Income Tax Appellate Tribunal - Delhi
Baba Samtai Nath Charitable Trust, ... vs Department Of Income Tax on 8 January, 2010
ITA NO. 1194/Del/2010
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH "A", NEW DELHI
BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER
AND
SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER
I.T.A. No. 1194/Del/2010
A.Y. : 2006-07
Asstt. Commissioner of Income Tax, vs. M/s Baba Samtai Nath Charitable
Circle Rewari, Aayakar Bhavan, Trust,
Model Town, Rewari (Haryana)- Village, Nawaan, Distt.
123401 Mohindergarh
(PAN/GIR NO. : AABTB 2965N)
(Appellant ) (Respondent )
Asseessee by : Application for adjournment
Rejected
Department by : Mrs. Srujani Mohanty, Sr. D.R.
ORDER
PER SHAMIM YAHYA: AM This appeal by the Revenue is directed against the order of the Ld. Commissioner of Income Tax (Appeals) dated 08.1.2010 pertaining to assessment year 2006-07.
2. The ground raised is that Ld. Commissioner of Income Tax (Appeals) has erred in law and facts in deleting the addition made on account of expenditure incurred for non-charitable purpose merely on the grounds that the assessee has been granted registration u/s. 12AA, ignoring the facts that the assessee has not incurred qualifying expenditure on charitable activities as required u/s. 11 & 12.
3. In this case Assessing Officer noted that assessee society derived income from the donation. He noted that assessee society 1 ITA NO. 1194/Del/2010 was formed for the welfare of cows, construction of Gaushala, imparting education / scholarship to backward classes and STs, help to disabled person organization of blood donation camp and other social works cultural and development and welfare of rural youth and general public but it was noticed during the assessment proceedings that the assessee society has not incurred expenditure on charitable objects. The expenses incurred were mainly on salary to employees, maintenance and repair of dharmshala, purchasing of cars, and investment in FDRs. Further, Assessing Officer noted that assessee was not registered u/s 12AA of the Act, therefore, it was not entitled to exemption u/s 11(1) of the Act. Assessing Officer proceeded to make the assessment at ` 11,39,790/-.
4. Upon assessee's appeal Ld. Commissioner of Income Tax (Appeals) noted that Ld. Commissioner of Income Tax, Rohtak has granted registration u/s 12AA from 11.3.2005. Therefore, the assessee's income was eligible for exemption. Hence, the addition made by the Assessing Officer was deleted.
5. Against the above order the Revenue is in appeal before us.
6. None appeared on behalf of the assessee. However, adjournment petition was received, which has been rejected by us. We have heard the Ld. Departmental Representative and perused the records. We find that Assessing Officer had made the assessment on the premise that assessee society is not registered u/s 12AA of the IT Act. However, the Ld. Commissioner of Income Tax (Appeals) has given a finding that C.I.T.(Rohtak) has granted registration u/s 12AA of the assessee society from 11.3.2005. Under the circumstances, we do 2 ITA NO. 1194/Del/2010 not find any infirmity in the order of the Ld. Commissioner of Income Tax (Appeals). Accordingly, we uphold the same.
7. In the result, the appeal filed by the Revenue stands dismissed.
Order pronounced in the open court on 04/11/2011.
Sd/- Sd/-
[RAJPAL YADAV]
YADAV] [SHAMIM YAHYA]
JUDICIAL MEMBER ACCOUNTANT MEMBER
Date 04/11/2011
SRB
Copy forwarded to: -
1. Appellant 2. Respondent 3. CIT 4. CIT (A)
5. DR, ITAT
TRUE COPY
By Order,
Assistant Registrar,
ITAT, Delhi Benches
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