SRI VENKATESHWARA EDUCATIONAL TRUST, KANCHIPURAM V. DCIT(EXCEMPTION), CHENNAI

ITA 2035/CHNY/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 3668 (ITAT-CHENNAI)
• Duration Of Justice: 2 year(s) 3 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-10-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 11-10-2021
• Assessment Year: 2014-2015
• Appeal Filed On: 10-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Additional evidence; Valuation report; Set aside
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI , , BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENTAND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER ./ ITA NO.: 2035/CHNY/2019 [ [ / ASSESSMENT YEAR: 2014-15 M/S. SRI VENKATESWARA EDUCATIONAL TRUST , 40/41, EVR PERIYAR STREET, SHANMUGA NAGAR EXTENSION, KANCHIPURAM 631 502. PAN : AAHTS 0002K V. THE DCIT (EXEMPTIONS), CHENNAI CIRCLE, CHENNAI - 34. ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI I. DINESH, ADVOCATE /RESPONDENT BY : SHRI AR.V. SREENIVASAN, ADDL.CIT /DATE OF HEARING : 11.10.2021 /DATE OF PRONOUNCEMENT : 11.10.2021 / O R D E R PER MAHAVIR SINGH, VP: THIS APPEAL BY THE ASSESSEE IS ARISING OUT OF THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-17, CHENNAI IN ITA NO.155/CIT(A)-17/2016-17 DATED 30.04.2019. THE ASSESSMENT 2 I.T.A. NO. 2035/CHNY/2019 WAS FRAMED BY THE DEPUTY COMMISSIONER OF INCOME TAX (EXEMPTIONS), CHENNAI CIRCLE, CHENNAI U/S 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER THE ACT) FOR THE A.Y. 2014- 15 VIDE ORDER DATED 30.12.2016. 2. AT THE OUTSET, THE LD.COUNSEL FOR THE ASSESSEE STATED THAT THE ASSESSEE IS AN EDUCATIONAL TRUST AT KANCHIPURAM RUNNING ENGINEERING COLLEGE IN THE NAME OF LORD AYYAPPA INSTITUTE OF SCIENCE AND TECHNOLOGY. IT WAS STATED THAT THE COLLEGE WAS CLOSED DURING THE YEAR 2017. FOR THE ASSESSMENT YEAR 2014-15, THE ASSESSMENT PROCEEDINGS TOOK PLACE DURING DECEMBER, 2016 AND ASSESSMENT WAS FRAMED BY THE AO U/S.143(3)OF THE ACT, VIDE ORDER DATED 30.12.2016. THE BOOKS OF ACCOUNTS AND RECORDS WERE CALLED FOR, UNFORTUNATELY THE ENTIRE RECORDS WERE WASHED AWAY IN THE UNFORTUNATE FLOODS OCCURRED IN CHENNAI DURING 2015. IT WAS STATED THAT DURING THE HEARING PROCESS BEFORE THE CIT(A) THE ASSESSEE COULD NOT PRODUCE THE DOCUMENTS AND EVEN BEFORE THE AO, IT WAS NOT PRODUCED BECAUSE THESE WERE NOT AVAILABLE AND THE ORDER WAS PASSED SINCE IT WAS TIME BARRING. THE AO FRAMED ASSESSMENT AND MADE ADDITION TOWARDS CAPITAL WORK-IN-PROGRESS OF 3 I.T.A. NO. 2035/CHNY/2019 RS.1,15,62,993/- IN THE ABSENCE OF DETAILS. THE CIT(A) ALSO UPHELD THE ADDITION AND