Asst. Commissioner of Income Tax (Exemptions), Circle-1,, Ahmedabad v. Blind People's Association India, Ahmedabad

ITA 2074/AHD/2018 | 2015-2016
Pronouncement Date: 04-03-2021 | Result: Dismissed

Appeal Details

RSA Number 207420514 RSA 2018
Assessee PAN AAAAB0440L
Bench Ahmedabad
Appeal Number ITA 2074/AHD/2018
Duration Of Justice 2 year(s) 4 month(s) 29 day(s)
Appellant Asst. Commissioner of Income Tax (Exemptions), Circle-1,, Ahmedabad
Respondent Blind People's Association India, Ahmedabad
Appeal Type Income Tax Appeal
Pronouncement Date 04-03-2021
Appeal Filed By Department
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 04-03-2021
Last Hearing Date 08-02-2021
First Hearing Date 08-02-2021
Assessment Year 2015-2016
Appeal Filed On 05-10-2018
Judgment Text
A IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH AHMEDABAD ( CONVENED THROUGH VIRTUAL COURT ) BEFORE SHRI RAJPAL YADAV VICE PRESIDENT AND SHRI PRADIP KUMAR KEDIA ACCOUNTANT MEMBER ./ I.T.A. NO. 2074/AHD/2018 ( ASSESSMENT YEAR : 2015-16) THE ASSTT. COMMISSIONER OF INCOME-TAX (EXEMPTIONS) CIRCLE-1 AHMEDABAD / VS. BLIND PEOPLES ASSOCIATION INDIA DR. VIKRAM SARABHAI ROAD VASTRAPUR AHMEDABAD 380015 ./ ./ PAN/GIR NO. : AAAAB0440L ( APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI VIRENDRA OJHA CIT.DR / RESPONDENT BY : SHRI PARIN SHAH A.R. DATE OF HEARING 11/02/2021 !'# / DATE OF PRONOUNCEMENT 04/03/2021 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTANCE OF THE REVENUE AGAINST THE ORDER OF THE COMMISSIONER OF IN COME TAX (APPEALS)-9 AHMEDABAD (CIT(A) IN SHORT) DATED 0 3.07.2018 ARISING IN THE ASSESSMENT ORDER DATED 31.10.2017 PASSED BY THE ASSESSING OFFICER (AO) UNDER S. 143(3) OF THE INCOME TAX ACT 1961 (THE ACT) CONCERNING AY 2015-16. ITA NO. 2074/AHD/18 (ACIT(EXEMP.) VS. BLIND PEOPLES ASSOCIATION INDIA) A.Y. 2015-16 - 2 - 2. THE GROUND OF APPEAL RAISED BY REVENUE READS HER EUNDER: 1. WHETHER THE FACTS AND IN LAW THE LD. CIT(A) WAS JUSTIFIED IN ALLOWING THE CARRY FORWARD OF DEFICIT WHICH HAS ARI SEN DUE TO CLAIM OF DEEMED APPLICATION OF INCOME U/S 11(1)(A) OF THE ACT AND NOT ON REAL APPLICATION OF INCOME FOR THE OBJE CTS OF THE TRUST? 3. WHEN THE MATTER WAS CALLED FOR HEARING THE LE ARNED AR FOR THE ASSESSEE SUBMITTED THAT THE ISSUE IS COVERED IN FAV OUR OF THE ASSESSEE IN ITA NO.2619/AHD/2017 DCIT VS. SHREE BHARTIMAIYA MEMORIAL FOUNDATION ORDER DATED 29.05.2019 . 4. AS STATED ON BEHALF OF THE ASSESSEE IDENTICAL ISSU E HAS BEEN ARISEN IN ITA NO. 2619/AHD/2017 (SUPRA) AND T HE CO-ORDINATE BENCH OF TRIBUNAL AFTER CONSIDERING RIVAL SUBMISSIONS HA S ADJUDICATED THE ISSUE IN FAVOUR OF ASSESSEE AND AGAINST THE REVENUE . THE RELEVANT OPERATIVE PARA OF THE ORDER OF THE TRIBUNAL IN ITA NO. 2619/AHD/2017 (SUPRA) READS AS UNDER: 7. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSI ONS. THE SOLITARY QUESTION THAT ARISES FOR ADJUDICATION WHETHER THE T RUST HAS INCURRED DEFICIT DUE TO EXCESS SPENDING ON THE OBJECT OF THE TRUST DURING THE PARTICULAR YEAR AND WHETHER EXCESS EXPENDITURE INCU RRED IN EARLIER YEARS BY THE TRUST COULD BE ALLOWED TO BE SET OFF A GAINST THE INCOME OF SUBSEQUENT YEAR BY INVOKING SECTION 11 OF THE ACT. THE ISSUE IS NO LONGER RES INTEGRA. THE HONBLE GUJARAT HIGH COURT IN CIT VS. SHRI PLOT SHWETAMBER MURTI PUJAK JAIN MANDAL (1995) 211 ITR 0293 (GUJ) HAS RENDERED DECISION FAVOURABLE TO THE ASSESSEE ON THE VERY ISSUE. THE HONBLE GUJARAT HIGH COURT HAS HELD THAT THERE IS N OTHING IN THE LANGUAGE OF SECTION 11(1)(A) OF THE ACT TO INDICATE THAT THE INCOME FROM TRUST PROPERTY SHOULD HAVE BEEN APPLIED FOR CHARITA BLE OR RELIGIOUS TRUSTS ONLY IN THE YEAR IN WHICH SUCH INCOME HAS AR ISEN. THE EXPENDITURE INCURRED IN THE EARLIER YEAR CAN BE MET OUT OF THE INCOME OF THE SUBSEQUENT YEAR AND UTILIZATION OF SUCH INCOME FOR MEETING THE EXPENDITURE OF THE EARLIER YEAR WOULD AMOUNT TO SUC H INCOME BEING APPLIED FOR CHARITABLE OR RELIGIOUS TRUSTS. THE HO NBLE GUJARAT HIGH COURT FURTHER HELD THAT INCOME DERIVED FROM TRUST P ROPERTY HAS TO BE COMPUTED ON COMMERCIAL PRINCIPLES AND CONSEQUENTLY DEFICIT ARISING OUT OF EXPENDITURE OVER INCOME FOR THE PREVIOUS YEAR SH OULD THEREFORE BE SET OFF AGAINST SURPLUS OF INCOME OVER EXPENDITURE RELATING TO THE SUBSEQUENT YEAR. SIMILAR VIEW HAS BEEN EXPRESSED I N CIT VS. MAHARANA OF MEWAR CHARITABLE FOUNDATION (1987) 164 ITR 439 ( RAJ) AND CIT VS. MATRISEVA TRUST (2000) 242 ITR 20 (MAD). WHATEVER LITTLE CONTROVERSY MIGHT BE EXISTING HAS BEEN PUT TO REST BY THE RECEN T DECISION OF THE ITA NO. 2074/AHD/18 (ACIT(EXEMP.) VS. BLIND PEOPLES ASSOCIATION INDIA) A.Y. 2015-16 - 3 - HONBLE SUPREME COURT IN THE CASE OF CIT(EXEMPTION) VS. SUBROS EDUCATION SOCIETY (2018) 303 CTR 1 (SC). HENCE TH E CIT(A) IN OUR VIEW HAS CORRECTLY APPLIED THE LAW AS EVOLVED BY TH E JUDICIAL PRECEDENTS. IN THE ABSENCE OF ANY INFIRMITY IN THE ORDER OF THE CIT(A) WE DECLINE TO INTERFERE THEREWITH. 5. IN CONSONANCE WITH THE VIEW ALREADY TAKEN IN ITA NO. 2619/AHD/2017 (SUPRA) WE DECLINE TO INTERFERE WITH THE ORDER OF THE CIT(A). 6. IN THE RESULT THE APPEAL OF THE REVENUE IS DISM ISSED. SD/- SD/- (RAJPAL YADAV) (PRADIP KUMA R KEDIA) VICE PRESIDENT ACCOUNTANT MEMBER AHMEDABAD: DATED 04/03/2021 TRUE COPY S. K. SINHA !'#' / COPY OF ORDER FORWARDED TO:- &. / REVENUE 2. / ASSESSEE (. )*+ / CONCERNED CIT 4. - / CIT (A) /. 012 33*+4 *+#4 56) / DR ITAT AHMEDABAD 7. 289 : / GUARD FILE. BY ORDER / 4 /5 *+#4 56) THIS ORDER PRONOUNCED ON 04/03/2021