Mata Rukmani Rai Arya Girls Sr. Secondary School, Kurukshetra V. ITO, (E), Ambala

ITA 67/CHANDI/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 1530 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-06-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 22-01-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHRIMANJIT SINGH
• Assessee Lawyers: SHRIB.M. MONGA
• Keywords: Charitable institution; Opportunity of being heard; Set aside

Judgement Text

, .. , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BEN CHES, SMC CHANDIGARH .., ! BEFORE: SHRI. N.K.SAINI, VICE PRESIDENT ITA NO.67/CHD/2019 ASSESSMENT YEAR : 2015-16 MATA RUKMANI RAI ARYA GIRLS SR. SECONDARY SCHOOL, SHAHABAD(M) BARARA ROAD, DIST: KURUKSHETRA, HARYANA THE ITO (E) AAYAKAR BHAWAN AMBALA, HARYANA PAN NO:AAALM0922B APPELLANT RESPONDENT !' ASSESSEE BY : SHRIB.M. MONGA, ADVOCATE SHRIROHITKAURA, ADVOCATE #!' REVENUE BY : SHRIMANJIT SINGH, CIT DR $ %! & DATE OF HEARING : 12/06/2019 '()*! & DATE OF PRONOUNCEMENT : 12/06/2019 '#/ ORDER PER N.K. SAINI, VICE PRESIDENT THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DT.29/11/2018 OF LD. CIT(A), KARNAL. 2. IN THE PRESENT APPEAL ASSESSEE HAS RAISED THE FO LLOWING GROUNDS: 1. THAT THE ORDER OF LEARNED CIT(APPEALS), IS AGAINST THE LAW AND FACTS OF THE CASE. 2. THAT THE CIT(APPEALS) IS NOT JUSTIFIED WHILE CONFIR MING THE ADDITION OF RS. 7,67,325/- BEING SHORT FALL OF 85% OF TOTAL RECEIPT S IGNORING THE FORM 10 FILED BEFORE THE LEARNED AO THAT THE SAME IS SPECIFICALLY ACCUMULATED AS PER LAW. 3. THAT THE LD. CIT(A) IS NOT JUSTIFIED IN UPHOLDING T HE ORDER OF LD. AO IGNORING THE WELL SETTLED LAW AS AO HAS ERRED IN FRAMING ASSESSM ENT WITHOUT CONSIDERING THE FORM NO. 10 DULY SUBMITTED BY THE ASSESSEE BEFO RE COMPLETION OF ASSESSMENT PROCEEDINGS. 4. THAT THE APPELLANT CRAVES, LEAVE TO ADD OR AMEND AN Y GROUNDS OF APPEAL. 3. THE FACTS OF THE CASE IN BRIEF ARE THAT THE ASSE SSEE FILED ITS RETURN OF INCOME ON 09/10/2015 DECLARING NIL INCOME. SUBSEQUENTLY TH E CASE WAS SELECTED FOR SCRUTINY. 4. THE A.O. DURING THE COURSE OF ASSESSMENT PROCEED INGS NOTICED THAT THE ASSESSEE HAD NOT APPLIED 85% OF THE GROSS RECEIPT / INCOME DURING THE YEAR FOR THE CHARITABLE PURPOSE. HE WAS OF THE VIEW THAT THE INCOME APPLIED BY THE 2 ASSESSEE FOR CHARITABLE PURPOSES FELL SHORT BY RS. 7,67,325/-. HE MADE THE ADDITION OF THE SAID AMOUNT. 5. BEING AGGRIEVED THE ASSESSEE CARRIED THE MATTER TO THE LD. CIT(A) AND SUBMITTED THAT THE A.O. HAD NOT CONSIDERED FORM NO. 10 IN THE ASSESSMENT PROCEEDINGS AND THAT THE ASSESSEE HAD DULY APPLIED THE ACCUMULATION OF FUNDS IN THE IMMEDIATELY SUCCEEDING YEARS. 6. THE LD. CIT(A) DID NOT FIND MERIT IN THE SUBMISS IONS OF THE ASSESSEE BY OBSERVING THAT THE A.O. HAD CLEARLY POINTED OUT HOW THE CASE LAWS CITED BY THE ASSESSEE WERE NOT MATERIAL TO THE FACTS OF THE CASE AND HOW THE SHORT FALL IN APPLICATION OF INCOME @85% TO CLAIM FULL EXEMPTION REMAINED UNEXPLAINED. 7. NOW THE ASSESSEE IS IN APPEAL. 8. LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT NEIT HER THE A.O. NOR THE LD. CIT(A) APPRECIATED THE FACTS IN RIGHT PERSPECTIVE A ND HAD NOT CONSIDERED THE FORM NO. 10 DULY SUBMITTED BY THE ASSESSEE BEFORE T HE COMPLETION OF THE ASSESSMENT PROCEEDINGS. IT WAS FURTHER SUBMITTED TH AT THE ASSESSEE APPLIED THE AMOUNT FOR CHARITABLE PURPOSES AND THAT THE ACCUMUL ATED PROFIT WAS APPLIED FOR THE SAME PURPOSE IN THE SUCCEEDING YEARS WHICH HAS NOT BEEN CONSIDERED EITHER BY THE A.O. OR BY THE LD. CIT(A). 9. IN HIS RIVAL SUBMISSIONS THE LD. CIT DR STRONGLY SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 10. I HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE P ARTIES AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. IN THE PRESENT CA SE IT IS NOTICED THAT THE LD. CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE BUT HAD NOT GIVEN HER OWN FINDINGS, SHE SIMPLY STATED THAT THE A.O. HAD POINTED OUT HOW THE CASE LAWS CITED BY THE ASSESSEE WERE NOT MATERIAL TO THE FACTS OF THE ASSE SSEES CASE AND HOW THE SHORT FALL IN APPLICATION OF INCOME @ 85% TO CLAIM FULL E XEMPTION REMAINED UNEXPLAINED. ON THE CONTRARY THE CONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE WAS THAT ALL THE DETAILS WERE FURNISHED IN FORM NO. 10 BEFORE COMPLETION OF THE ASSESSMENT PROCEEDINGS AND THAT THE ACCOMMODATED PR OFIT WAS USED FOR CHARITABLE PURPOSE IN THE SUCCEEDING YEARS. I THERE FORE, CONSIDERING THE TOTALITY OF THE FACT DEEM IT APPROPRIATE TO SET ASIDE THIS I SSUE BACK TO THE FILE OF THE A.O. AND DIRECT HIM TO CONSIDER THE FORM NO. 10 FURNISHE D BY THE ASSESSEE BEFORE COMPLETION OF THE ASSESSMENT PROCEEDINGS AND DECIDE THE ISSUE AFRESH IN 3 ACCORDANCE WITH LAW AFTER PROVIDING DUE AND REASONA BLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 11. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. SD/- .., ( N.K. SAINI) ! / VICE PRESIDENT AG DATE:12/06/2019 (+! ,-.- COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. $ / CIT 4. $ / 01 THE CIT(A) 5. -2 45&456789 DR, ITAT, CHANDIGARH 6. 8:% GUARD FILE