIS APPEAL BY THE ASSESSEE. AFTER PERUSING THE PETITION FOR CONDONATION, WE ARE CONVINCED THAT THE ASSESSEE WAS PREVENTED BY SUFFICIENT CAUSE FROM FILING THE APPEAL IN TIME. HENCE THE DELAY IS CONDONED AND THE APPEAL IS ADMITTED. 3. AFTER HEARING RIVAL CONTENTIONS WE FIND THAT THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE BY THE DECISION OF THE SMC BENCH OF THE TRIBUNAL IN THE CASE OF M/S. SAHARA UTSRGA WELFARE SOCIETY VS. DCIT IN ITA NO. 927/KOL/2019, ORDER DT. JULY 13 TH , 2020, WHILE DECIDING THE IDENTICAL ISSUE HELD AS FOLLOWS:- 2. AFTER HEARING RIVAL CONTENTIONS, I FIND THAT THE SOLE ISSUE IS WHETHER THE ASSESSEE IS ENTITLED TO ACCUMULATION OF 15% ON THE GROSS RECEIPTS AND WHEREAS THE ASSESSING OFFICER HELD THAT THE ASSESSEE IS ENTITLED TO 15% OF THE NET RECEIPT. 3. THE HONBLE SUPREME COURT OF INDIA IN THE CASE OF CIT VS. PROGRAMME FOR COMMUNITY ORGANISATION REPORTED IN [2001] 248 ITR 0001 (SC) HAS HELD AS FOLLOWS:- CHARITABLE TRUST- ACCUMULATION OF INCOME- CHARITABLE TRUST IS ENTITLED TO ACCUMULATE 25 PER CENT OF ITS INCOME DERIVED FROM PROPERTY HELD UNDER TRUST AND NOT 25 PER CENT OF THE INCOME REMAINING AFTER APPLICATION OF INCOME FOR CHARITABLE PURPOSES THEREFORE, ASSESSEE-TRUST WAS ENTITLED TO ACCUMULATE 25 PER CENT OF DONATIONS RECEIVED BY IT AND NOT MERELY 25 PER CENT OF UNSPENT BALANCE. THE B BENCH OF THE ITAT IN THE ASSESSEES OWN CASE IN ITA NO. 2436/KOL/2018, ORDER DT. 22/01/2020, FOR THE ASSESSMENT YEAR 2012 ..... WE NOTE THAT IN THE PROVISIONS OF SECTION 11(1) IT HAS BEEN CLEARLY MENTIONED 15% OF THE INCOME, HENCE IT IS GROSS INCOME OF THE ASSESSEE TRUST AND NOT THE NET INCOME. THEREFORE, BASED ON THIS FACTUAL POSITION AS ME TO ALLOW 15% EXEMPTION ON GROSS RECEIPTS. 4. RESPECTFULLY FOLLOWING THE SAME, WE HOLD THAT THE ASSESSEE IS ENTITLED TO THE ACCUMULATION OF 15% ON THE GROSS RECEIPT AS PER PROVISIONS 4. CONSISTENT WITH THE VIEW TAKEN THEREIN, WE HOLD THAT, THE SET APART AMOUNT U/S. 11(1) OF THE ACT, SHOULD BE CALCULATED ON GROSS REVENUE INCOME AND NOT ON NET INCOME AFTER EXPENSES. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS KOLKATA, THE SD/- [ ABY T. VARKEY] JUDICIAL MEMBER DATED : 24.07.2020 {SC SPS} COPY OF THE ORDER FORWARDED TO: 1. EASTERN ZONAL CULTURAL CENTRE IA-290, AIKATAN SEC-III SALT LAKE KOLKATA 700 097 2. INCOME TAX OFFICER, WARD- 1(2), EXEMPTION, KOLKATA 3. CIT(A)- 4. CIT- , 5. CIT(DR), KOLKATA BENCHES, KOLKATA. 2 EASTERN ZONAL CULTURAL CENTRE THE B BENCH OF THE ITAT IN THE ASSESSEES OWN CASE IN ITA NO. 2436/KOL/2018, ORDER DT. 22/01/2020, FOR THE ASSESSMENT YEAR 2012 -13, ON TH E SAME ISSUE HELD AS FOLLOWS: WE NOTE THAT IN THE PROVISIONS OF SECTION 11(1) IT HAS BEEN CLEARLY MENTIONED 15% OF THE INCOME, HENCE IT IS GROSS INCOME OF THE ASSESSEE TRUST AND NOT THE NET INCOME. THEREFORE, BASED ON THIS FACTUAL POSITION AS ME NTIONED IN SECTION 11(1) AS NOTED ABOVE, WE DIRECT THE ASSESSING OFFICER TO ALLOW 15% EXEMPTION ON GROSS RECEIPTS. RESPECTFULLY FOLLOWING THE SAME, WE HOLD THAT THE ASSESSEE IS ENTITLED TO THE ACCUMULATION OF 15% ON THE GROSS RECEIPT AS PER PROVISIONS OF SECTION 11 OF THE ACT. CONSISTENT WITH THE VIEW TAKEN THEREIN, WE HOLD THAT, THE SET APART AMOUNT U/S. 11(1) OF THE ACT, SHOULD BE CALCULATED ON GROSS REVENUE INCOME AND NOT ON NET INCOME IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. KOLKATA, THE 24 TH DAY OF JULY, 2020. [ J. SUDHAKAR REDDY ACCOUNTANT MEMBER EASTERN ZONAL CULTURAL CENTRE 1(2), EXEMPTION, KOLKATA 5. CIT(DR), KOLKATA BENCHES, KOLKATA. ASSISTANT REGISTRAR ITAT, KOLKATA BENCHES ITA NO. 1870/KOL/2019 ASSESSMENT YEARS: 2014-15 EASTERN ZONAL CULTURAL CENTRE THE B BENCH OF THE ITAT IN THE ASSESSEES OWN CASE IN ITA NO. 2436/KOL/2018, ORDER DT. E SAME ISSUE HELD AS FOLLOWS: - WE NOTE THAT IN THE PROVISIONS OF SECTION 11(1) IT HAS BEEN CLEARLY MENTIONED 15% OF THE INCOME, HENCE IT IS GROSS INCOME OF THE ASSESSEE TRUST AND NOT THE NET INCOME. THEREFORE, BASED ON NTIONED IN SECTION 11(1) AS NOTED ABOVE, WE DIRECT THE ASSESSING OFFICER RESPECTFULLY FOLLOWING THE SAME, WE HOLD THAT THE ASSESSEE IS ENTITLED TO THE OF SECTION 11 OF THE ACT. CONSISTENT WITH THE VIEW TAKEN THEREIN, WE HOLD THAT, THE SET APART AMOUNT U/S. 11(1) OF THE ACT, SHOULD BE CALCULATED ON GROSS REVENUE INCOME AND NOT ON NET INCOME SD/- J. SUDHAKAR REDDY ] ACCOUNTANT MEMBER TRUE COPY BY ORDER ASSISTANT REGISTRAR ITAT, KOLKATA BENCHES 3 EASTERN ZONAL CULTURAL CENTRE ITA NO. 1870/KOL/2019 ASSESSMENT YEARS: 2014-15 EASTERN ZONAL CULTURAL CENTRE