Deputy Commissioner of Income-tax, V. Maharshi Karve Stree Shikshan Sanstha,

ITA 2179/PUN/2016

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 6299 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 4 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-01-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 29-11-2018
• Assessment Year: 2011-2012
• Appeal Filed On: 19-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARISE OUT OF
• Assessee Lawyers: AND OTHER

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER . / ITA NO.1851/PUN/2016 / ASSESSMENT YEAR : 2011-12 MAHARSHI KARVE STREE SHIKSHAN SAMSTHA, KARVENAGAR, PUNE PAN : AAATM1969L VS. ITO, WARD-11(1), PUNE . / ITA NO.2179/PUN/2016 / ASSESSMENT YEAR : 2011-12 DCIT (EXEMPTION) CIRCLE, PUNE VS. MAHARSHI KARVE STREE SHIKSHAN SAMSTHA, KARVENAGAR, PUNE PAN : AAATM1969L (APPELLANT) (RESPONDENT) / ORDER PER R.S.SYAL, VP : THESE ARE TWO CROSS APPEALS, ONE BY THE ASSESSEE AND THE OTHER BY THE REVENUE ARISE OUT OF ORDER OF CIT(A)-10, P UNE PASSED ON 15-07-2016 IN RELATION TO THE ASSESSMENT YEAR 20 11-12. ASSESSEE BY SHRI NIKHIL S. PATHAK REVENUE BY SHRI AMOL KAMAT DATE OF HEARING 24-01-2019 DATE OF PRONOUNCEMENT 25-01-2019 ITA NOS.1851 AND 2179/PUN/2016 MAHARSHI KARVE STREE SHIKSHAN SAMSTHA 2 2. THE REVENUE IN THE INSTANT APPEAL HAS RAISED THE FOLLOW ING GROUNDS OF APPEAL : 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES O F THE CASE AND IN LAW, A CLAIM FOR CARRY FORWARD OF DEFICIT IN THE CASE OF A TRUST CAN BE ACCEPTED AND BE ALLOWED AS HELD IN THE CASE OF TRUS TEES OF SHRI SATYASAI TRUST DECIDED BY THE HONBLE ITAT, MUMBAI BENCH IN 33 ITD 320, MUMBAI. 2. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE TRUST IS ENTITLED TO CLAIM BENEFIT U/S. 11(1)(A) OF THE I.T. ACT, 1961 WHEN THE APPLICATION OF INCOME DURING THE YEAR IS MORE THAN THE GROSS RECEIPTS? 3. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE CIT(A) HAS ERRED IN HOLDING THAT THE TR UST WOULD BE ENTITLED TO CLAIM EXCESSIVE CARRY FORWARD OF DEFICIT WHICH R ESULTS AFTER MAKING AN ALLOWANCE @15% GROSS RECEIPTS U/S.11(1)(A) OF TH E INCOME TAX ACT, 1961 AND THEN CLAIMING THE APPRECIATION OF INC OME TO THE EXTENT OF THE EXPENSES INCURRED ON THE OBJECTS OF THE TRUS T. 3. BRIEFLY, THE FACTS OF THE CASE, ARE THAT THE ASSESSEE F ILED ITS RETURN DECLARING TOTAL INCOME AT NIL. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSEE SUBMITTED THAT THE ASS ESSEE TRUST WAS DULY REGISTERED U/S.12A VIDE CERTIFICATE DATED 26-08 -1974 AND WAS ALSO ELIGIBLE FOR EXEMPTION U/S.10(23C)(VI) OF THE IN COME- TAX ACT, 1961 (HEREINAFTER ALSO CALLED AS THE ACT). THE ASSESSING OFFICER REJECTED THE ASSESSEES CONTENTION AND DETERMINED TOTA L INCOME AT RS.9,89,36,490/-. THE LD. CIT(A) DISMISSED TH E ASSESSEES CONTENTION ON REGISTRATION U/S.10(23C). HE, HOW EVER, ALLOWED EXEMPTION U/S.11 OF THE ACT. THAT IS HOW, BOTH THE S IDES HAVE COME UP IN APPEAL BEFORE THE TRIBUNAL. ITA NOS.1851 AND 2179/PUN/2016 MAHARSHI KARVE STREE SHIKSHAN SAMSTHA 3 4. WE HAVE HEARD BOTH THE SIDES AND GONE THROUGH THE RELE VANT MATERIAL AVAILABLE ON RECORD. IT IS OBSERVED THAT SIMILAR AC TION WAS TAKEN BY THE AO FOR THE A.Y. 2008-09. THE LD. CIT(A) A LSO TOOK SIMILAR VIEW AS HAS BEEN TAKEN FOR THE INSTANT YEAR. WHEN THE MATTER FINALLY CAME UP BEFORE THE TRIBUNAL, THE REVENUES AP PEAL WAS DISMISSED AND THE ASSESSEES APPEAL WAS ALSO HELD TO B E ACADEMIC IN VIEW OF GRANT OF BENEFIT U/S.11 OF THE ACT. WE HAVE PERUSED THE GROUNDS OF APPEAL INCORPORATED IN THE AFORES AID ORDER OF THE TRIBUNAL FOR THE A.Y. 2008-09 AND FIND THAT THEY A RE SIMILAR TO THOSE TAKEN BY THE REVENUE IN THE INSTANT APPEAL. THE LD. DR ALSO FAIRLY CONCEDED THAT THE FACTS AND CIRCUMSTANCES OF THE INSTANT CASE ARE MUTATIS MUTANDIS SIMILAR TO THOSE OF A.Y. 2008-09. RESPECTFULLY FOLLOWING THE PRECEDENT, WE DISMISS THE REVENUES APPEAL ON MERITS AND THE ASSESSEES APPEAL AS HAVING BECO ME ACADEMIC IN NATURE. 5. IN THE RESULT, BOTH THE APPEALS ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 25 TH JANUARY, 2019. SD/- SD/- (PARTHA SARATHI CHAUDHURY) (R.S.SYAL) JUDICIAL MEMBER VI CE PRESIDENT PUNE; DATED : 25 TH JANUARY, 2019 ITA NOS.1851 AND 2179/PUN/2016 MAHARSHI KARVE STREE SHIKSHAN SAMSTHA 4 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. THE CIT(A)-10, PUNE 4. 5. THE CIT-10, PUNE , , / DR B, ITAT, PUNE; 6. / GUARD FILE. // TRUE COPY // / BY ORDER, // TRUE COPY // SENIOR PRIVATE SE CRETARY , / ITAT, PUNE ITA NOS.1851 AND 2179/PUN/2016 MAHARSHI KARVE STREE SHIKSHAN SAMSTHA 5 DATE 1. DRAFT DICTATED ON 24-01-2019 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 24-01-2019 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. DATE OF UPLOADING ORDER SR.PS 8. FILE SENT TO THE BENCH CLERK SR.PS 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK 10. DATE ON WHICH FILE GOES TO THE A.R. 11. DATE OF DISPATCH OF ORDER. *