ITO, New Delhi V. M/s The Managing Committee Aminia Muslim Girls School, Delhi

ITA 4349/DEL/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 4780 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 1 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-08-2018
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2011-2012
• Appeal Filed On: 03-07-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RAVIKANT GUPTA
• Keywords: Charitable institution; Revised return
• Section: 12; 10; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F, NEW DELHI BEFORE SH. N. K. BILLAIYA , ACCOUNTANT MEMBER AND SMT. BEENA A. PILLAI, JUDICIAL MEMBER ITA NO. 4349/DEL/2015 (ASSESSMENT YEAR: 2011-12) ITO WARD 2 (3), NEW DELHI VS. THE MANAGING COMMITTEE AMINIA MUSLIM GIRLS SCHOOL QASIMJAN STREET, BALLIMARAN, DELHI PAN : AAATT5692D (APPELLANT) (RESPONDENT) APPELLANT BY : SH. RAVI KANT GUPTA, SR. DR RESPONDENT BY : SH. SACHIN KUMAR, CA DATE OF HEARING : 06.08.2018 DATE OF PRONOUNCEMENT : 08.08.2018 O R D E R PER BEENA A. PILLAI, J.M : PRESENT APPEAL HAS BEEN FILED BY ASSESSEE AGAINST O RDER DATED 23/04/15 PASSED BY LD.CIT(A)-40 (EXEMPTION), NEW DEL HI FOR ASSESSMENT YEAR 2011-12 ON THE FOLLOWING GROUNDS OF APPEAL: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN ALLOWING TH E APPEAL OF THE ASSESSEE BY IGNORING THE FACT THAT THE ASSES SEE WHO HAS RENTAL INCOME SHOULD BE ALLOWED BENEFIT OF EXEM PTION U/S 10(23C)(IIIAD). 2 ITA NO. 4349/DEL/2015 2. BRIEF FACTS OF THE CASE ARE AS UNDER : ASSESSEE FILED ITS RETURN OF INCOME ON 29/09/11 DEC LARING TOTAL INCOME AT NIL, AFTER CLAIMING APPLICATION OF INCO ME, AS PER PROVISIONS OF SECTION 11 AND 12 OF THE ACT. ASSESSE E SUBMITTED BEFORE THE LD.AO THAT IT IS A REGISTERED SOCIETY UN DER SOCIETIES REGISTRATION ACT 1860, AND IS RUNNING CHARITABLE GI RLS SCHOOL IN DELHI FROM PART OF WAKF PROPERTIES IN DELHI. IT WAS SUBMITTED THAT DURING THE YEAR UNDER CONSIDERATION, ASSESSEE EARN ED INCOME FROM DONATION, FEES, RENT RECEIPTS, BANK INTEREST AND OT HER MISCELLANEOUS INCOME. IT ALSO CLAIMED BEFORE LD.AO THAT IT IS REG ISTERED UNDER SECTION 12 A OF THE ACT, HOWEVER NO PROOF OF SUCH R EGISTRATION WAS FURNISHED DURING ASSESSMENT PROCEEDINGS. LD.AO DURI NG ASSESSMENT PROCEEDINGS OBSERVED THAT ASSESSEE HAD N OT FURNISHED PROOF OF REGISTRATION GRANTED UNDER SECTION 12 A OF THE ACT EVEN FOR ASSESSMENT YEAR 1996-97, AND THEREFORE ASSESSING OF FICER WHILE PASSING ORDER UNDER SECTION 143 (3) OF THE ACT REJE CTED BENEFITS UNDER SECTION 11 AND 12 OF THE ACT. 3. LD.AO FOR THE YEAR UNDER CONSIDERATION DENIED THE BENEFIT UNDER SECTION 11 AND 12 OF THE ACT FOR THE SIMILAR REASON THAT ASSESSEE FAILED TO FURNISH THE PROOF OF REGISTRATION UNDER S ECTION 12 A. LD.AO THUS TREATED ASSESSEE AS AOP, AND ENTIRE SURP LUS AFTER ALLOWING CORRESPONDING EXPENSES TO GROSS RECEIPTS AS PER INCOME AND EXPENDITURE ACCOUNT WAS TAXED. 4. ASSESSING OFFICER FURTHER OBSERVED THAT ASSESSEE HA D RECEIVED RS. 50 LACS, WHICH WAS NOT OFFERED TO TAX. ACCORDINGLY LD .AO MADE 3 ITA NO. 4349/DEL/2015 ADDITION TO THE RETURNED INCOME AMOUNTING TO RS.50 LACS. AGGRIEVED BY THE ORDER OF LD.AO, ASSESSEE PREFERRED APPEAL BE FORE LD.CIT (A). BEFORE LD.CIT (A) ASSESSEE RAISED CLAIM OF EXEMPTIO N UNDER SECTION 10(23C) (IIIAD), AS ASSESSEE IS ONLY EXISTING FOR T HE PURPOSE OF EDUCATION AND IS ELIGIBLE FOR EXEMPTION UNDER THIS PROVISION. IT WAS SUBMITTED THAT ASSESSEE ENJOYED BENEFIT TILL ASSESS MENT YEAR 1996- 97 UNDER SECTION 10(22) WHICH IS PARI MATERIA WITH SECTION 10(23C)(IIIAD). LD.CIT (A) UPON CONSIDERING SUBMISS IONS OF ASSESSEE, ALLOWED CLAIM OF EXEMPTION UNDER SECTION 10(23C)(II IAD). HE ALSO DELETED ADDITION MADE BY LD.AO OF RS. 50 LACS, RELY ING UPON THE DECISION OF THIS TRIBUNAL IN THE CASE OF PARAM HAMSA SWAMI UMA BHARTI MISSION VS ACIT REPORTED IN 29 TAXMANN.COM 223 . 5. AGGRIEVED BY THE ORDER OF LD. CIT (A) REVENUE IS I N APPEAL BEFORE US NOW. 6. MAIN CONTENTION ALLEGED BY LD.SR.DR IS THAT, ASSES SEE HAS NOT MADE ANY CLAIM IN ITS RETURN OF INCOME, OR HAS FILE D REVISED RETURN OF INCOME RAISING CLAIM UNDER SECTION 10(23C)(IIIAD ) OF THE ACT. HE SUBMITTED THAT THERE WAS NO SUBMISSIONS MADE BY ASSE SSEE REGARDING CLAIM UNDER 10(23C)(IIIAD), AT THE TIME O F ASSESSMENT PROCEEDINGS. HE SUBMITTED THAT IT WAS FOR 1 ST TIME THAT ASSESSEE RAISED ITS ENTITLEMENT OF EXEMPTION UNDER SECTION 1 0(23C)(IIIAD) BEFORE LD.CIT (A). 7. LD.SR.DR SUBMITTED THAT DECISION RELIED UPON BY LD. CIT (A) FOR DELETING ADDITION OF RS. 50 LACS IS MISCONCEIVED, A S IN THE FACTS OF THAT CASE ASSESSEE HAD MADE CLAIM UNDER SECTION 10( 23C)(IIIAD) OF THE ACT IN THE RETURN OF INCOME. HE SUBMITTED THAT IN THE FACTS OF 4 ITA NO. 4349/DEL/2015 THE PRESENT CASE ASSESSEE HAS ALWAYS RAISED EXEMPTIO N UNDER SECTION 11 OF THE ACT, WHICH WAS DENIED DUE TO NON-PR ODUCTION OF REGISTRATION UNDER SECTION 12 AA OF THE ACT. 8. ON THE CONTRARY LD.AR SUBMITTED THAT FOR ASSESSMEN T YEAR 2012- 13, ASSESSING OFFICER HIMSELF GRANTED EXEMPTION UND ER SECTION 10 (23C)(IIIAD) OF THE ACT, AS RECEIPTS WERE BELOW 1 CRO RE, AND ASSESSEE IS RUNNING FOR CHARITABLE PURPOSES AND NOT FOR PURP OSES OF PROFIT. HE SUBMITTED THAT ASSESSING OFFICER FOR ASSESSMENT YEA R 2012-13 IS SATISFIED WITH THE CONDITIONS LAID DOWN IN SECTION 10 (23C)(IIIAD). 9. WE HAVE PERUSED THE SUBMISSIONS ADVANCED BY BOTH T HE SIDES AND THE LIGHT OF RECORDS PLACED BEFORE US. ON PERUS AL OF ORDER PASSED BY LD.CIT(A), IT IS OBSERVED THAT THERE HAS BEEN NO VERIFICATION REGARDING SATISFACTION OF CONDITIONS A S PER SECTION 10 (23C)(IIIAD) OF THE ACT. IT IS ALSO OBSERVED THAT A SSESSMENT ORDER PLACED IN THE PAPER BOOK AT PAGE 6-7 FOR ASSESSMENT YEAR 1996-97, A CLAIM WAS RAISED UNDER SECTION 10(22) OF THE ACT, WHICH WAS VERIFIED BY LD.AO. EVEN FOR ASSESSMENT YEAR 2012-13 ASSESSEE FILED ITS RETURN OF INCOME IN THE STATUS OF SOCIETY, AN D RAISED CLAIM UNDER SECTION 10 (23C)(IIIAD) OF THE ACT. 10. WE THEREFORE, ARE INCLINED TO SET ASIDE THIS ISSUE TO LD.AO IN THE INTEREST OF JUSTICE TO VERIFY CONTENTIONS OF ASSESS EE UNDER SECTION 10 (23C)(IIIAD) OF THE ACT, AND TO GRANT EXEMPTION AS PER LAW. IN RESPECT OF THE ADDITION MADE AMOUNTING TO RS. 50 LACS, LD.AO IS DIRECTED TO VERIFY THE RECEIPTS AND TO ALLOW THE CLA IM AS PER LAW. 11. NEEDLESS TO SAY THAT LD.AO SHALL GRANT PROPER OPPOR TUNITY TO ASSESSEE TO REPRESENT ITS CASE AND ASSESSEE IS ALSO DIRECTED TO 5 ITA NO. 4349/DEL/2015 FURNISH ALL REQUISITE DETAILS AS CALLED FOR BY LD.A O TO ADJUDICATE THE ISSUE. WITH THE ABOVE DIRECTIONS GROUNDS RAISED BY REVENUE STANDS ALLOWED FOR STATISTICAL PURPOSES. 12. IN THE RESULT APPEAL FILED BY REVENUE STANDS ALLOW ED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 8 TH AUGUST, 2018. SD/- SD/- (N. K. BILLAIYA) (BEENA A. PILLAI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATE: 08.08.2018 BINITA COPY OF ORDER TO: - 1) THE APPELLANT; 2) THE RESPONDENT; 3) THE CIT; 4) THE CIT(A)-, NEW DELHI; 5) THE DR, I.T.A.T., NEW DELHI; TRUE COPY BY ORDER ITAT, NEW DELHI