Army Wives Welfave Association, Lucknow V. Income Tax Officer, Lucknow

ITA 494/LKW/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 4856 (ITAT-LUCKNOW)
• Duration Of Justice: 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-01-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 23-12-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 14-07-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: B B BHARGAVA
• Section: 10

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO.494/LKW/2015 ASSESSMENT YEAR:2010-11 ARMY WIVES WELFARE ASSOCIATION, C/O HEAD QUARTER CENTRAL COMMAND, M. G. MARG, LUCKNOW. PAN:AAATC7776K VS. I.T.O. RANGE 4 (1), LUCKNOW. (APPELLANT) (RESPONDENT) APPELLANT BY SHRI B. B. BHARGAVA, C.A. RESPONDENT BY SHRI AMIT NIGAM, SR. D.R. DATE OF HEARING 05/01/2016 DATE OF PRONOUNCEMENT 14/01/2016 O R D E R PER A. K. GARODIA, A.M. THIS IS ASSESSEES APPEAL DIRECTED AGAINST THE OR DER OF LEARNED CIT(A)- 4, LUCKNOW DATED 27/02/2015 FOR ASSESSMENT YEAR 201 0-2011. 2. THE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER: - 1. BECAUSE THE CIT(APPEALS) WAS UNJUSTIFIED, UNREA SONABLE AND ERRED AGAINST FACTS AND LAW IN CONFIRMING THE DISALLOWANCE MADE BY THE ASSESSING OFFICER ON ACCOU NT OF EXPENSES INCURRED ON ANNUAL MEETING AND FAREWELL OF OFFICE BEARER OF AWWA GOVERNING BODY RS.154745/- AN D ON MEMENTOES PRESENTED BY AWWA GOVERNING BODY RS.2,45,185/- WHICH WAS IN CONSONANCE WITH THE OBJE CT OF THE ASSOCIATION ACCORDINGLY THE PROVISIONS OF SE C. 13(3)(CC) & SEC. 13(3)(D) OF THE I.T. ACT WERE NOT APPLICABLE. 2. BECAUSE THE CIT (APPEALS) WAS UNJUSTIFIED, UNREA SONABLE AND ERRED AGAINST FACTS AND LAW IN CONFIRMING THE 2 DISALLOWANCE MADE BY THE ASSESSING OFFICER ON ACCOU NT OF EXPENSES INCURRED IN ALLOWING ASSISTANCE IN THE FORM OF BONUS GIVEN TO AWWA CIVIL EMPLOYEES RS.330000/- WHICH WAS IN THE NATURE OF WELFARE MEASURE AND THER E WAS NO VIOLATION OF SEC 13 OF INCOME TAX ACT. 3. BECAUSE THE CIT(APPEALS) ERRED AGAINST FACTS AND LAW IN CONFIRMING THE EXEMPTION REGARDING ALLOWING THE ALLOWABILITY OF SEC. 10(23AA) OF THE IT. ACT, AS TH E SAID EXEMPTION WAS CLAIMED DURING THE COURSE OF ASSESSME NT PROCEEDINGS BY FILING A REVISED COMPUTATION OF INCO ME. 3. LEARNED A.R. OF THE ASSESSEE REITERATED THE SAME ARGUMENTS WHICH WERE RAISED BEFORE LEARNED CIT (A). LEARNED D.R. OF THE REVENUE SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS, PERUSE D THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. REGARDING GROUNDS NO. 1 & 2, WE FEEL THAT NO INTERF ERENCE IS CALLED FOR IN THE ORDER OF CIT (A) BECAUSE EXPENSES ON FAREWELL O F OFFICE BEARERS OF THE ASSESSEE SOCIETY AND PROVING OF MEMENTOES TO GOVERN ING BODY OF THE ASSESSEE SOCIETY ARE DEFINITELY HIT BY SECTIONS 13 (3) (CC) AND 13 (3) (D) OF THE I. T. ACT. SIMILARLY REGARDING BONUS PAYMENT TO EMPLOYEES OF ASHA SCHOOL ALSO, IT IS SEEN THAT THIS IS NOT THE CASE O F THE ASSESSEE THAT THERE IS RELATIONSHIP OF EMPLOYER AND EMPLOYEES BETWEEN THE ASSESSEE AND THESE PERSONS AND IN THE ABSENCE OF THAT, PAYMENT OF BONU S IS NOT ALLOWABLE IN THE FACTS OF THE PRESENT CASE. ACCORDINGLY, GROUND NO. 1 & 2 ARE REJECTED. 5. REGARDING GROUND NO. 3, WE FIND THAT THE ISSUE R EGARDING EXEMPTION U/S 10 (23AA) WAS DECIDED BY CIT (A) BY FOLLOWING T HE JUDGMENT OF HONBLE APEX COURT RENDERED IN THE CASE OF GOETZE INDIA, 28 4 ITR 323. THIS JUDGMENT IMPINGES ON THE POWERS OF A.O. BUT NOT OF CIT (A) AND HENCE, HE SHOULD HAVE DECIDED THE ISSUE ON MERIT. SINCE, HE H AS NOT DONE SO, WE FEEL IT 3 PROPER TO RESTORE THIS MATTER TO HIS FILE FOR A DEC ISION ON MERIT. WE ORDER ACCORDINGLY. GROUND NO. 3 IS ALLOWED FOR STATISTICA L PURPOSES. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED FOR STATISTICAL PURPOSES. (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE) SD/. SD/. (SUNIL KUMAR YADAV) ( A. K. GAR ODIA ) JUDICIAL MEMBER CCOUNTANT MEMBER DATED:14 TH JANUARY, 2016. *SINGH COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. CONCERNED CIT 4. THE CIT(A) 5. D.R., I.T.A.T., LUCKNOW ASSTT. REGISTRAR