ACIT, Jaipur V. OM KOTHARI FOUNDATION, Jaipur

ITA 383/JPR/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 5033 (ITAT-JAIPUR)
• Duration Of Justice: 5 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-09-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2006-2007
• Appeal Filed On: 11-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: O P BHATEJA
• Assessee Lawyers: B V MAHESHWARI C A DHK
• Section: 11

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH DQY HKKJR] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS [KK LNL; DS LE{K BEFORE: SHRI KUL BHARAT, JM & SHRI VIKRAM SINGH YAD AV, AM VK;DJ VIHY LA-@ ITA NO. 383 & 384/JP/2016 FU/KZKJ.K O'K Z@ ASSESSMENT YEARS : 2006-07 & 07-08. THE INCOME TAX OFFICER, (EXEMPTIONS) WARD 1, JAIPUR. CUKE VS. M/S. OM KOTHARI FOUNDATION, OM TOWER, M.I. ROAD, JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AAATO 0616 J VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : SHRI O.P. BHATEJA (ADDL.CIT) FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI B.V. MAHESHWARI (CA) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 23.09.2016. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 28/09/2016. VKNS'K@ ORDER PER SHRI KUL BHARAT, JM. THESE TWO APPEALS BY THE REVENUE ARE DIRECTED AGAI NST THE ORDER OF LD. CIT (A)-3, JAIPUR DATED 11.01.2016 PERTAINING TO ASSESS MENT YEARS 2006-07 & 07-08. BOTH THE APPEALS ARE TAKEN UP TOGETHER AND ARE BEIN G DISPOSED OFF BY A CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS :- A.Y. 2006-07 : ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE CIT (A) HAS ERRED IN : 1.(I) ALLOWING ASSESSEES CLAIM OF EXEMPTION U/S 11 EVEN THOUGH PROVISIONS OF SEC. 13(1)(D)(III) ARE ATTRACTED. 2 ITA NOS. 383 & 384/JP/2016 OM KOTHARI FOUNDATION. (II) DELETING THE ADDITION MADE ON ACCOUNT OF CORPU S DONATION OF RS. 25,50,100/- IN SPITE OF THE FACT THAT THE ASSESSEE TRUST HAS LOST ITS EXEMPTION BY VIOLATING THE PROVISIONS OF SECTIO N 13(1)(D)(III) OF THE ACT. (III) ALLOWING THE DEDUCTION OF RS. 8,22,009/- IN S PITE OF THE FACT THAT THE ASSESSEE HAS LOST ITS EXEMPTION U/S 11 OF THE A CT. (IV) ALLOWING EXEMPTION OF RS. 9000/- AS DIVIDEND I NCOME IN SPITE OF THE FACT THE ASSESSEES MAIN ACTIVITIES ARE CHARITA BLE, NOT INVESTING THE TRUST MONEY IN SHARES/MUTUAL FUNDS. (V) ALLOWING THE EXPENDITURE ON DONATION AMOUNTING TO RS. 4,11,325/-. (VI) ALLOWING THE EXPENDITURE ON HELP TO POOR PERSO N OF RS. 4,03,434/-. (VII) ALLOWING THE INTEREST PAID ON LOAN TAKEN AS E XPENDITURE BY THE TRUST OF RS. 1,33,747/-. A.Y. 2007-08 : ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE CIT (A) HAS ERRED IN : 1.(I) ALLOWING ASSESSEES CLAIM OF EXEMPTION U/S 11 EVEN THOUGH PROVISIONS OF SEC. 13(1)(D)(III) ARE ATTRACTED. (II) DELETING THE ADDITION MADE ON ACCOUNT OF CORPU S DONATION OF RS. 56,07,662/- IN SPITE OF THE FACT THAT THE ASSESSEE TRUST HAS LOST ITS EXEMPTION BY VIOLATING THE PROVISIONS OF SECTIO N 13(1)(D)(III) OF THE ACT. (III) ALLOWING THE DEDUCTION ON ACCOUNT OF REPAIRS & MAINTENANCE AMOUNTING TO RS. 3,35,430/- OUT OF RENTAL INCOME U/ S 24(1) OF THE ACT. (IV) ALLOWING EXEMPTION OF RS. 71,153/- AS DIVIDEND INCOME IN SPITE OF THE FACT THE ASSESSEES MAIN ACTIVITIES ARE CHAR ITABLE, NOT INVESTING THE TRUST MONEY IN SHARES/MUTUAL FUNDS. 3 ITA NOS. 383 & 384/JP/2016 OM KOTHARI FOUNDATION. 2. BRIEFLY STATED THE FACTS ARE THAT THE CASE OF TH E ASSESSEE WAS REOPENED AND THE ASSESSMENT UNDER SECTION 148/143(3) OF THE I.T. ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) WAS FRAMED VIDE ASSESSMENT ORDER DAT ED 31.12.2013. WHILE FRAMING THE ASSESSMENT, THE AO MADE VARIOUS ADDITIONS AND C OMPUTED THE TOTAL INCOME OF THE ASSESSEE AT RS. 33,81,109/-. AGGRIEVED BY THIS ORDER, THE ASSESSEE PREFERRED AN APPEAL BEFORE LD. CIT (A), WHO AFTER CONSIDERING TH E SUBMISSIONS OF THE ASSESSEE, PARTLY ALLOWED THE APPEAL OF THE ASSESSEE. 3. NOW THE REVENUE IS IN APPEAL BEFORE US. 4. THE LD. D/R SUPPORTED THE ORDER OF THE ASSESSING OFFICER AND SUBMITTED THAT THE LD. CIT (A) WAS NOT JUSTIFIED IN DELETING THE A DDITIONS. 5. AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ISSUE INVOLVED IN THIS CASE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THE COORDINATE BENCH OF THE ITAT JAIPUR IN THE CASE OF SANTOKBA DURLABH JI TRUST FOR A.Y. 2008-09 IN ITA NO. 169/JP/2012 ORDER DATED 05. 11.2014 AND ITA NO. 241/JP/2014 DATED 24.02.2015. 6. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE SUBMISSION OF THE LD. COUNSEL FOR THE ASSESSEE IS NOT CONTROVERTED BY THE LD. D/R BY PLACING ANY CONTRARY MATERIAL ON REC ORD. THEREFORE, RESPECTFULLY FOLLOWING THE ORDERS OF COORDINATE BENCH, WE DO NOT FIND ANY MERIT TO INTERFERE IN THE ORDER OF THE LD.CIT (A), SAME IS UPHELD. APPEAL OF THE REVENUE IS DISMISSED. ITA NO. 384/JP/2016 AY 2007-08 : 7. BY FOLLOWING THE DECISION ARRIVED AT IN ITA NO. 383/JP/2016 FOR THE ASSTT.YEAR 2006-07, WE DISMISS THE APPEAL OF THE REVENUE IN IT A NO. 384/JP/2016 FOR THE ASSTT. YEAR 2007-08 ON THE GROUND OF IDENTICAL FACTS. 4 ITA NOS. 383 & 384/JP/2016 OM KOTHARI FOUNDATION. 8. IN THE RESULT, APPEALS OF THE REVENUE ARE DISMIS SED. ORDER PRONOUNCED IN THE OPEN COURT ON 28/09/201 6. SD/- SD/- FOE FLAG ;KNO ( DQY HKKJR ) (VIKRAM SINGH YADAV) ( KUL BHARAT ) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 28/09/2016. DAS/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- THE ITO (EXEMPTIONS) WARD -1, JA IPUR. 2. THE RESPONDENT M/S. OM KOTHARI FOUNDATION, JAI PUR. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 383 & 383/JP/2016) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR