ROHILKHAND EDUCATIONAL CHARITABLE TRUST,BAREILLY V. DCIT, CENTRAL CIRCLE, BAREILLY

SA 15/LKW/2024

AI Insights

The case involves the Rohilkhand Educational Charitable Trust, which sought a stay on the demand raised by the Revenue for the assessment years 2017-18 and 2018-19. The Trust, a Public Charitable Trust, had its registration under section 12A of the Income Tax Act initially cancelled and later restored. The demands were based on assessments that followed the cancellation of the Trust's registration. The Trust argued that the demands were excessive and had already made partial payments. The Tribunal considered the submissions and the fact that the Trust had already deposited a significant amount towards the demands and decided to stay the demands pending the appeals.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471427 (ITAT-LUCKNOW)
• Appeal Type: Stay Application
• Pronouncement Date: 12-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANU CHAURASIA
• Keywords: Charitable institution; Application of stay
• Section: 154; 11; 132; 153A; 12A; 12

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH “B”, LUCKNOW BEFORE SHRI. SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER AND SHRI NIKHIL CHOUDHARY, ACCOUNTANT MEMBER S.A. Nos. 15 & 16/LKW/2024 [In ITA Nos.181 & 182/LKW/2024] Assessment Years: 2017-18 & 2018-19 Rohilkhand Educational Charitable Trust Rohilkhand Medical College and Hospital and Campus, Pilibhit Bypass Road Nawada Jogian, Bareilly v. The DCIT Central Circle Bareilly TAN/PAN:AAATR6902J (Applicant) (Respondent) Applicant by: Shri Rakesh Garg, Advocate Respondent by: Shri Manu Chaurasia, CIT(DR) Date of hearing: 12 03 2024 Date of pronouncement: 12 03 2025 O R D E R PER SUDHANSHU SRIVASTAVA, J.M.: These are assessee’s stay petitions requesting for stay of demand raised by the Revenue against the assessee for assessment years 2017-18 and 2018-19. 2. During the course of hearing before us, the Ld. Authorized Representative for the applicant-assessee (Ld. A.R.) submitted that the applicant-assessee is a Public Charitable Trust formed on 26.05.1998 and Registration under section 12A of the Income S.A. Nos. 15 & 16/LKW/2024 Page 2 of 5 Tax Act, 1961 (hereinafter called “the Act’) was granted to it since its inception by the Ld. Commissioner of Income Tax, Bareilly vide order F. No.12A/110(2)/99-00 dated 26.06.1999. The Ld. A.R. further submitted that the applicant-trust had filed its return of income for assessment year 2017-18 on 15.11.2017 and for 2018-19 on 27.09.2018, declaring NIL income after claiming benefit of sections 11 and 12 of the Act. The Ld. A.R. also submitted that proceedings under section 132 of the Act were initiated against the assessee-trust on 18.09.2014 and in this regard notice under section 153A of the Act was issued to the assessee-trust for assessment years 2009-10 to 2014-15 and further that the assessment for AY 2015-16 was also taken up for scrutiny. In this matter, the assessee approached the Settlement Commission. However, the proceedings of the Settlement Commission were stayed by the Hon'ble Supreme Court and the settlement application is still pending for disposal. The Ld. A.R. further submitted that in view of the initiation of proceedings under section 132 of the Act, the Ld. Principle CIT (Central) cancelled the Registration granted to the assessee-trust under section 12A of the Act retrospectively w.e.f. 01.04.2008, vide order dated 20.03.2019. It was submitted that, however, the S.A. Nos. 15 & 16/LKW/2024 Page 3 of 5 Registration was ordered to be restored by the ITAT, vide order dated 20.10.2021 in ITA No. 737/Lkw/2019. 2.1 The Ld. A.R. further submitted that in the meantime, for the reason that the Registration under section 12A of the Act was cancelled, the case of the assessee-trust was selected for scrutiny and the Assessing Officer (AO) passed assessment order vide dated 31.12.2019 for assessment year 2017-18, creating a demand of Rs.57,91,04,955/- and vide dated 19.04.2021 for assessment year 2018-19, creating a demand of Rs.26,80,64,133/-. The Ld. A.R. further submitted that for assessment year 2017-18, the assessee filed a rectification application under section 154 of the Act to amend the demand, as the same was wrongly calculated and the demand was accordingly reduced to Rs.37,84,93,560/-. Thereafter, the assessee filed application for stay of demand before the AO as well as before the Ld. PCIT (Central). The Ld. A.R. submitted that in the meantime, the assessee-trust had deposited an amount of Rs.2.40 crores against the demand raised by the Department and the balance demand was stayed by the Ld. PCIT(Central) till the decision of the Ld. First Appellate Authority and that the Ld. First Appellate Authority, vide order dated 19.03.2024 dismissed the appeal of the assessee for assessment year 2017-18, thereby S.A. Nos. 15 & 16/LKW/2024 Page 4 of 5 vacating the stay of balance demand. Likewise, for assessment year 2018-19, the ld. CIT(A) dismissed the appeal of the assessee, vide order dated 22.03.2024. Against the impugned orders of the ld. CIT(A), the assessee has filed appeals before the ITAT and the same are still pending for disposal. The Ld. A.R. further submitted that the assessee has already paid 21% of the total demand raised by the Department and, therefore, the balance demand may please be stayed till disposal of the appeals by the Tribunal. 3. The ld. CIT (D.R), did not oppose the submission of the Ld. A.R. regarding part payment of the demand raised by the Department, however, he submitted that the stays may be granted subject to some further payments. 4. We have heard both the parties. The ld. Counsel for the assessee has stated at the Bar that the assessee has already deposited 21% of the total demand raised by the Department. Considering the entire facts of the case and in order to meet the ends of justice, we stay the outstanding demands for both the years and direct the Revenue not to recover the outstanding demands till the disposal of the appeals or 180 days from the date of this order, whichever is earlier, with the caveat that the applicant shall not seek any undue adjournment when the S.A. Nos. 15 & 16/LKW/2024 Page 5 of 5 appeals are listed for hearing, failing which, the stays granted shall be deemed to have been vacated. Accordingly, the stay applications of the assessee are allowed. 5. In the final result, stay applications of the assessee stand allowed. Order pronounced in the open Court on 12/03/2025. Sd/- Sd/- [NIKHIL CHOUDHARY] [SUDHANSHU SRIVASTAVA] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED:12/03/2025 JJ: Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. DR By order Assistant Registrar "