Income Tax Appellate Tribunal - Amritsar
Sri Guru Gobind Singh Educational Trust ... vs Department Of Income Tax on 9 April, 2012
IN THE INCOME TAX APPELLATE TRIBUNAL
AMRITSAR BENCH; AMRITSAR.
BEFORE SH. H.S. SIDHU, JUDICIAL MEMBER
AND SH. B.P.JAIN, ACCOUNTANT MEMBER
I.T.A. No. 286(Asr)/2010
Assessment year:2006-07
PAN;
The Income Tax Officer, Vs. Sri Guru Gobind Singh Educational Trust,
Dasuya. Mukerian.
(Appellant) (Respondent)
Appellant By: Sh. Amrik Chand , DR
Respondent By: Sh. J.S. Bhasin, Adv.
Date of hearing :09/04/2012
Date of pronouncement: 16/04/2012
ORDER
PER BENCH;
This appeal filed by the Revenue is directed against the impugned order of the CIT(A), dated 29.03.2010 relating to assessment year 2006-07 on the following grounds:
"1. That on the facts and in the circumstances of the case, the Ld. CIT(A) has erred in law in allowing exemption u/s 11 of the Income-tax Act, 1961.
1.1. While doing so, the ld. CIT(A) filed to appreciate that the assessee has not claimed exemption u/s 11(1)(a) of the I.T. Act, 1961 in earlier assessment yeas and claimed by way or revised return was beyond the time allowed u/s 139(5) of the Act. The 2 ITA No.286(Asr)/2010 Assessment year : 2006-07 AO was right in rejecting the claim in the revised return on the ground that the same was not claimed in the return filed u/s 139(1) of the Act.
2. That on the facts and in the circumstances of the case, the Ld. CIT(A) has erred in law in deleting the addition of Rs.81,740/- made u/s 40(1a) of the Act.
3. That, it is prayed that the order of the ld. CIT(A) be set aside and that of the A.O. restored."
2. The brief facts relating to the issue in dispute are that the assessee filed its return of income for the assessment year under consideration on 21.10.2006 declaring nil income after claiming exemption u/s 10(23C)(vi) of Rs.28,32,253/-. The aims and objects of the trust are to open and maintain schools and colleges, laboratories and hotels and to impart education in Arts, Science, Commerce and Computer Science etc. The assessee had filed an application before the ld. CCIT, Ludhiana for grant of exemption under section 10(23C)(vi) for the assessment year 2005-06 and the same was withdrawn. The assessee thereafter filed a revised return of income on 08.12.2008 claiming exemption u/s 11 of the Act and the AO rejected the same on the ground that the same was not claimed in the original return filed by the assessee under section 139(1) of the Act. The assessee submitted that the Trust has already been registered under section 12A(a) with the CIT, Jalandhar and its claim u/s 10(23C)(vi) may be ignored and it be granted exemption u/s 11 of the Act, to which it was entitled. But the AO has not considered the same being time barred revised return filed by the assessee 3 ITA No.286(Asr)/2010 Assessment year : 2006-07 and the AO rejected the assessee's claim for exemption u/s 11 of the Act and held that its income was taxable.
3. Aggrieved by the order of the AO, the assessee filed an appeal before the Ld. first appellate authority, who vide impugned order dated 29.03.2010 allowed the appeal filed by the assessee by holding that the assessee had made a claim for grant of exemption u/s 11 of the Act by filing the requisite documents in support of its claim, which were also filed before the A.O. The Ld. first appellate authority has also held that if the assessee is entitled to the exemption of its claim under different sections of the Act, it may make the claim under any of the sections even if the conditions of other sections are not fulfilled. The assessee is running educational institutions and impart education which is included in the definition of charitable purposes in section 2(15) of the Act and is also registered under section 12A of the Act by the CIT, Jalandhar. The Ld. first appellate authority further held that the assessee has filed its audit report in Form 10B required for claiming exemption u/s 11 of the Act alongwith the original return of income. It had claimed exemption u/s 10(23C)(vi) of the Act, but subsequently withdrew that claim and claimed exemption u/s 11 of the Act. The AO has examined and verified that the assessee trust fulfilled all the conditions for grant of exemption of its income u/s 11 of the Act. The Ld. first appellate authority 4 ITA No.286(Asr)/2010 Assessment year : 2006-07 has also called for the remand report from the A.O. on the claim of exemption u/s 11(1) of the Act and finally allowed the exemption as requested by the assessee.
4. After hearing both the parties and perusing the relevant materials available with us, we are of the view that the ld. first appellate authority has passed a well reasoned order on the issue in dispute, which is on the basis of documentary evidences filed by the assessee before the A.O. as well as the ld. first appellate authority. Therefore, we uphold the impugned order of the ld. first appellate authority on the issue involved in ground No.1 and dismiss ground No.1 of the Revenue.
5. As regards the issue involved in ground No.2 of the Revenue regarding deletion of addition of Rs.81,740/- made under section 40(1a) of the Income-tax Act, 1961, we are of the view that the ld. first appellate authority has rightly deleted the addition in dispute after appreciating the entire evidence produced by the assessee as well as after appreciating the provisions of law applicable on the issue in dispute. After going through the findings given by the ld. first appellate authority, as mentioned in para 2.3.1 to 2.3.6, we are of the considered opinion that the ld. first appellate authority has rightly appreciated the provisions of law on the issue in dispute and has rightly deleted the addition in dispute. Accordingly, we uphold the findings 5 ITA No.286(Asr)/2010 Assessment year : 2006-07 of the ld. CIT(A) on the issue in dispute by dismissing the issue involved in ground No.2 of the appeal of the Revenue.
6. In the result, the appeal filed by the Revenue is dismissed.
Order pronounced in the open court on 16th April, 2012.
Sd/- Sd/-
(B.P. JAIN) (H.S. SIDHU)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Dated:16th April, 2012
/SKR/
Copy of the order is forwarded to :
1. The Assessee:Sri Guru Gobind Singh Educational Trust, Mukerian.
2. The ITO, Dasuya.
3. The CIT(A), Jalandhar.
4. The CIT, Jalandhar.
5. The SR DR, ITAT, Asr.
True copy By Order (Assistant Registrar) Income Tax Appellate Tribunal Amritsar Bench : Amritsar.