ITO (Exemptions), New Delhi V. M/s. Khetri Trust, Jaipur

ITA 84/DEL/2015

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 5930 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-06-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2010-2011
• Appeal Filed On: 06-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 12AA; 12; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES D : DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA.NO.84/DEL./2015 ASSESSMENT YEAR 2010-2011 THE INCOME TAX OFFICER , WARD-1(4), ROOM NO.2421, PRATYAKSH KAR BHAWAN, 24 TH FLOOR, E-2 BLOCK, DR. S.P. MUKHERJEE CIVIC CENTRE, NEW DELHI 110 002. VS M/S. KHETRI TRUST, D-66-II, SAWAL MADHO SINGH ROAD, BANI MARG, JAIPUR 302 016. PAN AAATK0565 (APPELLANT) (RESPONDENT) FOR REVENUE : SHRI AMIT JAIN, SR. D.R. FOR ASSESSEE : SHRI P. N . KHANNA, C.A. DATE OF HEARING : 04.06.2018 DATE OF PRONOUNCEMENT : 21.06.2018 ORDER PER BHAVNESH SAINI, J.M. THIS APPEAL BY REVENUE HAS BEEN DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-XI, NEW DELHI, DATED 17 TH OCTOBER, 2014, FOR THE A.Y. 2010-2011, ON THE FOLLOWING GROUNDS : 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND LEGALLY, THE LD. CIT(A) HAS ERRED IN ALLOWING THE B ENEFIT 2 ITA.NO.84/DEL./2015 M/S. KHETRI TRUST JAIPUR. U/S 11 & 12 OF THE INCOME-TAX ACT, 1961 BY DISREGAR DING THE FACT THE ASSESSEE TRUST CONTINUES TO HOLD INVES TMENT IN THE FOREIGN AS WELL AS INDIAN COMPANIES AND HAD NOT CONVERTED THE SAME IN THE MODES OF INVESTMENT SPECI FIED U/S 11(5) OF THE I.T. ACT WHICH IS IN CONTRAVENTION OF PROVISIONS OF SECTION 13(1)(D) OF THE ACT. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE LD. CIT(A) HAS ERRED IN ALLOWING THE BENEF IT U/S 11 & 12 OF THE ACT IN ABSENCE OF ELEMENT CHARITABLE ACTIVITY. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE LD CIT(A) HAS ERRED IN ALLOWING TOTAL ADMINISTRATIVE EXPENSES OF RS.70,21,234/- IGNORING THIS FACTS THE SAME WERE NOT INCURRED FOR CHARITABLE ACT IVITY. 4. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE A ND IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING THE ACCUM ULATED SURPLUS OF RS.1,51,13,616/- AS INCOME OF THE TRUST IGNORING THIS FACT THE ASSESSEE FAILED TO UTILIZED THE SAME WITHIN THE SPECIFIED TIME. 2. BRIEFLY, THE FACTS OF THE CASE ARE THAT ASSESSE E FILED RETURN OF INCOME DECLARING NIL INCOME. THE ASSESSEE IS REGISTERED UNDER SECTION 12AA OF THE I.T. ACT. THE A.O. DENIED 3 ITA.NO.84/DEL./2015 M/S. KHETRI TRUST JAIPUR. BENEFIT OF SECTIONS 11 AND 12 TO THE ASSESSEE AS WA S DECIDED EARLIER BY THE TRIBUNAL IN A.Y. 1997-98 FOR VIOLATI ON OF SECTION 13(1)(D) OF THE I.T. ACT. 3. THE ASSESSEE CHALLENGED THE ASSESSMENT ORDER BE FORE LD. CIT(A) AND SUBMITTED THAT THERE IS NO VIOLATION OF SECTION 13(1)(D) OF THE I.T. ACT. IN SUBSEQUENT YEARS, THE ITAT, DELHI BENCH ALLOWED SIMILAR CLAIM OF ASSESSEE AND DEPARTM ENTAL APPEAL HAVE BEEN DISMISSED BY THE HONBLE HIGH COUR T. COPIES OF THE