DDIT (E), New Delhi V. Pt. Kanahya Lal Dayawanti Punj Charitable Society, New Delhi

ITA 6523/DEL/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 7296 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 6 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 22-06-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 06-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V R SONBHADRA
• Keywords: Charitable institution; Tax effect
• Section: 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: F NEW DELHI BEFORE SMT DIVA SINGH, JUDICIAL MEMBER AND SH.O.P.KANT, ACCOUNTANT MEMBER I.T.A .NO.-2753 & 6523/DEL/2013 (ASSESSMENT YEAR-20 04-05 & 2008-09) DDIT(E), INV. CIRCLE-II, NEW DELHI. (APPELLANT) VS KANAHYA L AL DAYAWANTI PUNJ CHARITABLE SOCIETY (NOW KNOWN AS PT.KANAHYA LAL DAYAWANTI PUNJ FOUNDATION), 17-18, NEHRU PLACE, NEW DELHI-110019. PAN-AAATP0913B (RESPONDENT) APPELLANT BY SH.V.R.SONBHADRA, SR.DR RESPONDENT BY SH. ASHWANI KUMAR, FCA ORDER PER BENCH THESE ARE TWO APPEALS FILED BY THE REVENUE ASSAILIN G THE CORRECTNESS OF THE ORDER DATED 01.02.2013 AND 06.09.2013 OF CIT(A)-XXI , NEW DELHI PERTAINING TO 2004-05 & 2008-09 ASSESSMENT YEARS ON THE FOLLOWING GROUNDS: ITA NO.2753/DEL/2013 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE LD.CIT(A) HAS ERRED IN ALLOWING EXEMPTION U/S 11/12 OF THE INCOME TAX ACT, 1961 TO THE ASSESSEE IGNORING THE FACT THAT SH ARING OF SURPLUS AMOUNTING TO 80% OF THE TOTAL RECEIPTS IS CLEAR CUT COMMERCIAL ACTIVITY IN WHICH PT. KANAHYA LAL DAYAWANTI PUNJ FOUNDATION IS INVOLVED. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE LD.CIT(A) HAS ERRED IN DELETING THE TOTAL ADDITION OF RS.30,50,000/- MADE BY THE AO ON ACCOUNT OF DONATION PAID TO MAI K AMLIWALI JAN KALYAN CHARITABLE TRUST HOSPITAL. 3. THE APPELLANT CRAVES LEAVE TO ADD, TO ALTER OR AMEN D ANY GROUND OF APPEAL RAISED ABOVE AT THE TIME OF HEARING. ITA NO.6523/DEL/2013 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE LD.CIT(A) HAS ERRED IN ALLOWING EXEMPTION U/S 11 OF THE INCOME TAX ACT, 1961 TO THE ASSESSEE IGNORING THE FACT THAT SHARING OF SURPLUS DATE OF HEARING 22.06.2016 DATE OF PRONOUNCEMENT 28.06.2016 I.T.A .NO .- 2753 & 6523/DEL/2013 PAGE 2 OF 3 AMOUNTING TO 80% OF THE TOTAL RECEIPTS IS A CLEAR C UT COMMERCIAL ACTIVITY IN WHICH PT. KANAHYA LAL DAYAWANTI PUNJ FOUNDATION IS INVOLVED. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE LD.CIT(A) HAS ERRED IN DELETING THE TOTAL ADDITION OF RS.5,00,000/- ON ACCOUNT OF DONATION PAID TO MAI KAMLIWALI JAN KALYA N CHARITABLE TRUST HOSPITAL. 3. THE APPELLANT CRAVES LEAVE TO ADD, TO ALTER OR AMEN D ANY GROUND OF APPEAL RAISED ABOVE AT THE TIME OF HEARING. 2. LD.AR INVITING ATTENTION TO THE DEPARTMENTAL APP EALS FILED SUBMITTED THAT THE APPEALS HAVE BEEN FILED IN VIOLATION OF THE CBD T CIRCULAR NO.21/2015 DATED 10TH DECEMBER, 2015 AS THE TAX EFFECT IS LESS THAN RS.10 LACS. INVITING ATTENTION TO ITA NO.6523/DEL/2013 IT WAS SUBMITTED THAT THE F ACT THAT THE GROUND ITSELF IS MENTIONING AN AMOUNT OF RS. 5LACS, THE APPEAL IS BE LOW TAX EFFECT. ADDRESSING ITA NO.2753/DEL/2013 IN 2004-05 AY TAKING NOTE OF THE O BJECTIONS OF THE REVENUE THAT THE AMOUNT MENTIONED IN THE GROUNDS SUGGESTS T HAT THE ADDITION ASSAILED IS OF RS.30.50 LACS, THE LD.AR WAS REQUIRED TO FILE A CALCULATION SHEET IN SUPPORT OF HIS CLAIM. ACCORDINGLY THE APPEAL WAS PASSED OVER. IN THE SECOND ROUND, THE LD.AR SUBMITTED THAT THE TAX EFFECT INVOLVED IS RS. 9,15,000/- AND THE FOLLOWING CALCULATION WAS FILED IN SUPPORT OF THE SAME:- INCOME DECLARED NIL INCOME ASSESSED RS.23,54,534/- AS PER ITN 5150, IT WORKS OUT AT RS.7,06,280/- EVEN IT ADDITION OF RS.30,50,000/- IS TAKEN INTO A CCOUNT, TAX EFFECT WORKS OUT AT RS.9,15,000/- 2.1. THE LD.SR.DR WAS GIVEN TIME TO CONSIDER THE SA ME AND THE APPEAL WAS PASSED OVER. 3. CONSIDERING THE SAME, THE LD.SR.DR FAIRLY CONCED ED THAT IN THE APPEALS OF THE REVENUE, THE TAX EFFECT INVOLVED IS LESS THAN R S.10 LACS AND THE CALCULATION PROVIDED BY THE LD.AR WAS CORRECT. 4. IN THE LIGHT OF THE SUBMISSION OF THE PARTIES AN D ON A PERUSAL OF THE MATERIAL ON RECORD, WE FIND THAT THE ASSESSEES PRA YER HAS TO BE ALLOWED. THE CBDT VIDE THE AFORESAID CIRCULAR DATED 10.12.2015 H AS REVISED THE MONETARY LIMIT TO RS.10 LACS FOR FILING THE APPEAL BY THE DEPARTME NT BEFORE INCOME TAX APPELLATE TRIBUNAL. THE AMOUNTS SET OUT IN PARA 3 OF THE AFOR ESAID CIRCULAR VIDE PARA 10 OF THE SAME HAS BEEN MADE RETROSPECTIVE. CONSIDE RING THE SETTLED LEGAL PRECEDENT I.T.A .NO .- 2753 & 6523/DEL/2013 PAGE 3 OF 3 THAT THE BOARDS INSTRUCTIONS OR DIRECTIONS ISSUED TO THE INCOME TAX AUTHORITIES U/S 268A OF THE INCOME TAX ACT, 1961 ARE BINDING ON THE AUTHORITIES, WE DISMISS THE DEPARTMENTAL APPEALS CONSIDERING THE MATERIAL A VAILABLE ON RECORD. 5. IN THE RESULT, THE APPEALS OF THE REVENUE ARE DI SMISSED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 28 TH JUNE, 2016. SD/- SD/- (O.P.KANT) (DIVA SINGH ) ACCOUNTANT MEMBER JUDICIAL MEMBER *AMIT KUMAR* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSI STANT REGISTRAR ITAT NEW DELHI