Shri. Guru Singh Sabha, New Delhi V. ITO, New Delhi

ITA 5621/DEL/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 3842 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Next Hearing Date: 31-05-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 10-12-2010
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MONA MOHANTY
• Assessee Lawyers: INDERPREET KOHLI; KS KOHLI

Judgement Text

ITA NO. 5621/DEL/2010 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH C NEW DELHI BEFORE SHRI I.P. BANSAL, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER I.T.A. NO. 5621/DEL/2010 A.Y. 2005-06 SHRI GURU SINGH SABHA, C/O MR. K.S. KOHLI, FCA WZ-908-B, FF, (CB AREA), (NEAR CB-1), RING ROAD, NARAINA, NEW DELHI 110 028 (PAN/GIR NO. : AAGTS6678C) VS. ITO, TRUST WARD - II, AAYKAR BHAVAN, 4 TH FLOOR, LAXMI NAGAR, DISTT. CENTRE, NEW DELHI 110 092 (APPELLANT ) (APPELLANT ) (APPELLANT ) (APPELLANT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) ASSEESSEE BY : SH. KS KOHLI, CA AND SMT. INDERPREET KOHLI, CA DEPARTMENT BY : SMT. MONA MOHANTY, SR. D.R. ORDER ORDER ORDER ORDER PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) DATED 05.10 .2010 AND PERTAINS TO ASSESSMENT YEAR 2005-06. 2. THE ISSUE RAISED IS THAT ASSESSEE HAS BEEN WRO NGLY ASSESSED AT AN INCOME OF ` 63,20,435/- AND NO REASONABLE OPPORTU NITY OF BEING HEARD WAS PROVIDED. 3. IN THIS CASE ASSESSEE FILED RETURN OF INCOME IN FORM 3A ON 5.9.2008 DECLARING NIL INCOME I.E. CLAIMING THE INCOME AS EXEMPT U/S. ITA NO. 5621/DEL/2010 2 10 OF THE IT ACT. ASSESSING OFFICER PROCEEDED TO DENY THE SAME AND ADDED A SUM OF ` 4925334/- BEING CASH RECEIPTS IN THE BANK AS WELL AS EXCESS OF INCOME OVER EXPENSES ` 13,95,101/- AGGREG ATING TO TOTAL ADDITION OF ` 63,20,435/-. 4. UPON ASSESSEES APPEAL LD. COMMISSIONER OF INCOME TAX (APPEALS) CONFIRMED THE ASSESSING OFFICER S ACTION . 5. AGAINST THIS ORDER THE ASSESSEE IS IN APPEAL BEF ORE US. 6. WE HAVE HEARD THE RIVAL CONTENTIONS IN LIGHT OF THE MATERIAL PRODUCED AND PRECEDENT RELIED UPON. WE FIND THAT A SSESSEES CLAIM IN THIS CASE IS THAT ASSESSEE IS RUNNING SCHOOL AS WEL L AS RELIGIOUS INSTITUTION. ASSESSEES CASE IS THAT SCHOOL FEE RECEIVED HAS BEEN ADDED TO THE INCOME OF THE ASSESSEE AND BROUGHT TO T AX. IT IS THE CONTENTION OF THE ASSESSEE THAT ASSESSEES CLAIM IN THIS CASE WILL COME U/S 10(23C)(IIIAD). THIS SECTION PROVIDES EXE MPTION FOR ANY INCOME RECEIVED BY ANY PERSON ON BEHALF OF ANY UNIV ERSITY OR OTHER EDUCATIONAL INSTITUTION EXISTING SOLELY FOR EDUCATI ONAL PURPOSES AND NOT FOR PURPOSES OF PROFIT IF THE AGGREGATE ANNUAL REC EIPTS OF SUCH UNIVERSITY OR EDUCATIONAL INSTITUTION DOES NOT EXCE ED A SUM OF ` 1 CRORE ANNUALLY. WE FIND THAT IN THIS CASE SEPARATE BOO KS ARE MAINTAINED FOR SCHOOLS AND RELIGIOUS ACTIVITIES. IN THIS CASE, WE FIND THAT THE SCHOOLS RUN BY THE ASSESSEE ARE NOT FOR PROFITS AND THEY FULFIL THE CONDITION OF EXEMPTION ITA NO. 5621/DEL/2010 3 U/S 10(23C)(IIIAD). AS REGARDS THE GURUDWARA, THE REQUISITE REGISTRATION IS NOT THERE, HENCE, ASSESSEE CANNOT CLAIM BENEFIT I N THIS REGARD. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE STANDS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 31/5/2011, UP ON CONCLUSION OF HEARING. SD/- SD/- [I.P. BANSAL] [I.P. BANSAL] [I.P. BANSAL] [I.P. BANSAL] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER DATE 31/5/2011 SRB COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: - -- - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, DEPUTY REGISTRAR, ITAT, DELHI BENCHES