Income Tax Officer (Exemptions), Lucknow V. M/s Prakashwati Shaikshik Samajik Evam Sanskritik Sansthan, Lucknow

ITA 898/LKW/2014

• Counselvise Citation: 89823714 RSA 2014
• Duration Of Justice: 6 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 24-06-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 12-12-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R C JAIN
• Keywords: Capital asset; Charitable institution; Revenue expenditure; Capital expenditure
• Section: 11

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO.898/LKW/2014 ASSESSMENT YEAR:2010 - 2011 M/S PRAKASHWATI SHAIKSHIK SAMAJIK EVAM SANSKRITIK SANSTHAN, 8/144, INDIRA NAGAR, LUCKNOW. PAN:AAATP6423G VS INCOME TAX OFFICER (EXEMPTIONS) LUCKNOW. (RESPONDENT) (APPELLANT) SHRI Y. P. SRIVASTAVA, D. R. APPELLANT BY SHRI R. C. JAIN, C.A. RESPONDENT BY 24/06/2015 DATE OF HEARING 30 /06/2015 DATE OF PRONOUNCEMENT O R D E R PER A. K. GARODIA, A.M. THIS IS REVENUES APPEAL DIRECTED AGAINST THE ORDER PASSED BY LEARNED CIT(A) - I, LUCKNOW DATED 30/09/2014 FOR THE ASSESSMENT YEAR 2010 - 2011. 2. IN THIS APPEAL THE REVENUE HAS RAISED THE FOLLOWING GROUNDS: 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS OF THE CASE IN DELETING THE DEMAND OF RS.6,70,223/ - RAISED BY THE ASSESSING OFFICER. 2. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS OF THE CASE IN HOLDING THAT THE ASSESSING OFFICER WAS NOT JUSTIFIED IN COMPUTING THE TAXABLE INCOME OF THE APPELLANT SOCIETY AT RS.15,94,869/ - AND IN DIRECTING THE ASSESSING OFFICER TO ASSESS THE TOTAL INCOME OF THE SOCIETY AT RS. NIL. 3. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS OF T HE CASE IN HOLDING THAT APPELLANT SOCIETY HAS APPLIED MORE THAN 85% OF ITS INCOME FOR CHARITABLE PURPOSE. 3. LEARNED D. R. OF THE REVENUE SUPPORTED THE ASSESSMENT ORDER WHEREAS LEARNED A. R. OF THE ASSESSEE SUPPORTED THE ORDER OF LEARNED CIT(A). 2 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND THAT IN THE ASSESSMENT ORDER, THE ASSESSING OFFICER HAS CONSIDERED AN AMOUNT OF RS.78,42,231/ - TOWARDS APPLICATION FOR CHARITABLE PURPOSES. IN PARA NO. 5 OF HIS ORDER, IT IS NOTED BY LEARNED CIT(A) THAT APAR T FROM THIS, THERE IS ONE MORE AMOUNT OF RS.54,70,655/ - , WHICH IS CAPITAL EXPENDITURE FOR CHARITABLE PURPOSES. THE TOTAL OF BOTH THESE AMOUNTS HAS BEEN NOTED BY CIT(A) AT RS.1,33,12,787/ - . THEREAFTER, A FINDING HAS BEEN GIVEN BY LEARNED CIT(A) THAT AGAIN ST INCOME FROM PROPERTY HELD FOR CHARITABLE PURPOSES IN THE PRESENT YEAR OF RS.1,11,02,354/ - AS NOTED BY THE ASSESSING OFFICER ON PAGE NO. 3 OF THE ASSESSMENT ORDER ALSO, THE APPLICATION BY THE ASSESSEE IS MORE THAN 85% AS REQUIRED AS PER THE PROVISIONS OF SECTION 11 OF THE ACT AND THEREFORE, EVEN IF 10% OF REVENUE EXPENDITURE AMOUNTING TO RS.8,71,348/ - IS EXCLUDED THEN ALSO THE ASSESSEE DESERVES EXEMPTION U/S 11 OF THE ACT. LEARNED D.R. OF THE REVENUE COULD NOT CONTROVERT THESE FINDINGS OF LEARNED CIT(A). WE ALSO FIND THAT ON PAGE NO. 2 OF THE ASSESSMENT ORDER, THIS IS NOTED BY ASSESSING OFFICER ALSO THAT AS PER FORM NO. 10B, ENCLOSED WITH THE INCOME TAX RETURN, THE ASSESSEE HAS APPLIED FUNDS OF RS.87,13,481/ - TOWARDS REVENUE EXPENDITURE AND RS.54,70,655/ - TOWARDS CAPITAL ASSETS FOR CHARITABLE PURPOSES. IN THE LIGHT OF THESE FACTS, WE DECLINE TO INTERFERE WITH THE ORDER OF LEARNED CIT(A). 5. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DISMISSED. (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE) SD/. SD/. (SUNIL KUMAR YADAV) ( A. K. GARODIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 30 /06/2015 *C.L.SINGH COPY OF THE ORDER FORW ARDED TO : 1.THE APPELLANT 2.THE RESPONDENT. 3.CONCERNED CIT 4.THE CIT(A) 5.D.R., I.T.A.T., LUCKNOW ASSTT. REGISTRAR