Asstt. Commissioner of Income Tax-I, Kanpur V. M/s Jai Narain Charitable Trust, Kanpur

ITA 482/LKW/2014

• Counselvise Citation: 48223714 RSA 2014
• Duration Of Justice: 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2014
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 01-10-2014
• Assessment Year: 2003-2004
• Appeal Filed On: 28-05-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ALOK MITRA
• Assessee Lawyers: A K GUPTA
• Keywords: Charitable institution; Revenue expenditure; Capital expenditure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI. A. K. GARODIA, ACCOUNTANT MEMBER ITA NO.482/LKW/2014 ASSESSMENT YEAR:2003-04 ASSTT. CIT-1 KANPUR V. M/S JAI NARAIN CHARITABLE TRUST 7/47, ARADHANA, TILAK NAGAR KANPUR TAN/PAN:AAATT1783B (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI. ALOK MITRA, D.R. RESPONDENT BY: SHRI. A. K. GUPTA, FCA DATE OF HEARING: 01 10 2014 DATE OF PRONOUNCEMENT: 28 11 2014 O R D E R PER SUNIL KUMAR YADAV: THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST THE ORDER OF THE LD. CIT(A), INTER ALIA, ON VARIOUS GROUNDS WHICH ARE AS UNDER:- 1. LD. COMMISSIONER OF INCOME TAX (APPEALS)-I, DEHRADUN HOLDING CONCURRENT CHARGE OF COMMISSIONER OF INCOME TAX (APPEALS)-II, KANPUR HAS ERRED IN LAW AND ON FACTS IN DIRECTING THE ASSESSING OFFICER TO ALLOW ADVANCE FOR LAND OF RS.10 LAKHS GIVEN BY THE ASSESSEE AS APPLICATION OF INCOME WITHOUT APPRECIATING THE FACT THAT ADVANCE WAS GIVEN BY THE ASSESSEE IN F.Y. 1995-96 AND THE SAME WAS NOT ACCOUNTED FOR BY THE ASSESSEE IN THAT YEAR, THUS, THE AMOUNT CANNOT BE ALLOWED AS APPLICATION OF INCOME FOR THE YEAR UNDER CONSIDERATION. 2. LD. COMMISSIONER OF INCOME TAX (APPEALS)-I, DEHRADUN HOLDING CONCURRENT CHARGE OF COMMISSIONER OF INCOME TAX (APPEALS)-II, KANPUR HAS ERRED IN LAW AND ON FACTS IN ALLOWING THE APPEAL OF :- 2 -: THE ASSESSEE WITHOUT GIVING HIS COMMENTS UPON THE SUSTAINABILITY OF ADDITION ON ACCOUNT OF ADVANCE FOR BUILDING OF RS.10,74,962/-. 3. LD. COMMISSIONER OF INCOME TAX (APPEALS)-I, DEHRADUN HOLDING CONCURRENT CHARGE OF COMMISSIONER OF INCOME TAX (APPEALS)-II, KANPUR HAS ERRED IN LAW AND ON FACTS IN DELETING THE REVENUE EXPENDITURE OF RS.1,00,000/- DISALLOWED BY THE ASSESSING OFFICER WITHOUT APPRECIATING THE FACT THAT THE ASSESSEE FAILED TO PRODUCE EVIDENCE IN SUPPORT OF PAYMENT OF SUCH EXPENSES. 4. THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-I, DEHRADUN HOLDING CONCURRENT CHARGE OF COMMISSIONER OF INCOME TAX (APPEALS)-II, KANPUR DATED 18.02.2014 BE QUASHED AND THE ORDER DATED 28.03.2006 PASSED BY THE ASSESSING OFFICER BE RESTORED. 2. DURING THE COURSE OF HEARING OF THE APPEAL, THE LD. D.R. HAS INVITED OUR ATTENTION TO THE ORDERS OF THE LOWER AUTHORITIES WITH THE SUBMISSION THAT THE LD. CIT(A) HAS ALLOWED RELIEF TO THE ASSESSEE WITHOUT ASSIGNING ANY REASON BY PASSING THE ORDER IN FEW LINES; WHEREAS THE ASSESSING OFFICER HAS MADE DISALLOWANCES IN THE ABSENCE OF PROPER EXPLANATIONS AND THE EVIDENCE BY THE ASSESSEE. THEREFORE, THE ORDER OF THE LD. CIT(A) DESERVES TO BE SET ASIDE AND THE ORDER OF THE ASSESSING OFFICER IS TO BE RESTORED. 