ITO (E), New Delhi V. M/s Professional Assistance for Development Action (PRADAN), New Delhi

ITA 2826/DEL/2017

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 1850 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 7 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-12-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2012-2013
• Appeal Filed On: 05-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution
• Section: 13; 12; 11

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI F BEN CH, NEW DELH I BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER (THROUGH VIDEO CONFERENCING) ITA NO.2826/DEL/2017 [A.Y 2012-13] DY. COMMISSIONER OF INCOME PROFESSIONAL ASSISTAN CE FOR TAX (E) VS. DEVELOPMENT ACTION CIRCLE 2 (1) (PRADAN) NEW DELHI E-1A, KAILASH COLONY, PAN NO. AAATP0345D NEW DELHI-110048 REVENUE BY : SMT. SUSHMA SINGH, CIT DR ASSESSEE BY : SH. K. V.S. R. KRISHNA, CA DATE OF HEARING : 08.12.2020 DATE OF PRONOUNCEMENT : 08. 12.2020 ORDER PER N. K. BILLAIYA , AM : 1. THIS APPEAL BY THE REVENUE IS PREFERRED AGAINST THE ORDER OF THE CIT(A)-40, DELHI DATED 03.02.2017 PERTAINING TO A.Y . 2012-13. 2. THE SOLITARY GRIEVANCE OF THE REVENUE IS THAT TH E CIT(A)ERRED IN ALLOWING THE APPEAL OF THE ASSESSEE IGNORING THE FA CT THAT ANY ACTIVITY OF 2 RENDERING ANY SERVICE IN RELATION TO ANY TRADE, COM MERCE OR BUSINESS FOR A CESS OR FEE SHALL NOT BE CHARITABLE IF RECEIPT FROM SUCH ACTIVITIES IS MORE THAN 25 LACS DURING THE YEAR. 3. THE ASSESSEE IS A SOCIETY REGISTERED U/S. 12 A O F THE ACT AND IS ALSO NOTIFIED U/S. 80G(5)(VI) OF THE ACT. THE MAIN OBJE CTS OF THE SOCIETY AS PER MOA ARE AS FOLLOWS :- (A) IN CONFORMITY WITH ITS NAME, THE SOCIETY IS EST ABLISH TO PROVIDE PROFESSIONAL, TECHNICAL AND MANAGEMENT ASSISTANCE TO VARIOUS AGENCIES ENGAG ED IN RURAL DEVELOPMENT AND RELATED ACTION PROGRAMMES. B) TO OFFER KNOW HOW ADVICE, AND TECHNICAL GUIDANCE IN THE FIELD OF AGRICULTURE, ANIMAL HUSBANDRY, WATER RESOURCES, FORESTRY, NEW AND RENEW ABLE ENERGY SOURCES, RURAL INDUSTRIES, FORMAL AND NON FORMAL EDUCATION, COMMUN ITY HEALTH HABITAT AND ENVIRONMENT, AND ANY FIELDS CONSIDERED USEFUL FOR T HE PURPOSE OF PROMOTING INTEGRATED HUMAN DEVELOPMENT. C) TO DEVELOP AND PROMOTE APPROPRIATE PROTOTYPES, D ESIGNS AND TECHNOLOGIES RELATED TO DEVELOPMENT, TO SET AND POPULARIZE THEIR APPLICATIO N IN THE FIELD, AND TO ACT AS A CLEARINGHOUSE OF INFORMATION O SUCH MATTERS, WITH O R WITHOUT THE HELP OF OTHER AGENCIES/INSTITUTIONS. D) TO ASSIST DEVELOPMENT AGENCIES TO FIND APPROPRIA TE PROFESSIONALS FOR THEIR PROJECTS AND TO ASSIST PERSONS INTERESTED IN MAKING A PROFES SIONAL CONTRIBUTION TO DEVELOPMENT TO FIND SUITABLE DEVELOPMENT AGENCIES. WHERE THEY M AY WORK ON A SHORT OR LONG TERM BASIS. E) TO DO PLANNING AND FORMULATION OF DEVELOPMENT PR OJECTS INDEPENDENTLY OR IN ASSOCIATION WITH OTHER AGENCIES, FOR IMPLEMENTATION BY ITSELF OR THROUGH OTHER AGENCIES ENGAGED IN DEVELOPMENT PROGRAMS. F) TO ASSIST DEVELOPMENT AGENCIES AT THE GRASS ROOT S TO EFFECTIVELY UTILIZE PHYSICAL ASSETS REQUIRED FOR THE PURPOSE OF RURAL DEVELOPMENT AND E VOLVE SYSTEMS TO ENSURE EQUITY AND JUSTICE IN THEIR UTILIZATION. G) TO MONITOR THE PROGRESS OF DEVELOPMENT PROJECTS, CONDUCT EVALUATION, MAINTAIN INFORMATION SYSTEMS AND REPORT ON ITS OWN DEVELOPME NT PROJECTS, OR PROJECTS OF OTHER AGENCIES AT THEIR REQUEST. 3 H) TO DO ALL SUCH OTHER LAWFUL ACTS DEEDS OR THINGS EITHER ALONE OR IN CONJUNCTION WITH OTHER ORGANIZATIONS AS ARE INCIDENTAL OR ANCILLARY OR CONDUCIVE TO THE ATTAINMENT OF ANY OF THE ABOVE OBJECTIVES. 4. WHILE SCRUTINIZING THE RETURN OF INCOME THE AO N OTICED THAT THE CASE OF THE ASSESSEE IS DIRECTLY COVERED BY THE PRO VISO TO SECTION 2 (15) OF THE ACT. ACCORDINGLY THE AO WAS OF THE FIRM BELIEF THAT THE ASSESSEE IS NOT ENTITLED FOR ANY EXEMPTION, THE AO COMPLETED TH E ASSESSMENT BY DENYING EXEMPTION U/S. 11 AND 12 OF THE ACT. 5. THE ASSESSEE CARRIED THE MATTER BEFORE THE CIT(A ) AND STRONGLY CONTENDED THAT IT IS VERY MUCH ELIGIBLE FOR THE CLA IM OF THE EXEMPTION AS IT IS ENGAGED IN CHARITABLE PURPOSE AS PER RELEVANT PROVISIONS OF LAW. 6. AFTER CONSIDERING THE FACTS AND THE SUBMISSIONS THE CIT(A) FOUND ON IDENTICAL FACTS IN A.Y. 2011-12 HIS PREDECESSOR ALL OWED THE APPEAL OF THE ASSESSEE AND DIRECTED THE AO TO ALLOW EXEMPTION U/S . 11 OF THE ACT. THE RELEVANT FINDINGS OF THE CIT(A) READ AS UNDER :- 4.1.4 IT IS SEEN FROM THE ASSESSMENT ORDER FOR THE ASSESSMENT YEAR 2011-12 THAT THE FACTS OF THE CASE ARE SAME AS THAT FOR THE ASSESSME NT YEAR UNDER CONSIDERATION, I.E., 2012-13 AND THAT NO NEW FACTS HAVE BEEN BROUGHT OUT IN THE ASSESSMENT ORDER FOR THE YEAR UNDER CONSIDERATION. IN VIEW OF THIS, RESPECTF ULLY FOLLOWING THE ORDER OF MY LD. PREDECESSOR, IT IS HELD THAT THE ASSESSEE IS APPARE NTLY NOT INVOLVED IN ANY TRADE, COMMERCE OR BUSINESS AND AS SUCH THE PROVISO TO SEC TION 2(15) IS NOT APPLICABLE. EXEMPTION UNDER SECTION 11(1) IS ALLOWED TO THE ASS ESSEE. ACCORDINGLY, THE ASSESSING 4 OFFICER IS DIRECTED TO ALLOW EXEMPTION UNDER SECTIO N 11, WITH ALL THE CONSEQUENTIAL BENEFITS. GROUND NOS. 1 TO 13 OF THE APPEAL ARE ALL OWED. 7. BEFORE US THE COUNSEL FOR THE ASSESSEE DIRECTED OUR ATTENTION TO THE ORDER OF THE TRIBUNAL IN A.Y. 2011-12 IN ITA NO.326 6/DEL/2015 AND POINTED OUT THAT THE TRIBUNAL HAS UPHELD THE ORDER OF THE CIT(A) IN A. Y. 2011-12. IT IS THE SAY OF THE COUNSEL THAT THE PRE SENT APPEAL IS DIRECTLY COVERED IN FAVOUR OF THE ASSESSEE AND AGAINST THE R EVENUE. 8. PER CONTRA THE DR FAIRLY CONCEDED THAT THE ISSUE S ARE COVERED IN FAVOUR OF THE ASSESSEE. 9. WE HAVE CAREFULLY CONSIDERED THE ORDERS OF THE A UTHORITIES BELOW. WE FIND THAT IN A.Y.2011-12 THE CIT(A) ALLOWED THE APPEAL OF THE ASSESSEE AND THE REVENUE CHALLENGED THAT THE ORDER BEFORE TH E ITAT. 10. WE FIND THAT THIS TRIBUNAL IN ITA NO.3662/DEL/2 015 HAS UPHELD THE FINDINGS OF THE CIT(A). THE RELEVANT FINDINGS READ AS UNDER :- 5 6 11. RESPECTFULLY FOLLOWING THE DECISION OF THE COOR DINATE BENCH (SUPRA) WE DISMISS THE APPEAL BY THE REVENUE. 7 12. DECISION ANNOUNCED IN THE OPEN COURT IN THE PRE SENCE OF REPRESENTATIVES OF BOTH THE SIDES ON 08.12.2020. SD/- SD/- [SUCHITRA KAMBLE] [ N. K. BILLAIYA] JUDICIAL MEMBER ACCOUNTAN T MEMBER DATED: 08 .12.2020 *NEHA* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR ITAT, NEW DELHI DATE OF DICTATION 08.12.2020 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 08.12.2020 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER 08.12.2020 DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS /PS 08.12.2020 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 08.12.2020 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/ PS 08.12.2020 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WE BSITE OF ITAT 08.12.2020 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 08.1 2.2020 DATE ON WHICH FILE GOES TO THE HEAD CLERK. THE DATE ON WHICH FILE GOES TO THE ASSISTANT REGIST RAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER