DCIT, Exemption Circle, Ghaziabad V. Fateh Chand Charitable Trust, Muzaffarnagar

ITA 4562/DEL/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 4869 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 3 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-09-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 18-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution
• Section: 143(3); 12AA

Judgement Text

PAGE | 1 INCOME TAX APPELLATE TRIBUNAL [ DELHI BENCH B: NEW DELHI ] BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER (THROUGH VIDEO CONFERENCING) ITA. NO. 4562/DEL/2018 (ASSESSMENT YEAR: 2015-16) DCIT, EXEMPTION CIRCLE, GHAZIABAD. VS. M/S. FATEH CHAND CHARITABLE TRUST, 115 KM., NH58, DELHI ROAD, MUZAFFAR NAGAR. PAN: AAATF1445N (APPELLANT) (RESPONDENT) ASSESSEE S BY : SHRI RAMIT KAKKAR, ADVOCATE; DEPARTMENT BY : SHRI J. K. MISHRA [CIT] D . R . ; DATE OF HEARING : 29 /0 9 /2021 DATE OF PRONOUNCEMENT : 2 9 /0 9 /2021 O R D E R PER PRASHANT MAHARISHI, A. M. 1. THIS APPEAL IS FILED BY THE DY. COMMISSIONER OF INCOME TAX, EXEMPTION CIRCLE, GHAZIABAD, AGAINST THE ORDER PASSED BY THE OFFICE OF COMMISSIONER OF INCOME TAX (APPEALS), MUZAFFARNAGAR, DATED 10.04.2018 FOR ASSESSMENT YEAR 2015-16. 2. THE ONLY GROUND OF APPEAL RAISED IS THAT THE LD. CIT (APPEALS) HAS ERRED IN ALLOWING CLAIM OF CARRY FORWARD OF LOSSES TO THE APPELLANT. 3. THE BRIEF FACTS OF THE CASE SHOWS THAT ASSESSEE IS A CHARITABLE TRUST RUNNING EDUCATIONAL INSTITUTE, FILED ITS RETURN OF INCOME ON 29.09.2015 DECLARING NIL INCOME. THE ASSESSEE IS REGISTERED UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961 (THE ACT). ASSESSEE IS RUNNING MEDICAL COLLEGE, NURSING COLLEGE AND ALSO RUNNING A HOSPITAL. 4. ASSESSMENT UNDER SECTION 143(3) OF THE ACT WAS PASSED ON 18.12.2017 COMPUTING THE INCOME OF THE ASSESSEE AT RS. NIL. PAGE | 2 5. DURING THE YEAR THE ASSESSEE HAS CARRIED FORWARD SUM OF RS.117.53 CRORES FROM EARLIER YEARS. THE SAME WAS NOT ALLOWED AS A SET OFF AGAINST THE CURRENT YEARS INCOME OF THE ASSESSEE. THUS, ASSESSEE IS AGGRIEVED AMONGST OTHERS WITH THIS ISSUE ALSO. 6. ASSESSEE PREFERRED AN APPEAL BEFORE THE LD. CIT (APPEALS) STATING THAT ASSESSEE HAS CLAIMED BROUGHT FORWARD LOSSES OF RS.117.53 CRORES ALONG WITH CURRENT LOSS OF RS.11.17 CRORES. THIS IS EXCESS OF EXPENDITURE OVER INCOME OF THE ASSESSEE FOR THE PREVIOUS YEAR AS WELL AS THE CURRENT YEAR RESPECTIVELY. THIS DETAIL WAS SUBMITTED BY THE ASSESSEE VIDE LETTER DATED 30 TH SEPTEMBER, 2015 AND REQUESTED THE ASSESSING OFFICER THAT SAME SHALL BE ALLOWED FOR CARRY FORWARD TO ASSESSMENT YEAR 2016-17. THE LD. ASSESSING OFFICER DID NOT ALLOW SUCH CARRY FORWARD OF LOSSES. IT WAS STATED THAT THE IDENTICAL ISSUE IN THE CASE OF THE ASSESSEE HAS BEEN DECIDED BY THE CO-ORDINATE BENCH FOR ASSESSMENT YEARS 2006-07 AND 2008-09 IN ITA. NO. 1665/DEL/2012 AND ITA. NO. 290/DEL/2012, WHICH WAS ALLOWED BY THE ITAT VIDE ORDER DATED 17.01.2014. THE LD. CIT (APPEALS), THEREFORE, FOLLOWING THE DECISION OF THE CO-ORDINATE BENCH IN THE CASE OF THE APPELLANT ITSELF ALLOWED CARRY FORWARD AND SET OFF OF THE LOSSES. THUS, THE REVENUE IS AGGRIEVED BY THE ABOVE ORDER IN THIS APPEAL. 7. THE LD. CITDR VEHEMENTLY SUPPORTED THE ORDER OF THE ASSESSING OFFICER WHEREAS THE LD. AR RELIED UPON THE ORDER OF THE CIT (APPEALS) AS WELL AS THE ORDER OF THE CO-ORDINATE BENCH IN ASSESSEES OWN CASE FOR ASSESSMENT YEARS 2006-07 AND 2008-09. 8. WE HAVE CAREFULLY CONSIDERED THE RIVAL CONTENTIONS AND PERUSED THE ORDERS OF THE LOWER AUTHORITIES. IT IS APPARENT THAT ASSESSEE HAS EXCESS APPLICATION OF INCOME IN EARLIER YEARS AND HAS CLAIMED THAT SUCH EXCESS APPLICATION OF EARLIER YEARS SHOULD BE ALLOWED TO BE ADJUSTED AS APPLICATION OF INCOME IN SUBSEQUENT YEARS. THIS ISSUE HAS BEEN DECIDED BY THE CO-ORDINATE BENCH IN ASSESSEES OWN CASE FOR ASSESSMENT YEARS 2006-07 AND 2008-09 AS STATED ABOVE. THIS ISSUE IS ALSO SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF HONBLE SUPREME COURT COURT IN THE CASE OF DCIT (EXEMPTION) NEW DELHI VS. SUBROS EDUCATIONAL SOCIETY [2018] 96 TAXMANN.COM 652 (SC)/[2018] 303 CTR 1 (SC) . IN VIEW OF THIS, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LD. CIT (APPEALS). THUS, WE HOLD THAT THE LD. CIT (APPEALS) PAGE | 3 HAS CORRECTLY DIRECTED THE LD. ASSESSING OFFICER TO ALLOW THE EXCESS APPLICATION OF INCOME BEING EXCESS OF EXPENDITURE OVER INCOME OF THE PREVIOUS YEAR TO BE SET OFF AGAINST THE INCOME OF THE CURRENT YEAR. THUS, WE DISMISS THE SOLITARY GROUND OF APPEAL. ACCORDINGLY, APPEAL OF THE ASSESSING OFFICER IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON : 29/09/2021. SD/- SD/- ( AMIT SHUKLA ) (PRASHANT MAHARISHI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 29/09/2021. *MEHTA* COPY FORWARDED TO 1. APPELLANT; 2. RESPONDENT; 3. CIT 4. CIT (APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI. D ATE OF DICTATION 2 9 . 0 9 . 2 0 2 1 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 2 9 . 0 9 . 2 0 2 1 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER 2 9 . 0 9 . 2 0 2 1 DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. PS/ PS 2 9 . 0 9 . 2 0 2 1 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 2 9 . 0 9 . 2 0 2 1 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/ PS 2 9 . 0 9 . 2 0 2 1 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 2 9 . 0 9 . 2 0 2 1 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 2 9 . 0 9 . 2 0 2 1 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER