Vidya Sagar Charitable Trust, Bhubaneswar V. ACIT, Circle-2(2), Bhubaneswar

ITA 263/CTK/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 5335 (ITAT-CUTTACK)
• Duration Of Justice: 1 year(s) 4 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-11-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 08-07-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K MOHAPATRA
• Assessee Lawyers: B D OJHA
• Keywords: Charitable institution
• Section: 12AA; 263; 12; 11

Judgement Text

1 ITA NOS.263 TO 266 /CTK/2016 ASSESSMENT YEARS :2009 - 2010 TO 2012 - 2013 IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE S/SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO S . 263 TO 266 /CTK/2016 ASSESSMENT YEAR S : 2009 - 2010 TO 2012 - 2013 VIDYA SAGAR CHARITABLE TRUST, PLOT NO.A - 103, SAHID NAGAR, BHUBANESWAR. VS. ACIT, CIRCLE 2(2), BHUBANESWAR. PAN/GIR NO. AAATV 4014 D (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI B.D.OJHA, AR REVENUE BY : SHRI A.K.MOHAPATRA, CIT DR DATE OF HEARING : 08 /11 / 2017 DATE OF PRONOUNCEMENT : 9 /11 / 2017 O R D E R PER N.S.SAINI, AM THESE ARE APPEAL S FILED BY THE ASSESSEE AGAINST THE SEPARATE ORDER S OF THE CIT(A) - 3, BHUBANESWAR ALL DATED 11.3.2016 FOR THE ASSESSMENT YEARS 2009 - 2010 TO 2012 - 2013, RESPECTIVELY. 2. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL IN THE RESPECTIVE ASSESSMENT YEARS AS UNDER: 200 9 - 20 10 1. BECAUSE THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 3, BHUBANESWAR ERRED IN LAW AS WELL AS IN FACT BY CONFIRMING THE DISALLOWANCE OF THE BENEFIT U/S 11 & 12 OF THE ACT WHEN THE MATTER FOR GRANT OF REGISTRATION U/S 12AA OF THE ACT IS PENDING FOR DISPOSAL BEFORE THE HON'BLE COMMISSIONER OF INCOME - TAX, BHUBANESWA R. 2. BECAUSE THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 3, BHUBANESWAR ERRED IN LAW AS WELL AS IN FACT BY CONFIRMING THE ADDITION OF 2 ITA NOS.263 TO 266 /CTK/2016 ASSESSMENT YEARS :2009 - 2010 TO 2012 - 2013 RS.20,95,000/ - TOWARDS AMOUNT PAID IN RESPECT OF RENT U/S 40(A)(IA) OF THE ACT WHICH IS CONTRARY TO EVIDENCE ON R ECORD SINCE THE INCOME OF THE APPELLANT IS EXEMPT U/S 11 OF THE IT. ACT, 1961 AND PART OF THE AMOUNT IS NO MORE PAYABLE AT THE YEAR END. 3. BECAUSE THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 3, BHUBANESWAR ERRED IN LAW AS WELL AS IN FACT BY CONFIR MING THE ADDITION OF RS.8,80,400/ - U/S 41 OF THE ACT TOWARDS CESSION OF THE LIABILITY AND SAME IS LIABLE TO BE DELETED. 4. BECAUSE THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 3, BHUBANESWAR ERRED IN LAW AS WELL AS IN FACT BY CONFIRMING THE ADDITION OF RS.2,40,305/ - IN RESPECT OF DONATIONS PAID WHICH IS CONTRARY TO THE EVIDENCE ON RECORD AND SAME IS LIABLE TO BE DELETED. 2010 - 2011 1. BECAUSE THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 3, BHUBANESWAR ERRED IN LAW AS WELL AS IN FACT BY CONFIRMING THE DISALLOWANCE OF THE BENEFIT U/S 11 & 12 OF THE ACT WHEN THE MATTER FOR GRANT OF REGISTRATION U/S 12AA OF THE ACT IS PENDING FOR DISPOSAL BEFORE THE HON'BLE COMMISSIONER OF INCOME - TAX, BHUBANESWAR. 2. BECAUSE THAT THE LD. COMMISSIONER OF INCOME TAX (APPE ALS) - 3, BHUBANESWAR ERRED IN LAW AS WELL AS IN FACT BY CONFIRM ING THE ADDITION OF RS.49,27,045 / - U/S. 37 TOWARDS PAYMENT OF INTEREST WHICH IS CONTRARY TO THE EVIDENCE ON RECORD AS THE INCOME OF THE APPELLANT HAS BEEN TREATED AS INCOME FROM BUSINESS. 3. BEC AUSE THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 3, BHUBANESWAR ERRED IN LAW AS WELL AS IN FACT BY CONFIR MING THE ADDITION OF RS.3,66,425 / - (RS.1,48,800 + 2,17,625) TOWARDS EXPENSES INCURRED U/S.40(A)(IA) OF THE ACT WHICH IS CONTRARY TO EVIDENCE ON RECORD AS THE AO HAS TREATED THE INCOME OF THE APPELLANT AS INCOME FROM BUSINESS. 2011 - 12 1. BECAUSE THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 3, BHUBANESWAR ERRED IN LAW AS WELL AS IN FACT BY CONFIRMING THE DISALLOWANCE OF THE BENEFIT U/S 11 & 12 OF THE ACT WHEN THE MATTER FOR GRANT OF REGISTRATION U/S 12AA OF THE ACT IS PENDING FOR DISPOSAL BEFORE THE HON'BLE COMMISSIONER OF INCOME - TA X, BHUBANESWAR. 2. BECAUSE THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 3, BHUBANESWAR ERRED IN LAW AS WELL AS IN FACT BY CONFIRMING THE ADDITION OF RS.33,37,858/ - U/S. 37 TOWARDS PAYMENT OF INTEREST WHICH IS CONTRARY TO THE EVIDENCE ON RECORD AS THE I NCOME OF THE APPELLANT HAS BEEN TREATED AS INCOME FROM BUSINESS. 3 ITA NOS.263 TO 266 /CTK/2016 ASSESSMENT YEARS :2009 - 2010 TO 2012 - 2013 3. BECAUSE THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 3, BHUBANESWAR ERRED IN LAW AS WELL AS IN FACT BY CONFIRMING THE ADDITION OF RS.13,05,759 (RS.3,63,134 + RS.9,42,625/ - ) TOWARDS EXP ENSES INCURRED U/S.40(A)(IA) OF THE ACT WHICH IS CONTRARY TO EVIDENCE ON RECORD AS THE AO HAS TREATED THE INCOME OF THE APPELLANT AS INCOME FROM BUSINESS. 201 2 - 201 3 1. BECAUSE THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 3, BHUBANESWAR ERRED IN LAW AS WELL AS IN FACT BY CONFIRMING THE DISALLOWANCE OF THE BENEFIT U/S 11 & 12 OF THE ACT WHEN THE MATTER FOR GRANT OF REGISTRATION U/S 12AA OF THE ACT IS PENDING FOR DISPOSAL BEFORE THE HON'BLE COMMISSIONER OF INCOME - TAX, BHUBANESWAR. 2. BECAUSE THAT THE LD. CO MMISSIONER OF INCOME TAX (APPEALS) - 3, BHUBANESWAR ERRED IN LAW AS WELL AS IN FACT BY CONFIRMING THE ADDITION OF RS.17,87,139/ - U/S. 37 TOWARDS PAYMENT OF INTEREST WHICH IS CONTRARY TO THE EVIDENCE ON RECORD AS THE INCOME OF THE APPELLANT HAS BEEN TREATED AS INCOME FROM BUSINESS. 3. BECAUSE THAT THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 3, BHUBANESWAR ERRED IN LAW AS WELL AS IN FACT BY CONFIRMING THE ADDITION OF RS.19,66,665/ - AND RS.7,13,520/ - TOWARDS EXPENSES INCURRED U/S.40(A)(IA) OF THE ACT WHICH IS CONTRARY TO EVIDENCE ON RECORD AS THE AO HAS TREATED THE INCOME OF THE APPELLANT AS INCOME FROM BUSINESS. 4. BECAUSE THAT THE CIT(A), BHUBANESWAR ERRED IN LAW AS WELL AS IN FACT BY CONFIRMING THE ADDITION OF RS.66,501/ - TOWARDS EXPENSES INCURRED FOR CHARITY & DONATION WHICH IS OUT OF OPERATIONAL CONTINGENCY AND CONTRARY TO THE EVIDENCE ON RECORD. 3. BOTH THE PARTIES BEFORE US SUBMITTED THAT EXEMPTION U/S.11 & 12 WAS DENIED TO THE ASSESSEE AS THE ASSESSEE WAS NOT HAVING REGISTRATION U/S.12AA OF THE ACT. IT WAS SUBMITTED THAT THE TRIBUNAL VIDE ITS ORDER DATED 12.10.2017 IN ITA NO.303/CTK/2016 HAS ALLOWE D REGISTRATION U/S.12AA OF THE ACT TO THE ASSESSEE AND, THEREFORE, ALL THE ISSUES INVOLVED IN THESE APPEALS ARE TO BE RESTORED BACK TO THE FILE OF THE ASSESSING OFFICER FOR ADJUDICATION AFRESH. 4 ITA NOS.263 TO 266 /CTK/2016 ASSESSMENT YEARS :2009 - 2010 TO 2012 - 2013 4. IN VIEW OF ABOVE SUBMISSION OF BOTH THE PARTIES, WE SET A SIDE THE ORDERS OF LOWER AUTHORITIES AND REMAND THE MATTER BACK TO THE FILE OF THE ASSESSING OFFICER TO RE - ADJUDICATE THE ISSUES INVOLVED IN THESE APPEALS IN THE LIGHT OF REGISTRATION NOW GRANTED TO THE ASSESSEE U/S.12AA OF THE ACT TO THE ASSESSEE. 5. IN T HE RESULT, ALL THE APPEALS FI LED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUN CED ON 9 /11 /2017. SD/ - SD/ - ( PAVAN KUMAR GADALE) ( N.S SAINI) JUDICIALMEMBER A CCOUNTANT MEMBER CUTTACK; DATED 9 /11 /2017 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PRIVATE SECRETARY ITAT, CUTTACK 1. THE APPELLANT :VIDYA SAGAR CHARITABLE TRUST, PLOT NO.A - 103, SAHID NAGAR, BHUBANESWAR. 2. THE RESPONDENT. DCIT, CIRCLE 2(2), BHUBANESWAR 3. THE CIT(A) - 3, BHUBANESWAR 4. PR.CIT - 3, BHUBANESWAR 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY// 5 ITA NOS.263 TO 266 /CTK/2016 ASSESSMENT YEARS :2009 - 2010 TO 2012 - 2013