DCIT (E), Circle- Ghaziabad, Ghaziabad V. Shri Badri Nath and Shri Kedarnath Temple Committee , Uttarakhand

ITA 3426/DEL/2018

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 0958 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 1 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-07-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2014-2015
• Appeal Filed On: 09-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NIDHI SRIVASTAVA
• Keywords: Business income
• Section: 143(3); 80G; 12A; 201; 10(23C); 12; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B, NEW DELHI BEFORE SH. N. K. BILLAIYA, ACCOUNTANT MEMBER AND SH. AMIT SHUKLA, JUDICIAL MEMBER (THROUGH VIDEO CONFERENCING) ITA NO.3426/DEL/2018 ASSESSMENT YEAR: 2014-15 DCIT (E) CIRCLE GHAZIABAD GHAZIABAD VS M/S SHRI BADRI NATH AND SHRI KEDARNATH TEMPLE COMMITTEE, KEDARNATH BADRINATH DHAM, JOSHINATH CHAMOLI, UTTARAKHAND (APPELLANT) (RESPONDENT) APPELLANT BY MS. NIDHI SRIVASTAVA, CIT DR RESPONDENT BY SH. RAJIV JAIN, CA DATE OF HEARING: 08/07/2021 DATE OF PRONOUNCEMENT: 08/07/2021 ORDER PER N. K. BILLAIYA, AM: THIS APPEAL BY THE REVENUE IS PREFERRED AGAINST TH E ORDER OF THE CIT(A), DEHRADUN DATED 16.03.2018 PERTAINING TO A.Y. 2014-15. 2. THE ONLY GRIEVANCE OF THE REVENUE READ AS UNDER :- 2 1. THE LD. CIT(A) HAS ERRED IN LAW AND FACTS IN DELETI NG THE ADDITIONS OF RS.6,43,93,753/- MADE BY THE AO AG AINST SURPLUS OF INCOME WHILE THE ASSESSEE WAS HOLDING A VALID CERTIFICATE U/S. 12 A OF THE I. T. ACT. 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT TH E ASSESSEE WAS REGISTERED UNDER U.P. ACT NO. XVI OF 1939. ORIGINA LLY THE SOCIETY HAS BEEN GRANTED REGISTRATION U/S.12AA OF THE I. T. ACT 1961. THE SOCIETY IS ENGAGED IN THE FOLLOWING ACTIVITIES :- 3 4 4. DURING THE COURSE OF THE SCRUTINY ASSESSMENT PRO CEEDINGS THE AO NOTICED THAT THE ASSESSEE HAS CLAIMED EXEMPT ION U/S. 11 OF THE IT ACT, 1961. HOWEVER, HE COULD NOT FIND CE RTIFICATE U/S. 12A FOR THE YEAR UNDER CONSIDERATION. THE AO FOUND THAT THE CERTIFICATE U/S. 12A AS FURNISHED BY THE ASSESSEE I S DATED 20.10.2014 AND THE APPLICATION FOR CERTIFICATE U/S. 12A WAS MADE ON 09.10.2014. THE AO ACCORDINGLY DENIED THE CLAIM OF EXEMPTION U/S. 11 OF THE ACT AND TREATED RS.6,43,93,753/- AS BUSINESS INCOME OF THE ASSESSEE TRUST. 5. ASSESSEE AGITATED THE MATTER BEFORE THE CIT(A) A ND FURNISHED ALL THE RELEVANT DOCUMENTS/ CERTIFICATES FOR THE EL IGIBILITY OF SECTION 11 OF THE ACT. AFTER CONSIDERING THE SUBMIS SIONS AND THE RELEVANT DOCUMENTARY EVIDENCES THE CIT(A) HELD AS U NDER :- 15. AFTER GOING THROUGH ALL THE DOCUMENTS, THE OBS ERVATIONS AND CONCLUSIONS OF THE UNDERSIGNED ARE AS BELOW. IT MAY ALSO BE MENTIONED THAT THE SUBMISSIONS OF THE ASSESSEE WERE SENT TO THE AO FOR REMAND REPORT. ALL THE CONCLUSIONS BELOW ARE AF TER TAKING THE OBSERVATION OF THE AO IN REMAND REPORT. I) THERE IS AN ORDER ON RECORD FOR A.Y. 2012-13 WHI CH REFERS TO REGISTRATION BEING GRANTED TO # ASSESSEE U/S 12A. THE ORDER U/S 5 143(3) ALSO GIVES A NUMBER OF THE CIRCULAR OF THE C IT(LUCKNOW) WHICH GRANTED THE' REGISTRATION. II) THE ASSESSEE HAS PLACED ON RECORD SEVERAL OTHER SUBSEQUENT ORDERS WHEREIN IT HAS BEEN CLEARLY MENTIONEDTHAT THE ASSES SEE IS A SOCIETY REGISTERED U/S 12AA. THERE HAS NEVER BEEN THE ISSUE OF THE ASSESSEE NOT HAVING A VALID REGISTRATION U/S 12AA. III) THE ASSESSEE HAS SUBMITTED FORM 10 ON 29.09.20 14 TO THE ITO, SRINAGAR, GARHWAL, UTTARAKHAND IN MANUAL FORM. THIS WAS ALSO ELECTRONICALLY SUBMITTED LATER IN DECEMBER 2016. 16. THERE IS A DECISION OF THE SUPREME COURT OF IND IA IN NAGPUR HOTEL OWNERS ASSOCIATION 247 ITR 201 SAYING THAT DELAY IN SUBMITTING FORM 10 FOR CLAIM OF EXEMPTION U/S 11 CAN BE CONDON ED AND THE FORM CAN BE SUBMITTED ON A LATER DATE. 17. THE ASSESSEE HAS REGULARLYRECEIVED BENEFIT U/S 80G AND EXEMPTION U/S 10(23C) HAS ALSO REGULARLY BEEN ISSUE D IN FAVOUR OF THE ASSESSEE. THESE BENEFITS WOULD NOT HAVE BEEN EX TENDED TO THE ASSESSEE HAD IT NOT HAD THE VALID REGISTRATION U/S 12A. 18. THE AO IN HIS REMAND REPORT HAS ALSO MENTIONED THAT THE ASSESSEE IS A RENOWNED PLACE OF WORSHIP AND CONTINU OUSLY REGISTERED U/S 80G OF THE I.T. ACT, 1961. 19. WITH REGARD TO ISSUE OF FRESH CERTIFICATE U/S 1 2AA VALID FROM 20.10.2014, THE AO IN HIS REMAND REPORT SUBMITTED T HAT THE EARLIER AO OPINED THAT THE ASSESSEE IS NOT ELIGIBLE FOR EXE MPTION U/S 11 IN THE ABSENCE OF VALID CERTIFICATE U/S 12A. FURTHER, IT MAY BE MENTIONED THAT THERE HAVE BEEN NO CHANGE IN THE AIM S AND OBJECTIVES OF THE ASSESSEE AND THEREFORE, THE FRESH REGISTRATION WOULD EVEN APPLY TO THE EARLIER YEARS. IN ANY CASE, THAT THE ASSESSEE HAD VALID REGISTRATION U/S 12A IN EARLIER YEARS AS APPA RENT FROM THE RECORDS (INCLUDING THAT OF THE DEPARTMENT ITSELF). THE ASSESSEE HAS APPLIED FOR THE FRESH REGISTRATION U/S 12A ONLY BEC AUSE THE EARLIER 6 ORDER WENT MISSING. THE UTTARAKHAND FLOODS ARE WELL KNOWN NATURAL CALAMITY AND THAT CERTAIN DOCUMENTS OF THE ASSESSEE WENT MISSING IN THAT, IS A COMPLETELY ACCEPTABLE EXPLANATION. UN DER THESE CIRCUMSTANCES, THE ADDITION MADE BY THE AO IS DELET ED. 6. BEFORE US THOUGH THE DR STRONGLY SUPPORTED THE A SSESSMENT ORDER BUT COULD NOT BRING OUT ANY FACTUAL ERROR IN THE FINDINGS OF THE CIT(A). THE COUNSEL REITERATED WHAT HAS BEEN S TATED BEFORE THE CIT(A). 7. WE HAVE GIVEN A THOUGHTFUL CONSIDERATION TO THE ORDERS OF THE AUTHORITIES BELOW. IT IS AN UNDISPUTED FACT THAT T HE CERTIFICATES/ DOCUMENTS WERE LOST IN THE UTTARAKHAND FLOODS. IT IS ALSO NOT IN DISPUTE THAT THE ASSESSEE TRUST HAS BEEN GRANTED TH E REGISTRATION U/S. 12A SINCE 1972. SINCE ALL THE CERTIFICATES / DOCUMENTS HAVE BEEN FURNISHED AND EXAMINED BY THE CIT(A). WE DO N OT FIND ANY REASON TO INTERFERE WITH THE FINDINGS OF THE CIT(A) . THE APPEAL FILED BY THE REVENUE IS DISMISSED. 8. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. 7 9. DECISION ANNOUNCED IN THE OPEN COURT IN THE PRE SENCE OF BOTH THE REPRESENTATIVES ON 08.07.2021. (AMIT SHUKLA) (N. K. BILLAIYA) JUDICIAL MEMBER A CCOUNTANT MEMBER *NEHA* DATE:-08.07.2021 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGI STRAR ITAT NEW DELHI DATE OF DICTATION 0 8 .07.2021 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER DATE ON WHICH THE TY PED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/ PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH FILE GOES TO THE HEAD CLERK. THE DATE ON WHICH FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPAT CH OF THE ORDER