Income Tax Appellate Tribunal - Delhi
Dav College Trust & Management ... vs Department Of Income Tax on 17 March, 2010
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH 'B', NEW DELHI
BEFORE SHRI C.L. SETHI, JUDICIAL MEMBER
&
SHRI B.C. MEENA, ACCOUNTANT MEMBER
ITA No. 3093/Del/2010
Assessment Year: 2002-03
DDIT(E), Vs. DAV College Trust &
Inv. Circle-II, Management Society,
New Delhi. Chitra Gupta Road,
Paharganj, New Delhi.
AAATD0495L
(Appellant) (Respondent)
Appellant by : Smt. Pratima Kaushik, Sr. DR
Respondent by : Karan Khanna, Adv.
ORDER
PER C.L. SETHI, J.M.
The only ground raised by the Revenue in this appeal filed against the order dated 17.03.2010 passed by ld. CIT(A) for the A.Y. 2002-03 is as under: -
1. "On the facts and in the circumstances of the case, the ld. CIT(A) has erred in deleting the disallowance on a/c of corpus donation at Rs.
78,73,838/- even though no proof or confirmation was filed before the AO to prove that the same were with any specific directions ITA No. 3093/D/2010 2 to the effect that they would form part of corpus fund of the Assessee.
2. The Appellant craves leave for reserving the right to amend, modify, alter, add or forego any grounds of appeal at any time before or during the hearing of this appeal."
2. In this case, the assessee society filed its return of income declaring total income at Rs. Nil. This return was subsequently revised. The case was selected for scrutiny. Amongst the various additions, the AO also made an addition of Rs. 78,73,838/- claimed to have been received by the assessee towards corpus fund. The AO made this addition for the reason that assessee had failed to file proper confirmation in support of the claim that the amount was received towards corpus.
3. On an appeal, CIT(A) deleted the addition by holding that the donation to the corpus does not constitute revenue but capital receipt. However, he has failed to examine and determine as to whether the amount of Rs. 78,73,838/- was actually received by the assessee towards corpus fund. The genuineness of the assessee's claim of corpus fund has not ITA No. 3093/D/2010 3 been examined by the ld. CIT(A) before deleting the addition. From the order of ld. CIT(A), it is seen that assessee produced certain additional evidences before him but the same were not admitted/entertained by the ld. CIT(A). The ld. CIT(A) rejected the assessee's application for admission of additional evidences. It is, thus, clear that assessee's additional evidences filed before the ld. CIT(A) were not considered by him and still the ld. CIT(A) deleted the addition merely by observing that the donation to the corpus would not constitute revenue but capital receipt without deciding as to whether the donation received by the assessee was towards corpus fund. At this stage, it is pertinent to note that even after making the aforesaid addition of Rs. 78,73,838/- along with other additions made by the AO, the total taxable income of the assessee was determined to be Nil in as much as the AO allowed the deduction on account of application of income towards capital assets acquired during the year and as well as a deduction u/s 11(1)(a) to the extent of 25% of the total income of the trust restricted the same to the surplus available to the assessee out of the total income. However, the question whether the addition of Rs. 78,73,838/- is relevant to decide whether assessee has furnished inaccurate particulars ITA No. 3093/D/2010 4 of income or concealed its income during the year, though ultimately, no tax was found to be payable by the assessee because of exemption allowed on account of application of income as well as deduction u/s 11(1)(a) of the Act. We, therefore, set aside the order of ld. CIT(A) and restore the matter back to the file of AO for his fresh adjudication after examining and verifying the nature of donation claimed to have been received by the assessee towards corpus. The AO shall make such enquiry from the donors as he thinks fit and proper for proper adjudication of the matter. The AO shall provide reasonable opportunity of being heard to the assessee. We order accordingly.
4. In the result, the appeal filed by the revenue is treated to be allowed for a statistical purpose.
5. This decision is pronounced in the Open Court on 5th August, 2011.
Sd/- Sd/-
(B.C. MEENA) (C.L. SETHI)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Dated: 5.8.11
*Kavita
ITA No. 3093/D/2010 5
Copy forwarded to: -
1. Appellant
2. Respondent
3. CIT
4. CIT(A)
5. DR, ITAT
TRUE COPY
By Order,
DEPUTY REGISTRAR