M/s. Ram Sewa Swami Satyanand Trust, New Delhi V. DDIT(E), New Delhi

ITA 2980/DEL/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 97899 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-11-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 2
• Next Hearing Date: 09-11-2015
• Assessment Year: 2011-2012
• Appeal Filed On: 13-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P DAM KANUNJNA
• Assessee Lawyers: SALIL AGGARWAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH SMC-2 , NEW DELHI) BEFORE SHRI P. K. BANSAL, ACCOUNTANT MEMBER I.T.A. NO. 2980/DEL/2015 ASSESSMENT YEAR : 2011-12 M/S. RAM SEWA SWAMI SATYANAND TRUST, VS. DDIT (E), 1E/15, JHANDEWALAN EXTN., CIRCLE II, NEW DELHI-110055 NEW DELHI GIR / PAN: (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SALIL AGGARWAL, ADV. RESPONDENT BY : SHRI P. DAM KANUNJNA, SR. DR DATE OF HEARING : 09.11.2015 DATE OF PRONOUNCEMENT : 09.11.2015 ORDER THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER DATED 17.03.2015 PASSED BY LD. CIT(A) XXXX, NEW DELHI, FO R THE ASSESSMENT YEAR 2011-12. THE ONLY ISSUE IN THIS APPEAL RELATE S TO THE DENIAL OF DEDUCTION U/S 11(1A) @15% I.E. THE STATUTORY ACCUMU LATIONS. 2. I HAVE HEARD RIVAL SUBMISSIONS AND CAREFULLY CON SIDERED THE SAME ALONG WITH THE ORDERS OF AUTHORITIES BELOW. I NOTED THAT THE ASSESSEE HAS SHOWN THE INCOME AS PER THE INCOME AND EXPENDITURE ACCOUNT AT RS.5,25,23,992/- AND HAS CLAIMED THEREON 15% AS STA TUTORY ACCUMULATION AMOUNTING TO RS.78,78,599/- AND AFTER THAT, THE ASS ESSEE HAS CLAIMED APPLICATION OF INCOME. THE A.O. DID NOT ALLOW 15% STATUTORY ACCUMULATION AND WAS OF THE VIEW THAT DEDUCTION U/S 11(1) SHOULD HAVE BEEN TAKEN BY THE ASSESSEE ON THE INCOME OF THE YEAR AVAILABLE TO IT IN EXCESS OF APPLICATION. HE AFFIRMED TO THE PROVISIONS OF SECTION 11(1) OF T HE ACT. SECTION 11(1) ITA NO.2980/DEL/2015 2 ALLOWS THE ACCUMULATION @ 15% OF THE INCOME FOR THE PROPERTY HELD UNDER TRUST. THE INCOME TO BE CONSIDERED WILL BE THAT WH ICH ARRIVE AT IN THE CONTEXT OF WHAT IS AVAILABLE IN THE HANDS OF ASSESSEE PRIOR TO THE APPLICATION OF SUCH INCOME. 3. I NOTED THAT THE A.O. IN THIS CASE HAS REDUCED T HE APPLICATION OF INCOME AND THEN THERE WAS LOSS, THEREFORE, HE DID N OT ALLOW 15% FOR ACCUMULATION OF INCOME. INCOME OF APPLICATION OF I NCOME BOTH ARE THE DIFFERENT TERMS. INCOME IS ALWAYS COMPUTED ON THE COMMERCIAL PRINCIPLES WHILE APPLICATION REPRESENTS BENEFIT TO THE EARNING OF INCOME. ACCUMULATION U/S 11(1) @ 15% HAS TO BE MADE OUT OF THE INCOME. I ACCORDINGLY, SET ASIDE THE ORDER OF LD. CIT(A) AND DIRECT THE A.O. TO ALLO W THE ASSESSEE 15% DEDUCTION TOWARDS THE ACCUMULATION U/S 11(1) OF THE ACT. 4. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS A LLOWED. 5. ORDER PRONOUNCED IN THE OPEN COURT ON 09 TH NOV., 2015. SD./- (P. K. BANSAL) ACCOUNTANT MEMBER DATE: 09.11. 2015 SP COPY FORWARDED TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT (A)-, NEW DELHI. 5. THE DR, ITAT, LOKNAYAK BHAWAN, KHAN MARKET, NEW DEL HI. TRUE COPY. BY ORDER (ITAT, NEW DELHI). ITA NO.2980/DEL/2015 3 S.NO. DETAILS DATE INITIALS DESIGNATION 1 DRAFT DICTATED ON 9/11 SR. PS/PS 2 DRAFT PLACED BEFORE AUTHOR 9/11 SR. PS/PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/AM 5 APPROVED DRAFT COMES TO THE SR. PS/PS 16/11/15 SR. PS/PS 6 KEPT FOR PRONOUNCEMENT 16/11 SR. PS/PS 7 FILE SENT TO BENCH CLERK 16/11 SR. PS/PS 8 DATE ON WHICH THE FILE GOES TO HEAD CLERK 9 DATE ON WHICH FILE GOES TO A.R. 10 DATE OF DISPATCH OF ORDER