Shri Jain Visha Porwad Gnati Punch, Surat V. The Income Tax Officer, Exemption Ward, Surat

ITA 2823/AHD/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9453 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 19-02-2016
• Assessment Year: 2013-2014
• Appeal Filed On: 07-10-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S B VAIDYA
• Keywords: Opportunity of being heard

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI B.P. JAIN, ACCOUNTANT MEMBER ./ ITA.NO.2823/AHD/2015 / ASSTT. YEAR: 2013-2014 SHRI JAIN VISHA PORWARD GNATI PUNCH 6/789, CHAPARIA SHERI MAHIDHARPURA SURAT 395 003. PAN : AAITS 3218 E VS ITO, EXEMPTION WARD SURAT. ./ ITA.NO.2824/AHD/2015 / ASSTT. YEAR: 2013-2014 SHETH ZAVERCHAND RAICHAND SANSTHAPIT SRI HARESH RAJNIKANT ZAVERI JAIN VISHA PORWARD SAHAYAK FUND 6/789, CHAPARIA SHERI MAHIDHARPURA SURAT 395 003. PAN : AAITS 5134 M VS ITO, EXEMPTION WARD SURAT. ! / (APPELLANT) '# ! / (RESPONDENT) ASSESSEE BY : SHRI S.B. VAIDYA, AR REVENUE BY : PRAJNA PARAMITA, SR.DR / DATE OF HEARING : 19/02/2016 / DATE OF PRONOUNCEMENT: 19/02/2016 $%/ O R D E R THESE TWO APPEALS OF THE ASSESSEE AROSE FROM THE OR DERS OF THE LD.CIT(A)-3, SURAT EVEN DATED 23.7.2015 FOR THE ASS TT.YEAR 2013-14. ITA NO.2823 AND 2824/AHD/2015 2 2. THE ASSESSEE HAS RAISED IDENTICAL GROUNDS IN APP EALS EXCEPT THE QUANTUM MENTIONED IN THE GROUNDS OF APPEALS. FOR T HE SAKE OF CONVENIENCE, I REPRODUCE HEREINBELOW THE GROUNDS OF APPEAL AS MENT IONED IN ITA NO.2823/AHD/2014 AND DISPOSE OF THESE TWO APPEALS B Y THIS CONSOLIDATED ORDER. 1. ON THE FACTS AND IN CIRCUMSTANCES OF THE CASE A S WELL AS LAW ON THE SUBJECT, THE LEARNED COMMISSIONER OF INCOME-TAX (AP PEALS) HAS ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN L EVYING TAX ON GROSS INCOME OF RS. 1,54,790/- WITHOUT GRANTING DEDUCTION OF EXPENSES OF RS. 90,478/- INCURRED FOR THE OBJECT OF THE TRUST. 2. IT IS THEREFORE PRAYED THAT ABOVE THAT DISALLOW ANCE MADE BY ASSESSING OFFICER AND CONFIRMED BY CIT(A) MAY PLEAS E BE ALLOWED. 3. APPELLANT CRAVES LEAVE TO ADD, ALTER OR DELETE A NY GROUND(S) EITHER BEFORE OR IN THE COURSE OF HEARING OF THE APPEAL. 3. THE BRIEF FACTS AS EMANATING FROM THE ORDER OF T HE LD.CIT(A) IN PARA-4 OF HIS IMPUGNED ORDER ARE REPRODUCED HEREINBELOW FO R THE SAKE OF BREVITY: 4. AS PER RETURN OF INCOME OF THE APPELLANT, THE T AXABLE INCOME IS RS 64,310/-. HOWEVER, AS PER INTIMATION U/S 143 (1) OF THE ACT, THE APPELLANT'S INCOME COMES TO 1,54,792/-. THE APPELLA NT HAD CLAIMED A DEDUCTION OF RS. 90,478 TOWARDS RELIGIOUS PURPOSES, TO BE A SET OFF AGAINST THE INCOME OF THE CURRENT YEAR. HOWEVER, AS PER APPEAL THE SAME HAS NOT BEEN ALLOWED BY THE ACIT, CPC, BANGALO RE, AT THE TIME OF PROCESSING THE RETURN U/S 143 (1) OF THE IT ACT. 4. THE LD.CIT(A) CONFIRMED THE ACTION OF THE AO. 5. I HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE F ACTS ON RECORD. IT WAS ARGUED AT THE OUTSET THAT UNDER SECTION 143(1) ONLY PRIMA FACIE ADJUSTMENT HAS TO BE MADE AND NO DISALLOWANCE OF THE EXPENDITURE C AN MADE WITHOUT GIVING ANY SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE AS SESSEE. IN THE PRESENT CASE, CPC, BANGALORE HAD PROCESSED RETURN UNDER SECTION 1 43(1) OF THE ACT AND HAS DISALLOWED DEDUCTION AMOUNTING TO RS.90,478/- WHICH IN FACT IS NOT PERMITTED ITA NO.2823 AND 2824/AHD/2015 3 UNDER SECTION 143(1) OF THE ACT. THEREFORE, ON THI S COUNT ITSELF, THE ORDER IS BAD IN LAW AND LIABLE TO BE QUASHED. EVEN THE TOT AL GROSS RECEIPTS OF RS.1,54,792/- HAS BEEN TAKEN AS TAXABLE INCOME OF T HE ASSESSEE, STILL, IT IS BELOW THE TAXABLE LIMIT, WHEREAS, NO DEFECT IN THE EXPENDITURE AMOUNTING TO RS.90,478/- HAS BEEN POINTED OUT AND TAXABLE INCOME HAS BEEN WORKED OUT AT RS.64310/- ONLY, AND THEREFORE, NO ADDITION CAN BE MADE ON THIS COUNT AS WELL. THEREFORE, ON BOTH THE COUNTS, THE ASSESSEE CANNOT BE BURDENED WITH THE LEVY OF TAX, AND ACCORDINGLY, THE ADDITIONS SO MADE IS D IRECTED TO BE DELETED AND THE ORDER OF THE LD.CIT(A) IS REVERSED AND ALL THE GRO UNDS OF THE APPEAL OF THE ASSESSEE ARE ALLOWED. 6. NOW I TAKE UP THE APPEAL OF THE ASSESSEE IN ITA NO.2824/AHD/2015, WHEREIN THE FACTS IN THE PRESENT CASE IS IDENTICAL TO THE FACTS IN ITA NO.2823/AHD/2014, AND MY ORDER PASSED IN ITA NO.282 3/AHD/2014 SHALL BE IDENTICALLY APPLICABLE TO THE APPEAL IN ITA NO.2823 /AHD/2015. ACCORDINGLY, ALL THE GROUNDS OF THE APPEAL ARE ALLOWED. 7. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED. ORDER PRONOUNCED IN THE COURT ON 19 TH FEBRUARY, 2016 AT AHMEDABAD. SD/- ( B.P. JAIN ) ACCOUNTANT MEMBER