ITO EXMP., AGRA vs. SHRI GIRRAJ SEWAK SAMITI, MATHURA

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ITA 1553/DEL/2019Status: HeardITAT Delhi16 January 2023AY 2010-113 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal, following the principle of consistency and its own previous decision in the assessee's own case for earlier assessment years, held that the AO is not permitted to change his view without a change in facts. The grievance of the Department was rejected.

What were the facts?

The Assessing Officer (AO) treated voluntary donations of Rs. 6,93,98,863/- as anonymous receipts and made an addition of Rs. 5,09,45,979/- to the assessee's income. The assessee argued that similar additions in previous years were deleted by the CIT(A) and confirmed by the Tribunal.

What were the issues?

Whether voluntary donations received by a trust can be treated as anonymous receipts and taxed accordingly. Whether the revenue can change its view on a recurring issue without any change in facts.

Which sections of the Income-tax Act were involved?

Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘G’, NEW DELHI

Before: SH. N. K. BILLAIYA & SH. ANUBHAV SHARMA

For Appellant: Ms. Sangeeta Yadav, SR DR
Hearing: 16/01/2023Pronounced: 16/01/2023

Appellant by Ms. Sangeeta Yadav, SR DR Respondent by Sh. Anurag Sinha, Advocate Date of hearing: 16/01/2023 Date of Pronouncement: 16/01/2023 ORDER

PER N. K. BILLAIYA, AM:

1.

This appeal by the revenue is preferred against the order of the CIT(A)-2, Agra dated 30.11.2018 pertaining to A.Y.2010-11.

2.

The solitary grievance is that the CIT(A) erred in deleting the addition of Rs.50945979/- made by the AO. 3. Briefly stated the facts of the case are that during the course of the scrutiny proceedings the AO noticed that the amount of Rs.69398863/- appearing as corpus fund is nothing but voluntary donations made by pilgrims whose names are unknown and they have not donated this amount for any specific purpose. The AO was of the opinion that these donations nothing but voluntary donations falling in category of anonymous receipts which need to be applied to the extent of 85%. Since according to the AO receipts of the trust in the shape of voluntary donation which is not applied to the extent of 85% in relevant current year has to be treated as escaped income of the Trust and taxed accordingly. The addition of Rs.69398863/- was made.

4.

Assessee carried the matter before the CIT(A) and relied upon various judicial decisions and strongly contended that identical additions were made in A.Y. 2007-08 to 2011-12 and the then CIT(A) has deleted the additions which were confirmed by the Tribunal, following the precedence the CIT(A) deleted the addition.

5.

Before us the DR could not bring any distinguishing decision in favour of the revenue.

6.

Per contra the counsel for the assessee drew our attention to the decision of this Tribunal in assessee’s own case in to 33 /Agra/2017 for A.Y. 2007-08 to 2011-12.

7.

We have carefully considered the orders of the authorities below. We find force in the contention of the Counsel identical issue was considered by this Tribunal (supra) and has decided the issue in favour of the assessee and against the revenue while adjudicating the quarrel this Tribunal (supra) held as under :- “Under principles of consistency, AO is not permitted to change view in the absence of a change in facts. No fact of the assessee’s activities not being as per its objects has been brought out by the Taxing Authority in the present case. In view of the above the grievance of the Department is not found to hold, it is rejected as such. The impugned orders in all these appeals, being well reasoned orders, are confirmed.

8.

Respectfully following the observations of the Tribunal (supra) and following the rule of consistency this appeal by the revenue is dismissed.

9.

Decision announced in the open court on 16.01.2023.

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