Amrita Bhargava Education Society, Bareilly v. Income Tax Officer-1(1), Bareilly

ITA 210/LKW/2016 | 2011-2012
Pronouncement Date: 21-10-2016 | Result: Allowed

Appeal Details

RSA Number 21023714 RSA 2016
Assessee PAN AAAAA2385B
Bench Lucknow
Appeal Number ITA 210/LKW/2016
Duration Of Justice 5 month(s) 26 day(s)
Appellant Amrita Bhargava Education Society, Bareilly
Respondent Income Tax Officer-1(1), Bareilly
Appeal Type Income Tax Appeal
Pronouncement Date 21-10-2016
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted SMC
Tribunal Order Date 21-10-2016
Date Of Final Hearing 19-10-2016
Next Hearing Date 19-10-2016
Assessment Year 2011-2012
Appeal Filed On 25-04-2016
Judgment Text
1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH SMC LUCKNOW BEFORE SHRI P. K. BANSAL ACCOUNTANT MEMBER ITA NO.210/LKW/2016 ASSESSMENT YEAR:2011-12 AMRITA BHARGAVA EDUCATION SOCIETY PANCHWATI 11 TH KM RAMPUR ROAD PARSAKHERA BAREILLY. PAN:AAAAA2385B VS. INCOME TAX OFFICER-1(1) BAREILLY. (APPELLANT) (RESPONDENT) APPELLANT BY SHRI P. K. KAPOOR C. A. RESPONDENT BY SHRI AMIT NIGAM D. R. DATE OF HEARING 19/10/2016 DATE OF PRONOUNCEMENT 21/10/2016 O R D E R THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) BAREILLY DATED 22/12/2015 RELATING TO ASSES SMENT YEAR 2011-2012. 2. THE APPEAL IS DELAYED BY 41 DAYS. THE ASSESSEE HAS SUBMITTED AN APPLICATION FOR CONDONATION OF DELAY ALONG WITH AN A FFIDAVIT. AFTER GOING THROUGH THE CONDONATION APPLICATION AND THE AFFIDAV IT FILED BY THE ASSESSEE I FIND THAT THAT THE ASSESSEE HAS BEEN PREVENTED BY SUFFICIENT CAUSE IN NOT FILING THE APPEAL WITHIN THE PERMISSIBLE TIME. THER EFORE I CONDONE THE DEALY. 3. NOW COMING TO THE MERIT OF THE APPEAL I NOTED TH AT THE ONLY ISSUE INVOLVED IN THIS APPEAL RELATES TO THE ADDITION OF RS.10 23 973/- BY INVOKING 2 THE PROVISIONS OF SECTION 115BBC FOR THE ALLEGED IN VESTMENT MADE BY THE ASSESSEE IN CONSTRUCTION OF THE BUILDING. 4. I HAVE HEARD THE RIVAL SUBMISSIONS CAREFULLY CO NSIDERED THE SAME ALONG WITH THE ORDERS OF THE TAX AUTHORITIES BELOW. I NOTED THAT THE ASSESSING OFFICER HAS MADE THE REFERENCE FOR THE VA LUATION TO THE D.V.O. FOR THE BUILDING OF THE SOCIETY ON 02/09/2008. THE D.V .O. HAD INSPECTED THE BUILDING ON 15/11/2010 AND ULTIMATELY ESTIMATED THE COST OF CONSTRUCTION OF THE BUILDING FOR THE IMPUGNED ASSESSMENT YEAR AT RS .46 31 900/- AS ON 01/08/2013 WHILE THE ASSESSEE HAS SHOWN THE COST OF CONSTRUCTION OF THE BUILDING DURING THE IMPUGNED ASSESSMENT YEAR AT RS. 36 07 927/-. THE ASSESSING OFFICER THEREFORE AFTER GIVING OPPORTUNI TY TO THE ASSESSEE TREATED THE SUM OF RS.10 23 973/- TO BE THE INCOME FROM UND ISCLOSED SOURCES U/S 115BBC WHICH WAS CONFIRMED BY CIT(A). I HAVE GONE TH ROUGH THE PROVISIONS OF SECTION 115BBC WHICH STATES AS UNDER: 115BBC. (1) WHERE THE TOTAL INCOME OF AN ASSESSEE BEING A PERSON IN RECEIPT OF INCOME ON BEHALF OF ANY UNIVER SITY OR OTHER EDUCATIONAL INSTITUTION REFERRED TO IN SUB-CLAUSE ( IIIAD) OR SUB- CLAUSE (VI) OR ANY HOSPITAL OR OTHER INSTITUTION RE FERRED TO IN SUB-CLAUSE (IIIAE) OR SUB-CLAUSE (VIA) OR ANY FUND OR INSTITUTION REFERRED TO IN SUB-CLAUSE (IV) OR ANY TRUST OR INST ITUTION REFERRED TO IN SUB-CLAUSE (V) OF CLAUSE (23C) OF SECTION 10 OR ANY TRUST OR INSTITUTION REFERRED TO IN SECTION 11 INCLUDES ANY INCOME BY WAY OF ANY ANONYMOUS DONATION THE INCOME-TAX PAYABL E SHALL BE THE AGGREGATE OF (I) THE AMOUNT OF INCOME-TAX CALCULATED AT THE RATE OF THIRTY PER CENT ON THE AGGREGATE OF ANONYMOUS DONAT ION RECEIVED IN EXCESS OF THE HIGHER OF THE FOLLOWING NAMELY; 3 (A) FIVE PER CENT OF THE TOTAL DONATIONS RECEIVED BY THE ASSESSEE; OR (B) ONE LAKH RUPEES AND (II) THE AMOUNT OF INCOME-TAX WITH WHICH THE ASSESSEE WOULD HAVE BEEN CHARGEABLE HAD HIS TOTAL INCOME BEEN REDUCED BY THE AGGREGATE OF ANONYMOUS DONATION RECEIVED IN EXCESS OF THE AMOUNT REFERRED TO IN SUB - CLAUSE (A) OR SUB-CLAUSE (B) OF CLAUSE (I) AS THE CASE MAY BE. (2) THE PROVISIONS OF SUB-SECTION (1) SHALL NOT APP LY TO ANY ANONYMOUS DONATION RECEIVED BY (A) ANY TRUST OR INSTITUTION CREATED OR ESTABLISHED WHOLLY FOR RELIGIOUS PURPOSES; (B) ANY TRUST OR INSTITUTION CREATED OR ESTABLISHED WHOLLY FOR RELIGIOUS AND CHARITABLE PURPOSES OTHER THAN AN Y ANONYMOUS DONATION MADE WITH A SPECIFIC DIRECTION TH AT SUCH DONATION IS FOR ANY UNIVERSITY OR OTHER EDUCAT IONAL INSTITUTION OR ANY HOSPITAL OR OTHER MEDICAL INSTIT UTION RUN BY SUCH TRUST OR INSTITUTION. (3) FOR THE PURPOSES OF THIS SECTION ANONYMOUS DO NATION MEANS ANY VOLUNTARY CONTRIBUTION REFERRED TO IN SUB -CLAUSE (IIA) OF CLAUSE (24) OF SECTION 2 WHERE A PERSON RECEIVIN G SUCH CONTRIBUTION DOES NOT MAINTAIN A RECORD OF THE IDEN TITY INDICATING THE NAME AND ADDRESS OF THE PERSON MAKIN G SUCH CONTRIBUTION AND SUCH OTHER PARTICULARS AS MAY BE P RESCRIBED. 4.1 FROM THE PERUSAL OF THE AFORESAID SECTION IT I S APPARENT THAT ANONYMOUS DONATION RECEIVED BY THE SOCIETY TRUST O R INSTITUTION HAS TO BE ASSESSED SEPARATELY @30%. THE ANONYMOUS DONATION HA S BEEN DEFINED U/S 115BBC(3) TO MEAN ANY VOLUNTARY CONTRIBUTION RE FERRED TO IN SUB-CLAUSE (IIA) OF CLAUSE (24) OF SECTION 2 WHERE A PERSON RE CEIVING SUCH CONTRIBUTION DOES NOT MAINTAIN A RECORD OF THE IDENTITY INDICATI NG THE NAME AND ADDRESS OF THE PERSON MAKING SUCH CONTRIBUTION AND SUCH OTH ER PARTICULARS AS MAY 4 BE PRESCRIBED. THE DIFFERENCE IN THE COST OF CONST RUCTION AS DISCLOSED BY THE ASSESSEE IN ITS BOOKS OF ACCOUNT AND AS HAS BEE N ESTIMATED BY THE D.V.O. BY NO STRETCH OF IMAGINATION CAN BE REGARDED TO BE THE VOLUNTARY CONTRIBUTION MADE BY ANY PERSON. SINCE IT CANNOT B E REGARDED TO BE THE VOLUNTARY CONTRIBUTION NO QUESTION OF ANY ANONYMOU S DONATION ARISE. IN MY OPINION THE DIFFERENCE IS NOT AN ANONYMOUS DONA TION THEREFORE THE PROVISION OF SECTION 115BBC CANNOT BE APPLIED TO TH E SAID AMOUNT. I THEREFORE SET ASIDE THE ORDER OF CIT(A) AND DELETE THE ADDITION. 5. IN THE RESULT THE APPEAL OF THE ASSESSEE STANDS ALLOWED. (ORDER PRONOUNCED IN THE OPEN COURT ON 21/10/2016) SD/. ( P. K. BANSAL ) ACCOUNTANT MEMBER DATED:21/10/2016 *SINGH COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR ASSISTANT REGISTRAR