URMILA DEVI CHARITABLE SOCIETY, GHAZIABAD V. ITO, EXEMPTION WARD, GHAZIABAD

ITA 6909/DEL/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 9079 (ITAT-DELHI)
• Duration Of Justice: 8 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 31-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution; Principle of natural justice; Cancellation of registration
• Section: 12; 11; 12AA; 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: SMC NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER ITA NO. 6909/DEL/2018 ASSESSMENT YEAR: 2015-16 URMILA DEVI CHARITABLE TRUST, R-9/242, RAJ NAGAR, GHAZIABAD, UTTAR PRADESH. PAN NO. AAAAU1715B VS ITO EXEMPTION WARD, GHAZIABAD. APPELLANT RESPONDENT ASSESSEE BY SHRI ROHIT TIWARI, ADV. REVENUE BY SHRI S.L. ANURAGI, SR. DR ORDER THE ASSESSEE FILED THE PRESENT APPEAL AGAINST THE I MPUGNED ORDER DATED 31.08.2018 PASSED BY LD. CIT(A) ON THE FOLLOW ING GROUNDS: 1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE, THE ORDER PASSED BY CIT(A) IS BAD IN LAW. 2. THAT ON THE FACTS AND THE CIRCUMSTANCES OF THE CASE, LD. CIT(A) ERRED IN CONFIRMING THE ADDITION MADE BY THE ITO EXEMPTION WARD, GHAZIABAD OF TREATING THE DONATION OF RS. 5,00,000/- FROM FAMILY CONCERN NAMELY VIBHOR VAIBHAV INFRASTRUCTURE P. LTD., RS. 10,00,000/- FROM SOLITAIRE INFRA HOMES P. LTD. AND RS. 16,00,000/- FROM VIBHOR VAIBHAV INFRA HOMES P. LTD. AS DONATION IN LIEU OF CASH THEREBY TREATING THE ENTIR E DONATION OF RS. 31,00,000/- RECEIVED BY THE TRUST AS TAXABLE BY DENYING BENEFIT OF SECTION 11 AND 12 OF THE ACT. THE ADDITION OF RS. 31,00,000/- MADE TO THE INCOME OF THE TRUST AND THE ASSESSMENT FRAMED IS THUS ILLEGAL, UNJUSTIFIED, UNWARRANTED 2 ITA NO . 6909/DEL/2018 AND BAD IN LAW. 3. THAT ON THE FACTS AND THE CIRCUMSTANCES OF THE CASE THE LD. CIT(A) ERRED IN CONFIRMING THE VIEW OF LD. AO. BECAUSE LD. AO HAS DONE THE ASSESSMENT ON MERE SURMISES, CONJECTURES AND IN MECHANICAL MANNER WITHOUT MAKING ANY INDEPENDENT ENQUIRIES IN REGARD TO THE DETAILS AND CONFIRMATIONS FURNISHED IN EVIDENCE OF THE DONATIONS OF RS. 31,00,000/- RECEIVED BY THE TRUST. THE CONFIRMATIONS FILED HAVE BEEN NOT VERIFIED AND EXAMINED AND THE REJECTION OF THE EVIDENCE IT THUS WARRANTED, ILLEGAL AND BAD IN LAW. THE INCOME DETERMINED AT RS. 32,61,740/- AFTER ADDING THE SURPLUS DECLARED IN THE PROFIT AND LOSS ACCOUNT IS ANY CASE NOT JUSTIFIED AND THE SAME IS BAD IN THE EYES OF LAW. 4. THAT ON THE FACTS AND THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) ERRED IN CONFIRMING THE ACTION OF THE LD. AO OF NOT FOLLOWING THE PRINCIPLE OF NATURAL JUSTICE AS THE APPELLANT WAS NOT CONFRONTED WITH THE EVIDENCE IN THE POSSESSION OF THE ASSESSING OFFICER ON THE ISSUE OF DONATION IN LIEU OF CASH AND THAT THE APPELLANT WAS NOT PROVIDED OPPORTUNITY OF CROSS EXAMINE THE DONORS AND WITNESSES WHOSE STATEMENTS WERE RECORDED AT THE BACK OF THE APPELLANT AND AFTER A SUBSTANTIALLY LONG PERIOD ALLEGING DONATION IN LIEU OF CASH FROM THE REASONS AND MOTIVES BEST KNOWN TO THE WITNESSES AND THE DONORS. 5. THAT THE APPELLANT RESERVES ITS RIGHT TO ADD, AL TER, AMEND OR WITHDRAW ANY GROUND OF APPEAL EITHER BEFORE OR AT THE TIME OF HEARING OF THIS APPEAL. 3 ITA NO . 6909/DEL/2018 2. FACTS NARRATED BY THE REVENUE AUTHORITIES ARE NO T DISPUTED BY BOTH THE PARTIES, THEREFORE, NO NEED TO REPEAT THE SAME FOR THE SAKE OF CONVENIENCE. 3. AT THE TIME OF HEARING, LD. COUNSEL FOR THE ASSE SSEE STATED THAT AO MADE THE ADDITION IN DISPUTE ONLY ON THE GROUND THA T REGISTRATION U/S 12AA OF THE INCOME TAX ACT WAS CANCELLED BY THE CIT (E)-LUCKNOW AND ASSESSEE IS NOT ELIGIBLE FOR ANY BENEFIT OF SECTION 11 OF THE INCOME TAX ACT. HE, FURTHER, STATED THAT NOW THE ITAT VIDE OR DER DATED 13.06.2019 HAS ALLOWED THE APPEAL OF THE ASSESSEE FILED AGAINS T THE CANCELLATION OF REGISTRATION W.E.F. 01.04.2010. HE HAS ALSO FILED THE COPY OF THE ORDER DATED 13.06.2019 PASSED IN ITA NO. 4136/DEL/2017 IN THE CASE OF ASSESSEE I.E. M/S URMILA DEVI CHARITABLE TRUST VS. COMMISSIONER OF INCOME TAX (EXEMPTION). HE REQUESTED THAT THE ADDI TION IN DISPUTE MAY BE DELETED BY ACCEPTING THE APPEAL FILED BY THE ASS ESSEE. 4. ON THE CONTRARY, LD. DR RELIED UPON THE ORDER PA SSED BY THE LD. CIT(E). HE STATED THAT THE ASSESSEE HAS NOT FILED THE COPY OF ORDER DATED 13.06.2019 BEFORE THE AUTHORITIES BELOW. 5. I HAVE HEARD BOTH THE PARTIES AND PERUSED THE RE LEVANT RECORD AVAILABLE WITH US ESPECIALLY ORDERS PASSED BY THE R EVENUE AUTHORITIES AS WELL AS THE TRIBUNALS ORDER DATED 13.06.2019 PASSE D IN ITA NO. 4136/DEL/2017 AY 2011-12 IN THE CASE OF M/S URMILA DEVI CHARITABLE TRUST VS. CIT(E) AND I AM OF THE VIEW THAT IN PARA NO. 18 PAGE NO. 60 OF THE ORDER DATED 13.06.2019 THE ITAT DELHI G BENCH , NEW DELHI HAS ACCEPTED THE APPEAL OF THE ASSESSEE AGAINST THE ORD ER PASSED U/S 12AA(3) DATED 22.04.2016 CANCELLING THE REGISTRATIO N W.E.F. 01.04.2010. 4 ITA NO . 6909/DEL/2018 6. KEEPING IN VIEW OF THE FACTS AND CIRCUMSTANCES O F THE CASE, THE ADDITION IN DISPUTE WHICH IS MADE ONLY ON THE BASIS OF CANCELLATION OF REGISTRATION, VIDE ORDER DATED 22.04.2016 W.E.F. 01 .04.2010 WHICH HAS BEEN CANCELLED BY THE TRIBUNAL, VIDE ORDER DATED 13 .06.2019 AS ABOVE SAID, IN MY VIEW, THE BASIS OF THE ADDITION HAS GON E, THEREFORE, THE ADDITION IN DISPUTE DESERVES TO BE DELETED. THEREF ORE, I DELETE THE ADDITION IN DISPUTE BY ACCEPTING THE APPEAL FILED B Y THE ASSESSEE. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- (H.S. SIDHU) JUDICIAL MEMBER DATED: 10/07/2019 *KAVITA ARORA COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT TRUE COPY ASSISTANT REGISTRAR ITAT NEW DELHI 5 ITA NO . 6909/DEL/2018 DATE OF DICTATION 09.07.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 10.07.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P S/PS 10.07.2019 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 10.07.2019 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS 10.07.2019 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WE BSITE OF ITAT 10.07.2019 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 10.0 7.2019 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER