The ACIT, 3(1), Bhopal V. M/s. DEVI SHAKUNTALA THAKRAL CHARITABLE TOUNDATION, Bhopal

ITA 726/IND/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5683 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-03-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 08-03-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 14-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJEEV VARSHANEY
• Assessee Lawyers: GIRISH AGRAWAL
• Keywords: Depreciation
• Section: 12A; 12; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER AND SHRI B.C.MEENA, ACCOUNTANT MEMBER I.T.A.NO.725/IND/2014 A.Y. : 2009-10. ACIT, 3(1), BHOPAL M/S.CHANDRAVADANI MAHILA SHIKSHA SAMITI, TIT CAMPUS, VS ANAND NAGAR BHOPAL APPELLANT RESPONDENT PAN NO. AAATC2617H I.T.A.NO.726/IND/2014 A.Y. : 2009-10. ACIT, 3(1), BHOPAL VS M/S.DEVI SHAKUNTALA THAKRAL CHARITABLE FOUNDATION, THAKRAL NAGAR, BHOPAL. APPELLANT RESPONDENT ACIT,3(1), BHOPAL VS. M/S. CHANDRAVADANI MAHILA SHI KSHA SAMITI , BHOPAL AND ACIT 3(1), BHOPAL VS. DEV I SHAKUNTALATHAKRAL CHARITABLE FOUNDATION, BHOPAL- I.T.A.NOS. 725 /IND/2014 AND 72 6/IND/2014 & C.O. NO.C.O.1/IND/2015 2 2 C.O.NO.01/IND/2015 (ARISING OUT OF I.T.A.NO.726/IND/2014) A.Y. : 2009-10. M/S.DEVI SHAKUNTALA THAKRAL CHARITABLE FOUNDATION, THAKRAL NAGAR, BHOPAL. VS ACIT, 3(1), BHOPAL CROSS OBJECTOR RESPONDENT DEPARTMENT BY : SHRI RAJEEV VARSHANEY, CIT DR RESPONDENT BY : SHRI GIRISH AGRAWAL, CA O R D E R PER D.T.GARASIA, J.M. THESE APPEALS OF DIFFERENT ASSESSEES FILED BY THE R EVENUE ARE DIRECTED AGAINST THE ORDERS OF CIT(A), BILASPUR (CAMP AT AAYAKAR BHAWAN, HOSHANGABAD ROAD, BHOPAL), BOTH DAT ED 03.09.2014 FOR ASSESSMENT YEAR 2009-10. ASSESSEE HA S FILED THE CROSS OBJECTION AGAINST I.T.A.NO. 726/IND/2014. DATE OF HEARING : 08.03.2016 DATE OF PRONOUNCEMENT : 14 .0 3 .2016 ACIT,3(1), BHOPAL VS. M/S. CHANDRAVADANI MAHILA SHI KSHA SAMITI , BHOPAL AND ACIT 3(1), BHOPAL VS. DEV I SHAKUNTALATHAKRAL CHARITABLE FOUNDATION, BHOPAL- I.T.A.NOS. 725 /IND/2014 AND 72 6/IND/2014 & C.O. NO.C.O.1/IND/2015 3 3 2. FOLLOWING GROUNDS HAVE BEEN TAKEN IN THE CASE OF M/S.CHANDRAVADANI MAHILA SHIKSHA SAMITI :- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE CIT(A) HAS ERRED IN - 1.DELETING THE ADDITION OF RS. 22,51,517/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF INTEREST PASSED ON TO OTHER SOCIETY. 2. DELETING THE ADDITION OF RS. 1,40,95,193/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF DEPRECIATION AS THE ASSESSEE FAILED TO FURNISH THE DETAILS OF DEPRECIATION CLAIMED. 3. DELETING THE ADDITION OF RS. 49,752/- ON ACCOUNT OF TELEPHONE EXPENSES. 4.DELETING THE ADDITION OF RS. 1,21,38,213/- ON ACCOUNT OF EXEMPTION U/S 11 & 12 OF THE INCOME-TAX ACT, 1961. 5. DELETING THE ADDITION OF RS. 2,07,49,847/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF ADVERTISEMENT EXPENSES, PAYMENT TO CONTRACTORS ACIT,3(1), BHOPAL VS. M/S. CHANDRAVADANI MAHILA SHI KSHA SAMITI , BHOPAL AND ACIT 3(1), BHOPAL VS. DEV I SHAKUNTALATHAKRAL CHARITABLE FOUNDATION, BHOPAL- I.T.A.NOS. 725 /IND/2014 AND 72 6/IND/2014 & C.O. NO.C.O.1/IND/2015 4 4 AND SALARY EXPENSES IX] S 40A(IA) OF THE INCOME- TAX ACT, 1961. 3. FOLLOWING GROUNDS HAVE BEEN TAKEN IN THE CASE OF DEVI SHAKUNTALA THAKRAL CHARITABLE FOUNDATION, BHOPAL. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE CIT (A) HAS ERRED IN :- 1. DELETING THE ADDITION OF RS. 1,08,420/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF INTEREST PASSED ON TO OTHER SOCIETY. 2. DELETING THE ADDITION OF RS. 11,26,928/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF BENEFITS EXTENDED TO SHRI K.L. THAKRAL BY PROVIDING INTEREST FREE LOANS AND CESSATION OF LIABILITY. 3. DELETING THE ADDITION OF RS. 4,90,31,414/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF DEPRECIATION AS THE ASSESSEE FAILED TO FURNISH THE DETAILS OF DEPRECIATION CLAIMED. 4.DELETING THE ADDITION OF RS. 36,146/- ON ACCOUNT OF TELEPHONE EXPENSE. ACIT,3(1), BHOPAL VS. M/S. CHANDRAVADANI MAHILA SHI KSHA SAMITI , BHOPAL AND ACIT 3(1), BHOPAL VS. DEV I SHAKUNTALATHAKRAL CHARITABLE FOUNDATION, BHOPAL- I.T.A.NOS. 725 /IND/2014 AND 72 6/IND/2014 & C.O. NO.C.O.1/IND/2015 5 5 5 .DELETING THE ADDITION OF RS. 69,518/- ON ACCOUNT OF TRAVELLING EXPENSES. 6.DELETING THE ADDITION OF RS. 9,48,12,681/- ON ACCOUNT OF EXEMPTION U/S 11 & 12 OF THE INCOME-TAX ACT, 1961. 7.DELETING THE ADDITIONS OF RS. 14,67,206/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF AUDIT FEES AND INTEREST INCOME XX] S 40A(IA) OF THE INCOME-TAX ACT, 1961. 4. FOLLOWING GROUND HAS BEEN TAKEN BY THE ASSESSEE IN CROSS OBJECTION OF M/ S. DEVI SHAKUNTAL A THAKRAL CHARITABLE FOUNDATION :- 'THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) ERRED IN SUSTAINING THE ADDITION OF RS. 5,80,772/- OF THE INCOME-TAX ACT, 1961. FOR THE ALLEGED UNDER STATEMENT OF INTEREST INCOME. THE SAID ADDITION OF RS. 580772/ - BE KINDLY DELETED.' ACIT,3(1), BHOPAL VS. M/S. CHANDRAVADANI MAHILA SHI KSHA SAMITI , BHOPAL AND ACIT 3(1), BHOPAL VS. DEV I SHAKUNTALATHAKRAL CHARITABLE FOUNDATION, BHOPAL- I.T.A.NOS. 725 /IND/2014 AND 72 6/IND/2014 & C.O. NO.C.O.1/IND/2015 6 6 5. THE BRIEF FACTS OF THE CASE ARE THAT THE CHANDRAVADANI MAHILA SHIKSHA SAMITI, BHOPAL IS A SOCIETY, REGISTERED UNDER THE M.P. SOCIETY REGISTRA TION ACT. THE SOCIETY IS ALSO REGISTERED II] L2A OF THE INCOME-TAX ACT, 1961, (THE ACT) VIDE ENTRY AT SL.NO . 130/06-07 DATED 12.09.2007. THE ASSESSEE SOCIETY IS RUNNING VARIOUS EDUCATION INSTITUTIONS, INCLUDING ENGINEERING COLLEGE - TECHNOCRAT INSTITUTE OF TECHNOLOGY, BHOPAL. 6. THE BRIEF FACTS OF THE CASE ARE THAT DEVI SHAKUNTALA THAKRAL CHARITABLE FOUNDATION IS A SOCIETY, REGISTERED UNDER THE M.P. SOCIETY REGISTRA TION ACT VIDE REGISTRATION NO. 4357/97 DATED 20.02.1997. SOCIETY IS ALSO REGISTERED U/S 12A OF THE INCOME-TA X ACT, 1961, W.E.F. 1.4.2002 VIDE ENTRY AT SL.NO.72/0 2- 03. THE ASSESSEE SOCIETY IS RUNNING VARIOUS EDUCATI ON INSTITUTIONS, INCLUDING ACIT,3(1), BHOPAL VS. M/S. CHANDRAVADANI MAHILA SHI KSHA SAMITI , BHOPAL AND ACIT 3(1), BHOPAL VS. DEV I SHAKUNTALATHAKRAL CHARITABLE FOUNDATION, BHOPAL- I.T.A.NOS. 725 /IND/2014 AND 72 6/IND/2014 & C.O. NO.C.O.1/IND/2015 7 7 A. ORIENTAL INSTITUTE OF SCIENCE AND TECHNOLOGY B. THAKRAL COLLEGE OF TECHNOLOGY C. ORIENTAL COLLEGE OF MANAGEMENT D. ORIENTAL COLLEGE OF PHARMACY E. ORIENTAL INSTITUTE OF SCIENCE AND TECHNOLOGY 7. THE LD. COUNSEL FOR THE ASSESSEE AT THE OUTSET CONTENDED THAT THE GROUNDS RAISED IN DEPARTMENTAL APPEALS IN THE CASE OF CHANDRAVADANI MAHILA SHIKSHA SAMITI, BHOPAL, ARE COVERED BY THE DECISION OF L.T.A.T. INDORE BENCH ORDER PASSED IN L.T.A.NOS. 141 TO 143 AND 281/IND/2011 FOR ASSESSMENT YEARS 2004-05 TO 2006-07 AND 2008-09 DATED 8.2.2012. THE LD. COUNSEL FOR THE ASSESSEE FURTHER CONTENDED THAT THE GROUNDS RAISED IN DEPARTMENTAL APPEALS IN THE CASE OF DEVI SHAKUNTALA THAKRAL CHARITABLE FOUNDATION, BHOPAL, ARE COVERED BY THE DECISION OF L.T.A.T. INDORE BENCH, INDORE ORDER PASSED IN L.T.A.NOS. 424 & 447/IND/2009 FOR ASSESSMENT YEAR 2004-05 AND 2005-06 AND L.T.A.NOS. 48 & ACIT,3(1), BHOPAL VS. M/S. CHANDRAVADANI MAHILA SHI KSHA SAMITI , BHOPAL AND ACIT 3(1), BHOPAL VS. DEV I SHAKUNTALATHAKRAL CHARITABLE FOUNDATION, BHOPAL- I.T.A.NOS. 725 /IND/2014 AND 72 6/IND/2014 & C.O. NO.C.O.1/IND/2015 8 8 49/IND/2012 FOR ASSESSMENT YEARS 2007-08 AND 2008-09 DATED 1.6.2012. 8. THE LD. CIT DR AGREED TO IT. 9. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES. WE HAVE GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. WE FIND THAT THE GROUNDS RAISED BY THE RESPECTIVE SOCIETIES ARE COVERED BY THE ORDERS OF L.T.A.T. PASSED IN L.T.A.NOS. 141 TO 143 AND 281/IND/2011 FOR ASSESSMENT YEARS 2004-05 TO 2006-07 AND 2008-09 DATED 8.2.2012 AND L.T.A.NOS. 424 & 447/IND/2009 FOR ASSESSMENT YEAR 2004-05 AND 2005-06 AND L.T.A.NOS. 48 & 49/IND/2012 FOR ASSESSMENT YEARS 2007-08 AND 2008-09 DATED 1.6.2012. WE RESPECTFULLY F OLLOWING THE ORDERS OF THE I.T.A.T., DISMISS THE REVENUE'S APPEALS. 10. SINCE WE HAVE DISMISSED THE REVENUE'S APPEAL, THE CROSS OBJECTION HAS BECOME INFRUCTUOUS AND HENCE IT IS DISMISSED. ACIT,3(1), BHOPAL VS. M/S. CHANDRAVADANI MAHILA SHI KSHA SAMITI , BHOPAL AND ACIT 3(1), BHOPAL VS. DEV I SHAKUNTALATHAKRAL CHARITABLE FOUNDATION, BHOPAL- I.T.A.NOS. 725 /IND/2014 AND 72 6/IND/2014 & C.O. NO.C.O.1/IND/2015 9 9 11. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE AND CROSS OBJECTION ARE DISMISSED. THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 14 TH MARCH,2016. SD/- (B.C.MEENA) ACCOUNTANT MEMBER SD/- ( D.T.GARASIA) JUDICIAL MEMBER DATED : 14 TH MARCH, 2016. CPU*