Income Tax Appellate Tribunal - Delhi
Ujagarmal Chander Bhan Charitable ... vs Dcit, Cpc, Bangalore on 30 May, 2019
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH 'SMC', NEW DELHI
Before Sh. T. S. Kapoor, Accountant Member
ITA No. 5540/Del/2018 : Asstt. Year : 2016-17
Ujagarmal Chanderbhan Vs Dy. Commissioner of Income
Charitable Religious Education Tax, CPC,
Trust, 4570, Mahavir Bazar, Bangalore
Cloth Market, Delhi-110006
(APPELLANT) (RESPONDENT)
PAN No. AAATU0652L
Assessee by : Sh. K. Sampath, Adv. &
Sh. V. Raja Kumar, Adv.
Revenue by : Sh. S. L. Anuragi, Sr. DR
Date of Hearing: 29.05.2019 Date of Pronouncement: 30.05.2019
ORDER
This is an appeal fi led by assessee against the o rder of Commissioner of I ncome Tax ( Appeals)-40, Delhi dated 19.07.2018.
2. The grounds of appeal take n by ass essee are reproduced below:
1. in determi ni ng taxable i ncom e in a sum o f Rs.8,46,610/- against t he re turned income amounti ng to Rs.3,72,159/-;
2. in not allo wing appli catio n of income toward s chari ty i n a sum of Rs .4,74,453/- against inc ome determined u/s 11 (3) of the Incom e-tax Act, 1961.
These actions being arbit rary, erroneo us and untenable must be quas hed wit h directi ons fo r appropriate relief ."
3. At the outset, the Aut ho rized Rep resentative submitted that assessee is a cha ritable o rga nizati on a nd i s regi stered u/s 12AA of the Act . I t was subm itted that whi le fil ing t he ITA No. 5540/Del/2018 2 Ujagarmal Chanderbhan Charitable Trust return of income, the assess ee claimed amount of Rs.8,46,610/- as income chargeable u/s 11(1B) of the Act whic h the assessee had cla imed wro ngl y. I t was s ubmitted that the assessee had been accumulating 15% of its excess o f income over expend iture to be spent in the succeeding yea rs . I t was submitted that 15% carry forward is permitted u/ s 11(1)(a) of the Act o n t he basis of i ncome repo rted in the return. I t was submitted that in a case where income ha d accrued but not received the appli c ation to t he extent of 85% becomes not feasible and onl y then Section 11(1B) of the Act comes into p lay. I t was s ubmitte d that i n the ca se unde r conside ratio n, the deficit was b eing sought as per the provisio ns of Sectio n 11(1)(a) of t he Act and it was humbl y requested that the case may be set aside to the Assessing Officer w ho can verify the acc um ulated bala nces and co uld arri ve at the just deci sio n.
4. The ld. Departmental Representative, however, submitted that instead of remitting the issue back to Assessing Officer it should be remitted to ld. CIT(A) who can decide the issue by calling remand report from the Assessing Officer. The ld. AR did not object to the proposal of the ld. DR.
5. I have heard the rival parties and have gone through the material placed on record. I find that it is a fit case which requires to be remitted back to ld. CIT(A) who should re-decide the issue after obtaining remand report from the Assessing Officer with respect to accumulated balance available to the assessee out of carryover of profits from earlier years. Needless to say that assessee will be provided sufficient opportunity of being heard.
ITA No. 5540/Del/20183 Ujagarmal Chanderbhan Charitable Trust
6. In the result, the appeal of the assessee is allowed for statistical purposes.
(O r d e r p r o n o u nc e d in t h e C ou r t o n 3 0 t h d a y o f M a y, 2 0 1 9 a t Ne w De lh i) Sd/-
(T. S. Kapoor) Accountant Member Dated: 30/05/2019 *Subodh* Copy forwarded to:
1.Appellant
2.Respondent
3.CIT
4.CIT(Appeals)
5.DR: ITAT ASSISTANT REGISTRAR