DCIT, Exemption, Ghaziabad V. Divya Yog Mandir Trust , Haridwar

ITA 2841/DEL/2018

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 0604 (ITAT-DEHRADUN)
• Duration Of Justice: 2 year(s) 7 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-12-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 23-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A S RANA
• Section: 12AA; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DEHRADUN CIRCUIT BENCH: DEHRADUN BEFORE SHRI R. K. PANDA, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER ITA NO. 2841/DEL/2018 ( A.Y 2014-15) (THROUGH VIDEO CONFERENCING) DCIT, EXEMPTION GHAZIABAD ROOM NO. 105, CGO COMPLEX- II, 1 ST FLOOR, KAMLA NEHRU NAGAR, GHAZIABAD, UTTARPRADESH (APPELLANT) VS DIVYA YOG MANDIR TRUST NEAR DADU BAGH, KRIPALU BAGH, KANKHAL, HARIDWAR (RESPONDENT) APPELLANT BY SH. A. S. RANA, SR. DR RESPONDENT BY MS. DEEPASHREE RAO, CA ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORDER DATED 20/02/2018 PASSED BY CIT(A) , DEHRADUN IN A.Y. 2014-15. 2. THE GROUNDS OF APPEAL ARE AS UNDER:- 1. THE LD. CIT(A) HAS ERRED IN LAW AND FACTS IN DELETING THE ADDITIONS OF RS. 4,18,82,260/- MADE BY THE AO IN RESPECT OF PROFIT FROM BUSINESS UNDERTAKINGS. 2. THE ORDER OF LD. CIT(A) BE CANCELLED AND THE ORDER O THE AO BE RESTORED. 3. THE ASSESSEE TRUST WAS REGISTERED U/S 12A(A) OF THE INCOME TAX ACT, 1961 VIDE ORDER DATED 27.03.1995. THE ASSESSEE TRUST HAS BEEN FILING ITS RETURN OF DATE OF HEARING 18.12.2020 DATE OF PRONOUNCEMENT 18.12.2020 INCOME REGULARLY AND CLAIMING EXEMPTION IN TERMS OF SECTION 11,12 AND 12AA OF THE ACT. THE ASSESSEE TRUST FURNISHED ITS RETURN OF INCOME ON 28.11.2014 DECLARING RS. 1,38,130/- INCOME AFTER CLAIMING EXEMPTION U/S 11 OF THE ACT. THE ASSESSEE ALSO FILED ITS AUDIT REPORT U/S 12A(A) IN FORM NO. 10B. THE ASSESSING OFFICER ON EXAMINATION OF THE AUDIT REPORT OBSERVED THAT THE ASSESSEE TRUST WAS ENGAGED IN BUSINESS ACTIVITIES. THEREFORE, THE ASSESSING OFFICER AFTER SETTING OFF THE LOSS INCURRED BY THE TRUST FROM THE PROFITS OF BUSINESS UNDERTAKINGS, THE TOTAL EXCESS OF INCOME OVER EXPENDITURE HAD BEEN SHOWN AT RS. 4,17,00,246/-. THE ASSESSING OFFICER FURTHER OBSERVED THAT THE SAID AMOUNT WAS CLAIMED BY THE ASSESSEE AS INTER TRUST DONATIONS TO THE TUNE OF RS. 78,69,23,236/- TO VARIOUS RELATED TRUST/INSTITUTIONS HAVING COMMON MEMBERS. THE ASSESSING OFFICER HELD THAT ACTIVITIES OF TRUST ARE NOT COVERED U/S 2(15) OF THE ACT AND NOT ALLOWED IT EXEMPTION U/S 11 OF THE ACT, THEREBY CALCULATING THE TOTAL INCOME AT RS. 4,18,82,260. 4. BEING AGGRIEVED BY THE ASSESSMENT ORDER, THE ASSESSEE FILED APPEAL BEFORE THE CIT(A). THE CIT(A) ALLOWED THE APPEAL OF THE ASSESSEE. 5. THE LD. DR RELIED UPON THE ASSESSMENT ORDER AND SUBMITTED THAT THE CIT(A) ERRED IN DELETING THE ADDITIONS OF RS. 4,18,82,260/- MADE BY THE ASSESSING OFFICER IN RESPECT OF PROFIT FROM BUSINESS UNDERTAKINGS. 6. THE LD. AR RELIED UPON THE ORDER OF THE CIT (A) AND FURTHER SUBMITTED THAT THE HONBLE UTTARAKHAND HIGH COURT IN ASSESSEES CASE VIDE ORDER DATED 27.02.2019 IN ITA NO. 05 OF 2014 HELD THAT THE ASSESSING OFFICER WAS NOT JUSTIFIED IN DENYING THE ASSESSEE EXEMPTION UNDER SECTION 11/12 OF THE ACT. THE SAID DECISION OF THE HONBLE HIGH COURT IS CONFIRMED BY THE HONBLE SUPREME COURT IN SLP (CIVIL) DIARY NO(S). 25556/2019 ORDER DATED 09.08.2019. 7. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE HONBLE UTTARAKHAND HIGH COURT IN ASSESSEES CASE FOR A.Y. 2009- 10 HAS HELD THAT THE ASSESSING OFFICER WAS NOT JUSTIFIED IN DENYING THE ASSESSEE EXEMPTION UNDER SECTION 11/12 OF THE ACT WHICH IS CONFIRMED BY THE HONBLE APEX COURT. BESIDES THIS, FOR A.Y. 2010-11, 2011-12, 2012-13 AND 2013-14 AS WELL THE TRIBUNAL HAS DECIDED THE IDENTICAL ISSUE IN FAVOUR OF THE ASSESSEE. THERE IS NO CHANGE IN FACTS IN THE PRESENT ASSESSMENT YEAR AND NO DISTINGUISHING FACTS WERE POINTED OUT BY THE LD. DR. THEREFORE, THE CIT(A) RIGHTLY ALLOWED THE APPEAL OF THE ASSESSEE. THERE IS NO NEED TO INTERFERE WITH THE FINDINGS OF THE CIT(A). HENCE, APPEAL OF THE REVENUE IS DISMISSED. 8. IN RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 18 TH DEC., 2020 IN PRESENCE OF BOTH PARTIES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 18 TH DAY OF DECEMBER, 2020 . SD/- SD/- (R. K. PANDA) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 18/12/2020 R. NAHEED COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI DATE OF DICTATION 18.12.2020 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 18.12.2020 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER 18.12.2020 DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/PS 18.12.2020 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 18.12.2020 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS 18.12.2020 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 18.12.2020 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 18.12.2020 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER