Income Tax Appellate Tribunal - Jaipur
M/S. Kindoori Lal C/O- Dwarka Prasad ... vs Ito (Exemption) Ward-1, Jaipur, ... on 10 September, 2020
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IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCH VC 'DB', JAIPUR
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BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM
vk;dj vihy la-@ITA No. 712/JP/2019
fu/kZkj.k o"kZ@Assessment Year : 2015-16.
M/s. Kindoori Lal Dwarka Prasad cuke The Income Tax Officer,
Goyal Charitable Trust, Vs. (Exemptions), Ward-1,
80, Gopal Wari, Ajmer road, Jaipur.
Jaipur.
LFkk;h ys[kk la-@thvkbZvkj la-@PAN No. AAATK 2554 K
vihykFkhZ@Appellant izR;FkhZ@Respondent
fu/kZkfjrh dh vksj ls@ Assessee by : Shri Manish Agarwal (CA)
jktLo dh vksj ls@ Revenue by: Ms Chanchal Meena (Addl. CIT)
lquokbZ dh rkjh[k@ Date of Hearing : 10.09.2020.
?kks"k.kk dh rkjh[k@ Date of Pronouncement : 10/09/2020.
vkns'k@ ORDER
PER VIJAY PAL RAO, JM :
This appeal by the assessee is directed against the order dated 28th March, 2019 of ld. CIT (A)-3, Jaipur for the assessment year 2015-16. The assessee has raised the following grounds :-
" 1. On the facts and in the circumstances of the case and in law, ld.
CIT (A) erred in adjudicating the appeal, without providing adequate opportunity of being heard. It is, therefore, prayed that order passed by ld. CIT (A) is against the principles of natural justice and deserves to be held bad in law.
2. On the facts and in the circumstances of the case, the ld. CIT (A) has grossly erred in confirming the action of ld. AO in not allowing the exemption u/s 11 of the Income Tax Act, 1961 merely by holding that the assessee has not produced the copy of certificate u/s 12AA of the Act despite the fact that 2 ITA No. 712/JP/2019. Kindoori Lal Dwarka Pd. Goyal Charitable Trust, Jaipur.
Registration No. and date of Registration was clearly mentioned in the computation of income itself available before ld. AO.
3. On the facts and in the circumstances of the case, the ld. CIT (A) has grossly erred in confirming the action of ld. AO in completing the assessment of assessee in the status of an AOP as against a charitable trust registered u/s 12AA of the Act. Appellant prays that the assessee is required to be assessed as a charitable trust exemptions u/s 11 of the Act are to be allowed.
4. On the facts and in the circumstances of the case, the ld. CIT (A) has grossly erred in confirming the action of ld. AO in treating the room charges of 'Dharmshala' totaling Rs. 14,15,939/- received from 'Yatris' as income from house property ignoring the fact that same is part of charitable activity and therefore the surplus of income over expenditure declared by assessee is eligible for exemption u/s 11 of the Income Tax Act, 1961.
4.1. That, the ld. CIT (A) has further erred in confirming the disallowance of expenditure incurred by assessee for running the 'Dharamshala' by incorrectly treating the room charges of Dharmshala received from "yatris" as 'income from house property' against actually the charitable activity and thereby expenditure incurred being lawfully allowable to assessee. Appellant prays the expenditure incurred by assessee for maintaining the Dharamshala deserve to be allowed.
5. On the facts and in the circumstances of the case, the ld. CIT (A) has grossly erred in confirming the action of ld. AO in allowing only an amount of Rs. 1,66,193/- towards expenses claimed by assessee in the income and expenditure account, and disallowing the rest of the expenses which were clearly relatable to the income earned by assessee and therefore were lawfully allowable. Appellant prays the expenses as claimed by assessee in the Income and Expenditure account deserve to be allowed in toto.
6. The appellant craves the right to add, delete or amend any of the grounds of appeal either before or at the time of hearing of appeal."
3ITA No. 712/JP/2019.
Kindoori Lal Dwarka Pd. Goyal Charitable Trust, Jaipur. The hearing of the appeal is concluded through Video Conference due to prevailing condition of COVID 19 pandemic.
2. The assessee stated to be a charitable trust and filed its return of income on 31st March, 2016 declaring Nil income after claiming the exemption under sections 11 and 12 of the IT Act. The AO has denied the claim of exemption under sections 11 & 12 of the Act for want of supporting evidence and particularly the Certificate of Registration under section 12A of the IT Act. The assessee challenged the action of the AO before the ld. CIT (Appeals), however, the appeal of the assessee was dismissed ex parte due to non appearance on behalf of the assessee.
3. We have heard the ld. A/R as well as the ld. D/R and carefully perused the orders of the authorities below. The AO while completing the assessment ex parte under section 144 of the IT Act has denied the claim of exemption under sections 11 & 12 of the Act for want of supporting evidence and particularly the copy of Certificate of Registration under section 12A/12AA of the IT Act. The assessee challenged the said action of the AO before the ld. CIT (A) and reiterated its claim that the assessee is a charitable trust and was granted Registration under section 12A of the IT Act. However, since nobody has appeared before the ld. CIT (A) when the appeal was fixed for hearing and consequently the ld. CIT (A) has dismissed the appeal for want of any explanation as well as supporting evidence produced by the assessee. The only issue is non production of the Registration Certificate for the purpose of claiming exemption under sections 11 & 12 of the Act remained unexamined by the ld. CIT (A) due to non appearance of the assessee. The ld. A/R of the assessee has submitted that the assessee was granted registration under 4 ITA No. 712/JP/2019. Kindoori Lal Dwarka Pd. Goyal Charitable Trust, Jaipur. section 12A/12AA of the Act and, therefore, the assessee may be given one more opportunity to produce the relevant evidence/Certificate of Registration before the ld. CIT (A). The ld. D/R has relied upon the orders of the authorities below and submitted that despite several opportunities given by the AO as well as by the ld. CIT (A), the assessee has failed to produce the supporting evidence to claim the exemption under sections 11 & 12 of the Act. Since the appeal of the assessee was dismissed due to non appearance, therefore, in the facts and circumstances of the case and in the interest of justice, we grant one more opportunity to the assessee to produce the supporting evidence for the claim of exemption under sections 11 & 12 of the Act. Accordingly, the impugned order of the ld. CIT (A) is set aside and the matter is remanded to the record of the ld. CIT (A) for deciding the same afresh after giving one more opportunity of hearing to the assessee.
4. In the result, appeal of the assessee is allowed for statistical purposes.
Order is pronounced in the open court on 10/09/2020.
Sd/- Sd/-
(foØe flag ;kno) (fot; iky jkWo ½
(VIKRAM SINGH YADAV ) (VIJAY PAL RAO)
ys[kk lnL;@Accountant Member U;kf;d lnL;@Judicial Member
Jaipur
Dated:- 10/09/2020.
Das/
vkns'k dh izfrfyfi vxzfs "kr@Copy of the order forwarded to:
1. The Appellant- M/s. Kindoori Lal Dwarka Prasad Goyal Charitable Trust, Jaipur.5 ITA No. 712/JP/2019.
Kindoori Lal Dwarka Pd. Goyal Charitable Trust, Jaipur.
2. The Respondent - The ITO (Exemptions), Ward 1, Jaipur.
3. The CIT(A).
4. The CIT,
5. The DR, ITAT, Jaipur
6. Guard File (ITA No. 712/JP/2019) vkns'kkuqlkj@ By order, lgk;d iathdkj@ Assistant. Registrar