Income Tax Appellate Tribunal - Pune
Dcit, Exemption, Circle,, Pune vs Maharshi Karve Stree Shikshan ... on 11 September, 2019
आयकर अपीऱीय अधिकरण पण
ु े न्यायपीठ "ए" पण
ु े में
IN THE INCOME TAX APPELLATE TRIBUNAL
PUNE BENCH "A", PUNE
सुश्री सुषमा चावऱा, न्याययक सदस्य एवं, श्री डी. करुणाकरा राव, ऱेखा सदस्य के समक्ष
BEFORE MS. SUSHMA CHOWLA, JM AND SHRI D. KARUNAKARA RAO, AM
MA No.42/PUN/2019
Arising out of ITA No.1715/PUN/2016
Assessment Year : 2008-09
The Dy. Commissioner of Income Tax,
(Exemption) Circle, Pune .... Applicant
Vs.
Maharshi Karve Stree Shikshan Samstha
Karvenagar,
Pune - 411052 .... Respondent
PAN: AAATM1969L
Applicant by : Shri Manoj Kumar
Respondent by : Shri Nikhil Pathak
सुनवाई की तारीख / घोषणा की तारीख /
Date of Hearing : 06.09.2019 Date of Pronouncement: 11.09.2019
आदे श / ORDER
PER SUSHMA CHOWLA, JM:
The present Miscellaneous Application has been filed by the applicant against the order of Tribunal dated 12.12.2018.
2. The present Miscellaneous Application is moved by the Revenue on the ground that the Tribunal while deciding the issue in para 16 has relied on the decision of Hon'ble High Court of Delhi in DIT Vs. Raghuvanshi Charitable Trust and Ors. (44 DTR 223) (Del), which is on an issue other than the issue arising in the present appeal.
2MA No.42/PUN/2019
3. On perusal of paras 14 to 16 of the Tribunal's order reflects that the Tribunal had reproduced the findings of CIT(A) under para 14, wherein for deciding the issue of accumulation of 15% of gross receipts and balance 85% of receipts to be applied on the objects of Trust had placed reliance on the decision of Hon'ble Supreme Court in CIT v. Rao Charitable Trust (ALN) [216 ITR 697]. Further, the CIT(A) also decided the issue of excess application of receipts and its carry forward to the subsequent year, which in turn, was decided by the Hon'ble Bombay High Court in the case of CIT v. Institute of Banking Personnel Selection [264 ITR 110] and also by the Hon'ble High Court of Delhi in DIT Vs. Raghuvanshi Charitable Trust and Ors. (supra). The Tribunal has relied on the decision of the Hon'ble Supreme Court but by an error the name which is mentioned in para 16 is of the Hon'ble Delhi High Court decision i.e. Raghuvanshi Charitable Trust and Ors. However, the Hon'ble Supreme Court had decided the issue in CIT v. Rao Charitable Trust (supra) and hence, amended para 16 would read as under:-
"16. We find that the Hon'ble Supreme Court in CIT v. Rao Charitable Trust (supra) had held that exemption under section 11(1)(a) of the Act i.e. of 15% of income was absolute exemption and application of section 11(2) of the Act does not extend to nullify absolute exemption. It has further been held by the decision of the Hon'ble Supreme Court in the case of Programme for Community Organization (supra) that a charitable trust was entitled to accumulate 15% of the receipts without considering the expenditure and application made on the objects of trust. The CIT(A) applying the said proposition has allowed the claim of assessee. We find no merit in the grounds of appeal raised by Revenue in this regard and we uphold the 3 MA No.42/PUN/2019 method of computation of deficit applied by CIT(A) in line with the provisions of section 11(1)(a) of the Act."
4. Now, coming to the second issue raised in the Miscellaneous Application, wherein reference is made to the decision of Mumbai Bench of Tribunal in Dawat Institute of Dawoodi Bohra Vs. ITO, order dated 14.04.2008. This reliance was placed upon by the Assessing Officer while deciding the issue. However, the Mumbai Bench of Tribunal while giving the said decision has failed to meet the dictate of the Hon'ble Supreme Court in CIT v. Rao Charitable Trust (supra). Hence, the said reliance on the decision of Mumbai Bench of Tribunal in Dawat Institute of Dawoodi Bohra Vs. ITO (supra) is misplaced. We have relied on the ratio laid down by the Hon'ble Supreme Court in CIT v. Rao Charitable Trust (supra) and applying the dictate of the Hon'ble Supreme Court, we have dismissed the grounds of appeal raised by Revenue in this regard and upheld the method of computation of deficit applied by CIT(A). We find no merit in the second issue raised in the Miscellaneous Application filed by Revenue, hence the same is dismissed.
5. In the result, Miscellaneous Application of applicant is dismissed.
Order pronounced on this 11th day of September, 2019.
Sd/- Sd/-
(D.KARUNAKARA RAO) (SUSHMA CHOWLA)
ऱेखा सदस्य / ACCOUNTANT MEMBER न्याययक सदस्य / JUDICIAL MEMBER
पुणे / Pune; दिनाांक Dated : 11th September, 2019.
GCVSR 4 MA No.42/PUN/2019 आदे श की प्रयिलऱपप अग्रेपषि/Copy of the Order is forwarded to :
1. The Applicant;
2. The Respondent;
3. The CIT(A), Pune-10;
4. The CIT(Exemptions), Pune;
5. The DR 'A', ITAT, Pune;
6. Guard file.
आदे शानस ु ार/ BY ORDER, सत्यापपत प्रतत //True Copy// वररष्ठ तनजी सचिव / Sr. Private Secretary आयकर अपीऱीय अचिकरण ,पण ु े / ITAT, Pune