ITO (E), WARD- 1(3), New Delhi V. Dr. Bhai Mohan Singh Foundation, New Delhi

ITA 6249/DEL/2017

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 9706 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 8 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-07-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 09-10-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NIDHI SRIVASTAVA
• Keywords: Charitable institution; Set aside
• Section: 12A; 201; 264; 12; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH B BB B : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI (THROUGH VIDEO CONFERENCING) (THROUGH VIDEO CONFERENCING) (THROUGH VIDEO CONFERENCING) (THROUGH VIDEO CONFERENCING) BEFORE SHRI G.S. PAN BEFORE SHRI G.S. PAN BEFORE SHRI G.S. PAN BEFORE SHRI G.S. PANN NN NU UU U, ,, , VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND SHRI SUDHANSHU SRIVASTAVA SHRI SUDHANSHU SRIVASTAVA SHRI SUDHANSHU SRIVASTAVA SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER , JUDICIAL MEMBER ITA NO. ITA NO. ITA NO. ITA NO. 6249/DEL/2017 6249/DEL/2017 6249/DEL/2017 6249/DEL/2017 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2013 2013 2013 2013 - -- - 14 1414 14 INCOME TAX OFFICER (E) INCOME TAX OFFICER (E) INCOME TAX OFFICER (E) INCOME TAX OFFICER (E) , ,, , WARD WARD WARD WARD- -- -1(3), E 1(3), E 1(3), E 1(3), E- -- -2 BLOCK, 2 BLOCK, 2 BLOCK, 2 BLOCK, ROOM NO.2419, 24 ROOM NO.2419, 24 ROOM NO.2419, 24 ROOM NO.2419, 24 TH THTH TH FLOOR, FLOOR, FLOOR, FLOOR, PRATYAKSH KAR BHAWAN, PRATYAKSH KAR BHAWAN, PRATYAKSH KAR BHAWAN, PRATYAKSH KAR BHAWAN, CIVIC CENTRE, CIVIC CENTRE, CIVIC CENTRE, CIVIC CENTRE, JAWAHAR LAL NEHRU MARG, JAWAHAR LAL NEHRU MARG, JAWAHAR LAL NEHRU MARG, JAWAHAR LAL NEHRU MARG, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 002. 110 002. 110 002. 110 002. VS. VS. VS. VS. DR. BHAI MOHAN SINGH FOUNDATION, DR. BHAI MOHAN SINGH FOUNDATION, DR. BHAI MOHAN SINGH FOUNDATION, DR. BHAI MOHAN SINGH FOUNDATION, 15, AURANGZEB ROAD, 15, AURANGZEB ROAD, 15, AURANGZEB ROAD, 15, AURANGZEB ROAD, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 011. 110 011. 110 011. 110 011. PAN : AAATD8105B. PAN : AAATD8105B. PAN : AAATD8105B. PAN : AAATD8105B. (APPELLANT) ( RESPONDENT) APPELLANT BY : MS. NIDHI SRIVASTAVA, CIT - DR. RESPONDENT BY : SHRI GAURAV JAIN, ADVOCATE AND SHRI HIMANSHU AGGARWAL, CA. DATE OF HEARING : 08.07.2020 08.07.2020 08.07.2020 08.07.2020 DATE OF PRONOUNCEMENT : 08.07.2020 08.07.2020 08.07.2020 08.07.2020 ORDER ORDER ORDER ORDER PER G.S. PANNU PER G.S. PANNU PER G.S. PANNU PER G.S. PANNU, , , , VP VPVP VP : :: : THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YEAR 201 3-14 IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-40, NEW DELHI DATED 10 TH JULY, 2017. 2. IN THIS APPEAL, THE SOLITARY GRIEVANCE OF THE REVE NUE IS ENUMERATED IN THE FOLLOWING GROUND OF APPEAL :- WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE AN D IN LAW, THE LD.CIT(A) HAS ERRED IN ALLOWING CARRY F ORWARD OF B/F LOSSES AS THERE IS NO PROVISION IN THE STATUTE TO CARR Y FORWARD LOSS/EXCESS APPLICATION TO SUBSEQUENT YEARS IN ITA-6249/DEL/2017 2 CASE OF CHARITABLE TRUSTS BEING ASSESSED UNDER SECTION 11 & 12 OF THE IT ACT. 3. THE RESPONDENT-ASSESSEE BEFORE US IS A TRUST REGISTERE D UNDER SECTION 12A OF THE INCOME-TAX ACT, 1961. IN THE CO URSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER NOTED THAT ASSESSEE HAD C LAIMED THE BENEFIT OF ADJUSTMENT OF THE CARRIED FORWARD DEF ICIT OF THE EARLIER YEAR AMOUNTING TO `7,87,85,919/- WHILE DETERMINING THE ASSESSABLE INCOME FOR THE YEAR UNDER CONSIDERATION. THE ASSESSING OFFICER TOOK THE VIEW THAT THE EXCESS EXPENDITURE INCURRED BY THE TRUST IN THE EARLIER YEARS (WHICH HAD RESULTED IN THE DEFICIT), CO ULD NOT BE ADJUSTED AGAINST THE INCOME OF THE CURRENT YEAR INASMUCH AS TH E SAME COULD NOT BE TREATED AS AN APPLICATION OF THE INCOME OF THE C URRENT YEAR. IN THIS MANNER, THE ASSESSING OFFICER ASSESSED THE TOTAL INCOME A T `7,87,85,919/-, BEING THE EXCESS OF INCOME OVER EXPEN DITURE FOR THE CURRENT YEAR. 4. IN APPEAL BEFORE THE LEARNED CIT(A), ASSESSEE CANVASSE D THAT THE ACTION OF THE ASSESSING OFFICER IN NOT ALLOWING THE AD JUSTMENT OF DEFICIT CARRIED FORWARD FROM EARLIER YEARS WAS EXPRESSLY CONTRA RY TO THE LAW LAID DOWN BY THE HONBLE JURISDICTIONAL HIGH COURT O F DELHI IN THE CASE OF DIT VS. RAGHUVANSHI CHARITABLE TRUST & OTHERS [201 1] 197 TAXMAN 0170 (DELHI). IT IS SEEN FROM A PERUSAL OF THE ORDER OF THE LEARNED CIT(A) THAT THE PLEA OF THE ASSESSEE WAS SUPPORTED BY VAR IOUS OTHER JUDGEMENTS, VIZ., CIT VS. INSTITUTE OF BANKING PERSONNE L SELECTION 264 ITR 110 (BOMBAY), CIT VS. SHRI PLOT SWETAMBER MURTI PUJAK JAIN MANDAL 211 ITR 293 (GUJARAT), CIT VS. MATRISEVA TRUST 24 2 ITR 20 (MADRAS) AND CIT VS. MAHARANA OF MEWAR CHARITABLE FOUNDATION 164 ITR 439 (RAJASTHAN). 5. CONSIDERING ALL THE AFORESAID AND SPECIALLY THE JU DGMENT OF HONBLE HIGH COURT OF DELHI IN THE CASE OF RAGHUVANSH I CHARITABLE TRUST ITA-6249/DEL/2017 3 (SUPRA), LEARNED CIT(A) SET ASIDE THE ACTION OF THE ASSE SSING OFFICER AND ALLOWED THE PLEA OF THE ASSESSEE FOR SETTING-OFF OF CARR IED FORWARD AMOUNT OF DEFICIT OF EARLIER YEARS IN ORDER TO COMP UTE THE ASSESSABLE INCOME FOR THE YEAR UNDER CONSIDERATION. AGAINST SUCH A DECISION, REVENUE IS IN APPEAL BEFORE US AS PER THE AFORESTATED G ROUND OF APPEAL. 6. BEFORE US, IT WAS A COMMON GROUND BETWEEN THE PART IES THAT THE LEGAL POSITION LAID DOWN BY THE HONBLE HIGH COURT O F DELHI IN THE CASE OF RAGHUVANSHI CHARITABLE TRUST (SUPRA) CONTINUES TO HO LD THE FIELD. IN FACT, THE LEARNED COUNSEL FOR THE ASSESSEE BROUGHT TO TH E NOTICE OF THE BENCH THAT HON'BLE SUPREME COURT IN THE CASE OF CIT( E) VS. SUBROS EDUCATIONAL SOCIETY [2018] 303 CTR 1 (SC) HAS IMP LIEDLY AFFIRMED THE POSITION OF LAW ENUMERATED BY THE HONBLE HIGH COURT OF DELHI WHILE CONSIDERING A SIMILAR QUESTION RAISED BY THE REVENUE BE FORE IT, AS THE HON'BLE SUPREME COURT DID NOT FIND ANY MERIT IN THE SAME. 7. IN VIEW OF THE AFORESAID, THE ORDER OF LEARNED CI T(A) IS HEREBY AFFIRMED AND THE APPEAL OF THE REVENUE IS DISMISSED. 8. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED . ABOVE DECISION WAS ANNOUNCED IN THE PRESENCE OF BOTH T HE PARTIES ON CONCLUSION OF VIRTUAL HEARING TODAY, I.E. , 8 TH JULY, 2020. SD/- SD/- ( (( ( SUDHANSHU SRIVASTAVA SUDHANSHU SRIVASTAVA SUDHANSHU SRIVASTAVA SUDHANSHU SRIVASTAVA ) )) ) (G.S. PANNU (G.S. PANNU (G.S. PANNU (G.S. PANNU ) )) ) JUDICIAL JUDICIAL JUDICIAL JUDICIAL MEMBER MEMBER MEMBER MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VK. ITA-6249/DEL/2017 4 COPY FORWARDED TO: - 1. APPELLANT : INCOME TAX OFFICER (E), WARD INCOME TAX OFFICER (E), WARD INCOME TAX OFFICER (E), WARD INCOME TAX OFFICER (E), WARD- -- -1(3), E 1(3), E 1(3), E 1(3), E- -- -2 BLOCK, 2 BLOCK, 2 BLOCK, 2 BLOCK, ROOM NO.2419, 24 ROOM NO.2419, 24 ROOM NO.2419, 24 ROOM NO.2419, 24 TH THTH TH FLOOR, PRATYAKSH KAR BHAWAN, FLOOR, PRATYAKSH KAR BHAWAN, FLOOR, PRATYAKSH KAR BHAWAN, FLOOR, PRATYAKSH KAR BHAWAN, CIVIC C CIVIC C CIVIC C CIVIC CENTRE, JAWAHAR LAL NEHRU MARG, ENTRE, JAWAHAR LAL NEHRU MARG, ENTRE, JAWAHAR LAL NEHRU MARG, ENTRE, JAWAHAR LAL NEHRU MARG, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 002. 110 002. 110 002. 110 002. 2. RESPONDENT : DR. BHAI MOHAN SINGH FOUNDATION, DR. BHAI MOHAN SINGH FOUNDATION, DR. BHAI MOHAN SINGH FOUNDATION, DR. BHAI MOHAN SINGH FOUNDATION, 15, AURANGZEB ROAD, NEW DELHI 15, AURANGZEB ROAD, NEW DELHI 15, AURANGZEB ROAD, NEW DELHI 15, AURANGZEB ROAD, NEW DELHI 110 011. 110 011. 110 011. 110 011. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR