Ujagarmal Chander Bhan Charitable Religious Education Trust, Delhi V. DCIT, CPC, Bangalore

ITA 5540/DEL/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 4718 (ITAT-DELHI)
• Duration Of Justice: 9 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2016-2017
• Appeal Filed On: 27-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution; Opportunity of being heard; Set aside
• Section: 11; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC , NEW DELHI BEFORE SH. T. S. KAPOOR , ACCOUNTANT MEMBER ITA NO. 5540/DEL/2018 : ASSTT. YEAR : 2016 - 17 UJAGARMAL CHANDERBHAN CHARITABLE RELIGIOUS EDUCATION TRUST, 4570, MAHAVIR BAZAR, CLOTH MARKET, DELHI - 110006 VS DY. COMMISSIONER OF INCOME TAX, CPC, BANGALORE (APPELLANT) (RESPONDENT) PAN NO. A AATU0652L ASSESSEE BY : SH. K. SAMPATH, ADV. & SH. V. RAJA KUMAR, ADV. REVENUE BY : SH. S. L. ANURAGI , SR. DR DATE OF HEAR ING: 29 . 05 .201 9 DATE OF PRONOUNCEMENT: 30 .05 .201 9 ORDER THIS IS AN APPEAL FILED BY ASSESSEE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 40 , DELHI DATED 19.07.2018 . 2. THE GROUNDS OF APPEAL TAKEN BY ASSESSEE ARE REPRODUCED BELOW: 1. IN DETERMINING TAXABLE INCOME IN A SUM OF RS.8,46,610/ - AGAINST THE RETURNED INCOME AMOUNTING TO RS.3,72,159/ - ; 2. IN NOT ALLOWING APPLICATION OF INCOME TOWARDS CHARITY IN A SUM OF RS.4,74,453/ - AGAINST INCOME DETE RMINED U/S 11 (3) OF THE INCOME - TAX ACT, 1961. THESE ACTIONS BEING ARBITRARY, ERRONEOUS AND UNTENABLE MUST BE QUASHED WITH DIRECTIONS FOR APPROPRIATE RELIEF. 3. AT THE OUTSET, THE AUTHORIZED REPRESENTATIVE SUBMITT ED THAT ASSESSEE IS A CHARITABLE ORGANIZATION AND IS REGISTERED U/S 12AA OF THE ACT. IT WAS SUBMITTED THAT WHILE FILING THE ITA NO . 5540 /DEL /201 8 UJAGARMAL CHANDERBHAN CHARITABLE TRUST 2 RETURN OF INCOME, THE ASSESSEE CLAIMED AMOUNT OF RS. 8,46,610/ - AS INCOME CHARGEABLE U/S 11(1B) OF THE ACT WHICH THE ASSESSEE HAD CLA IMED WRONGLY. IT WAS SUBMITTED THAT THE ASSESSEE HAD BEEN ACCUMULATING 15% OF ITS EXCESS OF INCOME OVER EXPENDITURE TO BE SPENT IN THE SUCCEEDING YEAR S . IT WAS SUBMITTED THAT 15% CARRY FORWARD IS PE RMITTED U/S 11(1)(A) OF THE ACT ON THE BASIS OF INCOME REP ORTED IN THE RETURN. IT WAS SUBMITTED THAT IN A CASE WHERE INCOME HAD ACCRUED BUT NOT RECEIVED THE APPLICATION TO THE EXTENT OF 85% BECOMES NOT FEASIBLE AND ONLY THEN SECTION 11(1B) OF THE ACT COMES INTO PLAY. IT WAS SUBMITTED THAT IN THE CASE UNDER CONSID ERATION, THE DEFICIT WAS BEING SOUGHT AS P ER THE PROVISIONS OF SECTION 11 (1)(A) OF THE ACT AND IT WAS HUMBLY REQUESTED THAT THE CASE MAY BE SET ASIDE TO THE ASSESSING OFFICER WHO CAN VERIFY THE ACCUMULATED BALANCES AND COULD ARRIVE AT THE JUST DECISION. 4. THE LD. DEPARTMENTAL REPRESENTATIVE, HOWEVER, SUBMITTED THAT INSTEAD OF REMITTING THE ISSUE BACK TO ASSESSING OFFICER IT SHOULD BE REMITTED TO LD. CIT(A) WHO CAN DECIDE THE ISSUE BY CALLING REMAND REPORT FROM THE ASSESSING OFFICER. THE LD. AR DID NOT O BJECT TO THE PROPOSAL OF THE LD. DR. 5. I HAVE HEARD THE RIVAL PARTIES AND HAVE GONE THROUGH THE MATERIAL PLACED ON RECORD . I FIND THAT IT IS A FIT CASE WHICH REQUIRES TO BE REMITTED BACK TO LD. CIT(A) WHO SHOULD RE - DECIDE THE ISSUE AFTER OBTAINING REMAND REPORT FROM THE ASSESSING OFFICER WITH RESPECT TO ACCUMULATED BALANCE AVAILABLE TO THE ASSESSEE OUT OF CARRYOVER OF PROFITS FROM EARLIER YEARS. NEEDLESS TO SAY THAT ASSESSEE WILL BE PROVIDED SUFFICIENT OPPORTUNITY OF BEING HEARD. ITA NO . 5540 /DEL /201 8 UJAGARMAL CHANDERBHAN CHARITABLE TRUST 3 6 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . (ORDER PRONOUNCED IN THE COURT ON 30 TH DAY OF MAY , 2019 AT NEW DELHI) SD/ - ( T. S. KAPOOR ) ACCOUNTANT MEMBER DATED: 30 /0 5 /2019 *SUBODH* COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(APPEALS) 5 . DR: ITAT ASSISTANT REGISTRAR