ACIT, BHARATPUR V. CHANDRAWATI EDUCATIONAL CHARITABLE TRUST, BHARATPUR

ITA 649/JPR/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 5167 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 8 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 24-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAGHUVIR SINGH DAGUR
• Assessee Lawyers: S L AGARWAL; R P SHARMA
• Keywords: Charitable institution
• Section: 143(3); 12AA; 11

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH DQY HKKJR] U;KF;D LNL; ,OA JH VH-VKJ-EHUK ] YS[KK LNL; DS LE{K BEFORE: SHRI KUL BHARAT, JM & SHRI T.R. MEENA, AM VK;DJ VIHY LA-@ ITA NO. 649/JP/2014 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2010-11. THE ASSTT. CIT, CIRCLE BHARATPUR. CUKE VS. M/S. CHANDRAWATI EDUCATIONAL CHARITABLE TRUST, EKTA VIHAR COLONY, SONKH ROAD, BHARATPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AABTC 0312 N VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : SHRI RAGHUVIR SINGH DAGUR (ADDL.CIT) FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI R.P. SHARMA, (C.A.) AND SHRI S.L. AGARWAL (C.A.) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 21.06.2016. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 22/06/2016. VKNS'K@ ORDER PER SHRI KUL BHARAT, JM. THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LD. CIT(APPEALS), ALWAR DATED 22.07.2014 PERTAINING TO A.Y. 2010-11. THE REVENUE HAS RAISED THE SOLITARY GROUND WHICH READS AS UNDER :- THAT THE COMMISSIONER OF INCOME TAX (APPEALS), A LWAR HAS ERRED IN LAW AS WELL AS ON THE FACTS AND CIRCUMSTAN CES OF THE CASE IN ALLOWING CLAIM OF EXPENSES OF THE ASSESSEE WITHOUT APPRECIATING MATERIAL FACTS, SINCE THE ASSESSEE IS A TRUST AND NOT HAVING REGISTRATION U/S 12AA OF THE I.T. ACT, 1961. 2. BRIEFLY STATED THE FACTS ARE THAT THE CASE OF TH E ASSESSEE WAS PICKED UP FOR SCRUTINY ASSESSMENT AND THE ASSESSMENT UNDER SECTIO N 143(3) OF THE I.T. ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) WAS FRAMED VID E ORDER DATED 26 TH MARCH, 2013. WHILE FRAMING THE ASSESSMENT, THE AO DECLINED EXEMP TION UNDER SECTION 11 OF THE 2 ITA NO. 649/JP/2014 ACIT VS. CHANDRAWATI EDUCATIONAL CHARITABLE TRUST. ACT AND ASSESSED THE INCOME OF THE ASSESSEE AT RS. 1,39,95,287/-. THE ASSESSEE AGGRIEVED BY THIS ORDER, PREFERRED AN APPEAL BEFORE LD. CIT (A), WHO AFTER CONSIDERING THE SUBMISSIONS, PARTLY ALLOWED THE APP EAL. WHILE ALLOWING THE APPEAL, THE LD. CIT (A) FOLLOWED THE DECISION OF THE HONBL E COORDINATE BENCH IN THE CASE OF ITO VS. SRI BALAJI EDUCATIONAL & CHARITABLE TRUST. 3. NOW THE REVENUE IS IN APPEAL BEFORE US. 3.1. THE LD. D/R SUPPORTED THE ORDER OF THE A.O. 3.2. ON THE CONTRARY, THE LD. COUNSEL FOR THE ASSES SEE SUPPORTED THE ORDER OF LD. CIT (A) AND SUBMITTED THAT THERE IS NO INFIRMITY IN THE ORDER OF LD. CIT (A). HE HAS BASED HIS DECISION BY RELYING ON THE JUDGMENT OF TH E HONBLE APEX COURT. 3.3. WE HAVE HEARD RIVAL CONTENTIONS, PERUSED THE M ATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELO W. THE LD. CIT (A) HAS DECIDED THE ISSUE BY FOLLOWING THE HONBLE COORDINATE BENCH OF THE TRIBUNAL IN THE CASE OF ITO VS. SRI BALAJI EDUCATIONAL & CHARITABLE TRUST I N ITA NO. 789/MDS/2011. THE HONBLE COORDINATE BENCH IN THE CASE OF ITO VS. SRI BALAJI EDUCATIONAL & CHARITABLE TRUST (SUPRA) FOLLOWING THE DECISION IN THE CASE OF SOCIETY FOR INTEGRATED DEVELOPMENT IN URBAN AND RURAL AREAS VS. DCIT, 90 I TD 493 (HYD.) HELD THAT EVEN IF THERE IS NO CASE OF BENEFITS AVAILABLE UNDER SECTIO NS 11 AND 12, THE INCOME IN THE HANDS OF AN ASSESSEE CAN BE COMPUTED ONLY ON THE BA SIS OF WELL KNOWN PRINCIPLES LAID DOWN IN THE ACCOUNTANCY AND TAXATION. THE GROS S COLLECTION CANNOT BE TAXED AS INCOME. CORRESPONDING EXPENDITURE NECESSARY TO CARR Y ON THE ACTIVITIES SHOULD BE DEDUCTED. THE NET ALONE CAN BE TAXED AS INCOME. TH EREFORE, RESPECTFULLY FOLLOWING THE DECISION OF THE HONBLE COORDINATE BENCH, WE DO NOT FIND REASON TO INTERFERE INTO 3 ITA NO. 649/JP/2014 ACIT VS. CHANDRAWATI EDUCATIONAL CHARITABLE TRUST. THE ORDER OF LD. CIT (A). THE SAME IS HEREBY UPHEL D. THE GROUND RAISED IN THIS APPEAL IS REJECTED. 4. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON 22/06/2016 . SD/- SD/- VH-VKJ-EHUK] ( DQY HKKJR ) ( T.R. MEENA) ( KUL BHARAT ) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 22/06/2016. DAS/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- THE ACIT, CIRCLE, BHARATPUR. 2. THE RESPONDENT- M/S. CHANDRAWATI EDUCATIONAL CHA RITABLE TRUST, BHARATPUR. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 649/JP/2014) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR