Dy. Director of Income-Tax, Bangalore V. Dominican Sisters of Presentation, Bangalore

ITA 2163/BANG/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 7599 (ITAT-BANGALORE)
• Duration Of Justice: 8 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-09-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 09-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR SHANKAR PRASAD
• Assessee Lawyers: V SRINIVASAN; V NARE NDRA SHARMA S
• Keywords: Charitable institution
• Section: 12; 2; 15

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH B, BANGALORE BEFORE SHRI A. K. GARODIA, ACCOUNTANT MEMBER AND SHRI LALIET KUMAR, JUDICIAL MEMBER ITA NO. 2163 (BANG)/2016 (ASSESSMENT YEAR : 2012-13) THE DY. DIRECTOR OF INCOME TAX (EXEMPTION), BANGALORE. APPELLANT VS DOMINICIAN SISTERS OF PRESENTATION, DOMINICIAN ASHRAM 80 FEET ROAD, INDIRANAGAR, BANGALORE -560 038 PAN: AAATD0915F RESPONDENT ASSESSEE BY : SHRI V. SRINIVASAN & SRI V. NARE NDRA SHARMA, ADVOCATES REVENUE BY : SHRI DR. SHANKAR PRASAD, JCIT DATE OF HEARING : 08-08-2017 DATE OF PRONOUNCEMENT : 08-09-2017 O R D E R PER SHRI A.K.GARODIA, AM THIS IS REVENUES APPEAL DIRECTED AGAINST THE ORDE R OF CIT (A) 14, LTU BENGALURU DATED 30.09.2016 FOR A. Y. 2012 13. 2. THE GROUNDS RAISED BY THE REVENUE ARE AS UNDER:- 1) CARRY FORWARD OF EXCESS APPLICATION / EXPENDITUR E / DEFICIT / LOSS:- A) THE CIT (A) HAS ERRED IN DIRECTING THE ASSESSING OF FICER TO ALLOW SET-OFF OF EXCESS EXPENDITURE/APPLICATION PER TAINING TO CURRENT ASST.YEAR AND EARLIER YEARS AGAINST THE INC OME OF THE FUTURE ASST.YEAR WITHOUT APPRECIATING THE FACT THAT AS PER 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/ INST ITUTION ON ACCOUNT OF EXCESS APPLICATION OF INCOME/FUNDS OF TH E TRUST. B) THE CIT (A) HAS FAILED TO APPRECIATE THE FACT THAT THE NORMAL COMPUTATION OF INCOME UNDER RESPECTIVE HEADS AS ITA NO. 2163/B/2016 2 ENVISAGED U/S 15 TO 59 ARE NOT APPLICABLE TO THE CO MPUTATION OF INCOME IN RESPECT OF CHARITABLE TRUST/INSTITUTIO N FOR THE PURPOSE OF CLAIMING EXEMPTION UNDER SEC. 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 H EAD AND CARRY FORWARD AND SET-OFF OF LOSS AGAINST THE I NCOME OF SUBSEQUENT YEARS AS ENVISAGED U/S 70 TO 79 ARE ALSO NOT APPLICABLE TO THE CHARITABLE TRUSTS/INSTITUTIONS. C) THE CIT (A) HAS FAILED TO DISCUSS THE ISSUE IN DETA IL BRINGING OUT THE FACTS AND APPLYING THE RELEVANT PR OVISIONS OF THE ACT, BUT CAME TO A CONCLUSION THAT EXCESS EXPENDITURE/EXCESS APPLICATION SHALL BE ALLOWED TO BE CARRIED FORWARD AND SET-OFF AGAINST THE INCOME OF THE FUTUR E ASSESSMENT YEARS AND, THEREBY, RENDERING THE ORDER PERVERSE. 3. LEARNED DR OF THE REVENUE SUPPORTED THE ORDER OF THE AO WHEREAS THE LEARNED AR OF THE ASSESSEE SUPPORTED THE ORDER OF C IT (A). HE ALSO SUBMITTED THAT BOTH THESE ISSUE ARE COVERED IN FAVOUR OF THE ASSESSEE BY THE TRIBUNAL ORDER IN THE CASE OF SAME ASSESSEE IN ITA NO. 318/BANG/20 15 DATED 08.01.2016 COPY ON PAGES 17 TO 27. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIN D THAT IN THE CASE CITED BY THE LEARNED AR OF THE ASSESSEE HAVING BEEN RENDE RED IN THE ASSESSEES OWN CASE FOR A. Y. 2011 - 12, THE TRIBUNAL HAS FOLLOWED ANOTHER TRIBUNAL ORDER RENDERED IN THE CASE OF ST. FRANCIS DE SALES IN ITA NO. 315/B/2015 DATED 10.07.2015 AND REPRODUCED THE RELEVANT PORTION OF T HIS TRIBUNAL ORDER. AS PER THE SAME REPRODUCTION, THE TRIBUNAL IN THAT ORDER HAS F OLLOWED THE JUDGMENT OF HONBLE BOMBAY HIGH COURT RENDERED IN THE CASE OF C IT VS. INSTITUTE OF BANKING PERSONNEL SELECTION AS REPORTED IN 264 ITR 110. THE TRIBUNAL IN THE A. Y. 2011 12 IN ASSESSEES OWN CASE HAS FOLLOWED TH IS EARLIER TRIBUNAL ORDER AND THIS JUDGMENT OF HONBLE BOMBAY HIGH COURT AND HELD THAT THE CLAIM OF THE ITA NO. 2163/B/2016 3 ASSESSEE FOR CARRY FORWARD OF EXCESS APPLICATION IS IN ACCORDANCE WITH THE JUDICIAL PRECEDENTS ON THE ISSUE AND THE SAME IS AL LOWABLE. LEARNED DR OF THE REVENUE COLD NOT POINT OUT ANY DIFFERENCE IN FACTS AND THEREFORE, WE FIND NO REASON TO TAKE A CONTRARY VIEW IN THE PRESENT YEAR. RESPECTFULLY FOLLOWING THE EARLIER DECISION OF THE CO ORDINATE BENCH, WE DECLI NE TO INTERFERE IN THE ORDER OF CIT (A). 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE MENT IONED ON THE CAPTION PAGE. SD/- (LALIET KUMAR) SD/- (A.K. GARODIA) JUDICAL MEMBER ACCOUNTANT MEMBER PLACE: BANGALORE D A T E D : 08.09.2017. *MS COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A) 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.