M/s Manav Mangal School( Manav Mangal Society), Chandigarh V. DCIT,Circle-1(Exemption), Chandigarh

MA 10/CHANDI/2021

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 3180 (ITAT-CHANDIGARH)
• Duration Of Justice: 11 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 15-06-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 04-06-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHOK KHANNA CIT
• Section: 143(3); 73; 13; 11

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BE NCH B, CHANDIGARH .., ! '# .. , $ %& BEFORE: SHRI. N.K.SAINI, VP & SHRI , R.L. NEGI, JM MISCELLANEOUS APPLICATION NOS. 10 TO 13/CHD/2021 ( ITA NOS. 27 TO 30/CHD/2020) ASSESSMENT YEAR : 2013-14 TO 2016-17 M/S MANAV MANGAL SCHOOL (MANAV MANGAL SOCIETY), SECTOR-21-C, CHANDIGARH. THE DCIT CIRCLE-1 (EXEMPTION) PAN NO: AAAAM0564C APPELLANT RESPONDENT MISCELLANEOUS APPLICATION NOS. 14 & 15/CHD/2021 ( ITA NOS. 136 & 137/CHD/2020) ASSESSMENT YEAR : 2010-11 & 2011-12 M/S MANAV MANGAL SCHOOL (MANAV MANGAL SOCIETY), SECTOR-21-C, CHANDIGARH. THE DCIT CIRCLE-1 (EXEMPTION) PAN NO: AAAAM0564C APPELLANT RESPONDENT !' ASSESSEE BY : SHRI SUDHIR SEHGAL, ADVOCATE #!' REVENUE BY : SHRI ASHOK KHANNA, ADDL. CIT $ %! & DATE OF HEARING : 15/06/2021 '()*! & DATE OF PRONOUNCEMENT : 15/06/2021 %'/ ORDER PER N.K. SAINI, VICE PRESIDENT THESE MISCELLANEOUS APPLICATIONS FILED BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER DT. 27/05/2021 IN ITA NOS. 27 TO 30/CHD/2020 F OR THE A.YS 2013-14 TO 2016-17 BY THE DEPARTMENT AND THE CROSS APPEALS FOR THE A.Y. 2010-11 & 2011-12 IN ITA NOS. 2 & 3/CHD/2020 BY THE ASSESSEE AND ITA NOS. 136 & 137/CHD/2 020 BY THE DEPARTMENT. 2. COMMON CONTENTIONS RAISED IN THESE MISCELLANEOUS APPLIC ATIONS READ AS UNDER: 2 MISCELLANEOUS PETITION IN INCOME TAX APPEAL NO.27/C HD/2020 FOR ASSESSMENT YEAR 2013-2014 IN THE CASE OF M/S MANAV MANGAL SCHOOL (M ANAV MANGAL SOCIETY), SECTOR 21-C, CHANDIGARH; 1. THAT IT IS SUBMITTED THAT ABOVE SAID DEPARTMENTA L APPEAL BEARING ITA NO. 27/CHD/2020 WAS DECIDED BY THE HON'BLE BENCH VIDE ORDER, DATED 27.05.2021 ALONGWITH OTHER APPEALS OF THE DEPARTMENT BEARING ITA NOS. 28,29,30/CHD/202 0 FOR ASSTT. YEAR 2014-15 TO 2016-17 AND ALSO APPEALS BEARING ITA NOS. 136 & 137/CHD/202 0 FOR ASSTT.YEAR 2010-11 & 2011-12. 2. THAT IN ALL THE ABOVE SAID SIX APPEALS, THE ISSU E WAS COMMON AND THE GROUNDS OF APPEALS IN ALL THE YEARS WERE ALSO COMMON AND I.E., ALL THE APPEALS WERE TAKEN UP TOGETHER AND THE WORTHY CIT(A)-I, CHANDIGARH HAD AL SO PASSED A CONSOLIDATED ORDER IN RESPECT OF ASSTT. YEARS 2013-14 TO 2016-17. AS REGA RDS ASSTT YEARS 2010-11 AND 2011-12, WORTHY CIT (A) FOLLOWED HIS SAME ORDERS AND ALLOWED BENEFIT ON MERIT FOR THESE TWO YEARS ALSO. 3.THAT THE LD. CIT(A) ON MERITS FOR THE ASSTT. YEAR 2010-11 & 2011-12 AND 2013-14 TO 2016-17 HAD ALLOWED THE APPEALS OF THE ASSESSEE AND THE DEP ARTMENT HAD FILED APPEALS BEFORE THE HON'BLE ITAT, CHANDIGARH BENCH, CHANDIGARH AND SINCE THE FACTS AND CIRCUMSTANCES OF THE CASE ARE THE SAME, THE COMMON GROUNDS HAVE B EEN TAKEN IN ALL THE YEARS. 4. THAT THE GROUNDS OF APPEALS AS TAKEN BY THE DEPA RTMENT FOR ASSTT. YEAR 2013-14 HAVE BEEN REPRODUCED BY THE HON'BLE ITAT IN PARA 3, PAGE 2 TO 4 OF THE ORDER AND THIS IS COMMON GROUND OF APPEAL IN ALL THE YEARS IS BORNE O UT FROM THE ORDER OF ITAT IN PARA 33, WHICH IS BEING REPRODUCED AS UNDER: - 'THE FACTS RELATED TO THE OTHER APPEALS OF THE DEPA RTMENT IN ITA NOS. 28 TO 30/CHD/2020 FOR A.Y.2014-15 TO 2016-17 RESPECTIVELY ARE SIMILAR TO THE FACTS INVOLVED IN ITA NO. 27/CHD/ 2020 FOR THE ASSTT. YEA R 2013-14, THEREFORE, OUR FINDINGS GIVEN IN THE FORMER PART OF THIS ORDER SHALL APPLY MUTATIS MUTANDIS TO ALL THE APPEALS OF THE DEPARTMENT. 5. THAT THE FOLLOWING INADVERTENT MISTAKES ARE THER E IN THE ABOVE CONSOLIDATED ORDER, WHICH NEEDS THE NECESSARY AMENDMENTS/CORRECTIONS AS UNDER: - A). A LOOK AT THE GROUNDS OF APPEAL FOR ALL THE YEA RS IN THE APPEALS FILED BY THE DEPARTMENT, IT IS APPARENT THAT ONLY THREE ISSUES W ERE INVOLVED I.E., DISALLOWANCE OF SALARY, RENT AND INTEREST TO THE 'SPECIFIED PERSONS ' AND THERE WAS NO GROUND OF APPEAL WITH REGARD TO EXEMPTION U/S 11 OF THE ACT A ND THE RELEVANT GROUNDS OF APPEAL FOR THE YEAR UNDER CONSIDERATION AS TAKEN BY THE DEPARTMENT ARE BEING ATTACHED HEREWITH . IN FACT, FOR ITA NO. 27/CHD/2020, THE ASSESSING O FFICER HAD NOT DISALLOWED THE EXEMPTION U/S 11 OF THE ACT. THOUGH, FOR THE LATER ASSESSMENT YEARS I.E., IN ITA NOS. 28 TO 30/CHD/2020 AND ITA NOS. 13 6 &137/CHD/2020, THE EXEMPTION U/S 11 WAS WITHDRAWN AND THE WHOLE OF THE SURPLUS A S PER INCOME AND EXPENDITURE ACCOUNT WAS TAXED IN ALL THE OTHER YEARS I.E., FOR ASSTT. YEAR 2014-15 TO 2016-17 AND FOR ASSTT. YEAR 2010-11 & 2011-12. B). THAT THE ASSESSEE CARRIED THE MATTER TO THE WORTHY CIT(A) IN ALL THE YEARS AND IN RESPECT OF GROUNDS OF APPEAL WITH REGARD TO EXEM PTION U/S 11 FOR ASSTT. YEAR 2014-15 TO 2016-17 AND 2010-11 & 2011-12, BEARING I TA NOS. 28 TO 30/CHD/2020 & 136 & 137/CHD/2020 THE WORTHY CIT(A), CHANDIGARH, F OLLOWING THE ORDER OF HON'BLE SUPREME COURT IN THE CASE OF ASSESSEE FOR ASSTT. YE AR 2003-04 HAD DECIDED THE ISSUE IN FAVOUR OF ASSESSEE FOR ASSTT. YEAR 2014-15 TO 2016-17 AND 2010-11 & 2011-12. 3 C). THE DEPARTMENT DID NOT FILE ANY APPEAL AGAINST THE GROUNDS OF APPEAL RELATING TO EXEMPTION U/S 11 AS DECIDED BY THE LD. CIT(A) FO R ASSTT. YEARS 2010-11 & 2011-12 AND IN ASSTT.YEAR 2014-15, 2015-16 & 2016-17 AS IS APPARENT FROM GROUND OF APPEALS ATTACHED ALONGWITH THIS MISC. APPLICATION. HOWEVER, THE HON'BLE ITAT IN PARA 25 HAS STATED AS UNDER: - '25. ANOTHER ISSUE AGITATED BY THE DEPARTMENT VIDE GROUND NO. (X) RELATES TO EXEMPTION U/S 11 OF THE ACT FOR THE REASON THAT THE ASSESSEE SOCIETY WAS EARNING HIGH PROFIT YEAR AFTER YEARS WHICH WAS DISCUSSED BY THE ID. CIT(A) IN PARA 13.2.9 TO 13.2.16 OF THE IMPUGNED ORDER FOR THE A.Y. 2014-15 WHICH READ AS UNDER: (AS PER ORDER OF THE HON'BLE ITAT) D) IN FACT, IN THE GROUNDS OF APPEAL BY THE DEPARTM ENT, GROUND NO. (X) AS MENTIONED BY THE 'HON'BLE BENCH' IN THE ORDER IN PARA 25, IS NOT WITH REGARD TO EXEMPTION U/S 11. THE GROUND NO. (X) AS PER THE APPEAL OF THE DEPARTMENT FOR ASSTT. YEAR 2013-14 IS REPRODUCED S UNDER: - 'THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE, T HE LD. CIT(A)HAS ERRED IN LAW IN HOLDING THE ORDER OF THE ASSESSING OFFICER NOT RIGH T BECAUSE THE ASSESSEE HAD BEEN RUNNING FOR THE PAST MANY YEARS AND VARIOUS AS SESSMENTS U/S 143(3) HAD BEEN MADE FOR THE EARLIER YEARS AND NO SUCH ADVERSE VIEW HAD BEEN TAKEN THEN COMPLETELY IGNORING THAT IN THE EARLIER ASSESSMENTS , THE ISSUES WERE NOT EXAMINED IN DETAIL AND RATHER, MATERIAL DOCUMENTS LIKE LEASE DEED, COMPARISON OF SALARIES WITH OTHER EMPLOYEES ETC WAS NOT ASKED/DISCUSSED.' E). ACTUALLY, IT APPEARS THAT THE HON'BLE BENCH, WH ILE LOOKING INTO THE 'COMMON PAPER BOOK' OF THE DEPARTMENT AT PAGE 1 IN PARA 5, HAS GI VEN A FINDING WITH REGARD TO THE ISSUE OF EXEMPTION U/S 11 AND HAS REPRODUCED THE FINDINGS OF THE CIT(A) FROM PAGES 67 TO 73 AND IN PARA 27, THE COUNSEL OF THE ASSESSEE HAD CLARIFI ED THAT THIS GROUND IS NOT THERE IN THE APPEAL OF THE DEPARTMENT, WHICH IS APPARENT FROM PA RA 27 OF THE ORDER AS UNDER :- 'IN HIS RIVAL SUBMISSIONS, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THIS ISSUE WAS NOT RAISED BY THE DEPARTMENT IN THE ASSESSMENT YEAR UNDER CONSIDERATION.' F) IT IS, THEREFORE, STATED THAT SINCE THERE IS NO GROUND NO. (X) WITH REGARD TO EXEMPTION U/S 11 IN ALL THE YEARS IN THE APPEAL OF THE DEPARTMENT , BEFORE THE HON'BLE BENCH AND, THEREFORE, THE SAID AMENDMENT AND NECESSARY CORRECT ION FOR THE SAME MAY, PLEASE, BE MADE AS THE HON'BLE BENCH MAY THINK PROPER AND EVEN THE LD. DR IN HIS REPLY TO THIS, DURING THE COURSE OF HEARING, HAS STATED THAT THERE IS NO SUCH SPECIFIC GROUND WITH REGARD TO EXEMPTION U/S 11. G) ANOTHER, ISSUE IS THAT THE HON'BLE BENCH HAS VER Y RIGHTLY DECIDED ALL THE ISSUES IN A CONSOLIDATED MANNER IN PARA-2 , AT PAGE 2 OF THE OR DER AND IN PARA-3, THE GROUND OF APPEAL FOR ASSTT. YEAR 2013-14 HAVE BEEN REPRODUCED AND THEN IN PARA 33, IT HAS BEEN STATED THAT FINDINGS OF THE ORDER FOR ASSTT. YEAR 2 013-14 SHALL APPLY TO THE ASSESSMENT YEARS 2014-15 TO 2016-17 SINCE THE FACTS ARE COMMON BEARI NG ITA NO. 28,29 & 30/CHD/202.PARA 33 IS BEING REPRODUCED:- 'THE FACTS RELATED TO THE OTHER APPEALS OF THE DEPA RTMENT IN ITA NOS. 28 TO 301 CHDL2020 FOR A.Y. 2014-15 TO 2016-17 RESPECTIVELY A RE SIMILAR TO THE FACTS INVOLVED IN 4 ITA NO. 271 CHDL2020 FOR A.Y. 2013-14, THEREFORE, O UR FINDINGS GIVEN IN THE FORMER PART OF THIS ORDER SHALL APPLY MUTATIS MUTANDIS TO ALL THE APPEALS OF THE DEPARTMENT.' HOWEVER, THE ISSUE IN THE APPEAL OF THE DEPARTMENT ON MERITS FOR ASSTT. YEAR 2010-11 AND 2011-12 BEARING ITA NOS. 136 &137/CHD/2020 ARE THE SAME, BUT THERE IS A OMISSION OF MENTIONING ITA NOS. 136 & 137/CHD/2020. 6. IN VIEW OF THE ABOVE SAID FACTS AND CIRCUMSTANCE S, THE NECESSARY CORRECTION BE MADE AS REQUESTED IN THE ORDER AS PASSED BY THE HON'BLE BENCH, AS THE HON'BLE BENCH MAY DEEM IT PROPER AND OBLIGE AND SUCH MISTAKE IS VERY MUCH EVIDENT FROM THE ORDER AS PASSED BY THE HON'BLE ITAT. 3. DURING THE COURSE OF HEARING THE LD. COUNSEL FOR TH E ASSESSEE REITERATED THE CONTENTS OF THE AFORESAID MISC. APPLICATION AND FURTHER SUBMITTED THAT IN PARA 25 AT PAGE NO. 67 OF THE AFORESAID ORDER DT. 27/05/2021, IT WAS MENTIONED THAT THE ISSUE VIDE GROUND NO. (X) RELATING TO EXEMPTION UNDER SECTION 11 O F THE ACT WAS RAISED BY THE DEPARTMENT. HOWEVER INFACT THIS ISSUE WAS AGITATED BY THE ASSESSEE BEFORE THE LD. CIT(A) VIDE GROUND NO. (X) AND THE RELIEF WAS ALLOWED BY THE LD. CIT(A), WHICH WAS ACCEPTED BY THE DEPARTMENT ON THIS ISSUE AND NOT AGITATED BEFORE THE ITAT. THEREFORE, THIS MISTAKE APPARENT FROM RECORD MAY BE RECTIFIED. 4. LD. CIT DR COULD NOT CONTROVERT THE AFORESAID CONTE NTION OF THE LD. COUNSEL FOR THE ASSESSEE. 5. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PARTIE S AND FOUND THE CONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE TO BE CORR ECT. WE THEREFORE SUBSTITUTE THE FIRST FOUR LINES OF PARA 25 AT PAGE NO. 67 OF THE AFO RESAID ORDER DT. 27/05/2021 IN PLACE OF THE EARLIER FOUR LINES AS UNDER: THE LD. CIT DR HAS FURNISHED THE WRITTEN SUBMISSI ON RELATING TO THE EXEMPTION UNDER SECTION 11 OF THE ACT. HOWEVER THIS ISSUE WHICH WAS AGITATED BY THE ASSESSEE BEFORE THE LD. CIT(A) VIDE GROUND NO. (X) WAS DECIDED IN FAVOU R OF THE ASSESSEE AND HAD NOT BEEN AGITATED BY DEPARTMENT IN THIS APPEAL BEFORE THE IT AT. THIS ISSUE WAS DISCUSSED BY THE LD. CIT(A) IN PARA 13.2.9 TO 13.2.16 OF THE IMPUGNED OR DER FOR THE A.Y. 2014-15 WHICH READ AS UNDER: 6. THE ANOTHER MISTAKE WAS POINTED OUT BY THE LD. COUNSE L FOR THE ASSESSEE IN PARA 33 OF THE AFORESAID REFERRED TO ORDER AND IT WAS STAT ED THAT DUE TO OVERSIGHT THE DEPARTMENTAL APPEAL IN ITA NO. 136 & 137 FOR THE A.Y. 2010-11 AND 2011-12 WERE NOT MENTIONED WHICH MAY BE INSERTED IN THE SAID PARA. 5 7. THE LD. CIT DR AGREED TO THE AFORESAID SUBMISSIONS MADE BY THE LD. COUNSEL FOR THE ASSESSEE. 8. AFTER CONSIDERING THE SUBMISSIONS OF BOTH THE PART IES, IT IS NOTICED THAT DUE TO OVERSIGHT AND INADVERTENTLY IN PARA 33 IN FIRST LINE, ITA NO. 136 & 137/CHD/2020 FOR THE A.Y. 2010-11 & 2011-12 RESPECTIVELY WERE NOT MENTIONE D. WE THEREFORE, AFTER THE WORD APPEALS OF THE DEPARTMENT IN, INSERT THE FOLLOWING WORDS , ITA NO. 136 & 137 FOR THE A.Y. 2010-11 & 2011-12 AND THE REMAINING FINDINGS WILL REMAI N THE SAME AS HAD BEEN MENTIONED IN THE SAID PARA 33. ACCORDINGLY IN THE FIRST LINE OF PARA 33, BEFORE ITA NO. 28 TO 30/CHD/2020 FOLLOWING ARE INSERTED: ITA NO. 136 & 137/CHD/2020 FOR THE A.YS 2010-11 & 2011-12 RESPECTIVELY AND 9. IN THE ABOVE TERMS THE ORDER DT. 27/05/2021 IN ITA N O. 2 & 3/CHD/2020 AND 136 & 137/CHD/2020 FOR THE A.YS 2010-11 & 2011-12 AND ITA NOS. 27 TO 30/CHD/2020 FOR THE A.YS 2013-14 TO 2016-17 IS RECTIFIED. 10. IN THE RESULT, MISC. APPLICATIONS OF THE ASSESSEE ARE ALLOWED. (ORDER PRONOUNCED IN THE COURT ON. 15/06/2021) SD/- SD/- .. .., (R.L. NEGI ) ( N.K. SAIN I) $ %&/ JUDICIAL MEMBER ! / VICE PRESIDENT AG DATE: 15/06/2021 (+! ,-.- COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. $ / CIT 4. $ / 01 THE CIT(A) 5. -2 45&456789 DR, ITAT, CHANDIGARH 6. 8:% GUARD FILE