LALA GAURI MAL BUTAIL TRUST,PALAMPUR V. INCOME TAX OFFICER (E), SOLAN

ITA 1102/CHANDI/2024

AI Insights

The case involves Lala Gauri Mal Butail Trust appealing against an order from the Commissioner of Income Tax (Appeals), which confirmed an assessment made by the Assessing Officer. The assessment included a shortfall in the application of income, which was brought to tax. The Tribunal had previously restored the issue to the Assessing Officer for re-adjudication, directing a consideration of the trust's receipts and payments. In the re-adjudication, the Assessing Officer disregarded certain items claimed by the trust, leading to the disputed assessment. The Tribunal found that the Commissioner of Income Tax (Appeals) had erred in confirming the assessment, as the Assessing Officer was bound by the Tribunal's earlier directions to consider the trust's financial accounts comprehensively.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 716697 (ITAT-CHANDIGARH)
• Duration Of Justice: 9 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2016-2017
• Appeal Filed On: 05-11-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK VARDHAN LD.
• Assessee Lawyers: SUDHIR SEH GAL LD
• Keywords: Set aside
• Section: 143(3)

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHANDIGARH PHYSICAL HEARING BEFORE HON’BLE SHRI LALIET KUMAR, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./ ITA No.1102/CHANDI/2024 (िनधाŊरण वषŊ / Assessment Year: 2016-17) Lala Gauri Mal Butail Trust C/O Bundla Tea State, PO Bundla Tehsil Palampur H.P. बनाम/ Vs. ITO-Exemptions Ward Solan (HP) ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. AAATL-3208-R (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : Shri Sudhir Sehgal (CA) – Ld. AR ŮȑथŎकीओरसे/Respondent by : Sh. Vivek Vardhan (Addl. CIT) – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 05-08-2025 घोषणाकीतारीख /Date of Pronouncement : 18-08-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2016-17 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 11-09-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) r.w.s. 254 r.w.s. 144B of the Act on 11-01-2022. Having heard rival submissions and upon perusal of case records, the appeal is disposed-off as under. Printed from counselvise.com 2 2. The assessee-trust filed Form No.10B claiming accumulation of income u/s 11(2) for Rs.5.14 Lacs. The Ld. AO noted shortfall of Rs.56,947/- in the application of income and brought the same to tax. The Tribunal, vide order dated 19-11-2020, restored the issue to Ld. AO for re-adjudication by considering receipts and payments and compute shortfall which was not applied towards the objects of the society. In the set aside proceedings, the assessee filed receipt and payment account. The total receipts worked out to be Rs.53.09 Lacs. The 85% of the same worked out to be Rs.45.13 Lacs which the assessee was required to apply for the objects of the trust. The assessee reflected application of income for Rs.40 Lacs which include increase in advance receivable for Rs.59,483/-. The receipt side had increase in liability for Rs.2,984/. However, this item was disregarded by Ld. AO. Finally, the amount of Rs.56,947/- was determined as total income of the assessee. The Ld. CIT(A) confirmed the same on the ground that the assessee did not furnish any evidence with regard to increase in advance receivables which was claimed by him towards application of income. Aggrieved, the assessee is in further appeal before us. 3. It could be gathered that it was never the case of Ld. AO that the assessee did not furnish any evidence with regard to increase in advance receivables which was claimed by the assessee as application of income. The Tribunal had directed Ld. AO to recompute the application by considering receipts and payments account which Ld. AO was bound to do. The Ld. CIT(A)’s adjudication is on wrong logic / Printed from counselvise.com 3 reasoning. The application of income has to be considered as per the earlier directions of the Tribunal. Considering the same, the claim of the assessee is to be accepted. Consequently, the impugned assessment of income at Rs.56,947/- stand deleted. The Ld. AO is directed to accept the claim of the assessee. We order so. 4. The appeal stand allowed. Order pronounced on 18-08-2025 Sd/- Sd/- (LALIET KUMAR) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 18-08-2025. आदेश की Ůितिलिप अŤेिषत /Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT CHANDIGARH Printed from counselvise.com "