M/s. Sahara Utsarga Welfare Society , Kolkata V. DCIT(E), Circle - 1 , Kolkata

ITA 927/KOL/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 8511 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-07-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 26-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAYANTA KHANRA
• Assessee Lawyers: A K TULSIYAN
• Keywords: Charitable institution
• Section: 250; 13; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA SMC BENCH, KOLKATA (BEFORE SRI J. SUDHAKAR REDDY, HONBLE ACCOUNTANT MEMBER) [VIRTUAL COURT HEARING] ITA NO. 927/KOL/2019 ASSESSMENT YEARS: 2013-14 M/S. SAHARA UTSRGA WELFARE SOCIETY........................................APPELLANT MICHAEL NAGAR KALIBARI SARANI KOLKATA 700 133 [PAN : AADTS 6744 E] VS. DEPUTY COMMISSIONER OF INCOME TAX (E), CIRCLE-1, KOLKATA..................RESPONDENT APPEARANCES BY: SHRI A.K. TULSIYAN, FCA APPEARED ON BEHALF OF THE ASSESSEE. SHRI JAYANTA KHANRA, JCIT, D/R, APPEARING ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : JULY 13 TH , 2020 DATE OF PRONOUNCING THE ORDER : JULY 13 TH , 2020 ORDER PER J. SUDHAKAR REDDY, AM :- THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) 12, KOLKATA, (HEREINAFTER THE LD.CIT(A)), PASSED U/S. 250 OF THE INCOME TAX ACT, 1961 (THE ACT), DT. 12/06/2019 FOR THE ASSESSMENT YEAR 2013-14. 2. AFTER HEARING RIVAL CONTENTIONS, I FIND THAT THE SOLE ISSUE IS WHETHER THE ASSESSEE IS ENTITLED TO ACCUMULATION OF 15% ON THE GROSS RECEIPTS AND WHEREAS THE ASSESSING OFFICER HELD THAT THE ASSESSEE IS ENTITLED TO 15% OF THE NET RECEIPT. 3. THE HONBLE SUPREME COURT OF INDIA IN THE CASE OF CIT VS. PROGRAMME FOR COMMUNITY ORGANISATION REPORTED IN [2001] 248 ITR 0001 (SC) HAS HELD AS FOLLOWS:- CHARITABLE TRUST- ACCUMULATION OF INCOME- CHARITABLE TRUST IS ENTITLED TO ACCUMULATE 25 PER CENT OF ITS INCOME DERIVED FROM PROPERTY HELD UNDER TRUST AND NOT 25 PER CENT OF THE INCOME REMAINING AFTER APPLICATION OF INCOME FOR CHARITABLE PURPOSES THEREFORE, ASSESSEE-TRUST WAS ENTITLED TO ACCUMULATE 25 PER CENT OF DONATIONS RECEIVED BY IT AND NOT MERELY 25 PER CENT OF UNSPENT BALANCE. THE B BENCH OF THE ITAT IN THE ASSESSEES OWN CASE IN ITA NO. 2436/KOL/2018, ORDER DT. 22/01/2020, FOR THE ASSESSMENT YEAR 2012-13 , ON THE SAME ISSUE HELD AS FOLLOWS:- ..... WE NOTE THAT IN THE PROVISIONS OF SECTION 11(1) IT HAS BEEN CLEARLY MENTIONED 15% OF THE INCOME, HENCE IT IS GROSS INCOME OF THE ASSESSEE TRUST AND NOT THE NET INCOME. THEREFORE, BASED ON THIS FACTUAL POSITION AS MENTIONED IN SECTION 11(1) AS NOTED ABOVE, WE DIRECT THE ASSESSING OFFICER TO ALLOW 15% EXEMPTION ON GROSS RECEIPTS. 4. RESPECTFULLY FOLLOWING THE SAME, ACCUMULATION OF 15% ON THE GROSS RECEIPT AS 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. KOLKATA, THE DATED : 13.07.2020 {SC SPS} COPY OF THE ORDER FORWARDED TO: 1. M/S. SAHARA UTSRGA WELFARE SOCIETY MICHAEL NAGAR KALIBARI SARANI KOLKATA 700 133 2. DEPUTY COMMISSIONER OF INCOME TAX (E), CIRCLE 3. CIT(A)- 4. CIT- , 5. CIT(DR), KOLKATA BENCHES, KOLKATA. 2 M/S. SAHARA UTSRGA WELFARE SOCIETY POSITION AS MENTIONED IN SECTION 11(1) AS NOTED ABOVE, WE DIRECT THE ASSESSING OFFICER TO ALLOW 15% EXEMPTION ON GROSS RECEIPTS. RESPECTFULLY FOLLOWING THE SAME, WE HOLD THAT THE ASSESSEE IS ENTITLED TO THE OF 15% ON THE GROSS RECEIPT AS PER PROVISIONS OF SECTION 11 OF THE ACT IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. KOLKATA, THE 13 TH DAY OF JULY, 2020. SD/- [ J. SUDHAKAR REDDY ] ACCOUNTANT MEMBER M/S. SAHARA UTSRGA WELFARE SOCIETY DEPUTY COMMISSIONER OF INCOME TAX (E), CIRCLE -1, KOLKATA 5. CIT(DR), KOLKATA BENCHES, KOLKATA. ASSISTANT REGISTRAR ITAT, KOLKATA BENCHES ITA NO. 927/KOL/2019 ASSESSMENT YEARS: 2013-14 M/S. SAHARA UTSRGA WELFARE SOCIETY POSITION AS MENTIONED IN SECTION 11(1) AS NOTED ABOVE, WE DIRECT THE ASSESSING OFFICER TO WE HOLD THAT THE ASSESSEE IS ENTITLED TO THE PER PROVISIONS OF SECTION 11 OF THE ACT . TRUE COPY BY ORDER ASSISTANT REGISTRAR ITAT, KOLKATA BENCHES