DCIT, Exemption Circle, Ghaziabad V. Swami Omkarananda Saraswati Charitable Trust, Tehri Garhwal

ITA 1887/DEL/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 5206 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-09-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2014-2015
• Appeal Filed On: 16-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AGAINST DATED PASSED
• Keywords: Depreciation; Charitable institution; Earning of tax free income
• Section: 12A; 10B; 201

Judgement Text

1 ITA NO. 1887/DEL/2018 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: B NEW DELHI BEFORE SHRI N. K. BILLAIYA, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDI CIAL MEMBER I.T.A. NO. 1887/DEL/20 18 (A.Y 2014-15) (THROUGH VIDEO CON FERENCING) DCIT EXEMPTION CIRCLE, ROOM NO. 105, CGO COMPLEX, II, 1 ST FLOOOR, KAMLA NEHRU NAGAR, GHAZIABAD, UTTAR PRADESH (APPELLANT) VS SWAMI OMKARANANDA SARASWATI CHARITABLE TRUST, SWAMI OMKARANANDA MRG, MUNI KI PETI, P.O SHIVANANDANAGAR, TEHRI GARHWAL, TEHRI GARHWAL, TEHRI, UTTARAKHAND AABTS8947F (RESPONDENT) ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE REVENUE AGAINST ORDER DATED 12/12/2017 PASSED BY CIT(A)-HALDWANI FOR ASSESSMENT YEAR 2014- 15. 2. THE GROUNDS OF APPEAL ARE AS UNDER:- 1. THE LD. CIT(A) HAS ERRED IN LAW AND FACTS IN DE LETING THE ADDITIONS OF RS. 17,15,732/- MADE BY THE AO AGAINST THE SURPLUS RECE IVED DURING THE YEAR. 2. THE LD. C1T(A) HAS ERRED IN LAW AND FACTS IN DE LETING THE DEPRECIATION OF APPELLANT BY MS. NIDHI SRIVASTAVA, CIT DR RESPONDENT BY SH. RAVI PRATAP MALL, ADV & SH. C. S. AGGARWAL, SR. ADV DATE OF HEARING 07.09.2021 DATE OF PRONOUNCEMENT 07.09.2021 2 ITA NO. 1887/DEL/2018 RS. 22,90,026/- MADE BY THE AO. 3. THE ORDER OF LD. CIT(A) HAS ERRED IN LAW AND FA CTS IN DELETING THE DISALLOWANCE OF RS. 49,93,587/- MADE BY THE AO AGAI NST THE INTER ORGANIZATIONAL DONATIONS RECEIVED. 4. THE LD. CIT(A) HAS ERRED IN LAW AND FACTS IN DE LETING THE ADDITION OF RS. 10,30,98,704/- MADE BY THE AO AGAINST THE CORPUS DO NATIONS RECEIVED DURING THE YEAR. 5. THE ORDER OF LD. CIT(A) BE CANCELLED AND THE OR DER OF THE AO BE RESTORED. 3. THE ASSESSEE IS A TRUST REGISTERED ON 10.04.1989 WITH THE OBJECTS TO ESTABLISH AND DEVELOP SCHOOLS AND COLLEGES FOR IMPA RTING EDUCATION AND ALSO MEDICAL AID TO THE NEEDY. THE ASSESSEE TRUST IS REG ISTERED U/S 12A OF THE INCOME TAX ACT, 1961 WITH THE COMMISSIONER OF INCOM E TAX, MEERUT VIDE SI. NO. 11/89-90, C.N. 40(3)/ REGISTRATION/RISHIKESH/81 -90/C.I.B. /22448 DATED 31.01.1990 W.E.F. 01.04.1989. THE ASSESSEE TRUST FU RNISHED ITS RETURN OF INCOME FOR A.Y. 2014-15 ON 29.09.2014 CLAIMING ENTI RE INCOME OF RS. 15,38,18,534/- AS EXEMPT INCOME. AUDIT REPORT IN FO RM NO. 10B WAS ATTACHED WITH THE RETURN OF INCOME. THE ASSESSING OFFICER MA DE ADDITION OF RS. 17,15,732/- THEREBY DISALLOWING THE SURPLUS RECEIVE D DURING THE YEAR. THE ASSESSING OFFICER ALSO DISALLOWED DEPRECIATION OF R S. 22,90,026/- AS WELL AS ORGANIZATIONAL DONATION OF RS.49,93,587/- AND CORPU S DONATIONS OF RS. 10,30,98,704/- RECEIVED DURING THE YEAR. 4. BEING AGGRIEVED BY THE PENALTY ORDER, THE ASSESS EE FILED APPEAL BEFORE THE CIT(A). THE CIT (A) ALLOWED THE APPEAL OF THE ASSE SSEE. 5. THE LD. DR RELIED UPON THE ASSESSMENT ORDER AND THE SUBMITTED THAT THE CIT(A) WAS NOT CORRECT IN ALLOWING THE APPEAL OF TH E ASSESSEE THEREBY DELETING ALL THE ADDITIONS. 