Ishwar Dayal Parsandi Devi Vidhya Prasarni Sabha, Bulabdshahr V. Addl.CIT, circle Exemption, Ghaziabad

ITA 7690/DEL/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 7727 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 04-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 80G

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC, NEW DELHI BEFORE SH. N. K. BILLAIYA, ACCOUNTANT MEMBER ITA NO.7690/DEL/2018 ASSESSMENT YEAR: 2015-16 M/S. ISHWAR DAYAL PARSANDI DEVI VIDHYA PRASARNI SABHA C/O M/S. RRA TAXINDIA D-28, SOUTH EXTENSION, PART-I, NEW DELHI -110049 PAN NO. AAAAI4215N VS ADDITIONAL COMMISSIONER OF INCOME TAX EXEMPTION, RANGE, GHAZIABAD (APPELLANT) (RESPONDENT) APPELLANT BY SH. SOMIL AGGARWAL, ADVOCATE SHRI DEEPSH GARG, ADVOCATE RESPONDENT BY SH. S. L. ANURAGI, SR. DR DATE OF HEARING: 25/04/2019 DATE OF PRONOUNCEMENT: 25/04/2019 ORDER PER N. K. BILLAIYA, AM: THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST TH E ORDER OF THE CIT(A), GHAZIABAD DATED 25.09.2018 PERTAINING T O A. Y. 2015-16. 2 2. THE SOLITARY GRIEVANCE OF THE ASSESSEE IS THAT T HE CIT(A) ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFF ICER IN NOT TREATING THE REPAYMENT OF LOAN AS APPLICATION OF IN COME. 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT TH E APPELLANT IS RUNNING EDUCATIONAL INSTITUTION AND IS REGISTERED W ITH REGISTRAR OF SOCIETY, UTTAR PRADESH UNDER SOCIETY REGISTRATIO N ACT. THE APPELLANT ALSO AVAILS THE BENEFIT OF SECTION 80G OF THE ACT. 4. DURING THE COURSE OF THE SCRUTINY ASSESSMENT PRO CEEDINGS THE ASSESSING OFFICER NOTICED THAT UNDER THE HEAD C APITAL EXPENDITURE THE ASSESSEE HAS CLAIMED REPAYMENT OF L OAN OF RS.82,66,627/- AS APPLICATION OF INCOME. THE ASSESS ING OFFICER WAS OF THE FIRM BELIEF THAT REPAYMENT OF LOAN IS NO T AN ALLOWABLE EXPENSE AND IF THE REPAYMENT OF LOAN IS ALLOWED THE SAME TANTAMOUNT TO CLAIM DOUBLE DEDUCTION. ACCORDINGLY T HE CLAIM WAS DISALLOWED. 5. THE ASSESSSEE CARRIED THE MATTER BEFORE THE CIT( A) BUT WITHOUT ANY SUCCESS. 6. BEFORE ME THE COUNSEL FOR THE ASSESSEE DREW THE ATTENTION TO THE CIRCULAR NO.100 DATED 24.01.1973 ISSUED BY T HE CBDT AND STATED THAT THE BOARD HAS ACCEPTED THE REPAYMENT OF DEBT AS APPLICATION OF INCOME. THE COUNSEL FURTHER STATED THAT IN THE IMMEDIATELY PRECEDING YEAR 2014-15 AFTER SCRUTINIZI NG THE RETURN OF INCOME THE ASSESSING OFFICER HAD ALLOWED THE REP AYMENT OF DEBT AS APPLICATION OF INCOME. 3 7. THE DR STRONGLY SUPPORTED THE FINDINGS OF THE CI T(A). 8. I HAVE CAREFULLY CONSIDERED THE ORDERS OF THE AU THORITIES BELOW. I FIND FORCE IN THE CONTENTION OF THE LD. C OUNSEL THE CBDT CIRCULAR NO.100 DATED 24.01.1973 READ AS UNDER :- 9. FURTHER I FIND THAT WHILE FRAMING THE ASSESSMENT FOR A. Y. 2014-15 FRAMED U/S. 143 (3) OF THE ACT THE ASSESSIN G OFFICER AT CLAUSE 6 OF THAT ORDER HAS ALLOWED THE REPAYMENT OF LOAN OF RS.8098470/- AS APPLICATION OF INCOME. 4 10. IN THE LIGHT OF THE CBDT CIRCULAR AND THE PREVI OUS ASSESSMENT OF ORDER I DIRECT THE ASSESSING OFFICER TO ALLOW RS.82,66,627/- FOR REPAYMENT OF LOAN AS APPLICATION OF INCOME. 11. IN THE RESULT, THE APPEAL IS FILED BY THE ASSES SEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 25.04.2019. SD/- (N. K. BILLAIYA) ACCO UNTANT MEMBER *NEHA* DATE:- 25.04.2019 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGI STRAR ITAT NEW DELHI DATE OF DICTATION 2 5 .04.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 25.04.2019 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER 25.04.2019 DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS/PS 25.04.2019 DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 25.04.2019 DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/ PS 25.04.2019 DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 25.04.2019 DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 25.04.2019 DATE ON WHICH FILE GOES TO THE HEAD CLERK. THE DATE ON WHICH FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER