MAHIMA SHIKSHA SAMITI, Jaipur V. ACIT(EXEMPTION), Jaipur

ITA 831/JPR/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 2145 (ITAT-JAIPUR)
• Duration Of Justice: 7 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-04-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 21-09-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R S VERMA
• Keywords: Depreciation; Charitable institution
• Section: 32; 12; 11

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH DQY HKKJR] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI KUL BHARAT, JM & SHRI VIKRAM SINGH YA DAV, AM VK;DJ VIHY LA- @ ITA NO. 831/JP/2016 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR :2012-2013 MAHIMA SHIKSHA SAMITI A-18, SHANTI PATH, TILAK NAGAR, JAIPUR CUKE VS. THE ACIT (EXEMPTION), JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AAATM1883H VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT VK;DJ VIHY LA- @ ITA NO. 968/JP/2016 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR :2012-2013 THE ACIT(E), CIRCLE, JAIPUR CUKE VS. MAHIMA SHIKSHA SAMITI A-18, SHANTI PATH, TILAK NAGAR, JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AAATM1883H VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT VK;DJ VIHY LA- @ ITA NO. 832/JP/2016 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR :2013-2014 MAHIMA SHIKSHA SAMITI A-18, SHANTI PATH, TILAK NAGAR, JAIPUR CUKE VS. THE ACIT (EXEMPTION), JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AAATM1883H VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT VK;DJ VIHY LA- @ ITA NO. 969/JP/2016 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR :2013-2014 ITA NO. 831,968,832 &969/JP/2016 MAHIMA SHIKSHA SAMITI VS. ACIT (E),JAIPUR 2 THE ACIT (EXEMPTION), JAIPUR CUKE VS. MAHIMA SHIKSHA SAMITI A-18, SHANTI PATH, TILAK NAGAR, JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AAATM1883H VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SHRI VINOD KUMAR GUPTA (C.A.) JKTLO DH VKSJ LS @ REVENUE BY : SHRI R.S. VERMA (ADDL. CIT) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 18/04/2017 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT: 25/04/2017 VKNS'K@ ORDER PER: VIKRAM SINGH YADAV, A.M. THESE ARE CROSS APPEALS FILED BY THE REVENUE AND T HE ASSESSEE AGAINST THE ORDER OF LD. CIT (A), JAIPUR DATED 22.0 8.2016 AND 26.08.2016 FOR A.Y. 2012-13 AND 2013-14 RESPECTIV ELY. SINCE COMMON ISSUES ARE INVOLVED, BOTH THE APPEALS WERE HEARD TO GETHER AND DISPOSED OFF BY THIS CONSOLIDATED ORDER. GROUNDS OF REVENUES APPEAL:- IN ITS APPEAL FOR A.Y. 2012-13, THE REVENUE HAS TAK EN THE FOLLOWING GROUNDS OF APPEAL:- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD CIT(A) HAS ERRED IN: 1. ALLOWING ASSESSEES CLAIM OF EXEMPTION U/S 11 EV EN THOUGH PROVISIONS OF SECTION 13 ARE ATTRACTED. 2. ALLOWING THE BENEFIT OF SECTION 11(1) OF THE IT ACT WITHOUT CONSIDERING THE HUGE SURPLUSES BEING EARNED BY THE SOCIETY AND ITA NO. 831,968,832 &969/JP/2016 MAHIMA SHIKSHA SAMITI VS. ACIT (E),JAIPUR 3 EXPENSES WERE INCURRED FOR THE BENEFIT OF PERSONS C OVERED U/S 13(3) OF THE IT ACT. 3. ALLOWING SALARY EXPENSES TO THE EXTENT OF THE FO LLOWING AMOUNTS:- RS. 13,76,020/- ( MR. MOHINI BAKSHI), RS. 2,84,020/- ( MR. M.S. BAKSHI), RS. 10,58,020/- ( MRS. SANDEEP BA KSHI) RS. 89,696/- ( MRS. INDU TIKKOO) AND RS. 26,020/- ( MR. PREETI BAKSHI) WHICH IS HIGHER THAN REASONABLE. 4. ALLOWING CONTRIBUTION MADE TO JAIPUR NATION UNIV ERSITY DURING THE YEAR UNDER CONSIDERING AS APPLICATION OF INCOME U/S 11 OF THE ACT DESPITE THE FACT THAT THE ASSISTANCE PRO VIDED TO JNU IS THE VIOLATION OF BYELAWS OF THE SOCIETY AS WELL AS THE VIOLATION OF PROVISIONS OF SECTIONS 13(1)(C) AND 13(2)(A) OF TH E INCOME TAX ACT, 1961. GROUND OF ASSESSEES APPEAL:- IN ITS APPEAL FOR A.Y. 2012-13, THE ASSESSEE HAS T AKEN THE FOLLOWING SOLITARY GROUND OF APPEAL IS AS UNDER:- (I) UNDER THE FACTS AND CIRCUMSTANCES OF THE CAS E AND IN LAW, LD. A.O. HAS ERRED IN HOLDING THAT DEPRECIATION UND ER SECTION 32 OF THE INCOME TAX ACT, 1961 IS NOT ADMISSIBLE IN RE SPECT OF THE ASSETS ON WHICH EXEMPTION HAS BEEN ALLOWED UNDER SE CTION 11 OF THE INCOME TAX ACT, 1961 WHILE APPLYING THE INCOME FOR CHARITABLE PURPOSE. FURTHER, LD. CIT (A) ERRED BY U PHOLDING THE SAME. 2. SIMILAR GROUNDS OF APPEAL HAVE BEEN TAKEN BY THE REVENUE AND ASSESSEE IN THEIR RESPECTIVE APPEALS FOR A.Y. 2013- 14. 3. AT THE OUTSET, THE LD. AR SUBMITTED THAT ALL GR OUNDS OF APPEAL AS TAKEN BY THE REVENUE AS WELL AS BY THE ASSESSEE HAV E BEEN DECIDED IN ITA NO. 831,968,832 &969/JP/2016 MAHIMA SHIKSHA SAMITI VS. ACIT (E),JAIPUR 4 FAVOUR OF THE ASSESSEE BY THIS VERY BENCH VIDE ITS ORDER DATED 03.03.2017 FOR AY 2010-11 AND AY 2011-12. IT WAS FU RTHER SUBMITTED THAT THERE ARE NO CHANGES IN THE FACTS AND CIRCUMST ANCES OF THE CASE AS WELL AS IN THE LEGAL POSITION, HENCE, IT WAS PRAYED THAT THE EARLIER DECISION TAKEN BY THIS BENCH VIDE ITS ORDER DATED 0 3.03.2017 MAY KINDLY BE FOLLOWED IN RESPECT OF APPEALS FILED BY THE REVE NUE AS WELL AS THE ASSESSEE FOR BOTH THE ASSESSMENT YEARS UNDER CONSID ERATION. 3. THE LD. DR IS HEARD WHO HAS RELIED ON THE ORDER OF THE ASSESSING OFFICER IN RESPECT OF GROUNDS OF APPEAL TAKEN BY TH E REVENUE AND RELIED ON THE ORDER OF LD. CIT.(A) IN RESPECT OF GROUND OF APPEAL TAKEN BY THE REVENUE. THE LD DR FAIRLY AGREED THAT THE ISSUES UN DER CONSIDERATION ARE COVERED BY THE EARLIER DECISION PASSED BY THIS BENCH VIDE ITS ORDER DATED 03.03.2017. 