ACIT, Meerut V. M/s. Subharti KKB Charitable Trust, Meerut

ITA 6602/DEL/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 6941 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2007-2008
• Appeal Filed On: 05-12-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHEODAN SINGH BHADORIA
• Keywords: Charitable institution
• Section: 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH MEERUT CAMP, NEW DELHI BEFORE SHRI I.C.SUDHIR, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI , ACCOUNTANT MEMBER ITA NO. 66 02/DEL./2014 ASSESSMENT YE AR : 2007-08 ACIT VS. SUBHARTI KKB CHARITABLE TRUS T CENTRAL CIRCLE SUBHARTIPURAM, MEERUT DELHI-HARIDWAR BYEPASS ROAD MEERUT PAN : AABIS2638D ASSESSEE B Y : SH. RAJEEV SINGHAL, ADV. REVENUE BY : SH. SHEODAN SI NGH BHADORIA, SR. DR DATE OF HEARING : 16/12/2015 DATE OF PRONOUNCEMENT : 12.02.2016 ORDER PER I.C.SUDHIR, J.M. THIS APPEAL FILED BY THE REVENUE IS DIRECTED AG AINST ORDER OF CIT(A)- MEERUT DATED 04.09.2014 AND PERTAINS TO ASSESSMENT YEAR 2007-08. 2. THE REVENUE HAS QUESTIONED FIRST APPELLATE ORDE R ON THE FOLLOWING GROUNDS :- 1. THAT LD. CIT(A) WAS JUSTIFIED IN LAW AND ON FA CTS OF THE CASE IN DELETING THE DISALLOWANCE OF LOSS MADE BY THE AO RE LYING UPON THE ORDER OF HONBLE ITAT, NEW DELHI IN ASSESSEE OWN CA SE FOR A.Y. 2006-07 IN ITA NO. 1553/DEL/2011, WITH APPRECIATING THE FACT THAT THIS DECISION OF HONBLE ITAT, NEW DELHI HAS NOT BE EN ACCEPTED AND APPEAL BEFORE HONBLE HIGH COURT OF ALLAHABAD HAS B EEN FILED. 2. THAT LD. CIT(A) HAS ERRED IN LAW AND ON FACTS O F THE CASE IN ALLOWING THE APPEAL OF THE ASSESSEE BY ALLOWING THE SET OFF OF THE ITA NO.6602/DEL/2014 SUBHARTI KKB CHARITABLE TRUST 2 BROUGHT FORWARD LOSS IN CASES OF TRUST CLAIMING EXE MPTION U/S 11 OF I.T.ACT, 1961 IGNORING THE DECISION OF THE HONBLE HIGH COURT IN THE CASE OF CIT VS. INDIAN NATIONAL THEATRE TRUST (2008 ) 305 ITR 149 (DEL) AND OF THE HONBLE ITAT DELHI IN THE CASE OF PUSHPAWATI SINGHANIA RESEARCH INSTITUTE FOR LIVER, RENAL & DI GESTIVE DISEASES VS. DY. CIT (2009) 29 SOT 316 (DEL) IN WHICH IT IS CLEARLY HELD THAT EXCESS INCOME APPLIED IN EARLIER YEAR CANNOT BE TRE ATED AS APPLICATION OF THE CURRENT YEAR. 3. THAT LD. CIT(A) HAS ERRED IN LAW AND ON FACTS O F THE CASE IN ALLOWING CARRY FORWARD OF EXCESS EXPENDITURE RELYIN G UPON DECISION OF HONBLE ITAT, NEW DELHI WHEN THERE IS NO SUCH PR OVISION IN THE ACT FOR TRUST CLAIMING EXEMPTION U/S 11 OF THE I.T. ACT, 1961. 3. AT THE OUTSET OF HEARING THE LD. AR POINTED OUT THAT ISSUE RAISED IN THE PRESENT GROUNDS OF APPEAL HAS ALREADY BEEN DECIDED IN FAVOUR OF THE ASSESSEE IN THE CASE OF ASSESSEE ITSELF FOR THE ASSESSMENT YEAR 2006-07. HE FURTHER SUBMITTED THAT IN THE GROUNDS OF APPEAL, THE REVEN UE HAS STATED THAT THE REVENUE HAS NOT ACCEPTED THE DECISION OF THE TRIBUNAL IN TH E CASE OF THE ASSESSEE FOR ASSESSMENT YEAR 2006-07 IN ITA NO. 1553/DEL/2011 OR DER DATED 11.5.2012 AS AN APPEAL HAS BEEN PREFERRED BY THE REVENUE BEFORE THE HONBLE HIGH COURT OF ALLAHABAD AGAINST THAT ORDER, BUT NO INTERIM STAY H AS BEEN GRANTED BY THE HONBLE HIGH COURT AGAINST THE OPERATION OF THE SAI D ORDER OF THE TRIBUNAL IN THE SAID APPEAL PREFERRED BY THE REVENUE. A COPY OF SAID ORDER DATED 11.5.2012 OF THE TRIBUNAL HAS BEEN MADE AVAILABLE ALONG WITH THE ORDER DATED 29.6.2012 OF THE TRIBUNAL IN THE CASE OF FATEH CHAND CHARITAB LE TRUST VS. ACIT, ITA NO. 1665/DEL/2012 ON IDENTICAL ISSUE DECIDING IN FAVOUR OF THE ASSESSEE. 4. IN SUPPORT OF THE GROUND THE LD. SR. DR HO WEVER PLACED RELIANCE ON THE ASSESSMENT ORDER. HE CONTENDED THAT THE LD. CIT(A) HAS ERRED IN ALLOWING THE SET OFF OF THE BROUGHT FORWARD LOSS IN CASES OF TRU ST CLAIMING EXEMPTION U/S 11 OF IT ACT, 1961 IGNORING THE DECISION OF HONBLE HI GH COURT IN THE CASE OF CIT ITA NO.6602/DEL/2014 SUBHARTI KKB CHARITABLE TRUST 3 VS. INDIAN NATIONAL THEATRE TRUST (2008) 205 ITR 14 9 (DELHI) AND THE ITAT IN THE CASE OF PUSHPAWATI SINGHANIA RESEARCH INSTITUTE FOR LIVER, RENAL & DIGESTIVE DISEASES VS. DCIT (2009) 29 SOT 316 (DEL) . 5. HAVING GONE THROUGH THE ABOVE CITED DECISIONS SPECIALLY THE DECISION OF TRIBUNAL VIDE ORDER DATED 11.05.2012 IN THE CASE OF ASSESSEE ITSELF FOR THE ASSESSMENT YEAR 2006-07 ON AN IDENTICAL ISSUE UNDER SIMILAR SET OF FACTS, WE FIND THAT THE TRIBUNAL HAS DECIDED THE ISSUE IN FAV OUR OF THE ASSESSEE AFTER DETAILED DISCUSSION OF THE SUBMISSIONS MADE BY THE PARTIES AND THE DECISIONS RELIED UPON BY THEM. THE CONCLUDING PARA NO. 10 OF THE SAID ORDER OF THE TRIBUNAL IN THE CASE OF ASSESSEE ITSELF IS BEING RE PRODUCED HEREUNDER : 10. THUS, WE FIND THAT THOUGH THERE ARE CONTRARY V IEWS OF THE ITAT ON THIS POINT, BUT THERE ARE DECISIONS BY THE HONB LE HIGH COURT OF BOMBAY IN THE CASE OF INSTITUTE OF BANKING (SUPRA) AND ALSO THE HONBLE GUJARAT HIGH COURT IN THECASE OF AMRITABEN N. SODHAN (SUPRA) WHICH ARE IN FAVOUR OF THE ASSESSEE. THE DE CISION OF HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF INDIAN NAT IONAL THEATRE TRUST (SUPRA) RELIED UPON BY THE LEARNED DR IS NOT ON THE ISSUE UNDER APPEAL. IN VIEW OF THE ABOVE, RESPECTFULLY FOLLOWIN G THE DECISIONS OF HONBLE BOMBAY HIGH COURT AND HONBLE GUJARAT HIGH COURT CITED SUPRA, WE UPHOLD THE ORDER OF LEARNED CIT(A) AND DI SMISS THIS APPEAL FILED BY THE REVENUE. 6. SINCE, THERE IS NO CHANGE IN THE FACTS DURING THE YEAR UNDER CONSIDERATION, WE RESPECTFULLY FOLLOWING THE ABOVE CITED DECISION OF THE CO-ORDINATE BENCH OF THE TRIBUNAL DECIDE THE ISSUE IN FAVOUR OF THE ASS ESSEE WITH THIS FINDING THAT THE LD. CIT(A) HAS RIGHTLY HELD THAT THE ASSESSEE WAS E LIGIBLE FOR THE CLAIM OF SET OFF OF THE BROUGHT FORWARD LOSSES FROM EARLIER YEARS. T HE FIRST APPELLATE ORDER IS ACCORDINGLY UPHELD. THE GROUNDS ARE THUS, REJECTED. ITA NO.6602/DEL/2014 SUBHARTI KKB CHARITABLE TRUST 4 7. IN THE RESULT THE APPEAL OF THE REVENUE IS DISM ISSED. (ORDER PRONOUNCED IN THE COURT ON 12/02/201 6). SD/- SD/- (PRASHANT MAHARISHI) (I.C.SUDHIR) ACCOUNTANT MEMEBR JUDICIAL MEM BER DATED: 12 / 02/2016 *BINITA* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITA NO.6602/DEL/2014 SUBHARTI KKB CHARITABLE TRUST 5 DATE INITIAL 1. DRAFT DICTATED ON 12.02.2016 2. DRAFT PLACED BEFORE AUTHOR 12.02.2016 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS PS/PS 6. KEPT FOR PRONOUNCEMENT ON PS 7. FILE SENT TO THE BENCH CLERK PS 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER.