The Director of Income tax(Exemption), Ahmedabad V. K.Verma Charitable Trust, Ahmedabad

MA 414/AHD/2009

• Counselvise Citation: [2010] 123 COUNSELVISE.COM (IT) 4587 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 month(s) 20 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 23-04-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2001-2002
• Appeal Filed On: 03-12-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C K MISHRA SRDR
• Assessee Lawyers: JYATISH M SHAH

Judgement Text

IN THE INCOME TAX APPELLLATE TRIBUNAL AHMEDABAD BENCHES B, AHMEDABAD BEFORE S/ SHRI MAHAVIR SINGH , JUDICIAL MEMBER, & SH RI D.C.AGARWAL , ACCOUNTANT MEMBER M.A.NO.414/AHD/2009 (ARISING OUT ITA NO.1860/AHD/2009 ASSESSMENT YEAR: 2001-02 DATE OF HEARING: 23.4.10 DRAFTED: 27.4.10 DY. DIRECTOR OF INCOME-TAX, (EXEMPTION), AHMEDABAD, 202, 2 ND FOOR, NATURE VIEW BLDG., NR. H.K. HOUSE, ASHRAM ROAD, AHMEDABAD VS. K.VERMA CHARIALE TRUST, HARIOM AVENUE, 31-B, GOVERNMENT SERVANTS SOCIETY, NAVRANGPURA, AHMEDABAD PAN NO.AAATK8142L (APPELLANT) (RESPONDENT) (ORIGINAL APPELLANT) (ORIGINAL RESPONDENT) APPELLANT BY : SHRI C.K.MISHRA, SR-DR RESPONDENT BY: SHRI JYATISH M. SHAH, AR ORDER PER MAHAVIR SINGH, J.M. BY WAY OF THIS MISCELLANEOUS APPLICATION (MA), THE REVENUE HAS REQUESTED FOR RECTIFYING THE TRIBUNALS ORDER IN ITA NO.1860/AHD/209 DATED 04- 09-2009. 2. THE ONLY GRIEVANCE OF THE REVENUE AGAINST THE IM PUGNED ORDER IS THAT THE TRIBUNAL HAS ADJUDICATED ONLY ONE GROUND, WHEREAS R EVENUE HAS FILED TWO GROUNDS, WHICH ARE AS UNDER:- I) THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN HOLDING THAT THE ASSESSEE TRUST IS ENTITLED TO EXEMPTION /S.11 OF T HE I.. ACT. II) THE LD. CIT(A) HAS NOT DEALT WITH THE INCOME VS . APPLICATION FOR CHARITIES (EARTHQUAKE RELIEF) AND ALSO TOTALLY OMITTED TO CON SIDER THE ISSUE OF SECTION 11(5) OF THE I.T. ACT VIOLATION DEALT CLEARLY IN TH E ASSESSMENT ORDER. 2 ACCORDINGLY, THE REVENUE HAS REQUESTED FOR ADJUDICA TION OF GROUND (II). 3. WE HAVE GONE THROUGH THE ORDER OF TRIBUNAL AND N OTED THAT THE TRIBUNAL AFTER CONSOLIDATING BOTH THE ISSUE, HAS DEALT WITH BOTH THE ISSUE BY NOTING THE FACT IN PARA-2 AS UNDER:- 2. THE ASSESSING OFFICER AFTER NOTING THAT T HE ASSESSEE HAS ADVANCED A SUM OF RS.5 LACS TO MADHUSUDAN DHYANYOG NIKETAN TRUST AND RS.10 LACS TO HARI OM FIN STOCK (P) LTD., OBSERVED THAT THE ASSESSEE VIOLATED THE PROVISIONS OF SECTION 13(1), 13(1)(D) AND 13(2)(4) AND THEREFORE, HE TOOK THE VIEW THAT THE ASSESSEE HAS V IOLATED THE PROVISIONS OF SECTION 11(5). THE PLEA OF THE ASSESSEE THAT THE DONATIONS RECEIVED FOR EARTHQUAKE RELIEF AND BUILDING FUND ARE TO BE EXCLU DED U/S.11(1)(D), WAS NOT CONSIDER. THE ASSESSEE HAS SPENT OUT OF THE EAR THQUAKE RELIEF DONATION RS.5,50,313/- DURING THE YEAR AN THE BALAN CE DONATION OF RS.13,19,509/- WERE SPENT IN THE SUBSEQUENTLY YEAR. THE AMOUNT FROM HARI OM FIN STOCK (P) LTD. WAS DULY RECOVERED AND W AS GIVEN FOR THE PURPOSE OF EARTHQUAKE RELIEF. THE ASSESSING OFFICER ULTIMATELY DENIED THE EXEMPTION TO THE ASSESSEE U/S. 11. THE MATTER ULTIM ATELY TRAVELED TO THE TRIBUNAL. 4. WE FIND THAT THE TRIBUNAL HAS CONSIDERED THE FIN DINGS OF CIT(A) AND THE RELEVANT FINDING OF CIT(A) AS REPRODUCED IN THE ORD ER OF TRIBUNAL AND THE RELEVANT PORTION, WHICH READS AS UNDER:- . ASSESSING OFFICER HAS NOT MENTIONED REGARDI NG EARTH QUAKE RELIEF EXPENDITURE OF RS.5,50,313/- DULY CERTIFIED IN AUDITORS REPORT AND REASONS FOR NOT CONSIDERING THEM AS GENUINE. IT IS QUITE SURPRISING ON THE FACTS THAT REMAINING AMOUNT OF EARTH QUAKE RELIEF E XPENDITURE RS.13,39,509/- INCURRED IN AY 2002-03 IS ACCEPTED A S GENUINE BY ASSESSING OFFICE. ASSESSING OFFICER HAS NOT MENTION ED ANY THING REGARDING THIS ALSO. THIS SHOWS THAT THERE WAS APPL ICATION OF INCOME. THE ASSESSEE HAS SHOWN THAT THE DONATIONS WERE RECEIVED FROM THE SAID 3 DONORS AND WERE APPLIED FOR EARTHQUAKE RELIEF ACTIV ITY IN THIS YEAR AS ALSO IN THE SUBSEQUENT YEAR. CONSIDERING THIS ASPECT IT IS HELD THAT THE ASSESSEE TRUST HAS UTILIZED THE DONATIONS RECEIVED FOR THE PURPOSE OF THE OBJECTS OF THE TRUST. ACCORDINGLY THERE WAS NO JUST IFICATION BY TAKING THE INCOME ORIGINALLY ASSESSED. IT IS NOT CORRECT ON TH E PART OF ASSESSING OFFICER TO COMPUTE INCOME ORIGINALLY ASSESSED, WITH OUT GIVING DETAILS FOR IT. THE INCOME ASSESSED ORIGINALLY WITHOUT GIVING SHOW CAUSE NOTICE AND REASONS IS INCORRECT. CONSIDERING THE ABOVE FACTS T HE APPELLANT IS ALSO ENTITLED TO EXEMPTION U/S.11 IN RESPECT OF DONATION S SO RECEIVED. .. ACCORDINGLY, WE ARE OF THE VIEW THAT THE TRIBUNAL H AS DEALT WITH BOTH THE ISSUE BY TAKING THE SAME AS COMMON ISSUE. ACCORDINGLY, THE O RDER OF TRIBUNAL DOES NOT CALL FOR ANY INTERFERENCE, AS THIS WILL TANTAMOUNT TO REVIEW. ACCORDINGLY, WE FIND NO 3 MISTAKE APPARENT FROM RECORD IN THE ORDER OF THE TR IBUNAL AND THIS MA OF THE REVENUE IS DISMISSED. 5. IN THE RESULT, REVENUES MA IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 23/04/2010. SD/- SD/- ( D.C.AGARWAL ) ( MAHAVIR SINGH ) ACCOUNTANT MEMBER JUDICIAL MEMBER PLACE: AHMEDABAD. DATE : 23/04/2010 DKP* COPY OF THE ORDER FORWARDED TO :- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A)-XXI, AHMEDABAD 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE (IN DUPLICATE) /TRUE COPY/ BY ORDER, DR / AR, ITAT, AHMEDABAD