DISMISSED THE APPEAL OF THE ASSESSEE BY OBSERVING IN PARA 6.3 AS UNDER:- 6.3. DURING THE COURSE OF THE HEARING ON 12/2/2019, THE CHAIRMAN OF THE TRUST WAS SPECIFICALLY ASKED WHETHER THE BOOKS OF ACCOUNTS ARE AVAILABLE. HE REPLIED THAT THE BOOKS OF ACCOUNTS ARE NOT AVAILABLE. HE WAS FURTHER ASKED WHETHER HE CAN PRODUCE THE BILLS IN SUPPORT OF THE CLAIMED CAPITAL WORK IN PROGRESS. HE REPLIED THAT THE BILLS ARE ALSO NOT AVAILABLE. THE ASSESSEE DID NOT BRING ANY OTHER MATERIAL ON RECORD IN SUPPORT OF THE CLAIMED CAPITAL WORK IN PROGRESS. HENCE THE DISALLOWANCE OF CLAIMED CAPITAL WORK IN PROGRESS AS APPLICATION TOWARDS OBJECTIVES OF THE TRUST, IS UPHELD. 3. NOW, THE ASSESSEE STATED THAT IT HAS COLLECTED ALL THE EVIDENCES IN RECORD REGARDING EXPENSES INCURRED IN CONSTRUCTION OF LORD AYYAPPA INSTITUTE OF ENGINEERING AND TECHNOLOGY AND COMPLETE DETAILS I.E., COPIES OF VOUCHERS ARE ENCLOSED IN ASSESSEES PAPER-BOOK AT PAGES 7 TO 152 AND VALUATION REPORT BY THE VALUER AS APPROVED BY THE INCOME TAX DEPARTMENT IS 4 I.T.A. NO. 2035/CHNY/2019 ENCLOSED AT PAGES 161 TO 166. THE LD.COUNSEL STATED THAT THESE DOCUMENTS WERE NOW RECONSTRUCTED BY GATHERING FROM THE SUPPLIERS AND IT WAS REQUESTED THAT THESE SHOULD BE ADMITTED AND MATTER MAY BE RESTORED BACK TO THE FILE OF THE AO. 4. WHEN THESE FACTS WERE CONFRONTED TO LD. SENIOR DEPARTMENTAL REPRESENTATIVE, HE OBJECTED TO ADMISSIBILITY OF ADDITIONAL EVIDENCES BUT COULD NOT CONTROVERT TO THE ARGUMENTS OF THE LD.COUNSEL FOR THE ASSESSEE THAT THESE EVIDENCES WERE DESTROYED IN FLOODS OF CHENNAI DURING 2015, WHERE ENTIRE RECORDS OF THE ASSESSEE WERE WASHED AWAY ALONG WITH THE ORIGINAL RECORDS. NOW THE ASSESSEE HAS RECONSTRUCTED THESE EVIDENCES AND THESE ARE VITAL FOR DECIDING THE ISSUE OF ADDITION OF CAPITAL WORK-IN-PROGRESS AMOUNTING TO RS.1,15,62,993/-. 5. AFTER HEARING BOTH THE SIDES, WE ARE OF THE VIEW THAT THESE EVIDENCES ARE VITAL FOR DECIDING THE ISSUE AND HENCE, WE ADMIT THESE EVIDENCES AND REMAND THE MATTER BACK TO THE FILE OF THE AO FOR FRESH ADJUDICATION AFTER CONSIDERING THESE EVIDENCES. THE ORDERS OF THE LOWER AUTHORITIES I.E., OF THE AO 5 I.T.A. NO. 2035/CHNY/2019 AND OF THE CIT(A) ARE SET ASIDE AND MATTER REMANDED BACK TO THE FILE OF THE AO FOR FRESH ADJUDICATION AFTER CONSIDERING THESE EVIDENCES. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH OCTOBER, 2021 AT CHENNAI. SD/- SD/- ( ) (MANOJ KUMAR AGGARWAL) /ACCOUNTANT MEMBER ( ) (MAHAVIR SINGH) /VICE PRESIDENT /CHENNAI, /DATED, THE 11 TH OCTOBER, 2021 RSR /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. ( ) /CIT(A) 4. /CIT 5. /DR 6. /GF.