3. THE LD. COUNSEL FOR THE ASSESSEE, ON THE OTHER HAND, HAS PLACED RELIANCE UPON THE ORDER OF THE LD. CIT(A). 4. HAVING GIVEN A THOUGHTFUL CONSIDERATION TO THE RIVAL SUBMISSIONS AND FROM A CAREFUL PERUSAL OF THE ORDERS OF THE AUTHORITIES BELOW, WE FIND THAT THE ASSESSING OFFICER HAS MADE DISALLOWANCES OF CAPITAL EXPENDITURE OF RS.10 LAKHS AND RS.10,74,962/- AND ACCORDINGLY INCOME WAS ASSESSED AT RS.11,25,146/-. WHILE MAKING THE DISALLOWANCES OF RS.10 LAKHS AND RS.10,74,962/-, THE ASSESSING OFFICER HAS OBSERVED THAT THE EXPENDITURE OF RS.10 LAKHS BEING AN ADVANCE FOR LAND SHOWN AS GIVEN DURING THE YEAR, THE :- 3 -: ASSESSEE HAS ENCLOSED COPY OF CHEQUE DATED 28.2.1996 ISSUED BY THE ASSESSEE IN FAVOUR OF M/S J. K. SYNTHETICS LTD. THEREFORE, THE PAYMENT WAS MADE DURING THE FINANCIAL YEAR 1995-96, HENCE IT CANNOT BE TAKEN AS APPLICATION OF INCOME IN RESPECT OF INCOME FOR ASSESSMENT YEAR 2003-04. THE ASSESSING OFFICER HAS ACCORDINGLY MADE DISALLOWANCE OF THE SAME. 5. SO FAR AS ADVANCE OF RS.10,74,962/- SHOWN TO HAVE BEEN GIVEN FOR BUILDING IS CONCERNED, THE ASSESSEE HAS NOT FURNISHED ANY EVIDENCE IN SUPPORT OF ITS CONTENTION. ACCORDINGLY THE ASSESSING OFFICER HAS MADE DISALLOWANCE OF THE SAME. THE ASSESSING OFFICER HAS ALSO MADE DISALLOWANCE OF RS.1 LAKH ON AD HOC BASIS. 6. AGAINST THE DISALLOWANCES, ASSESSEE HAS PREFERRED AN APPEAL BEFORE THE LD. CIT(A) AND RAISED A DISPUTE WITH REGARD TO THE DISALLOWANCE OF RS.10,74,962/- AND RS.1 LAKH. NO GROUND WAS RAISED WITH REGARD TO THE DISALLOWANCE OF RS.10 LAKHS BEFORE THE LD. CIT(A), BUT THE LD. CIT(A) HAS ADJUDICATED THE ISSUE OF DISALLOWANCE OF RS.10 LAKHS AND RS.1 LAKH. THERE WAS NO ADJUDICATION OF DISALLOWANCE OF RS.10,74,962/-. MOREOVER, THE LD. CIT(A) HAS SIMPLY REPRODUCED THE WRITTEN SUBMISSION FILED BY THE ASSESSEE IN HIS ORDER AND IN FEW LINES HE DELETED THE ADDITIONS OF RS.10 LAKHS AND RS.1 LAKH, HAVING OBSERVED THAT RS.10 LAKHS IS TO BE CONSIDERED FOR THIS YEAR SINCE THE TRANSACTION WAS MATERIALIZED ONLY IN THE YEAR UNDER CONSIDERATION. WHILE DELETING THE ADDITIONS, THE LD. CIT(A) HAS NOT DELIBERATED ON THE REASONS MENTIONED BY THE ASSESSING OFFICER IN HIS ORDER FOR MAKING THE DISALLOWANCES; RATHER HE HAS NOT ADJUDICATED THE OTHER GROUNDS RAISED IN THE GROUNDS OF APPEAL BEFORE HIM. 7. IN THE LIGHT OF THE ABOVE FACTS, WE ARE OF THE VIEW THAT THE LD. CIT(A) HAS NOT ADJUDICATED THE IMPUGNED ISSUES RAISED BEFORE HIM PROPERLY BY PASSING A REASONED ORDER. THEREFORE, WE ARE OF THE VIEW THAT THIS MATTER SHOULD BE RESTORED BACK TO HIS FILE WITH A DIRECTION TO RE-ADJUDICATE THE ISSUES AFRESH BY PASSING A REASONED ORDER ON THE GROUNDS RAISED BEFORE :- 4 -: HIM. ACCORDINGLY, THE APPEAL OF THE REVENUE STANDS ALLOWED FOR STATISTICAL PURPOSES. 8. IN THE RESULT, APPEAL OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE. SD/- SD/- [A. K. GARODIA] [SUNIL KUMAR YADAV] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED:28 TH NOVEMBER, 2014 JJ:2711 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR ASSISTANT REGISTRAR