SANSKRUTI VISTARAK SANGH, MUMBAI V. DY. DIRECTOR OF INCOME TAX (EXEMP)-i(2), MUMBAI

ITA 3724/MUM/2009

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 4670 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 3 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-09-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: J
• Next Hearing Date: 20-09-2010
• Assessment Year: 2005-2006
• Appeal Filed On: 09-06-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SU RENDRA KUMAR
• Assessee Lawyers: DI LIP J THAKKAR
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH J : MUMBAI BEFORE SHRI D.K. AGARWAL, (JM) AND SHRI B. RAMAKO TAIAH,(AM) ITA NO.3724/MUM/2009 ASSESSMENT YEAR : 2005-06 SANSKRUTI VISTARAK SANGH NIRMAL NIKETAN, 2, DR. BHAJEKAR STREET MUMBAI-400 054. ..( APPELLANT ) P.A. NO. (AACTS 1554 M) VS. DY. DIRECTOR OF INCOME TAX(EXEMP)-I(2) MUMBAI. ..( RESPONDENT ) APPELLANT BY : S/SH RI DILIP J. THAKKAR AND RAJESH P. SHAH RESPONDENT BY : SURENDR A KUMAR O R D E R PER D.K. AGARWAL (JM). THIS APPEAL PREFERRED BY THE ASSESSEE IS DIRECTED A GAINST THE ORDER DATED 25.3.2009 PASSED BY THE LD. CIT(A) FOR THE AS SESSMENT YEAR 2005-06. 2. BRIEFLY STATED FACTS OF THE CASE ARE THAT FACTS OF THE CASE ARE THAT THE ASSESSEE IS AN EDUCATIONAL INSTITUTION REGISTERED U/S.12A OF THE INCOME TAX ACT, 1961(THE ACT) FILED RETURN DECLARING AN INCOME OF RS.NIL ALONG WITH AUDITED INCOME AND EXPENDITURE ACCOUNT AND BALANCE SHEET. HOWEVER, THE ASSESSMENT WAS COMPLETED AT AN INCOME OF RS.95,46,6 82/- INCLUDING THE DISALLOWANCE ON ACCOUNT OF UTSAV AND MILAN EXPENSES , RS.6,34,732/-, ON THE GROUND THAT THE SAID EXPENSES HAVE BEEN INCURRED ON THE GENERAL FUNCTIONS HELD AT DIFFERENT PLACES AND HAD NOTHING TO DO WITH THE EDUCATIONAL OBJECTS OF THE TRUST AND MOREOVER THERE IS NO AUTHENTICITY OF BILLS AND VOUCHERS WHICH COULD BE SUBJECT TO VERIFICATION, VIDE ORDER DATED 27.4.2007 PASSED U/S. 143(3) OF THE ACT IN THE STATUS OF AOP (TRUST). ON APPEAL, THE LD. CIT(A) AFTER DELETING THE OTHER ADDITIONS SUSTAINED A DISA LLOWANCE OF RS.1.00 LACS UNDER THE HEAD DIWALI AND MILAN EXPENSES FOLLOWING HIS ORDER FOR THE ASSESSMENT YEAR 2004-05 AND ACCORDINGLY PARTLY ALLO WED THE APPEAL. ITA NO.3724/M/09 A.Y:05-06 2 3. BEING AGGRIEVED BY THE ORDER OF THE LD. CIT(A) T HE ASSESSEE IS IN APPEAL BEFORE US CHALLENGING THE SUSTENANCE OF DISA LLOWANCE OF RS.1.00 LACS OUT OF DIWALI AND MILAN EXPENSES. 4. AT THE TIME OF HEARING THE LD. COUNSEL FOR THE A SSESSEE SUBMITS THAT THE TRIBUNAL IN ASSESSEE'S OWN CASE IN SANSKRUTI VI STARAK SANGH VS. DY. DIT (EXEMPTION) IN ITA NO.4610/M/2008 FOR ASSESSMENT YE AR 2004-05 VIDE ORDER DATED 31.7.2009 HAS DELETED THE SIMILAR DISALLOWANC E OF RS.1.00 LACS, THEREFORE, THE ADDITION SUSTAINED BY THE LD. CIT(A) BE DELETED. 5. ON THE OTHER HAND LD. DR SUPPORTS THE ORDER OF T HE ASSESSING OFFICER AND THE LD. CIT(A). 6. WE HAVE CAREFULLY CONSIDERED THE SUBMISSIONS OF THE RIVAL PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND T HAT THE FACTS ARE NOT IN DISPUTE. WE FURTHER FIND MERIT IN THE PLEA OF THE LD. COUNSEL FOR THE ASSESSEE THAT ON THE SIMILAR FACTS AND CIRCUMSTANCES OF THE CASE THE DISALLOWANCE OF RS.1.00 LACS SUSTAINED BY THE LD. CIT(A) FOR THE AS SESSMENT YEAR 2004-05 HAS BEEN DELETED BY THE TRIBUNAL SUPRA, FOR THE REA SONS THAT MERELY THE EXPENSES ARE SUPPORTED BY SELF-MADE VOUCHERS, ADHOC DISALLOWANCE CANNOT BE MADE WHEN THE ASSESSEE INCURRED THE EXPENSES TOW ARDS THE OBJECT OF THE TRUST. IN THE ABSENCE OF ANY DISTINGUISHING FEATURE BROUGHT ON RECORD BY THE REVENUE WE RESPECTFULLY FOLLOWING THE SAME DELETE T HE ADHOC DISALLOWANCE OF RS.1.00 LACS AND ALLOW THE GROUND RAISED BY THE ASS ESSEE. 7. IN THE RESULT, ASSESSEE'S APPEAL STANDS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 24.9.2010. SD/- SD/- (B. RAMAKOTAIAH) ( D.K. AGARWAL ) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 24.9.2010. JV. ITA NO.3724/M/09 A.Y:05-06 3 COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT(A) CONCERNED, MUMBAI THE DR BENCH TRUE COPY BY ORDER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.