Simpkins School, Agra V. A.C.I.T., Central Circle, Agra

ITA 480/AGR/2012

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 9993 (ITAT-AGRA)
• Duration Of Justice: 3 year(s) 3 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-02-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 30-10-2013
• Assessment Year: 2003-2004
• Appeal Filed On: 10-10-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RAJARSHI DWIVEDI
• Assessee Lawyers: DIPENDRA MOHAN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI BHAVNESH SAINI, JUDICIAL MEMBE R AND MRS. ANNAPURNA MEHROTRA, ACCOUNT ANT MEMBER ITA NO. 480 & 481/AGRA/2012 ASSTT. YEARS : 2003-04 AND 2004-05 SIMPKINS SCHOOL, VS. A.C.I.T., CENTRAL CIRCLE, MARUTI ESTATE, BODLA ROAD, AGRA. SHAHGANJ, AGRA. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI DIPENDRA MOHAN, C.A. RESPONDENT BY : SHRI RAJARSHI DWIVEDI, CIT/DR DATE OF HEARING : 03.02.2016 DATE OF PRONOUNCEMENT : 04.02.2016 ORDER PER BHAVNESH SAINI, JUDICIAL MEMBER: BOTH THE APPEALS BY THE ASSESSEE ARE DIRECTED A GAINST DIFFERENT ORDERS OF LD. CIT(A)-I, AGRA DATED 30.03.2012 FOR THE ASSE SSMENT YEAR 2003-04 AND 2004-05. 2. THE LD. COUNSEL FOR THE ASSESSEE DID NOT PRESS I TA NO. 480/AGRA/2012. THE SAME IS THEREFORE, DISMISSED AS NOT PRESSED. ITA NO.480 & 481/AGRA/2012 2 3. IN ITA NO. 481/AGRA/2012, THE LD. COUNSEL FOR TH E ASSESSEE DID NOT PRESS GROUNDS NOS. 1, 2, 3 AND 5. GROUNDS NOS. 6 & 7 ARE GENERAL IN NATURE. THESE GROUNDS ARE, THEREFORE, DISMISSED. 4. ON GROUND NO. 4, THE ASSESSEE CHALLENGED THE ADD ITION OF RS.36,77,000/- ON ACCOUNT OF DEVELOPMENT FEES. THE AO DISCUSSED TH IS ISSUE IN ASSESSMENT ORDER THAT THE ASSESSEE SOCIETY HAS RECEIVED RS.36, 77,000/- ON ACCOUNT OF DEVELOPMENT FEES, BUT THIS RECEIPT HAS NOT BEEN INC LUDED IN THE TOTAL RECEIPT OF RS.2.48 CRORES, SHOWN BY THE ASSESSEE-SOCIETY. AS D ISCUSSED BY THE AO, THE ASSESSEE CLAIMED THAT THESE RECEIPTS COLLECTED BY T HE SCHOOL ARE NOT PART OF THE RECEIPTS OF THE SCHOOL INCLUDED IN THE INCOME AND E XPENDITURE ACCOUNT. HOWEVER, AFTER EXAMINATION OF THE BOOKS OF ACCOUNTS OF THE ASSESSEE, THE AO FOUND THAT SUCH DEVELOPMENT FEES IS, IN FACT, PART OF THE SCHOOL FEES COLLECTED FROM THE STUDENTS AND SUCH DEVELOPMENT FEE CANNOT B E CONSIDERED AS CORPUS FUND AND HENCE, ADDED THE SAME TO THE TOTAL RECEIPT AND COMPUTED THE PROFIT BY APPLYING THE GROSS PROFIT RATE. THE LD. CIT(A) A LSO CONFIRMED THE ORDER OF THE AO IN THIS REGARD EXCEPT THAT THE PROFIT WAS RE DUCED. 5. THE LD. COUNSEL FOR THE ASSESSEE RESTRICTED HIS ARGUMENTS TO ONE POINT ONLY THAT THE DEVELOPMENT FEE RECEIVED IN THE YEAR OF RS.36,77,000/- INCLUDES ITA NO.480 & 481/AGRA/2012 3 THE OPENING BALANCE AS ON 01.04.2003 IN A SUM OF RS .13,54,690/-. THEREFORE, BENEFIT TO THAT EXTENT MAY BE GIVEN TO THE ASSESSEE . HE HAS FILED DETAILS OF DEVELOPMENT FEES IN SEVERAL YEARS IN SUPPORT OF THI S CONTENTION. 6. AFTER HEARING THE RIVAL CONTENTION, WE ACCEPT TH E PLEA OF THE ASSESSEE THAT RS.13,54,690/- IS THE DEVELOPMENT FUND/FEES RE CEIVED BY THE ASSESSEE AS ON 01.04.2003, WHICH IS INCLUDED IN THE TOTAL DEVEL OPMENT FEES OF RS.36,77,000/-. THIS OPENING BALANCE CARRIED FROM E ARLIER YEAR COULD NOT BE TREATED AS INCOME OF THE ASSESSEE AND COULD NOT BE ADDED TO THE TOTAL RECEIPTS. WE, ACCORDINGLY, SET ASIDE THE ORDERS OF THE AUTHOR ITIES BELOW TO THAT EXTENT THAT WHILE COMPUTING THE TOTAL RECEIPTS, A SUM OF R S.13,54,690/- SHALL BE EXCLUDED FROM THE DEVELOPMENT FEE OF RS.36,77,000/- . THE APPEAL OF THE ASSESSEE TO THAT EXTENT IS ALLOWED. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED, AS INDICATED ABOVE. 7. IN THE RESULT, ITA NO. 480/AGRA/2012 IS DISMISSE D AS WITHDRAWN AND ITA NO. 481/AGRA/2012 IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (ANNAPURNA MEHROTRA) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 4 TH FEBRUARY, 2016 *AKS/-