M/s Missionaries of Jesus Society, Jalandhar V. Income Tax Officer, (Exemptions), Jalandhar

ITA 601/ASR/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 8790 (ITAT-AMRITSAR)
• Duration Of Justice: 1 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-01-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 07-12-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: PREM SINGH; G.S. SYAL ADVS
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR (CAMP AT JALANDH AR ) BEFORE SH. A.D.JAIN, JUDICIAL MEMBER AND SH. T.S. KAPOOR, ACCOUNTANT MEMBER I.T.A NO.601(ASR)/2016 ASSESSMENT YEARS: 2012-13 MISSIONARIES OF JESUS SOCIETY 31, SHANTIPURA, JALANDHAR. PAN: AAAJM-1527A VS. ITO (EXEMPTION) JALANDHAR. (APPELLANT) (RESPONDENT) APPELLANT BY: SH. PREM SINGH & G.S. S YAL (ADVS.) RESPONDENT BY: SH. BHWANI SHANKAR (DR.) DATE OF HEARING: 18.01.2017 DATE OF PRONOUNCEMENT: 25.01.201 7 ORDER PER T. S. KAPOOR (AM): THIS IS AN APPEAL FILED BY ASSESSEE AGAINST THE ORD ER OF LD. CIT(A), JALANDHAR DATED 29.09.2016, FOR ASST. YEAR: 2012-13 . 2. THE ONLY GRIEVANCE RAISED BY ASSESSEE IS THE ACT ION OF LD. CIT(A), BY WHICH HE HAD NOT ALLOWED THE DEDUCTION TO THE ASSES SEE U/S 11(1)(D) OF THE ACT. 3. THE BRIEF FACTS OF THE CASE AS NOTED IN THE ASSE SSMENT ORDER ARE THAT THE ASSESSEE SOCIETY IS REGISTERED WITH REGIST RAR OF SOCIETIES UNDER THE SOCIETIES REGISTRATION ACT, 1860. THE ASSESSEE IS RUNNING AN EDUCATIONAL INSTITUTION AND HAD CLAIMED EXEMPTION U /S 12AA OF THE ACT. ITA NO.60 1 (ASR)/2016 ASST. YEAR: 2012-13 2 DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE AS SESSING OFFICER OBSERVED THAT ASSESSEE HAD DIRECTLY CREDITED AN AMO UNT OF RS.31,01,203/- TO BUILDING FUND ACCOUNT, THEREFORE, ASSESSEE WAS ASKED VIDE QUERY LETTER DATED 24.2.2015 TO FURNISH DETAIL S OF CREDIT IN BUILDING FUND ACCOUNT WITH EVIDENCE. IN RESPONSE TO THE QUER Y LETTER, THE ASSESEE DID NOT SUBMIT ANY REPLY AND THEREFORE, ASSESSING O FFICER TREATED THE CREDIT TO THE BUILDING FUND AS REVENUE RECEIPT AND CALCULATED THE INCOME ACCORDINGLY. 4. AGGRIEVED THE ASSESSEE FILED APPEAL BEFORE LD. C IT(A) AND SUBMITTED VARIOUS SUBMISSIONS. THE LD. CIT(A) THOUGH AGREED W ITH THE ASSESSING OFFICER AS REGARDS THE DONATIONS IN BUILDING FUND T O BE TREATED AS REVENUE RECEIPT, HOWEVER, HE FURTHER HELD THAT THE AMOUNT OF EXPENDITURE ON BUILDING SHOULD BE ALLOWED AS DEDUCT ION AND THERE SHOULD BE ONLY NET ADDITION TO THE INCOME OF THE TR UST. 5. AGGRIEVED WITH THE ORDER, THE ASSESSEE IS IN APP EAL BEFORE US. 6. AT THE OUTSET, THE LD. AR SUBMITTED THAT THE LET TER DATED 24.02.2015 AS MENTIONED IN THE ASSESSMENT ORDER DID NOT REQUIRE ASESSEE TO FILE DETAILS OF CREDIT IN THE BUILDING A CCOUNT AND IN THIS RESPECT OUR ATTENTION WAS INVITED TO (PB -13 & 14) WHERE TH E COPY OF LETTER WAS PLACED. THEREFORE, HE SUBMITTED THAT NO REPLY WAS F ILED FOR THIS ALLEGED ENQUIRY WHEREAS HE SUBMITTED THE REPLY WAS FILED ON THE SPECIFIC QUESTIONS ASKED BY ASSESSING OFFICER VIDE LETTER DA TED 27.02.2015. THE LD. AR FURTHER INVITED OUR ATTENTION TO THE PROVISI ONS OF SEC.11(1)(D) OF ITA NO.60 1 (ASR)/2016 ASST. YEAR: 2012-13 3 THE ACT AND SUBMITTED THAT THE INCOME FROM VOLUNTAR Y CONTRIBUTION MADE WITH SPECIFIC DIRECTIONS THAT IT SHOULD FROM PART O F CORPUS IS EXEMPT U/S 11(1)(D) OF THE ACT. THE LD. AR ALSO TOOK US TO COP Y OF RECEIPTS PLACED AT (PB 15 TO 22) WHERE THE RECEIPTS ISSUED TO DONOR HA D MENTIONED THAT THE DONATIONS HAD BEEN RECEIVED FOR BUILDING FUND. IN VIEW OF THE ABOVE PROVISIONS OF LAW, IT WAS SUB MITTED THAT ASSESSEE WAS ELIGIBLE FOR EXEMPTION U/S 11(1)(D) OF THE ACT. 7. THE LD. DR, ON THE OTHER HAND, HEAVILY PLACED HI S RELIANCE ON THE ORDER OF AUTHORITIES BELOW. 8. WE HAVE HEARD THE RIVAL PARTIES AND HAVE GONE TH ROUGH THE MATERIAL PLACED ON RECORD. WE FIND THAT ASSESSING O FFICER DURING ASSESSMENT PROCEEDINGS VIDE LETTER DATED 24.02.2015 PLACED AT (PB-13 & 14) VIDE POINT (II) HAD ASKED THE FOLLOWING INFORMA TION. (II) THE AMOUNTS SHOWN UNDER THE HEAD CURRENT LIAB ILITIES & PROVISIONS ON ACCOUNT OF BUILDING FUND AMOUNTING TO RS.31,01,2 03.75 AND DIOCESE OF JALANDHAR AMOUNTING TO RS.15,00,000/- TAKEN AS A PPLICATION MUST HAVE BEEN REDUCED FROM THE APPLICATION WHILE CALCUL ATING 85% UTILIZATION PLEASED CLARIFY. OTHER THAN THIS QUERY, NO QUERY WAS RAISED REGARDIN G BUILDING FUND AND IN THIS QUERY, THE ASSESSING OFFICER DID NOT ASK TH E ASSESSEE TO FURNISH DETAILS OF CREDIT ENTRIES IN THE BUILDING FUND ACCO UNT, THEREFORE, THE FINDING OF THE ASSESSING OFFICER IS WRONG THAT NO D ETAILS REGARDING RECEIPTS AND UTILIZATION OF THE BUILDING FUND WERE SUBMITTED AS THE ASSESSING OFFICER DID NOT ASK FOR THE SAME. THE LD. CIT(A) THOUGH TREATED THE BUILDING FUND AS REVENUE RECEIPT, HOWEVER, HE D IRECTED THE ASSESSING ITA NO.60 1 (ASR)/2016 ASST. YEAR: 2012-13 4 OFFICER TO MAKE ADDITION OF ONLY NET AMOUNT AFTER CONSIDERING EXPENDITURE ON BUILDINGS. WE FURTHER FIND THAT FRO M THE RECEIPTS OF DONATIONS PLACED AT (PB 15 TO 21) THAT THESE RECEIP TS WERE SPECIFICALLY FOR THE PURPOSES OF BUILDING FUND WHICH HAS BEEN MENTIO NED ON THE RECEIPTS ITSELF, AND THESE WERE, THEREFORE, FORMED PART OF V OLUNTARY CONTRIBUTIONS MADE WITH A SPECIFIC DIRECTION THAT THEY SHALL FORM PART OF THE BUILDING FUND AND THEREFORE, AS PER THE PROVISIONS OF SEC.11 (1)(D) OF THE ACT THEY WERE EXEMPTED FROM THE TAX. THIS ASPECT HAS NOT BEE N EXAMINED BY ASSESSING OFFICER, THEREFORE, WE DEEM IT APPROPRIAT E TO REMIT THE ISSUE BACK TO THE OFFICE OF ASSESSING OFFICER, WHO AFTER TAKING INTO ACCOUNT, THE NATURE OF RECEIPTS ALONG WITH SPECIFIC DIRECTIONS O N THE RECEIPTS SHOULD DECIDE THE ISSUE IN VIEW OF THE PROVISIONS OF SEC. 11(1)(D) OF THE ACT. 9. IN VIEW OF THE ABOVE, THE APPEAL FILED BY ASSESS EE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON25. 01.2017. SD/- SD/- (A.D. JAIN) (T. S. KAPOOR) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 25.01.2017. /PK/ PS. COPY OF THE ORDER FORWARDED TO: (1) THE ASSESSEE: (2) THE (3) THE CIT(A), (4) THE CIT, (5) THE SR DR, I.T.A.T., TRUE COPY BY ORDER