5. THIS BENCH HAS RECENTLY EXAMINED ALL THIS ISSUES WHICH HAVE BEEN RAISED IN THE IMPUNGED APPEALS AT LENGTH IN ITA NO. 105/JP/2016 AND OTHERS IN ASSESSEES OWN CASE FOR AY 2010-11 AND AY 2011-12 AND VIDE OUR CONSOLIDATED ORDER DATED 03.03.2017 HAVE DECIDE D THE ISSUES IN FAVOUR OF THE ASSESSEE SOCIETY AND AT PARA 103 HELD AS UNDER: IN LIGHT OF ABOVE DISCUSSION AND IN THE ENTIRETY O F FACTS AND CIRCUMSTANCES OF THE CASE, TAKING INTO CONSIDERATIO N THE RIVAL CONTENTIONS ADVANCED BY BOTH THE PARTIES, HONBLE S UPREME COURT DECISION IN THE CASE OF QUEENSS EDUCATIONAL SOCIET Y AND OTHERS, VARIOUS OTHER HIGH COURTS DECISIONS REFERRED SUPRA AS WELL AS ORDERS PASSED BY COORDINATE BENCHES IN EARLIER YEAR S, THE ASSESSEE SOCIETY IS HELD ELIGIBLE FOR EXEMPTION UND ER SECTION 11 READ WITH SECTION 12 AND 13 OF THE ACT. THE PAYMENT OF SALARY TO PERSONS SPECIFIED IN SECTION 13(3), INCURRENCE OF FOREIGN TRAVEL EXPENDITURE, CONTRIBUTION TO JAIPUR NATIONAL UNIVER SITY AND ITA NO. 831,968,832 &969/JP/2016 MAHIMA SHIKSHA SAMITI VS. ACIT (E),JAIPUR 5 ADDITIONS TO FIXED ASSETS DURING THE YEAR QUALIFY F OR DUE APPLICATION OF INCOME IN ACCORDANCE WITH THE ABOVE SAID PROVISIONS. IN THE RESULT, ALL THE GROUNDS TAKEN BY THE REVENUE ARE DISMISSED AND GROUND TAKEN BY THE ASSESSEE SOCI ETY IS ALLOWED. 6. ADMITTEDLY, THERE ARE NO CHANGES IN THE FACTS AN D CIRCUMSTANCES OF THE CASE AS WELL AS IN THE LEGAL POSITION IN RES PECT OF THE ISSUES UNDER CONSIDERATION. THE LD. CIT(A) HAS ALSO DECIDED ALL THESE MATTERS FOLLOWING THE EARLIER ORDERS PASSED BY THE CO-ORDIN ATE BENCHES AS WELL AS BY HER FOR A.Y. 2010-11 AND 2011-12. HENCE, OUR FINDINGS AND DIRECTIONS CONTAINED IN OUR EARLIER ORDER DATED 03. 03.2017 SHALL APPLY MUTATIS MUTANDIS IN RESPECT OF ALL THE ISSUES UNDER CONSIDERATION IN RESPECT OF BOTH THE IMPUNGED ASSESSMENT YEARS. IN THE RESULT, APPEALS FILED BY THE REVENUE ARE DIS MISSED AND APPEALS FILED BY THE ASSESSEE ARE ALLOWED IN RESPECT OF BOT H THE IMPUNGED ASSESSMENT YEARS. ORDER PRONOUNCED IN THE OPEN COURT ON 25/04/2017 SD/- SD/- DQY HKKJR FOE FLAG ;KNO (KUL BHARAT) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 25/04/2017. * SANTOSH. VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- M/S MAHIMA SHIKSHA SAMITI A-18, SHAN TI PATH, TILAK, NAGAR, JAIPUR. ITA NO. 831,968,832 &969/JP/2016 MAHIMA SHIKSHA SAMITI VS. ACIT (E),JAIPUR 6 2. IZR;FKHZ@ THE RESPONDENT- ACIT (E), JAIPUR. 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR. 6. XKMZ QKBZY@ GUARD FILE {ITA NO. /831,968,832&969JP/2016} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR