Income Tax Appellate Tribunal - Chandigarh
Jt. Cit, (Osd), C-2 (E), Chandigarh vs M/S Vishav Manav Ruhani Kendra, ... on 21 May, 2020
आयकर अपील य अ धकरण, च डीगढ़ यायपीठ "बी", च डीगढ़
IN THE INCOME TAX APPELLATE TRIBUNAL,
CHANDIGARH BENCH 'B , CHANDIGARH
ी संजय गग , याय क सद य एवं ीमती अ नपण
ू ा गु&ता, लेखा सद य
BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER
AND SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER
आयकर अपील सं./ ITA No.899/Chd/2019
नधा रण वष / Assessment Year : 2014-15
The J.C.I.T.(OSD), बनाम M/s Vishav Manav Ruhani Kendra,
(Exemptions), Circle-2, Nawan Nagar, Circle-2,
Chandigarh. Chandigarh.
थायी लेखा सं./PAN NO: AAFFV1981L
अपीलाथ /Appellant यथ /Respondent
नधा रती क ओर से/Assessee by: Shri Ajay Jain, CA
राज व क ओर से/ Revenue by: Smt.Chanderkanta, CIT DR
सन
ु वाई क तार$ख/Date of Hearing : 04 .03.2020
उदघोषणा क तार$ख/Date of Pronouncement:. 21/05/2020
आदे श/ORDER
Per Annapurna Gupta, Accountant Member:
Th e a b ove a pp e a l h a s be e n p re fe r re d by th e Re ve nue a ga i n st t he or de r of th e C ommis si one r of I n come Ta x ( Ap p e a l s) , P a nc hk u la [( i n s h or t r e fe r re d to a s 'C I T(A )'] d a t e d 1 2 .0 3 .2 0 1 9 r e l a ti ng to a s se ssme nt y e a r 2 0 14-1 5 , pa s se d u /s 2 5 0 (6 ) ) of t he I n co me Ta x Ac t, 1 9 61 ( he re in a fte r r e fe rre d to a s 'Act'.
Th e Re v e n ue h a s r a is e d the f oll owi ng gr ou nd s of a p p e a l :
"i. T h a t o n t h e f ac t s an d i n t h e c i r c u m s t an c e s o f t h e c as e , t h e L d . C I T ( A ) h as e r r e d i n l a w i n a l l o w i n g t h e ap p e a l o f t h e a s s e s s e e b y a l l o wi n g e x e mp t i o n o t h e as s e s s e e u / s 1 1 / 1 2 o f t h e I n c o me T a x A c t d e s p i t e t h e f a c t t h a t t h e 2 ITA No.899/Chd/2019 A.Y. 2014-15 a c t i v i t i e s o f t h e a s s e s s e e we r e n o t c o v e r e d u / s 2 ( 1 5 ) o f th e Act.
ii. T h a t o n t h e f ac t s an d i n t h e c i r c u m s t an c e s o f t h e c as e , t h e L d . C I T ( A ) h as e r r e d i n l a w i n a l l o w i n g t h e ap p e a l o f t h e as s e s s e e i g n o r i n g t h e f ac t t h a t t h e d o n a t i o n s a mo u n t i n g t o R s . 1 3 , ` 8 , 8 2 , 0 4 0 / - we r e n o t c o r p u s d o n a t i o n s as t h e s a me we r e r e c e i v e d wi t h o u t a n y s p e c if i c d i r e c t i o n .
iii. T h a t o n t h e f ac t s an d i n t h e c i r c u m s t an c e s o f t h e c as e , t h e L d . C I T ( A ) h as e r r e d i n l a w i n a l l o wi n g t h e c l a i m o f c ap i t a l e x p e n d i t u r e i n c u r r e d d u r i n g t h e ye a r t o t h e as s e s s e e ig n o r i n g t h a t t h e e x e mp t i o n u / s 1 1 / 1 2 o f t h e A c t w a s r ig h t l y d e n i e d t o t h e as s e s s e e .
iv. T h a t o n t h e f ac t s a n d i n t h e c i r c u m s t an c e s o f t h e c as e , t h e L d . C I T ( A ) h as e r r e d i n l a w i n d e l e t i n g t h e a mo u n t of Rs.12,35,40,420/- assessed by the AO allo wing e x e mp t i o n t o t h e a s s e s s e e u / s 1 1 / 1 2 o f t h e A c t wh i c h w a s r ig h t l y d e n i e d b y t h e A O .
v. T h a t t h e a p p e l l an t c r av e s t o l e a v e , ad d o r a me n d a n y g r o u n d s o f ap p e al o n o r b e f o r e t h e ap p e a l i s h e a r d o r disposed of."
2. As i s e vi de n t f r om the pe r u sa l o f the g r oun d s a bov e , the gr i e v a nce o f the R e ve nue in the p r e se nt a p pe a l i s aga i ns t t he or d e r of the Ld .C I T(A ) in a l lo wi n g the a sse ssee 's c l a im of e xe mp ti on u/s 1 1 /1 2 of the A ct, a ll ow i ng i ts cl a i m of cor p us d on a tio ns a mou n ti n g to Rs .1 3 .1 8 c r or e s a nd fu rt he r i n a ll ow i ng th e c la i m of ca pi ta l e xpe n d it ure in cu rr e d by the a ss e s see on a cq u i si ti on of lan d u nd e r the p r ovi si on s of se c ti on 1 1/1 2 of t he Ac t. Th e i ssu e inv olv e d in the pre se nt a p pe a l the re f ore re l a te s to the p r ovi si on s un de r the I nc ome Ta x Ac t w h ic h gr a nt e xe mp ti on to i n come s of cha ri ta b l e tr ust .
3. Th e b r ie f fa c ts r e l a ti ng to the ca s e a re t ha t th e a ss e ssee so ci e ty is re g iste re d u nde r the H a r ya n a Re gis tr a ti on and Re gul a ti on of S oc ie tie s A ct an d ha s a l so bee n g ra n te d r e gi s tr a tio n as a c ha r i ta b le tru st by the C om mi ss io ne r of I n co me Ta x, P a n ch ku l a un d e r se cti on 12 A of th e Ac t, vi d e or de r d a te d 1 7 . 9. 2 00 7. D ur i ng a ss ess me n t p r oce e d in gs for t he i mpu gn e d ye a r , the A O n ote d t hat th e a i ms a n d ob j e ct s of the a ss e s see s ocie ty w e re of g e ne r a l n a tu r e a n d d i d n ot p oi n t to 3 ITA No.899/Chd/2019 A.Y. 2014-15 a n y s pe ci fi c li mb of ch a r it y a s p re sc ri be d u /s 2 ( 1 5) o f t he Ac t . H e a l so note d tha t th e soc ie ty w as p r e a ch i ng se rmon s thr ou gh sa t sa n g, e tc . a nd i ts ma i n e xp e nd i tur e w a s to wa r d s lu ng a r e x pe nse s, sa ts a ng e xpe n se s , h onor a ri u m s e va d a r s a n d t ha t i ts r e ce i pt s we re o nl y i n th e f orm of d on a tio n o n a c cou nt of r e l i gio us p re a ch ings . The AO a f te r con si d e r i ng a l l the se a spe cts h e l d tha t the a s se s se e w a s not e l ig ib l e t o e xe mp ti on u /s 1 1 /1 2 of th e A ct a nd de ni e d the sa me to th e a sse ssee . Th e A O fu rt he r n ote d th a t the a sse sse e h a d sh ow n r e ce i p ts of c or p us d on a ti on a mou nti n g to Rs. 1 3, 1 8 ,8 2 ,0 4 0 /- a l ong wi th oth e r don a ti on s a n d h a d no t re fle c te d the s a me i n i ts in come a n d e xpe nd i ture a cc oun t. H e fu rthe r n ote d tha t th e a sse ssee ha d p ur ch a se d se ve ra l p ie ce s of l a nd d u ri n g the y e a r i n c a sh a nd h a d cl a ime d ut il i za t ion of th e sa me u/s 1 1 / 1 2 of the A ct . The A O ma d e e n q ui r ie s v is -à -vi s c or pu s d on a ti on r e ce i ve d a n d fou nd th e re w a s n o sp e c if i c d ir e cti on fr om th e d on or s fo r t re a ti ng t he d on a tio ns a s t ow a rd s c or p us of t he a s se sse e soc ie ty, i n t he co nf ir ma ti on s su bmi tte d b y th e ass e ssee . Ac cor d in gl y, h e he ld th a t the d on a ti on s di d n ot q ua l i fy a s c or pu s d ona t ion . Fu r the r th e AO he ld th a t si n ce th e a sse ssee h a d cl a ime d u ti li z a tio n of th e sa me f or p ur ch a se o f l a nd , th e a s se s se e di d not f ul f il l t he co nd i tio ns p r e s cr ib e d u/s 1 1 /1 2 of the A ct to a va il t he s a me . He a cc or di n gl y, tr e a te d t he e nti r e cor p u s do na ti on as t he i nc ome of the a ss e ssee and fu r the r de nie d th e c la i m of ut il i za t ion f or p urc ha s e of la nd t o th e a sse ssee . A cc or d in gl y t he AO a s se s se d a n a moun t of Rs. 1 2 , 3 5, 4 0 ,4 2 0 /- a s in co me of t he a ss e s see l i a ble to ta xa t ion .
4. B e f ore t he Ld .C I T( A ) d e ta il e d a r gume nts w e re ma d e b y t he a ss e s see , re p ro duce d a t p a r a 4. 3 of th e or de r , a fte r con si d e r i ng w hi c h the Ld .C IT( A) a l l ow e d th e a ss e ssee ' s a ppe a l in e nt ire ty, i nc lu d in g its c la i m of e xe mpt ion u /s 1 1 /1 2 o f the A ct, the 4 ITA No.899/Chd/2019 A.Y. 2014-15 tr e a t me n t of i ts d ona ti on s cl a ime d a s c or p us d ona t ion s a nd t he cl a i m of uti l iz a ti on of d on a ti ons f or p u rc ha s e of l and .
5. Agg ri e ve d b y the sa me , the Re ve nu e h a s come u p in a p pe al b e f ore us.
6. I n g r oun d N o.1 th e Re ve nue h a s ch a l le nge d the a llow a n ce of cl a i m of e xe mp ti on u/s 1 1 /12 of the A ct by th e Ld. C I T( A) , d e s pi te a lle ge d ly t he f in d in gs of the A O th a t the a c ti vi ti e s of th e a sse ssee we re n ot c ha r i ta b le .
Th e fi n di n gs of th e Ld. C I T( A) a ll ow i ng th e a b ove cl a i m of t he a ss e s see a re a t p a r a 4 .4 of the or d e r , w h ic h a re r e p ro du ce d h e re u nde r :
"4.4 I h av e p e r u s e d t h e r i v a l c o n t e n t i o n s a n d t h e v a r i o u s d o c u me n t ar y e v i d e n c e s s u b m i t t e d i n t h e ap p e l l a t e p r o c e e d i n g s i n t h e f o r m o f A i ms & o b j e c ts a n d R u l e s a n d R e g u l a t i o n s o f t h e a p p e l l an t S o c i e t y , t h e l i s t o f d o n a t i o n s , r e c e i p t v o u c h e r s & r e c o r d s o f c o r p u s a s we l l a s g e n e r al d o n a t i o n s m a i n t a i n e d b y t h e a p p e l l an t , c o p i e s o f c o n f ir m a t i o n s f r o m d o n o r s a n d as s e s s me n t o r d e r s o f v ar i o u s y e ar s , a l l o f wh i c h we r e a l s o p r o d u c e d b e f o r e t h e A O d u r i n g as s e s s me n t p r o c e e d i n g s a n d t h e v a r i o u s c a s e l a w s r e l i e d u p o n b y t h e a p p e l l an t . A f t e r c o n s i d e r a t i o n s o f al l t h e f a c t s a n d c i r c u ms t an c e s an d e v i d e n c e s o n r e c o r d , I a m o f t h e c o n s i d e r e d o p i n i o n t h a t t h e ap p e l l an t ' s s u b m i s s i o n s ag a i n s t t h e a d d i t i o n s m a d e i n t h e a s s e s s me n t o r d e r an d i t s r e l i a n c e o n v a r i o u s j u d i c i a l d e c i s i o n s as e l ab o r a t e d i n i t s s u b m i s s i o n s h a s m e r i t . T h e a p p e l l a n t S o c i e t y i s a r e l i g i o u s c u m c h ar i t a b l e s o c i e t y w h i c h w a s g r an t e d r e g i s t r a t i o n u / s 1 2 A A o f t h e A c t w. e . f . A . Y . 2 0 0 6 - 0 7 v i d e o r d e r o f C I T , P a n c h k u l a d a t e d 1 7 . 0 9 . 2 0 0 7 af t e r d u e c o n s i d e r a t i o n g i v e n t o a i ms an d o b j e c t s o f t h e s o c i e t y . T h e r e g is t r a t i o n h a s n o t r e v o k e d . T h e e x e mp t i o n u / s 1 1 h a s b e e n a l l o we d i n p r e v i o u s as we l l a s s u b s e q u e n t as s e s s me n t y e ar s w h e r e o r d e r s u / s 1 4 3 ( 3 ) we r e p a s s e d af t e r s c r u t i n y a n d c h ar i t a b l e n a t u r e o f ac t i v i t i e s h as b e e n a c c e p te d b y t h e A O s . T h e f ac ts o f t h e c u r r e n t y e a r s i n a p p e al w i t h r e s p e c t t o n a t u r e o f a c t i v i t i e s a r e n o t a n y d if f e r e n t f r o m e a r l i e r o r s u b s e q u e n t y e ar s . T h e s o c i e t y h a s u t i l i z e d t h e g e n e r a l d o n a t i o n s an d o t h e r r e c e i p t s f o r a i ms a n d o b j e c t i v e s g i v e n i n m e m o r an d u m o f as s o c i a t i o n o f S o c i e t y f o r wh i c h r e g is t r a t i o n was g r a n t e d i . e b y i n c u r r i n g expenditure of Rs.20,02,167/- on running of school, R s . 1 8 , 6 7 , 5 2 7 / - o n c h ar i t a b l e ac t i v i t i e s o f r u n n i n g me d i c a l c a mp s a n d o l d a g e h o me s wh i c h c a n n o t b e d e n i e d t o h a v e n o t b e e n i n c u r r e d f o r t h e p u r p o s e o f e d u c a t i o n , me d i c a l r e l i e f a n d r e l i e f t o t h e p o o r . T h e a p p e l l a n t h a s a l s o r i g h t l y c l a i me d t h a t l u n g a r e x p e n s e s a r e an o t h e r n a me f o r p r o v is i o n o f f o o d t o at t e n d e e s o f m e d i c a l c a mp s , o l d ag e h o m e s an d M an a v S e v a K e n d r a S a t s a n g s a n d s u s p i c i o n o f A O i n t h i s r e g ar d i s u n f o u n d e d . N o o t h e r e x p e n d i t u r e i n v i o l a t i o n o f A i ms a n d o b j e c t i v e s h a s b e e n p o i n t e d 5 ITA No.899/Chd/2019 A.Y. 2014-15 out b y the AO . Fur ther I find that the AO has e e n co ntr adicted h i ms e l f an d a l l o we d e x e m p t i o n u / s 1 1 w. r . t r e v e n u e e x p e n d i t u r e i n c o m p u t a t i o n o f i n c o m e . T h e r e f o r e o n f a c t s an d c i r c u ms t a n c e s o f t h e c a s e a n d P r i n c i p l e o f c o n s i s t e n c y , i t i s h e l d t h at t h e a p p e l l an t s o c i e t y i s e l ig i b l e f o r e x e mp t i o n u / s 1 1 o f t h e I T A c t . "
7. We d o n ot fi n d a ny i nf i rmi ty i n t h e or de r of th e Ld. C I T( A) . W e f i nd th a t the Ld. C I T( A) on a p p r a is in g a l l th e e vi de nce s p la ce d be f ore h im ha s a r r iv e d a t th e f i nd i ng t hat the a sse ssee i s e l igi b le for e xemp ti on u /s 11 /1 2 of th e Ac t. Th e Ld. C I T( A) ha s n ote d t ha t the a sse sse e ha d been gr a n te d re gi str a ti on as ch a r i ta b le s ocie ty u/s 12 A of th e A ct on the b a sis of the sa me a i ms a n d ob je cts wh i ch th e AO h a s n ow fo un d to b e n ot i n t he n a tur e of c ha r i ta b l e a s de fi ne d u/s 2 (1 5 ) of t he Act . He ha s a l so n ote d the f act t ha t th i s r e gi st r a tio n h a s n ot b ee n re vo ke d ti l l da t e . The Ld . C I T(A ) h a s a l so fo un d th a t th e a ss e ssee ha s a l l a l ong be e n a llow e d e xe mp ti on u/s 1 1 /1 2 in sc ru ti ny a ss e s sme n t i n the pa s t a n d s ub se q ue n t ye a r s a lso. H e fu r the r a l so h a s n ote d th a t th e re is no c ha n ge w i th re spe c t to t he n a tur e of the a cti vi ti e s in the imp ug ne d ye a r a s c omp a re d to th e e a r l ie r a n d su b se q ue n t ye a r s. Eve n oth e r w ise on me r i ts, t he Ld .C I T(A ) ha s n ote d the f a ct tha t th e a sse ssee ha d been i nc ur r in g e xpe n dit ur e of Rs. 2 0, 02 ,1 6 7 /- on r un ni n g of s ch ool w hi c h be in g fo r th e pu r po se of e du ca ti on q u a l if ie d a s ch a r i ta b le a ct iv it ie s u /s 2 ( 1 5) o f t he Ac t a n d ha s sp e nt Rs. 1 8, 6 7 ,5 2 7 /- on th e a cti vi tie s of r u nn in g me d ica l ca mp s a n d ol d a ge h ome s w hi c h a l so q u a lif ie d a s ch a r ita b le a c tiv i tie s i n the n a tu re of me d i ca l r e l ie f t o the po or u/s 2 ( 1 5) of the Ac t. H e h a s a l so n ote d th a t th e lun ga r e xpe n se s a r e me re ly pr ov is io n of foo d to th e a tte n de e s of me d ic a l ca mp s, in ol d a ge h ome s a n d Ma na v S e va Ke n de r . The a for e sa i d fa c ts ha v e re ma in e d unc ont ro ve r te d b e f ore u s. Mor e ove r , the Ld. D R h a s be e n u na b le t o p oi nt out any i nf i rmi ty in th e sa me . In v ie w of the sa me and on co ns id e r i ng t he fa ctu a l f i nd i ngs of th e Ld .C I T(A ), we hol d t hat th e re i s no i nf ir mi ty i n th e or de r of t he Ld . C I T( A ) h ol di n g t he a ss e s see as c a rr y in g out ch a r it a bl e a cti v itie s w i th in t he 6 ITA No.899/Chd/2019 A.Y. 2014-15 d e f in i tio n of the sa me u /s 2 (1 5 ) of t he A ct a nd e l i gib le for e xe mp ti on u /s 1 1 /1 2 of the Ac t. G r oun d N o. 1 r a i se d b y t he Re ve n ue i s, t he re fo re d i smi ss e d .
8. I n g ro un d of a ppe a l N o. 2 the Re ve nue h a s ch a lle nge d the or d e r o f t he Ld .C I T(A ) ho ld i ng th a t th e cor p us d onati on cl a ime d b y th e a sse s see q ua l i fi e d a s su ch . Th e r e le v a nt fi nd i ng s of t he Ld .C I T(A ) i n th is r e g a rd , w e h a ve n ote d a r e a t p ar as 4 .. 6 a n d 4 .7 of th e or de r a s u nd e r :
" 4 . 6 R e g a r d i n g t h e is s u e o f c l a i me d c o r p u s d o n at i o n s o f R s . 1 3 , 1 8 , 8 2 , 0 4 0 / - r e c e i v e d f o r th e p u r p o s e o f l an d f o r s e t t i n g u p M an av S e v a K e n d r a a c r o s s t h e c o u n t r y , wh i c h we r e t r e at e d as n o r m a l d o n a t i o n s a n d a d d e d t o t h e r e c e i p t s o f th e a p p e l l an t b y t h e A . O , I f i n d u p o n p e r u s a l o f s u b m i s s i o n s o f ap p e l l a n t a n d the ev ide nces placed on re cord that the contentio n of the ap p e l l an t c a r r i e s m e r i t an d t h e A . O . h as m a d e c o n t r ad i c t o r y s t a t e me n t s an d n o t c o n s i d e r e d t h e s u b m i s s i o n s o f ap p e l l a n t i n to t a l i t y i n t h e as s e s s me n t o r d e r . T h e a p p e l l an t h as s u b m i t t e d t h at c o r p u s d o n at i o n s c o l l e c t i o n s f o r l a n d w a s s t ar t e d d u r i n g t h e y e ar as p e r r e s o l u t i o n o f t h e G e n e r a l B o d y for the purpose of purchase of land to be used for cons truction of ne w o l d a g e h o m e s . , h o s p i t a l / d i s p e n s ar i e s an d M an av K e n d r a A c r o s s t h e c o u n t r y an d a l l b r a n c h e s o f a p p e l l an t s o c i e t y we r e i n f o r me d ab o u t r a i s i n g o f c o r p u s f u n d f o r l an d i n t h e b r a n c h e s an d t o d e p o s i t t h e d o n a t i o n s r e c e i v e d f o r t h e p u r p o s e o n mo n t h l y b a s i s t o th e h e ad o f f ic e f o r wh i c h a s i n g l e mo n t h l y r e c e i p t w a s i s s u e d b y h e a d o f f i c e . A s a g a i n s t wh a t h a s b e e n a l l e g e d b y A . O . i n as s e s s m e n t o r d e r , t h e a p p e l l an t w a s m a i n t a i n i n g s e p a r a t e ac c o u n t s o f t h e c o r p u s d o n a t i o n r e c e i p t an d g e n e r a l d o n at i o n s a n d t h e au d i t e d b o o k s o f ac c o u n t a l s o s h o w t h e b if u r c at i o n . I al s o f i n d t h a t i t i s n o t d i s p u t e d t h a t t h e d o n at i o n s f o r l a n d we r e d e p o s i t e d i n s e p ar a t e b an k a c c o u n ts d e s i g n e d f o r t h e p u r p o s e an d l a t e r F D R s we r e m a d e to m a i n t a i n t h i s c o r p u s f u n d t h a t w as u t i l i z e d f o r p u r p o s e o f l an d an d a s s e t s i n s u b s e q u e n t y e ar s t h r o u g h c h e q u e s an d d r af t s . I f in d t h at t h e a p p e l l an t h a s m a i n t a i n e d s e p ar at e b o o k s f o r t h e g e n e r a l an d c o r p u s d o n at i o n . T h e r e c e i p t b o o k s u s e d f o r c o r p u s d o n at i o n we r e m ar k e d wi t h s t a mp o f " B h o o m i k h ar i d a n e y h e t u D h an S e w a " an d r e c e i p t s wh e r e n o p u r p o s e h a s b e e n s p e c if i e d an d o n l y m e n t i o n t h a t a mo u n t i s r e c e i v e d to w a r d s S e w a , we r e c r e d i t e d u n d e r ' S a t s an g S e wa ' o r g e n e r a l d o n a t i o n . T h i s r e c e i p t s i s s u e d s h o w t h e p u r p o s e f o r wh i c h d o n at i o n is rece ived .
4.7 F u r t h e r , as e x p l a i n e d b y ap p e l l a n t i n i t s s u b m i s s i o n s r e p r o d u c e d a b o v e , o u t o f a l i s t o f 1 0 d o n o r s me n t i o n e d i n as s e s s me n t o r d e r w h o s e c o n f ir m a t i o n s we r e s o u g h t b y A . O , t h e A . O . s e l e c t i v e l y c h o s e t o r e p r o d u c e c o n f i r m a t i o n s r e g ar d i n g g e n e r a l d o n a t i o n r e c e i v e d f r o m t wo p e r s o n s wh i l e i g n o r i n g t h e c o n f i r m a t i o n s r e c e i v e d f r o m t h e o t h e r s w h o h av e c o n f i r m e d t h at t h e d o n a t i o n w a s m ad e f o r t h e p u r p o s e o f p u r c h as e o f l an d . I 7 ITA No.899/Chd/2019 A.Y. 2014-15 a l s o f i n d t h a t r e c e i p t s o f mo n t h l y c o r p u s d o n at i o n c o l l e c te d b y b r a n c h M a c h i w a r a a t n o . 9 3 1 2 5 4 d at e d 0 9 . 0 6 . 2 0 1 3 wh i c h h as b e e n q u o te d b y A . O . i n c l u d e s al l t h e d e t a i l s o f n a me s o f d o n o r s , t h e i r ad d r e s s e s , m o b i l e n u mb e r s an d s ig n at u r e s as we l l a n d A . O h a s i g n o r e d t o me n t i o n t h a t t h a t t h e a mo u n t s r e c e i v e d ar e s h o wn u n d e r t h e c o l u mn h e ad i n g ' B h o o m i S e w a ' . S i m i l a r r e c e i p t s f o r o t h e r b r an c h e s a t B h ab a t , D e r a b a s s i , K u r a l i e t c . wh i c h we r e p r o d u c e d b e f o r e t h e A . O . , a l s o s h o w t h at c o l l e c t i o n h as b e e n me n t i o n e d u n d e r t h e h e ad ' B h o o m i S e wa ' an d d e t a i l s l i k e n a me s o f d o n o r s , v i l l ag e a n d mo b i l e n u m b e r a n d s i g n a t u r e s o f d o n o r s ar e d u l y f o u n d m a i n t a i n e d . Thus it is found that judicial vie w give n in the decisio n of the J u r i s d i c t i o n a l T r i b u n a l ' s o r d e r i n t h e c a s e o f S h r e e M ah a d e v i T i r a t h S h ar d a M a S e wa S an g h ( s u p r a ) wo u l d a p p l y o n t h e f ac ts o f ap p e l l an t ' s c a s e an d t h e r e c e i p t s wo u l d q u al i f y as m e e t i n g t h e r e q u i r e me n t f o r a s p e c i f i c d i r e c t i o n r e g ar d i n g c o r p u s d o n at i o n . I t i s a l s o n o t t h e c as e o f t h e A . O . t h a t t h e a p p e l l a n t w a s n o t a b l e t o g i v e t h e p ar t i c u l ar s o f t h e p e r s o n s wh o h a v e d o n at e d t h e a mo u n t s o r t h e d o n o r s we r e n o t p r o v i d e d r e c e i p ts ag a i n s t t h e i r v o l u n t ar y c o n t r i b u t i o n s t o w a r d s t h e l an d f u n d . T h e d o n o r s we r e n o t e x a m i n e d b y A O t o p r o v e o t h e r wi s e . T h i s c as e l a w r e l i e d u p o n b y t h e ap p e l l an t s u p p o r t t h e v i e w t h a t o n c e r e c e i p t s ar e i s s u e d s h o wi n g t h e p u r p o s e f o r wh i c h i t is r e c e i v e d , i t wo u l d me a n t h a t t h e d o n o r h as i s s u e d a d i r e c t i o n to u t i l iz e t h e a mo u n t d o n at e d f o r t h e p u r p o s e a n d t h e l a w d o e s n o t c o n te mp l a t e th at t h e s p e c if i c d i r e c t i o n s o f t h e d o n o r s h o u l d b e i n wr i t i n g o n l y . T h e r e f o r e , i n t h e a b s e n c e o f an y m a t e r i a l be ing brought on re cord by the AO by any independe nt enq uir y t h at p r o v i s i o n s o f s e c t i o n 1 1 ( 1 ) ( d ) h av e b e e n m i s u s e d b y t h e ap p e l l an t t h e d e n i a l o f c o r p u s d o n a t i o n s an d t h e i r t r e a t m e n t as o r d i n ar y d o n a t i o n s b as e d u p o n s u s p i c i o n i s n o t wa r r a n t e d p ar t i c u l a r l y wh e n t h e a mo u n t h as u n d i s p u t e d l y b e e n u s e d f o r t h e s t at e d p u r p o s e i n s u b s e q u e n t y e ar s . T h u s r e l y i n g u p o n t h e f a c t s a n d c i r c u ms t a n c e s o f t h e ap p e l l a n t' s c a s e a s d i s c u s s e d ab o v e , t h e m a t e r i a l o n r e c o r d a n d t h e c as e l a ws c i t e d , I c o n s i d e r t h at r e q u i r e me n t o f S e c t i o n 1 1 ( 1 ) ( d ) o f t h e A c t a r e f u l f i l l e d b y t h e ap p e l l a n t a n d t h e i mp u g n e d d o n a t i o n s r e c e i v e d a t 1 3 , 1 8 , 8 2 , 0 4 0 / - s h a l l f o r m a p ar t o f t h e c o r p u s o f t h e ap p e l l an t s o c i e t y a n d t r e a t e d as e x e mp t u / s 1 1 ( 1 ) ( d ) o f t h e Act. This ground of appeal is allowed."
10. On goi ng t hou gh t he a b ove we fin d th a t th e Ld .CI T(A ha s p e r use d t he re c or ds of t he a sse ss ee p r od uce d be for e hi m a n d on p e r us in g the sa me h a d gi ve n a c a te g or ic a l f ind i ng of f a ct th a t th e cor p us do na ti on s r e cei ve d we re re ce i ve d w i th t he sp e ci fi c d ire cti on a s su ch . The Ld . C I T( A, we fi nd, ha s n ote d th a t th e re w e re se pa r a te re ce ip t b ook s f or c oll e c ti ng the co rp u s d ona t ion s w h ic h w a s ma r k e d wi th the sta mp "Bh u mi Kh a r id a n e He tu D ha n Se va " a nd a ll d ona t ion s col l e cte d u nde r th e se re ce i p ts h ad be e n ca te gor i ze d a s c or pu s d ona t ion s b y t he a ss e s see , w hi c h a mou nt w a s k e p t i n a se pa ra te ba nk a cc oun t, 8 ITA No.899/Chd/2019 A.Y. 2014-15 se p a ra te f r om th e ge ne r a l d on a tion a nd a l so tha t F DR s h a d b ee n ma d e fr om th e sa me w hi ch w e re su b se q ue n tl y use d i n su b se q ue n t y e a rs for p u r ch a se of la n d th r ough i ss ua n ce of ch e q ue s a nd d r a fts . Th e Ld .C I T(A ) h a s a l so n ote d t he f a ct tha t th e a s se sse e ha d ma i nt a in e d s e p a r a te re cor d of g e ne r al d on a tio n a n d c or p us d on a ti on a n d tha t i ts a cco u n ts w e re d u ly a u di te d. Th e Ld . C I T( A) , w e fi n d, h a s f ur th e r n ote d th a t t he ob se r va ti on of th e A O tha t the re w e re n o s pe ci fi c d i r e ct ion s b y th e d on or for tre a t in g the d on a ti on a s cor p us do na ti on , w a s b a se d on mi s-a p p r e ci a ti on of f a cts si nc e t he re ce ip ts r e fe r re d to b y th e AO for b asi ng h i s ob se r v ati on w e re re l a ting t o g e ne r a l d on a tio ns a n d n ot cor p us a n d d on a tio ns .
11. B e f ore us the Ld .D R h a s b e e n u na bl e t o con tr ove rt a n y of th e a bove fa c tua l f i nd i ngs of th e Ld .C I T( A ). I n v i e w of th e a b ove si n ce we fi n d that th e Ld .C I T(A ) h a s gi ve n a c a te g or ic a l f i nd i ng of fa c t, b a se d on e vi de n ce s p rod uce d be fore hi m, t ha t t he d on a tio ns sh ow n b y t he a sse ssee a s cor p us d on a ti ons w e re gi ve n w i th the d i r e ct ion s tha t they q ua l i fi e d a s su ch a nd wh i ch w a s th e sol e re as on f or t he Re ve nu e de ny in g the cl ai m, w e do n ot se e a n y r e ason to i n te r f e re i n the or d e r of th e Ld .C I T( A) tr e a t in g t he cor p us d ona t ion s a s s uch . The gr oun d of a p pe a l N o. 2 r a i se d b y t he Re ve n ue i s, the r e f ore , d is mis se d.
12. Gr ou nd of a p p e a l N o. 3 r a is e d b y th e R e ve nue rel a te s to a l lo wa n ce of the c la i m of t he a s se sse e a s e xpe n se i nc ur r e d f or p ur c ha se of land as ut il i za ti on /a p pl i ca ti on as per t he p r ovi si on s o f sec ti on 1 1/1 2 o f the A ct. Th e f i nd i ngs of t he Ld .C I T(A ) i n thi s r e ga r d a ll ow i ng the a sse ssee 's cl a i m, w e f i nd , a r e a t pa r a 4 .5 of th e o rde r a s und e r :
" 4 . 5 F u r t h e r t h e A O M i s d i r e c t e d h i m s e l f an d d i s a l l o we d t h e c ap i t a l e x p e n d i t u r e i n c u r r e d d u r i n g t h e y e a r i n p u r c h a s e o f f ix e d as s e t s o u t o f i n c o me f r o m p r o p e r t y h e l d u n d e r T r u s t . T h e A O i s n o t c l e ar a s t o t h e f a c t s i n t h i s r e s p e c t t o o . T h e p u r c h a s e o f f i x e d as s e t s d u r i n g t h e c u r r e n t y e a r i s o u t o f r e c e i p t s o f 9 ITA No.899/Chd/2019 A.Y. 2014-15 g e n e r a l d o n a t i o n s a n d n o t o u t o f t h e c l a i me d c o r p u s d o n at i o n s wh i c h we r e c o l l e c t e d i n t h e c u r r e n t y e a r o n l y f o r t h e f ir s t t i me an d h a v e b e e n c l a i m e d t o b e u s e d i n s u b s e q u e n t as s e s s me n t y e ar s an d n o t i n c u r r e n t y e a r . T h e a p p e l l an t i s f o u n d t o h a v e s e p ar a t e ac c o u n t s f o r g e n e r al d o n at i o n s a n d t h e s e h a v e b e e n au d i t e d . T h e a u d i t e d b o o k s s h o w s e p ar at e b if u r c a t i o n o f d o n at i o n s u n d e r g e n e r a l an d c o r p u s d o n a t i o n s . T h e r e i s n o c h an g e i n n a t u r e o f t h e ac t i v i t i e s c a r r i e d o u t b y t h e s o c i e t y f r o m e a r l i e r y e a r an d s u b s e q u e n t y e ar s , a s i s e v i d e n t f r o m t h e c o p i e s o f r e t u r n s o f i n c o me s u b m i t t e d b e f o r e t h e u n d e r s ig n e d an d t h e r e s p e c t i v e as s e s s m e n t o r d e r s wh e r e a s s e s s m e n t h as b e e n f r a m e d u / s 1 4 3 ( 3 ) af t e r s c r u t i n y a n d e x e mp t i o n h as b e e n a l l o we d u/s11 and app licatio n of i n c o me on revenue e x p e n d i t u r e as we l l a s c ap i t a l e x p e n s e s h a s b e e n a l l o we d . T h e r e f o r e , t h e ap p l i c a t i o n o f i n c o m e o f t h e s o c i e t y f r o m p r o p e r t y h e l d u n d e r T r u s t h as t o b e a l l o we d i n r e s p e c t o f c ap i t a l e x p e n d i t u r e i n c u r r e d d u r i n g t h e y e a r o u t o f t h e r e c e i p ts o f th e a p p e l l a n t w h i l e c o m p u t i n g i t s t o t a l i n c o m e u / s 1 1 t o 13of the IT Act. Thus these groun ds of appeal are allowed. The AO is directed to give relief to appellant accordingly."
13. On go in g thr ou gh th e sa me , we fin d th a t the Ld .C I T( A ) ha s n ote d fr om t he docu me n ts a nd e vi d e n ce s a n d b ooks of a cc oun ts of th e a sse s see pro du ce d be fore hi m th a t th e u ti li z a ti on b y t he a ss e s see fo r pur ch a se of la n d w a s ou t of ge ne r a l d on a ti on r e ce i ve d a nd not ou t of cor p u s d on a ti on a n d th a t the A O h ad mi sa p p r e ci a te d th e fa c ts in thi s r e ga r d w hi le n ot al low i n g t he cl a i m of th e a ss ess ee . Th e sa i d f a ctu a l fi n di n gs of the Ld . C I T( A ) h a ve n ot be e n c on tr ove rte d be f ore us , n or h a s th e Ld .D R ma d e a n y a r gu me n ts b e fore us a s to w h y t he d is a ll ow a nce be u p hel d . Th e AO , w e h a ve not e d h a d ma d e th e d is a ll ow a n ce n oti ng t hat th e s a me ha d b e e n ma d e out o f c or pu s d on a ti on w h ic h d i d not q u a li fy a s su ch , b ut s i nce the Ld . C I T( A) h a s gi ve n a fi n d in g of f a ct th a t th e i nve st me nt in la n d ha d b ee n ma d e ou t of g e ne r a l d on a tio ns , w hi ch f a ct h a s re ma in e d un con tr ove r ted be fore u s, W e se e no r e a son to i nt e r fe re in the or d e r of t he Ld .C I T(A ) a l lo wi n g th e cl aim of the a sse ssee of u til i za t ion of a mou nt i nc ur r e d f or p ur c ha s e of l a n d for t he p ur p ose s o f c la i mi ng e xe mp ti on u/s 1 1 /12 of th e A ct. I n vie w of th e a bov e , g ro un d of a p p e a l N o. 3 r a i se d b y the Re ve nue is a l so d i smi sse d .
10 ITA No.899/Chd/2019A.Y. 2014-15 G r oun d of a p p ea l N o. 4 is ge ner a l i n n a tu re and n ee ds no a d j ud ic a ti on.
14. I n the re su lt , the a pp e a l of the Rev e n ue i s di smi ss e d .
O r d e r p r on o u n ce d o n 2 1 / 0 5 / 2 0 2 0 .
Sd/- Sd/- संजय गग अ नपणू ा ग&ु ता (SANJAY GARG) (ANNAPURNA GUPTA) याय क सद य/Judicial Member लेखा सद य/Accountant Member *दनांक /Dated: 21/05/2020 *रती* आदे श क त*ल+प अ,े+षत/ Copy of the order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent 3. आयकर आयु-त/ CIT 4. आयकर आयु-त (अपील)/ The CIT(A)
5. +वभागीय त न0ध, आयकर अपील$य आ0धकरण, च2डीगढ़/ DR, ITAT, CHANDIGARH
6. गाड फाईल/ Guard File आदे शानस ु ार/ By order, सहायक पंजीकार/ Assistant Registrar