ORDERS OF THE ITAT AND JUDGMENT OF THE HONB LE DELHI HIGH COURT WERE FILED BEFORE LD. CIT(A). THE LD. CI T(A) NOTED THAT THE ITAT IN SEVERAL YEARS ALLOWED THE CLAIM OF ASSESSEE AND LATEST ORDER OF THE TRIBUNAL FOR A.YS. 2002-2003, 2 006-2007 AND 2007-2008 WERE RELIED UPON AND JUDGMENT OF HONBLE DELHI HIGH COURT DATED 17 TH JULY, 2014 WAS ALSO RELIED UPON TO SHOW THAT DEPARTMENTAL APPEAL HAS BEEN DISMISSED BY THE HONBLE HIGH COURT. THE LD. CIT(A) REPRODUCED THE JUDGMENT OF THE HONBLE JURISDICTIONAL DELHI HIGH COURT DATED 17 TH JULY, 2014 IN 4 ITA.NO.84/DEL./2015 M/S. KHETRI TRUST JAIPUR. THE IMPUGNED ORDER AND ALLOWED THE CLAIM OF ASSESSE E. THE APPEAL OF ASSESSEE WAS ACCORDINGLY ALLOWED. 4. LEARNED COUNSEL FOR THE ASSESSEE, AT THE OUTSET , SUBMITTED THAT ITAT IN EARLIER YEARS HAVE DECIDED T HE ISSUE IN FAVOUR OF THE ASSESSEE. COPIES OF THE ORDERS OF THE TRIBUNAL FOR A.YS. 2001-2002 TO 2009-2010 AND 2012-2013 HAVE BEE N PLACED ON RECORD, IN WHICH, IDENTICAL ISSUE HAVE BE EN DECIDED IN FAVOUR OF THE ASSESSEE. COPY OF THE JUDGMENT OF THE DELHI HIGH COURT IS ALSO PLACED ON RECORD, IN WHICH, THE DEPAR TMENTAL APPEAL HAVE BEEN DISMISSED, AS REPRODUCED BY THE LD . CIT(A) IN HIS APPELLATE ORDER. THE LEARNED COUNSEL FOR THE AS SESSEE ALSO SUBMITTED THAT IN SUBSEQUENT A.YS. 2013-2014 AND 20 14-2015, THE A.O. FOLLOWING THE ORDERS OF THE ITAT AND JUDGM ENT OF THE HONBLE JURISDICTIONAL DELHI HIGH COURT, HAVE ALLOW ED THE CLAIM OF ASSESSEE FOR EXEMPTION UNDER SECTIONS 11 AND 12 OF THE I.T. ACT. HE HAS, THEREFORE, SUBMITTED THAT THE ISSUE IS COVERED IN FAVOUR OF ASSESSEE. COPIES OF ALL THESE ORDERS ARE SUPPLIED TO THE LD. D.R. AND HE HAS NOT DISPUTED THE CLAIM OF ASSES SEE. 5 ITA.NO.84/DEL./2015 M/S. KHETRI TRUST JAIPUR. 5. CONSIDERING THE RIVAL SUBMISSIONS IN THE LIGHT OF VARIOUS ORDERS OF THE TRIBUNAL AND HONBLE JURISDIC TIONAL DELHI HIGH COURT IN THE CASE OF SAME ASSESSEE, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LD. CIT(A) IN ALLOWIN G EXEMPTION UNDER SECTIONS 11 AND 12 OF THE I.T. ACT. THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY VARIOUS ORDERS OF ITAT RE FERRED TO ABOVE, AND IN SUBSEQUENT YEARS THE A.O ALSO ACCEPTE D THE SIMILAR CLAIM OF ASSESSEE. LD. CIT(A), THEREFORE, C ORRECTLY FOLLOWED THE ORDER OF THE ITAT AND JUDGMENT OF THE HONBLE JURISDICTIONAL DELHI HIGH COURT IN THE CASE OF ASSE SSEE TO ALLOW EXEMPTION UNDER SECTIONS 11 AND 12 OF THE I.T. ACT. NO INFIRMITY HAVE BEEN POINTED-OUT IN THE ORDER OF THE LD. CIT(A ). THE DEPARTMENTAL APPEAL STANDS DISMISSED. 5. IN THE RESULT, APPEAL OF THE DEPARTMENT IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (L.P. SAHU) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DELHI, DATED 21 ST JUNE, 2018 VBP/- 6 ITA.NO.84/DEL./2015 M/S. KHETRI TRUST JAIPUR. COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT(A) CONCERNED 4. CIT CONCERNED 5. D.R. ITAT D BENCH 6. GUARD FILE // BY ORDER // ASST. REGISTRAR : ITAT DELHI BENCHES : DELHI.