ITO (Exemptions), Ward-2, Ahmedabad V. Tripada Education Trust, Ahmedabad

ITA 2376/AHD/2017

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 2322 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 1 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-12-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 31-10-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: L P JAIN
• Assessee Lawyers: M K PATEL
• Keywords: Depreciation; Tax effect
• Section: 143(3)

Judgement Text

, B IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER & MS. MADHUMITA ROY, JUDICIAL MEMBER ./I.T.A. NO. 2376/AHD/2017 ( / ASSESSMENT YEAR: 2012-13) ITO(EXEMP.) WARD-2, AHMEDABAD / VS. TRIPADA EDUCATION TRUST OPP: NILKANTH MAHADEV, RANNA PARK, GHATLODIA, AHMEDABAD ./ ./PAN/GIR NO. : AAB TT0 188 M ( /APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI L. P. JAIN, SR. DR / RESPONDENT BY: SHRI M. K. PATEL, AR !' /DATE OF HEARING 20/11/2019 #$!' / DATE OF PRONOUNCEMENT 06/12/2019 %& /O R D E R PER MS. MADHUMITA ROY - JM: THE APPEAL FILED BY THE REVENUE FOR A.Y. 2012-13, ARISE FROM ORDER OF THE CIT(A)-4, AHMEDABAD DATED 21.08.2016, IN PROCEE DINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE A CT. 2. THE GROUND OF APPEAL RAISED BY THE REVENUE READS AS UNDER:- 1. THE LD. CIT(A) ERRED IN LAW AND ON FACTS IN DEL ETING THE ADDITION OF RS. 93,000/- MADE ON ACCOUNT OF CORPUS DONATION WITHOUT APPRECIATING THAT DONATION IS RECEIVED IN CASH AND FURTHER NO SPECIFIC DIRECTION WERE GIVEN BY THE DONOR. 2. THE LD. CIT(A) ERRED IN LAW AND ON FACTS IN DELE TING THE ADDITION OF RS. 86,28,500/- MADE ON ACCOUNT OF ADMISSION FEE S WHICH THE ASSESSEE TREATED AS CORPUS FUND AND THEREBY SOUGHT TO EVADE TAX. ITA NO. 2376/AHD/2017 [ITO VS. TRIPADA EDUCATION TRUST] A.Y. 2012-13 2 2.1 THE LD. CIT(A) HAS FAILED TO APPRECIATE THAT SU CH PAYMENTS BY STUDENTS/PARENTS WAS NOT A VOLUNTARY DONATION BUT W AS A PAYMENT MADE AS PER THE SET ADMISSION POLICY OF THE SCHOOL, THER EFORE, IT WAS CLEARLY A REVENUE RECEIPT. 3. THE LD. CIT(A) ERRED IN LAW AND ON FACTS IN ALLO WING THE DEPRECIATION OF RS. 17,10,362/- TO THE ASSESSEE WHI CH AMOUNTS TO DOUBLE DEDUCTION AS 100% DEDUCTION WAS ALREADY ALLO WED TO THE ASSESSEE AS APPLICATION OF INCOME. 4. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. COMMISSIONER OF INCOME-TAX (APPEALS) OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. 5. IT IS, THEREFORE, PRAYED THAT THE ORDER OF THE L D. COMMISSIONER OF INCOME-TAX (APPEALS) MAY BE TET ASIDE AND THAT OF T HE ASSESSING OFFICER BE RESTORED. 6. THE REVENUE CRAVES TO ADD, ALTER, AMEND, MODIFY, SUBSTITUTE, DELETE AND/OR RESCIND ALL OR ANY GROUNDS OF APPEAL ON OR BEFORE THE FINAL HEARING, IN NECESSITY SO ARISES. 3. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD.AR FOR THE ASSESSEE THAT APPEAL FILED BY THE REVENUE IS HIT BY RECENTLY ISSUED CBDT CIRCULAR NO.17 OF 2019 DATED 08/08/2019 REVISI NG THE PREVIOUS THRESHOLDS PERTAINING TO TAX EFFECTS. AS PER AFORESAID CIRCULAR, ALL PENDING APPEALS FILED BY REVENUE ARE LIABLE TO BE DISMISSED AS A MEASURE FOR REDUCING LITIGATION WHER E THE TAX EFFECT DOES NOT EXCEED THE PRESCRIBED MONETARY LIMIT WHICH IS NOW REVISED AT RS.50 LAKHS. IN THE INSTANT CASE, THE TAX EFFEC T ON THE DISPUTED ISSUES RAISED BY THE REVENUE IS STATED TO BE NOT EX CEEDING RS.50 LAKHS AND THEREFORE APPEAL OF THE REVENUE IS REQUIR ED TO BE DISMISSED IN LIMINE . 4. THE LEARNED DR FOR THE REVENUE FAIRLY ADMITTED T HE APPLICABILITY OF THE CBDT CIRCULAR NO. 17 OF 2019. ACCORDINGLY, APPEAL OF THE REVENUE IS DISMISSED AS NOT MAINTAINA BLE. HOWEVER, IT WILL BE OPEN TO THE REVENUE TO SEEK RESTORATION OF ITS APPEAL ON ITA NO. 2376/AHD/2017 [ITO VS. TRIPADA EDUCATION TRUST] A.Y. 2012-13 3 SHOWING INAPPLICABILITY OF THE AFORESAID CBDT CIRCU LAR IN ANY MANNER. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. SD/- SD/- (WASEEM AHMED) (MADHUMITA ROY) ACCOUNTANT MEMBER JUDICI AL MEMBER AHMEDABAD: DATED 06/12/2019 TANMAY TRUE TRUE COPY / COPY OF ORDER FORWARDED TO:- 1. / REVENUE 2. % / ASSESSEE 3. '( ! )! / CONCERNED CIT 4. )! - / CIT (A) 5. *+, ! ( , ' ( , -.%'% / DR, ITAT, AHMEDABAD 6. ,/ 0 / GUARD FILE. BY ORDER / %& , 1 / - ' ( , -.%'% 2 1.DATE OF DICTATION ON 06.12.2019 (LOW TAX EFFECT FORMAT) 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING MEMBER 06.12.2019 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. .12.2019 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT .12.2019 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S .12.2019 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 06.12.2019 7.DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8.THE DATE ON WHICH THE FILE GOES TO THE ASSTT. REG ISTRAR FOR SIGNATURE ON THE ORDER 9.DATE OF DESPATCH OF THE ORDER THIS ORDER PRONOUNCED IN OPEN COURT ON 06/12/2019