DCIT (Exemptions) Circle-2, Ahmedabad v. Paramount Charity Trust, Vadodara

ITA 372/AHD/2019 | 2013-2014
Pronouncement Date: 18-05-2021 | Result: Allowed

Appeal Details

RSA Number 37220514 RSA 2019
Assessee PAN AAATP2338T
Bench Ahmedabad
Appeal Number ITA 372/AHD/2019
Duration Of Justice 2 year(s) 2 month(s) 12 day(s)
Appellant DCIT (Exemptions) Circle-2, Ahmedabad
Respondent Paramount Charity Trust, Vadodara
Appeal Type Income Tax Appeal
Pronouncement Date 18-05-2021
Appeal Filed By Department
Order Result Allowed
Bench Allotted D
Tribunal Order Date 18-05-2021
Last Hearing Date 09-04-2021
First Hearing Date 09-04-2021
Assessment Year 2013-2014
Appeal Filed On 07-03-2019
Judgment Text
D IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH AHMEDABAD (CONDUCTED THROUGH VIRTUAL COURT) BEFORE SHRI RAJPAL YADAV VICE-PRESIDENT AND SHRI AMARJIT SINH ACCOUNTANT MEMBER ITA NO.372 TO 374/AHD/2019 / ASSTT.YEAR : 2013-14 TO 2015-16 DCIT (EXEMPTIONS) CIR.2 AHMEDABAD. VS. PARAMOUNT CHARITY TRUST PARAMOUNT COMPLEX NR.NATUBHAI CIRCLE GOTRI ROAD RACE COURSE VADODARA 390 007. PAN : AAATP 2338 T ( APPLICANT ) ( RESPONENT ) REVENUE BY : SHRI S.S. SHUKLA SR.DR ASSESSEE BY : SHRI MEHUL PATEL AR / DATE OF HEARING : 09/04/2021 / DATE OF PRONOUNCEMENT: 18/05/2021 !'/ O R D E R PER RAJPAL YADAV VICE-PRESIDENT: THE ABOVE THREE APPEALS ARE DIRECTED AT THE INSTANC E OF THE REVENUE AGAINST THE ORDERS OF THE LD.CIT(A)-9 AHME DABAD OF EVEN DATED I.E. 12.12.2018 FOR THE ABOVE THREE ASSESSMEN T YEARS. ALL THESE THREE APPEALS ARE DISPOSED OF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE SINCE IDENTICAL ISSUE IS RAISED IN ALL THESE APPEALS. 2. SOLE IDENTICAL ISSUE IN ALL THESE APPEALS IS THA T THE LD.CIT(A) HAS ERRED IN ALLOWING EXEMPTION UNDER SECTION 11 OF THE INCOME TAX ACT 1961 SINCE THE ISSUE OF ELIGIBLE OF THE REGISTRATI ON UNDER SECTION 12A OF THE ACT HAS NOT ATTAINED FINALITY. ITA NO.372 TO 374/AHD/2019 2 3. AS AFORESAID AS THE FACTS AND ISSUE RAISED IN A LL THE CASES ARE SIMILAR EXCEPT QUANTUM WE TAKE THE FACTS FROM ITA NO.372/AHD/2019 FOR DISPOSAL OF ALL THESE APPEALS. 4. BRIEF FACTS OF THE CASE WHICH CAN BE NOTICED FR OM THE RELEVANT ASSESSMENT ORDER IS THAT ASSESSEE IS A PUBLIC CHARI TABLE TRUST AND REGISTERED WITH CHARITY COMMISSIONER UNDER NO.E/246 9/VADODARA DATED 15.6.1997 AND THUS GRANTED RECOGNITION UNDER SECTION 80G OF THE ACT. IT STATED TO BE ENGAGED IN CHARITABLE ACTIVIT IES VIZ. ADVANCEMENT OF EDUCATION HEALTH MEDICAL RELIEF TO THE POOR HELP AFFECTED PEOPLE IN TIMES OF NATURAL CALAMITIES. THE ASSESSEE IS RU NNING A DIAGNOSTIC CENTRE IN THE NAME PARAMOUNT DIAGNOSTIC AND RESEAR CH CENTRE (MRI/CT SCAN CENTRE). THE ASSESSEE WAS GRANTED REG ISTRATION UNDER SECTION 12A(A) ON 1.1.1982 AND TILL ASSESSMENT YEAR 2011-12 IT WAS ASSESSED IN THE STATUS OF CHARITABLE TRUST. SUBSE QUENTLY VIDE ORDER DATED 30.9.2014 THE LD.CIT-I BARODA CANCELLED THE REGISTRATION GRANTED TO THE ASSESSEE U/S.12A OF THE ACT BY OBSER VING THAT THE TRUSTS ACTIVITIES WERE NOT BEING CARRIED OUT IN ACCORDANCE WITH THE OBJECTIVES AS DECLARED FOR THE PURPOSE OF SECTION 12AA. ACCORD INGLY ASSESSMENT UNDER SECTION 143(3) WAS FINALIZED AFTER REJECTION OF EXEMPTION UNDER SECTION 11 OF THE ACT AND NET SURPLUS AS PER INCOME EXPENDITURE STATEMENT WAS DETERMINED AS INCOME OF THE ASSESSEE. ASSESSEE SUBMITTED THAT THE DEPARTMENT HAS ACCEPTED THE CLAI M OF THE ASSESSEE SINCE MORE THAN 20 YEARS AND ENTITLED TO EXEMPTION UNDER SECTION 11 AS THE ACTIVITIES FALL WITHIN THE PURVIEW OF CHARITAB LE PURPOSE DEFINED IN SECTION 2(15) OF THE ACT. THE LD.AO DID NOT ACCEPT THE EXPLANATION OF ITA NO.372 TO 374/AHD/2019 3 THE ASSESSEE. HE OBSERVED THAT INCOME EARNED FROM DIAGNOSTIC CENTRE VIZ. PARAMOUNT DIAGNOSTIC AND RESEARCH CENTRE (MRI/ CT SCAN) WAS NOT USED FOR CHARITABLE PURPOSE RATHER IT WAS ALLO WED TO BE ACCUMULATED AND APPLIED FOR THE BUSINESS GROWTH OF THE TRUST WHICH COULD NOT BE TERMED AS APPLICATION OF FUND FOR CHAR ITABLE PURPOSE. IN VIEW OF THE SAME AND ALSO OF VIEW THAT NO REGISTRA TION WAS GRANTED TO THE ASSESSEE-TRUST THE CLAIM OF EXEMPTION UNDER SE CTION 11 WAS REJECTED AND THE INCOME OVER EXPENDITURE WAS TREAT ED AS INCOME FROM BUSINESS. AGGRIEVED BY THE ORDER OF THE AO THE AS SESSEE WENT IN APPEAL BEFORE THE LD.FIRST APPELLATE AUTHORITY. TH E LD.CIT(A) WHILE CONSIDERING THE FACTS OF THE CASE ALLOWED THE CLAIM OF THE ASSESSEE AND DIRECTED THE AO TO TREAT THE ASSESSEE AS REGISTERED TRUST UNDER SECTION 12A AND ALLOW CLAIM OF THE EXEMPTION UNDER SECTION 11 AND 12 OF THE ACT. THE LD.CIT(A) RELIED ON THE ORDER OF THE ITAT PASSED IN THE ASSESSEES CASE IN ITA NO.1548/AHD/2018 ORDER DATED 27.4.2018 WHEREBY IDENTICAL ISSUE WAS AGITATED. DISSATISFIED WITH THE ORDER OF THE LD.CIT(A) REVENUE NOW IS IN APPEALS BEFORE THE TRIBUNAL FOR ALL THESE THREE YEARS. 5. BEFORE US THE LD.DR SUPPORTED ORDERS OF THE AO; WHEREAS THE LD.COUNSEL FOR THE ASSESSEE REITERATED SUBMISSIONS MADE BEFORE THE LOWER AUTHORITIES AND ALSO SUPPORTED THE ORDER OF T HE LD.CIT(A). HE FURTHER SUBMITTED THAT THE DEPARTMENT HAS ACCEPTED THE ASSESSEE AS A CHARITABLE INSTITUTION FOR THE LAST 20-25 YEARS AN D THE ASSESSEE HAS BEEN ASSESSED ACCORDINGLY ALL THROUGH THESE YEARS. NO FACTS AND CIRCUMSTANCES HAVE BEEN CHANGED IN THE CASE OF THE ASSESSEE SO AS TO ALTER THE CONSISTENT VIEW TAKEN BY THE DEPARTMENT Y EAR AFTER YEAR. ITA NO.372 TO 374/AHD/2019 4 THERE IS NO JUSTIFICATION WITH THE DEPARTMENT TO RE JECT THE CLAIM OF THE ASSESSEE IN THE PRESENT ASSESSMENT YEARS. THE LD.C IT(A) HAS CONSIDERED ALL THE ASPECTS AND BASED ON THE ORDER O F THE TRIBUNAL IN THE ASSESSEES OWN CASE FOR EARLIER YEARS ON THE SIMILA R ISSUE RIGHTLY ALLOWED THE CLAIM OF THE ASSESSEE. THE LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT EARLIER ORDER OF THE TRIBUNAL DIRECT ING THE REVENUE TO GRANT REGISTRATION TO THE ASSESSEE AND ALLOW EXEMPT ION UNDER SECTION 11 WAS CONFIRMED UPTO THE LEVEL OF HONBLE GUJARAT HIGH COURT AND THEREAFTER SLP PREFERRED BY THE DEPARTMENT BEFORE T HE HONBLE SUPREME COURT WAS ALSO STAND DISMISSED AND THEREFO RE THE IMPUGNED ISSUE ATTAINED FINALITY. HE PLACED ON RECORD COPY O F ORDER OF ITAT IN ITA NO.3119/AHD/2014 DATED 27.2.2018 JUDGMENT HON BLE GUJARAT HIGH COURT IN TAX APPEAL NO.1035 OF 2018 ORDER 21.8 .2018 CONFIRMING THE ORDER OF THE TRIBUNAL AND COPY OF SL P FILED BY THE DEPARTMENT IN SLP (CIVIL) DIARY NO.5855 OF 2019 DAT ED 8.3.2019 BY WHICH HONBLE SUPREME COURT DISMISSED THE SAME. THE REFORE SINCE THE ISSUE GOT FINALITY ORDERS OF THE REVENUE DO NO T SUSTAIN AND ACCORDINGLY ALL THE APPEALS OF THE REVENUE IN THE PRESENT YEARS LIABLE TO BE DISMISSED. 6. WE HAVE CONSIDERED RIVAL SUBMISSIONS AND GONE TH ROUGH THE MATERIAL AVAILABLE ON RECORD. WE HAVE ALSO GONE TH ROUGH ORDER OF THE TRIBUNAL HONBLE GUJARAT HIGH COURT AND ORDER OF T HE HONBLE SUPREME COURT DISMISSING THE SLP FILED OF THE DEPAR TMENTS. WE FIND THAT THE ISSUE AGITATED BEFORE US FOR CONSIDERATION IS WHETHER THE ASSESSEE IS ENTITLED FOR REGISTRATION UNDER SECTION 12AA OF THE ACT AND CONSEQUENT BENEFIT OF EXEMPTION UNDER SECTION 11 OF THE ACT. WE DO ITA NO.372 TO 374/AHD/2019 5 NOT FIND IT NECESSARY TO DELVE INTO ISSUE RAISED IN THESE YEARS AGAIN AS THE TRIBUNAL ON SIMILAR SET OF FACTS IN THE ASSESSE ES OWN CASE EXAMINED THE ISSUE AND ALLOWED CLAIM OF THE ASSESS EE; WHEREIN ONE OF US (VICE-PRESIDENT) WAS PARTY AND AUTHOR. IT IS PE RTINENT TO MENTION THAT THE ISSUE OF CHARITABLE STATUS OF THE ASSESSE E AND ALLOWANCE OF EXEMPTION UNDER SECTION 11 HAS BEEN ACCEPTED BY THE DEPARTMENT CONSISTENTLY FOR THE LAST MORE THAN 20 YEARS. HOWE VER IN THE ASSTT.YEAR 2011-12 WHEN THE CLAIM OF THE ASSESSEE REJECTED BY THE DEPARTMENT THE SAME WAS CHALLENGED BEFORE THE TRIB UNAL AND THE TRIBUNAL AFTER DETAILED DISCUSSION ALLOWED THE CLAI M OF THE ASSESSEE AND CONFIRMED BY THE HONBLE HIGH COURT. THE FACTU M OF DISMISSAL OF APPEAL OF THE REVENUE FOR EARLIER YEARS ON THE SIMI LAR ISSUE UPTO THE LEVEL OF HONBLE SUPREME COURT HAS NOT BEEN DISPUTE D BY THE DEPARTMENT. THEREFORE THE ISSUE ATTAINED FINALITY . FURTHER THE PRINCIPLE OF CONSISTENCY DEMANDS THAT VIEW TAKEN IN ONE YEAR SHOULD BE FOLLOWED IN SUBSEQUENT YEARS UNLESS FACTS AND C IRCUMSTANCES AND ALSO LEGAL POSITION JUSTIFY DEPARTURE THEREFROM. N O MATERIAL HAS BEEN BROUGHT ON RECORD BY THE LD.DR TO DEMONSTRATE THAT THE VIEW TAKEN BY THE TRIBUNAL IN THE EARLIER YEARS WAS ON THE DIFFER ENT SET OF FACTS. ADMITTEDLY THERE IS NO CHANGE IN FACTS AND CIRCUMS TANCES AS COMPARED TO THE PREVIOUS YEARS AND SUBSEQUENT YEARS AND THE REFORE PRINCIPLE OF CONSISTENCY SQUARELY APPLICABLE TO THE PRESENT CASE ON HAND. THEREFORE FOLLOWING OUR EARLIER ORDER IN THE ASSES SEES OWN CASE CITED (SUPRA) BASED ON WHICH THE LD.CIT(A) HAS ALLOWED T HE APPEAL OF THE ASSESSEE AND DIRECTED THE AO TO TREAT THE ASSESSEE AS A CHARITABLE INSTITUTION AND ALLOW EXEMPTION UNDER SECTION 11 OF THE ACT WE DO NOT ITA NO.372 TO 374/AHD/2019 6 ANY MERIT IN THE APPEALS OF THE REVENUE WHICH ARE ACCORDINGLY DISMISSED. 7. IN THE RESULT ALL APPEALS OF THE REVENUE ARE DI SMISSED. ORDER PRONOUNCED IN THE COURT ON 18 TH MAY 2021 AT AHMEDABAD. S D / - (AMARJIT SINGH) ACCOUNTANT MEMBER S D / - (RAJPAL YADAV) VICE-PRESIDENT