WAZIRPUR INDUSTRIAL POLLUTION CONTROL (CETP) SOCIETY,NEW DELHI V. ITO, WARD-36(2), DELHI

ITA 2450/DEL/2024

AI Insights

The case involves the Wazirpur Industrial Pollution Control (CETP) Society, a nonprofit organization managing a Common Effluent Treatment Plant in Wazirpur Industrial Area, Delhi. The society faced an addition of Rs. 2,05,660/- to its income for the assessment year 2017-18, as per the discrepancy between total bank credits and total receipts recorded in the books. The Assessing Officer (AO) made this addition under section 144 of the Income Tax Act due to the society's failure to reconcile the difference. The CIT(A) upheld this addition, leading to the appeal before the Tribunal. The Tribunal, after examining the peculiar facts of the case, decided to delete the addition, emphasizing that the society's operations did not constitute income generation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 298845 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESH TIWARI
• Section: 144

Judgement Text

"आयकर अपीलीय अिधकरण िदʟी पीठ “एस एम सी”, िदʟी ŵी िवकास अव̾थी, Ɋाियक सद˟ IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER आअसं.2450/िदʟी/2024 (िन.व. 2017-18) ITA No.2450/DEL/2024 (A.Y.2017-18) Wazirpur Industrial Pollution Control (CETP) Society, Adarsh Complex, 3, Community Centre, 2nd Floor, Wazirpur Industrial Area, Delhi 110052 PAN: AAAAW-1814-H ...... अपीलाथᱮ/Appellant बनाम Vs. Assistant Commissioner of Income Tax, Circle 38(1), Delhi 110001 ..... ᮧितवादी/Respondent अपीलाथŎ Ȫारा/ Appellant by : None ŮितवादीȪारा/Respondent by : Shri Rajesh Tiwari, Sr. DR सुनवाई कᳱ ितिथ/ Date of hearing : 09/12/2024 घोषणा कᳱ ितिथ/ Date of pronouncement : : 27/02/2025 आदेश/ORDER PER VIKAS AWASTHY, JM: This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi (hereinafter referred to as 'the CIT(A)') dated 18.03.2024, for assessment year 2017-18. 2. The solitary issue assailed in this appeal by the assessee is addition of Rs.2,05,660/- confirmed by the CIT(A). The assessee is a society engaged in operating and maintaining Common Effluent Treatment Plant (CETP) at Wazirpur Industrial Area, Delhi. Manufacturing units at Industrial Area Wazirpur, Delhi are members of the Society. The running cost of CETP is met out by the society from 2 ITA No. 2450/Del/2024 (AY 2017-18) contributions received from its members. The society is being monitored by the Directorate of Industries, Govt. of NCT Delhi. Thus, the society does not carry out business activity but is rendering services to the manufacturing units of treating polluted water discharge by manufacturing units. The Assessing Officer (AO) made addition of Rs.2,05,660/- on account of difference between the total credits in bank and total receipts during the year. The total credits in bank are to the tune of Rs.2,21,74,199/-, whereas, total receipts are to the tune of Rs.2,19,68,539/-. The assessee was asked to reconcile difference. Since, no reconciliation was furnished by the assessee, the AO made addition in assessment made u/s. 144 of the Act. In First Appellate proceedings, the CIT(A) upheld the addition for similar reasons. 3. Per contra, Shri Rajesh Tiwari representing the department strongly supported the impugned order and prayed for dismissing appeal of the assessee. 4. Order of the authorities below examined. The assessee in appeal is against addition of Rs.2,05,660/-. The addition has been made by the AO merely for the reason that the assessee was unable to reconcile the difference between credits in the bank and receipts as per books. The assessee is a nonprofit organization and is rendering services to its members by treating effluent discharged by member manufacturing units. The assessee operates under monitoring of Directorate of Industry, Govt. of NCT Delhi. The difference between total credits in the bank and total receipts is ostensibly for non recording of certain transactions in books of the assessee. It is not a case of the Department that the assessee has generated revenue from receipts from its members. In any case the assessee is operating with contributions received from the members and the same cannot partake the 3 ITA No. 2450/Del/2024 (AY 2017-18) character of income of assessee. Hence, addition made by the AO is unwarranted and the same is deleted. 5. Before parting with the order, it would be necessary to point here that the addition in the instant case is deleted in peculiar facts of the case, hence, it cannot be citied as presidence for deciding any other case. 6. In the result, impugned order is modified and addition of Rs. 2,05,660/- is deleted. Order pronounced in the open court on Thursday the 27th day February, 2025. Sd/- Sd/- (VIKAS AWASTHY) ᭠याियक सद᭭य/JUDICIAL MEMBER िदʟी/Delhi, ᳰदनांक/Dated 27.02.2025 NV/- ᮧितिलिप अᮕेिषतCopy of the Order forwarded to : 1. अपीलाथᱮ/The Appellant , 2. ᮧितवादी/ The Respondent. 3. The PCIT/CIT(A) 4. िवभागीय ᮧितिनिध, आय.अपी.अिध., िदʟी /DR, ITAT, िदʟी 5. गाडᭅ फाइल/Guard file. BY ORDER, //True Copy// (Dy./Asstt. Registrar) ITAT, DELHI "