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Income Tax Appellate Tribunal - Delhi

Kanahya Lal Dayawanti Punj Charitable ... vs Department Of Income Tax on 28 June, 2016

                 IN THE INCOME TAX APPELLATE TRIBUNAL
                       DELHI BENCH: 'F' NEW DELHI

               BEFORE SMT DIVA SINGH, JUDICIAL MEMBER
                                AND
                 SH.O.P.KANT, ACCOUNTANT MEMBER

                         I.T.A .No.-2753 & 6523/Del/2013
                       (ASSESSMENT YEAR-2004-05 & 2008-09)
       DDIT(E),          vs Kanahya Lal Dayawanti Punj Charitable
       Inv. Circle-II,       Society (now known as Pt.Kanahya Lal
       New Delhi.            Dayawanti Punj Foundation),
                             17-18, Nehru Place, New Delhi-110019.
                             PAN-AAATP0913B
       (APPELLANT)           (RESPONDENT)

               Appellant by         Sh.V.R.Sonbhadra, Sr.DR
               Respondent by        Sh. Ashwani Kumar, FCA


                        Date of Hearing              22.06.2016
                     Date of Pronouncement           28.06.2016
                                   ORDER

PER BENCH These are two appeals filed by the Revenue assailing the correctness of the order dated 01.02.2013 and 06.09.2013 of CIT(A)-XXI, New Delhi pertaining to 2004-05 & 2008-09 assessment years on the following grounds: -

1. On the facts and in the circumstances of the case and in law, the Ld.CIT(A) has erred in allowing exemption u/s 11/12 of the Income Tax Act, 1961 to the assessee ignoring the fact that sharing of surplus amounting to 80% of the total receipts is clear cut commercial activity in which Pt. Kanahya Lal Dayawanti Punj Foundation is involved.

2. On the facts and in the circumstances of the case and in law, the Ld.CIT(A) has erred in deleting the total addition of Rs.30,50,000/-

made by the AO on account of donation paid to Mai Kamliwali Jan Kalyan Charitable Trust Hospital.

3. The appellant craves leave to add, to alter or amend any ground of appeal raised above at the time of hearing."

1. On the facts and in the circumstances of the case and in law, the Ld.CIT(A) has erred in allowing exemption u/s 11 of the Income Tax Act, 1961 to the assessee ignoring the fact that sharing of surplus I.T.A .No.- 2753 & 6523/Del/2013 amounting to 80% of the total receipts is a clear cut commercial activity in which Pt. Kanahya Lal Dayawanti Punj Foundation is involved.

2. On the facts and in the circumstances of the case and in law, the Ld.CIT(A) has erred in deleting the total addition of Rs.5,00,000/- on account of donation paid to Mai Kamliwali Jan Kalyan Charitable Trust Hospital.

3. The appellant craves leave to add, to alter or amend any ground of appeal raised above at the time of hearing."

2. Ld.AR inviting attention to the departmental appeals filed submitted that the appeals have been filed in violation of the CBDT Circular No.21/2015 dated 10th December, 2015 as the tax effect is less than Rs.10 lacs. Inviting attention to ITA No.6523/Del/2013 it was submitted that the fact that the ground itself is mentioning an amount of Rs. 5lacs, the appeal is below tax effect. Addressing ITA No.2753/Del/2013 in 2004-05 AY taking note of the objections of the Revenue that the amount mentioned in the grounds suggests that the addition assailed is of Rs.30.50 lacs, the Ld.AR was required to file a calculation sheet in support of his claim. Accordingly the appeal was passed over. In the second round, the Ld.AR submitted that the tax effect involved is Rs.9,15,000/- and the following calculation was filed in support of the same:-

       Income declared                                  NIL
       Income assessed                                  Rs.23,54,534/-
       As per ITN 5150, it works out at                 Rs.7,06,280/-

Even it addition of Rs.30,50,000/- is taken into account, tax effect works out at Rs.9,15,000/-

2.1. The Ld.Sr.DR was given time to consider the same and the appeal was passed over.

3. Considering the same, the Ld.Sr.DR fairly conceded that in the appeals of the Revenue, the tax effect involved is less than Rs.10 Lacs and the calculation provided by the Ld.AR was correct.

4. In the light of the submission of the parties and on a perusal of the material on record, we find that the assessee's prayer has to be allowed. The CBDT vide the aforesaid Circular dated 10.12.2015 has revised the monetary limit to Rs.10 Lacs for filing the appeal by the department before Income Tax Appellate Tribunal. The amounts set out in Para 3 of the aforesaid Circular vide para 10 of the same has been made retrospective. Considering the settled legal precedent Page 2 of 3 I.T.A .No.- 2753 & 6523/Del/2013 that the Board's instructions or directions issued to the Income Tax Authorities u/s 268A of the Income Tax Act, 1961 are binding on the authorities, we dismiss the departmental appeals considering the material available on record.

5. In the result, the appeals of the Revenue are dismissed.

The order is pronounced in the open court on 28th June, 2016.

     Sd/-                                                                Sd/-
(O.P.KANT)                                                          (DIVA SINGH)
ACCOUNTANT MEMBER                                              JUDICIAL MEMBER


*Amit Kumar*
Copy forwarded to:

1.     Appellant
2.     Respondent
3.     CIT
4.     CIT(Appeals)
5.     DR: ITAT
                                                           ASSISTANT REGISTRAR
                                                                 ITAT NEW DELHI




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