M/S MAHARAJA AGRASEN SEWA SADAN,AGRA V. ITO EXMP., AGRA

MA 3/AGR/2021

AI Insights

The case involves Maharaja Agrasen Sewa Sadan, a charitable trust, which filed miscellaneous applications against the order of the ITAT dated 28.08.2018 for the Assessment Years 2011-12 and 2012-13. The trust, registered under sections 12A/12AA of the Income Tax Act, 1961, sought to recall the tribunal's earlier order which had implications on their tax exemptions for the specified years. The trust argued that their activities, which include providing relief to the poor, education, and medical services, did not constitute trade or business, and thus should not be taxed under the provisions applicable to such activities. The tribunal considered the trust's historical compliance and the subsequent assessments which granted them exemptions for other years, leading to the decision to recall the earlier order and reassess the exemptions for the years in question.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 793351 (ITAT-AGRA)
• Duration Of Justice: 4 year(s) 5 month(s) 14 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 26-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Appeal Filed On: 12-04-2021
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANIL KUMAR
• Assessee Lawyers: DEEPENDRA MOHAN
• Keywords: Set aside; Tax effect; Charitable institution
• Section: 143(3); 11; 12A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH ‘DB’ : AGRA. BEFORE SHRI S.RIFAUR RAHMAN, ACCOUNTANT MEMBER and SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER MA Nos.2/AGR/2021 (in CO No.34/AGR/2018) (Assessment Year : 2011-12) MA No. 3/AGR/2021 (in CO No.01/AGR/2018) (Assessment Years : 2012-13) M/s. Maharaja Agrasen Sewa Sadan, vs. ITO (Exemption), Mughal Road, Kamla Nagar, Agra. Agra (Uttar Pradesh). (PAN : AAATM6506F) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri Deependra Mohan, CA REVENUE BY : Shri Anil Kumar, Sr. DR Date of Hearing : 22.08.2025 Date of Order : 26.09.2025 O R D E R PER S. RIFAUR RAHMAN, AM : 1. These misc. applications are filed by the Applicant/Assessee against the order of the Tribunal in CO Nos.34/AGR/2018 & 01/AGR/2018 dated 28.08.2018 for Assessment Years 2011-12 & 2012-13 respectively for recalling the impugned order dated 28.08.2018. Printed from counselvise.com 2 MA Nos.2 & 3/AGR/2021 2. At the time of hearing, ld. AR of the assessee reiterated the submissions made in the synopsis and for the sake of brevity, the synopsis is reproduced below :- “1. The applicant Trust namely Maharaja Agrasen Sewa Sadan, Kamla Nagar, Agra is registered u/s 12A/12AA of Income Tax Act, 1961 since 12- 02-1986 as per enclosed copy of Registration certificate issued by Honble Commissioner of Income Tax, Agra, at page No.1 of paper book. 2. The Trust has regularly filed return of its income for each assessment year as per law claiming exemption of Income as Charitable Trust. This exemption has been accepted and allowed up to assessment year 2009-10 relevant to F/Y 2008-09 at assessment stage by the assessing authority. 3. The nature of trust is to provide relief of poor, education, medical relief in addition to advancement of any other general public utility including running of shav vahan (Mortuary Vehicle), contribution in rebuilding and renovation of Postmortem grah of S.N. Medical College and running of two banquet halls, one at kamla nagar and another at waterworks crossing known as Agravan for maintenance, fooding and medical treatment of cows. The both banquet halls are provided to General Public at nominal maintenance charges taken from users. There is neither profit motive nor this facility to general public is provided in the nature of Trade, Commerce or service in relation to any Trade, Commerce or business for cess/ maintenance charges received from users. 4. The complete books of account including cash book, ledgers, expenses vouchers, maintenance charges receipt book etc. and Audited Balance Sheet was filed. The return of income showing income at Nil was filed. 5. The assessing authority at the time of passing of assessment order for A/Y 2010-11 referred to the provisions of section 2(15) in its order as under:- \"Under Section 2(15) 'Charitable purpose' includes relief to the poor, education medical relief [preservation of environment (including watersheds, forests and wildlife) and preservation of monuments or places or objects of artistic or historic interest) and the advancement of any other object of general public utility: Provided that the advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on of any activity in the nature of trade, commerce, or business, or & any activity of rendering any service in relation to any trade, commerce or business, for a cess or any other consideration, irrespective of the Printed from counselvise.com 3 MA Nos.2 & 3/AGR/2021 nature of use or application, or retention, of the income from such activity:] [Provided further that the first proviso shall not apply if the aggregate value of the receipts from the activities referred to therein is (ten lakh rupees) or less in the previous year.]\" The return of Income for Assessment year 2010-11 was submitted and assessment u/s 143(3) was completed and income of Trust was first assessed to tax in view of the provision to section 2(15) as the activities of Trust were treated in the nature of Trade, Commerce or Business. The details of income assessed are as under:- Excess of income over expenditure as per Books 28,05,459/- Add: Disallowances as per Assessment Order 37,75,772/- Total 65,81,231/- i. On 1st appeal, the ld. CIT(A) Agra, deleted the addition of Rs. 37,75,772/- and first appeal partly allowed as per copy of Appeal Order at Page No. 8-44 of paper book. ii. On 2nd appeal before Honble ITAT Agra, the appellant challenged the 1st Appeal order before this Honorable Bench and the appeal ITA No.128/AGRA/2015 has been decided vide order dated 10-10-2018, whereby, assessment order and the First Appellate order related to A/V 2010-11 were set aside and case remanded to A.O. for fresh assessment; Copy of ITAT order is at Page No. 45-52 of paper book. iii. The ld. DCIT, Exemption Circle, Ghaziabad through ACIT Exemption Circle, Ghaziabad has passed assessment order u/s 143(3) r.w.s. 254 of IT Act on 24.12.19 at total income Nil and granted exemption for A/Y 2010-11. The copy of Assessment Order is available at Page No. 53-55 of Paper Book. iv. The ACIT Exemption, Circle, Ghaziabad also decided and completed the Assessment Proceedings relating to A/Y 2017-18 at Nil income and the income was treated exempted under the Income Tax Act. The copy of this Assessment Order dated 24-12-2019 is available at page no. 56-58 of the Paper Book. 6. The facts of Assessment Year 2011-12 and 2012-13 are similar as there is no change in the nature of activities of the Trust. The following are details of Income shown exempted in the Returns and assessed for these two assessment years:- PARTICULARS A/Y 2011-12 A/Y 2012-13 Excess of income over expenditure as per Books 31,35,057/- 46,37,835/- Add: Disallowances as per Assessment Order 42,00,888/- 43,17,951/- Printed from counselvise.com 4 MA Nos.2 & 3/AGR/2021 Total Assessed Income 73,35,945/- 89,55,786/- Relief in 1st Appeal 41,83,878/- 43,17,951/- Assessable Net Income after 1st Appeal 31,52,067/- 46,37,835/- PRAYER It is therefore most respectfully submitted, that once this Honorable Court has passed an order for the A/Y 2010-11 and follow up action by Assessing Authority to allow exemption of income, for the A/Y 2010-11 & 2017-18, thus, the Assessment order as well as 1st Appellate orders related to A/y 2011- 12 and 2012-13 are liable to be quest and to grant exemption of tax on the income of the trust.” 3. On the other hand, ld. DR of the Revenue submitted that the submissions of the ld. AR cannot be entertained since CO is connected to the Revenue appeal and the same was dismissed due to tax effect. 4. Considered the rival submissions and material available on record. We observe that the Assessing Officer has rejected the exemption claimed by the assessee u/s 11 of the Act. The Assessing Officer assessed the income of the assessee treating them as AOP. Subsequently, the ld. CIT (A) partly allowed the claim of the assessee, however, ld. CIT (A) has rejected the original claim of the assessee u/s 11 of the Act. The claim of the assessee and registration u/s 12A was restored in Assessment Year 2010-11 and AY 2017-18. After considering the facts on record, we observe that the original claim of the assessee on the issue of exemption u/s 11 was not addressed by ld. CIT (A) and due to subsequent developments, the assessee was allowed exemption u/s 11 in the previous as well as for the subsequent assessment years. Therefore, the claim of Printed from counselvise.com 5 MA Nos.2 & 3/AGR/2021 the assessee is just and fair. Considering the facts and meet out the overall justice, we are inclined to recall the said order with respect to cross objections for AYs 2011-12 & 2012-13 and direct the registry to post the case in due course by informing to the parties. 5. In the result, the M.As. filed by the assessee are allowed. Order pronounced in the open court on this 26 day of September, 2025. Sd/- Sd/- (SUNIL KUMAR SINGH) (S.RIFAUR RAHMAN) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 26.09.2025/TS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals). 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com "