Somany Education Trust, Kolkata V. I.T.O (Exemption) - II,Kolkata, Kolkata

ITA 687/KOL/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 4904 (ITAT-KOLKATA)
• Duration Of Justice: 3 year(s) 1 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-05-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2000-2001
• Appeal Filed On: 01-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMITAVA BHATTACHARYA
• Assessee Lawyers: P K SANGHAI
• Section: 12

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH B, KOLKATA (BEFORE SHRI P. M. JAGTAP, A.M. & SHRI S.S.VISWANET HRA RAVI, J.M.) ITA NO. 687/KOL/2013 : ASSTT. Y EAR : 2000-2001 SOMANY EDUCATION TRUST PAN: AABTS 5596E VS ITO, (EXEMPTIONS)-II KOLKATA (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI P.K.SANGHAI, FCA RESPONDENT BY : SHRI AMITAVA B HATTACHARYA, JCIT, SR.DR DATE OF HEARING : 11.02.2016 DATE OF PRONOUNCEMENT : 06-05-2016 ORDER PER SHRI S.S.VISWANETHRA RAVI, J.M . THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 22.01.2013 PASSED BY THE CIT(A)-XXXVI, KOLKATA FOR THE ASSESSMENT YEA R 2000-01 PASSED UNDER SECTION 251 OF THE INCOME TAX ACT, 1961. 2. THE ASSESSEE RAISED THE FOLLOWING GROUNDS : 1. THAT THE ORDER PASSED BY THE LOWER AUTHORITIES ARE ARBITRARY AND BAD IN THE EYE OF LAW. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LEARNED CIT(A) ERRED IN SUSTAINING THE DISALLOWANCE TO THE EXTENT OF 923569 AND THEREBY HE WAS WRONG IN CONFIRMING THE DISALLOW ANCE MADE BY THE LD. A.O. TO THAT EXTENT IRRESPECTIVE OF THE FAC T THAT SUCH EXPENSES ARE REGULAR AND NECESSARY FOR MAINTENANCE OF THE TR UST. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE LEARNED CIT(A) ERRED IN PASSING ORDER WITHOUT AFFORDING PRO PER OPPORTUNITY AND PROVIDING SUFFICIENT TIME TO THE ASSESSEE TO PR ODUCE RELEVANT DOCUMENTS. 4. THE APPELLANT CRAVES LEAVE TO AMEND, ALTER, MOD IFY, SUBSTITUTE, ADD TO, ABRIDGE AND/OR RESCIND ANY OR ALL OF THE ABOVE GROUNDS. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESS EE IS A REGISTERED TRUST U/SEC 12 A OF THE ACT AND RUNNING THREE EDUCATIONAL INSTITUT IONS. THE RETURN OF INCOME WAS FILED DECLARING THE TOTAL INCOME AT NIL. THE AO TRE ATED THE ASSESSEE AS AN AOP AND DENIED THE EXEMPTION U/SEC 10(23C)(VI) OF THE ACT A ND ASSESSED THE INCOME OF THE ASSESSEE AT RS.35,19,420/- UNDER SECTION 143(3)/13( 1)(D)(III) OF THE ACT. IN APPEAL, CIT-A CONFIRMED THE ORDER OF AO IN DENYING THE EXEM PTION U/SEC 10(23C)(VI) OF THE ACT AND ALLOWED THE DEDUCTION OF DIVIDEND INCOM E OF RS.9,93,644/- .CIT-A DIRECTED THE AO TO VERIFY THE EXPENDITURE AND TO AL LOW THE SAME AS PER LAW. 4. DURING SUCH PROCEEDINGS, THE AO FOUND THAT THE E XPENDITURE INCURRED WAS NOT LAID OUT WHOLLY AND EXCLUSIVELY FOR THE PURPOSE OF MAKING OR EARNING INCOME FROM SCHOOLS AND THE COLLEGE. THEREFORE AO DID NOT ALLOW VARIOUS EXPENSES AS CLAIMED BY THE ASSESSEE FOR THE REASON THAT THE ASS ESSEE IS AN AOP AND DISALLOWED RS.25,25,776/-. THE LEARNED CIT-A AS IT NOTICED FRO M THE RECORD DIRECTED TO PRODUCE THE RELEVANT BILLS VOUCHERS ETC. AS THE CAS E MAY BE TO SUBSTANTIATE THE EXPENDITURE CLAIMED. BUT HOWEVER THE ASSESSE COULD PRODUCE VOUCHERS SHOWING AN EXTENT OF RS.63,011/- ONLY AND CIT-A RESTRICTED THE DISALLOWANCE TO 9,23,569/- AS AGAINST RS.9,86,580/-AND TREATED THE SAME AS NON BU SINESS EXPENDITURE. 5. AGGRIEVED AS ABOVE THE ASSESSEE BEFORE US CONTEN DING THAT THE AO DID NOT GRANT THE REASONABLE TIME TO FILE ALL SUCH DETAILS SUPPORTING ITS CLAIM OF EXPENDITURE IN THE PROCEEDINGS GIVING EFFECT TO ORDER OF CIT-A. THE LEARNED AR SUBMITTED THAT THAT TO CARRY OUT THE OBJECTIVES EFFECTIVELY THE AS SESSEE TRUST INCURRED MANY ADMINISTRATIVE EXPENDITURE EVEN THAT TOO WAS NOT CO NSIDERED BY THE AO ON THE GROUND THAT THE ASSESSEE IS AN AOP AND HENCE SOUGHT TO REMAND BACK THE FILE TO AO FOR VERIFICATION. THE LEARNED DR RAISED NO OBJECTIO N. THEREFORE, WE ARE OF THE VIEW THAT IN THE INTEREST OF JUSTICE REMAND THE CASE TO THE FILE OF AO AND IN ORDER TO AFFORD AN OPPORTUNITY TO THE ASSESSEE TO PUT FORTH ALL THE MATERIAL EVIDENCE IN SUPPORT OF ITS CLAIM OF EXPENDITURE BEFORE THE AO A ND ASSESSEE SHALL NOT SEEK ANY FURTHER ADJOURNMENTS, TAKING INTO CONSIDERATION THE LITIGATION HAD RUN INTO 10 YEARS WE DIRECT THE AO TO COMPLETE THE VERIFICATION OF TH E DETAILS AND EXPEDITE THE MATTER AND PASS APPROPRIATE ORDERS, AS PER LAW. THUS GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLO WED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 06.05.2016 SD/- SD/- (P. M. JAGTAP) (S.S.VISWANETHRA RAVI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 06/05/2016 TALUKDAR (SR.PS) COPY OF THE ORDER FORWARDED TO: 1. SOMANY EDUCATION TRUST, 2, RED CROSS PLACE, KOL KATA 700 001 2 I.T.O.(EXEMPTION)-II, KOLKATA 3. THE CIT-I, 4. THE CIT(A)-I, 5. DR, KOLKATA BENCHES, KOLKATA TRUE COPY, BY ORDER, ASST. REGISTRAR , ITAT, KOLKATA BENCHES