THE DCIT, (EXEMPTION), Bhopal V. M/S. DEVI SHAKUNTALA THKARAL CHARITABLE FOUNDATION, Bhopal

ITA 303/IND/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5671 (ITAT-INDORE)
• Duration Of Justice: 10 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-03-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 10-03-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 07-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R A VERMA
• Assessee Lawyers: GIRISH AGRAWAL
• Keywords: Depreciation; Charitable institution
• Section: 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER AND SHRI B.C.MEENA, ACCOUNTANT MEMBER I.T.A.NO.303/IND/2015 A.Y. : 2010-11. DY.CIT (EXEMPTION), BHOPAL VS M/S.DEVI SHAKUNTALA THAKRAL CHARITABLE FOUNDATION, THAKRAL NAGAR, BHOPAL. APPELLANT RESPONDENT DEPARTMENT BY : SHRI R.A. VERMA, DR RESPONDENT BY : SHRI GIRISH AGRAWAL, CA O R D E R PER D.T.GARASIA, J.M. THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF CIT(A),BHOPAL-2 DATED 26.02.2015 FOR ASSESSMENT YEAR 2010-11. DATE OF HEARING : 10.03.2016 DATE OF PRONOUNCEMENT : 10. 0 3 .2016 ACIT,3(1), BHOPAL VS. DEVI SHAKUNTALATHAKRAL CHARI TABLE FOUNDATION, BHOPAL- I.T.A.NO. 303 /IND/2015 A .Y. 2010-11 2 2 2. FOLLOWING GROUNDS HAVE BEEN TAKEN IN THE CASE OF M/ S. CHANDRAVADANI MAHILA SHIKSHA SAMITI :- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE CIT(A) HAS ERRED IN ALLOWING THE EXEMPTION U/S 11 OF THE INCOME-TAX ACT, 1961. EVEN THOUGH DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE AO FOUND THAT THE EXPENSES CLAIMED BY THE ASSESSEE ARE NOT FOUND TO BE GENUINE AND NOT FOR CHARITABLE PURPOSES. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS . 23,86,210/- HOLDING THAT IT IS AN APPLICATION OF INCOME ALLOWABLE UNDER THE PROVISION OF SECTION 11 OF THE INCOME-TAX ACT, 1961. WHEN THE ASSESSEE TRUST AT THE TIME OF COMPLETING THE ASSESSMENT FAILED TO SHOW PROPER MAINTENANCE OF RECORD OF EXPENSES AND ALSO FAILED TO PRODUCE THE RELEVANT DOCUMENTARY EVIDENCES IN SUPPORT OF EXPENSES INCURRED. ACIT,3(1), BHOPAL VS. DEVI SHAKUNTALATHAKRAL CHARI TABLE FOUNDATION, BHOPAL- I.T.A.NO. 303 /IND/2015 A .Y. 2010-11 3 3 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS . 5,16,43,886/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF DEPRECIATION DISALLOWED CONSIDERING THE ASSESSEES SUBMISSION FILED DURING THE COURSE OF APPELLATE PROCEEDINGS THAT THE HON'BLE HIGH COURT VIDE ORDER DATED 2.4.2013 HAS DECIDED THE ISSUE IN THE CASE OF ASSESSEE IN ITS FAVOUR BECAUSE FOR EARL IER I.E. ASSESSMENT YEAR 2004-05 ALSO S.L.P. WAS NOT APPROVED ONLY ON THE BASIS OF MONETARY LIMIT AND NOT ON MERITS. 4. FURTHER, THE LD. CIT(A) IS ALSO NOT JUSTIFIED IN ALLOWING THE DEPRECIATION CLAIMED SECOND TIME TO TH E ASSESSEE IN RESPECT OF ANY ASSET THE ACQUISITION OF WHICH HAS BEEN CLAIMED AND ALLOWED AS APPLICATION OF INCOME U/S OF THE INCOME-TAX ACT, 1961, IN THE SAME OR ANY PREVIOUS YEAR. 5. THE LD. CIT(A) IS ALSO NOT JUSTIFIED IN DELETING TH E SAID ADDITION MADE ON ACCOUNT OF DEPRECIATION ON ACIT,3(1), BHOPAL VS. DEVI SHAKUNTALATHAKRAL CHARI TABLE FOUNDATION, BHOPAL- I.T.A.NO. 303 /IND/2015 A .Y. 2010-11 4 4 ASSETS PURCHASED OUT OF APPLICATION OF INCOME U/S 11 OF THE INCOME-TAX ACT, 1961, IN THE LIGHT OF FAC TS THAT WITH THE AMENDMENT OF INCOME-TAX ACT, 1961, BY WHICH SUB SECTION (6) OF SECTION 11 HAS BEEN INSERTED TO DISALLOW SUCH DOUBLE DEPRECIATION W.E.F . 1.4.2015. 3. THE BRIEF FACTS OF THE CASE ARE THAT DEVI SHAKUNTAL A THAKRAL CHARITABLE FOUNDATION IS A SOCIETY, REGISTE RED UNDER THE M.P. SOCIETY REGISTRATION ACT VIDE REGISTRATION NO. 4357/97 DATED 20.02.1997. SOCIETY IS ALSO REGISTERED U/S 1 2A OF THE INCOME-TAX ACT, 1961, W.E.F. 1.4.2002 VIDE ENTRY AT SL.NO.72/02-03. THE ASSESSEE SOCIETY IS RUNNING VAR IOUS EDUCATION INSTITUTIONS, INCLUDING A. ORIENTAL INSTITUTE OF SCIENCE AND TECHNOLOGY B. THAKRAL COLLEGE OF TECHNOLOGY C. ORIENTAL COLLEGE OF MANAGEMENT D. ORIENTAL COLLEGE OF PHARMACY E. ORIENTAL INSTITUTE OF SCIENCE AND TECHNOLOGY ACIT,3(1), BHOPAL VS. DEVI SHAKUNTALATHAKRAL CHARI TABLE FOUNDATION, BHOPAL- I.T.A.NO. 303 /IND/2015 A .Y. 2010-11 5 5 4. THE LD. COUNSEL FOR THE ASSESSEE AT THE OUT-SET CONTENDED THAT THE GROUNDS RAISED IN DEPARTMENTAL A PPEALS IN THE CASE OF DEVI SHAKUNTALA THAKRAL CHARITABLE FOUN DATION, BHOPAL, ARE COVERED BY THE DECISION OF I.T.A.T. IND ORE BENCH, INDORE ORDER PASSED IN I.T.A.NOS. 424 & 447/IND/200 9 FOR ASSESSMENT YEAR 2004-05 AND 2005-06 AND I.T.A.NOS. 48 & 49/IND/2012 FOR ASSESSMENT YEARS 2007-08 AND 2008-0 9 DATED 1.6.2012. 5. THE LD. CIT DR AGREED TO IT. 6. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES. WE HAVE GONE THROUGH THE ORDERS OF THE AU THORITIES BELOW. WE FIND THAT THE GROUNDS RAISED BY THE DEPAR TMENT IN THE CASE OF DEVI SHAKUNTALA THAKRAL CHARITABLE FOUN DATION, BHOPAL, ARE COVERED BY THE DECISION OF I.T.A.T. WE RESPECTFULLY FOLLOWING THE ORDERS OF THE I.T.A.T. INDORE BENCH, INDORE ORDER PASSED IN I.T.A.NOS. 424 & 447/IND/2009 FOR ASSESSM ENT YEAR 2004-05 AND 2005-06 AND I.T.A.NOS. 48 & 49/IND/2012 FOR ASSESSMENT YEARS 2007-08 AND 2008-09 DATED 1.6.2012 , DISMISS THE REVENUES APPEAL. ACIT,3(1), BHOPAL VS. DEVI SHAKUNTALATHAKRAL CHARI TABLE FOUNDATION, BHOPAL- I.T.A.NO. 303 /IND/2015 A .Y. 2010-11 6 6 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISS ED. THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 10 TH MARCH, 2016. SD/- (B.C.MEENA) ACCOUNTANT MEMBER SD/- ( D.T.GARASIA) JUDICIAL MEMBER DATED : 10 TH MARCH, 2016. CPU*