3 ITA NO. 1887/DEL/2018 6. THE LD. AR RELIED UPON THE ORDER OF THE CIT(A) AND THE ORDER OF THE TRIBUNAL IN ASSESSEES OWN CASE BEING . 7. WE HAVE HEARD BOTH THE PARTIES AND PERUSED ALL T HE RELEVANT MATERIALS AVAILABLE ON RECORD. IT IS PERTINENT TO NOTE THAT FOR A.Y. 2002-03 ALSO THE TRIBUNAL HAS DISMISSED THE APPEAL OF THE REVENUE VI DE ORDER DATED 04.10.2006, THEREBY GRANTING BENEFIT OF THE EXEMPTION U/S 11/12 OF THE INCOME TAX ACT, 1961. THEREAFTER FROM A.YS. 2003-04 TILL 2009-10, T HE ASSESSING OFFICER HAS ACCEPTED THE CLAIM OF THE ASSESSEE THAT IT IS ELIGI BLE FOR DEDUCTION U/S 11/12 OF THE ACT. FOR A.Y. 2010-11, THE TRIBUNAL VIDE ORDER DATED 04.08.2017 HELD THAT THE ASSESSEE IS ELIGIBLE TO THE CLAIM. THE TRIBUNAL IN ASSESSMENT YEAR 2011-12 DISMISSED THE APPEAL VIDE ORDER DATED 30.05.2018 AS WELL AS FOR A.Y. 2012-13, THE TRIBUNAL VIDE ORDER DATED 23.08.2019. NOW COMI NG TO THE GROUND NO. 1 OF THE REVENUES APPEAL, THE SURPLUS RECEIVED OF RS. 1 7,15,723/ WAS DELETED BY THE CIT(A) BASED ON THE EARLIER ORDER FOR A.Y. 2010 -11 AND THE STAND OF THE ASSESSEE WAS ACCEPTED BY THE REVENUE IN THAT YEAR. THUS, GROUND NO. 1 OF THE REVENUES APPEAL IN THE PRESENT ASSESSMENT YEAR 201 4-15 IS DISMISSED. AS REGARDS TO GROUND NO. 2, THE CIT(A)S FINDING FOR A .Y. 2010-11 WHICH WAS DECIDED IN FAVOUR OF THE ASSESSEE BY THE TRIBUNAL. IN FACT, DURING THE YEAR UNDER CONSIDERATION, THE ASSESSEE IN ITS BOOKS OF A CCOUNT CLAIMED DEPRECIATION OF RS. 22,90,026/- ON THE MOVABLE ASSETS OF THE TRU ST, HOWEVER THIS DEPRECIATION AMOUNT WAS ADDED BACK IN THE RETURN OF INCOME AND WAS NOT CLAIMED AS APPLICATION OF INCOME WHICH IS EVIDENT F ROM THE BALANCE SHEET AND COMPUTATION OF INCOME. THUS, GROUND NO. 2 OF THE RE VENUES APPEAL IS DISMISSED. AS REGARDS TO GROUND NO. 3, THE TRIBUNAL IN A.Y. 2010-11 WHILE UPHOLDING THE DELETION MADE AGAINST THE INTER ORGAN IZATION DONATION RECEIVED AND UPHELD THE FINDINGS OF THE CIT(A) WHEN SUCH ADD ITIONS MADE WAS FOUND TO BE UNTENABLE. THE FACTS ARE SIMILAR IN THE PRESENT ASSESSMENT YEAR 2014-15, HENCE GROUND NO. 3 OF THE REVENUES APPEAL IS DISMI SSED. AS REGARDS TO GROUND NO. 4, THE CORPUS DONATIONS ARE NOT THE INCO ME SINCE IT HAS BEEN SPECIFICALLY RECEIVED BY WAY OF CORPUS AND THIS VIE W IS UPHELD BY THE TRIBUNAL IN 4 ITA NO. 1887/DEL/2018 A.Y. 2010-11. THUS, GROUND NO. 4 OF THE REVENUES A PPEAL IS DISMISSED. THE REVENUE HAS NOT POINTED OUT ANY DISTINGUISHING FACT S IN THE PRESENT ASSESSMENT YEAR TO THAT OF EARLIER ASSESSMENT YEARS . THEREFORE, ALL THE GROUNDS OF THE REVENUE ARE DISMISSED. 8. IN RESULT, THE APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 07 TH DAY OF SEPTEMBER, 2021 SD/- SD/- (N. K. BILLAIYA) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEM BER DATED: 07/09/2021 R. NAHEED * COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI