ADIT (E), New Delhi V. Educate India Society, New Delhi

ITA 72/DEL/2013

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 6367 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 4 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-05-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 19-05-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 04-01-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution
• Section: 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH B BB B : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G. BEFORE SHRI G. BEFORE SHRI G. BEFORE SHRI G.D.AGRAWAL, D.AGRAWAL, D.AGRAWAL, D.AGRAWAL, VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND VICE PRESIDENT AND SHRI SHRI SHRI SHRI ABY T. VARKEY ABY T. VARKEY ABY T. VARKEY ABY T. VARKEY, ,, , JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ITA NO ITA NO ITA NO ITA NO. .. .72/DEL/2013 72/DEL/2013 72/DEL/2013 72/DEL/2013 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2009 2009 2009 2009- -- -10 1010 10 ASSISTANT DIRECTOR OF ASSISTANT DIRECTOR OF ASSISTANT DIRECTOR OF ASSISTANT DIRECTOR OF INCOME TAX (E), INCOME TAX (E), INCOME TAX (E), INCOME TAX (E), TC TCTC TC- -- -II, II,II, II, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. VS VSVS VS. .. . M/S EDUCATE INDIA SOCIETY, M/S EDUCATE INDIA SOCIETY, M/S EDUCATE INDIA SOCIETY, M/S EDUCATE INDIA SOCIETY, B BB B- -- -10, DEFENCE COLONY, 10, DEFENCE COLONY, 10, DEFENCE COLONY, 10, DEFENCE COLONY, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 024. 110 024. 110 024. 110 024. PAN : AAAAE0085E. PAN : AAAAE0085E. PAN : AAAAE0085E. PAN : AAAAE0085E. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI G.H. SEMA, SR.DR. RESPONDENT BY : MS. LALITHA KRISHNAMURTHY, CA. ORDER ORDER ORDER ORDER PER G. PER G. PER G. PER G.D.AGRAWAL, D.AGRAWAL, D.AGRAWAL, D.AGRAWAL, VP VPVP VP : : : : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-XXI, NEW DELHI DATED 5 TH OCTOBER, 2012 FOR THE AY 2009- 10. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUND OF A PPEAL:- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD.CIT(A) HAS ERRED IN ALLOWING THE CARRY FORWARD OF DEFICIT AMOUNTING TO RS.22,42,48,343/- FOR LAST 10 YEARS (1998-99 TO 2009-10) AGAINST THE INCOME OF SUBSEQUE NT YEARS. 3. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D PERUSED RELEVANT MATERIAL PLACED BEFORE US. THE ASSESSEE I S A SOCIETY WHICH IS CARRYING OUT EDUCATIONAL ACTIVITY. ADMITTEDLY, THE ASSESSEE IS REGISTERED UNDER SECTION 12A OF THE INCOME TAX ACT, 1961. DURING THE YEAR UNDER CONSIDERATION, THERE WAS A DEFICIT. THE REFORE, THE ASSESSEE FILED THE RETURN DECLARING NIL INCOME AND CLAIMED C ARRY FORWARD OF DEFICIT OF THIS YEAR AS WELL AS PRECEDING YEAR. TH E ASSESSING OFFICER ITA-72/DEL/2013 2 ACCEPTED THE INCOME AT NIL BUT DID NOT ALLOW CARRY FORWARD OF THE DEFICIT. ON APPEAL, LEARNED CIT(A) ALLOWED THE ASS ESSEES APPEAL FOLLOWING THE DECISION OF HON'BLE JURISDICTIONAL HI GH COURT IN THE CASE OF DIT VS. RAGHUVANSHI CHARITABLE TRUST 197 TAXMAN 1 70. THE RELEVANT FINDING OF LEARNED CIT(A) READS AS UNDER:- 3. I HAVE GONE THROUGH THE SUBMISSION OF THE LD.AR OF THE APPELLANT AND HER RELIANCE IN THE DECISION OF H ON'BLE DELHI HIGH COURT IN THE CASE OF DIT VS. RAGHUVANSHI CHARITABLE TRUST (197 TAXMANN 170) IS APPRECIATED, WHEREIN HON'BLE DELHI HIGH COURT HAS HELD THAT ADJU STMENT OF DEFICIT OF CURRENT YEAR AGAINST INCOME OF SUBSEQ UENT YEAR WOULD AMOUNT TO APPLICATION OF INCOME OF TRUST FOR CHARITABLE PURPOSES IN SUBSEQUENT YEAR WITHIN THE M EANING OF SECTION 11(1)(A) OF THE IT ACT. 4. AFTER CONSIDERING THE ARGUMENTS OF BOTH THE SIDE S AND THE ABOVE DECISION OF HON'BLE JURISDICTIONAL HIGH COURT, WE D O NOT FIND ANY JUSTIFICATION TO INTERFERE WITH THE ORDER OF LEARNE D CIT(A). THE ISSUE BEFORE HON'BLE JURISDICTIONAL HIGH COURT WAS IDENTI CAL TO THE ISSUE IN APPEAL BEFORE US AND THEIR LORDSHIPS UPHELD THE ORD ER OF THE TRIBUNAL WHEREIN THE ITAT ALLOWED THE CARRY FORWARD OF THE D EFICIT OF THE CURRENT YEAR TO BE SET OFF AGAINST THE INCOME OF THE SUBSEQ UENT YEAR. IN VIEW OF THE ABOVE, SINCE THE ISSUE IS COVERED BY THE DEC ISION OF HON'BLE JURISDICTIONAL HIGH COURT, RESPECTFULLY FOLLOWING T HE SAME, WE UPHOLD THE ORDER OF LEARNED CIT(A) AND DISMISS THE REVENUE S APPEAL. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 23 RD MAY, 2014. SD/- SD/- ( (( (ABY T. VARKEY ABY T. VARKEY ABY T. VARKEY ABY T. VARKEY) )) ) (G.D.AGRAW (G.D.AGRAW (G.D.AGRAW (G.D.AGRAWAL) AL) AL) AL) JUDICIAL JUDICIAL JUDICIAL JUDICIAL MEMBER MEMBER MEMBER MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT DATED : 23.05.2014 VK. ITA-72/DEL/2013 3 COPY FORWARDED TO: - 1. APPELLANT : ASSISTANT DIRECTOR OF INCOME TAX (E), ASSISTANT DIRECTOR OF INCOME TAX (E), ASSISTANT DIRECTOR OF INCOME TAX (E), ASSISTANT DIRECTOR OF INCOME TAX (E), TC TC TC TC- -- -II, NEW DELHI. II, NEW DELHI. II, NEW DELHI. II, NEW DELHI. 2. RESPONDENT : M/S EDUCATE INDIA SOCIETY, M/S EDUCATE INDIA SOCIETY, M/S EDUCATE INDIA SOCIETY, M/S EDUCATE INDIA SOCIETY, B B B B- -- -10, DEFENCE COLONY, NEW DELHI 10, DEFENCE COLONY, NEW DELHI 10, DEFENCE COLONY, NEW DELHI 10, DEFENCE COLONY, NEW DELHI 110 024. 110 024. 110 024. 110 024. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR