Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD
Before: SHRI PRADIP KUMAR KEDIA & SHRI MAHAVIR PRASAD
आदेश/O R D E R
PER PRADIP KUMAR KEDIA - AM:
The captioned appeal has been filed at the instance of the assessee against the order of the Commissioner of Income Tax (Appeals)-9, Ahmedabad (CIT(A)’ in short), dated 22.06.2018 arising in the assessment order dated 28.02.2016 passed by the Assessing Officer (AO) under s. 143(1) of the Income Tax Act, 1961 (the Act) concerning AY 2014-15.
[Shree Punit Seva Ashram vs. ITO] A.Y. 2014-15 - 2 - 2. As per its grounds of appeal, the assessee trust, has challenged the decision of the CIT(A) in refusing to grant standard deduction @ 30% available under s.24(a) of the Act against the income chargeable under the head ‘income from house property’.
When the matter was called for hearing, none appeared for the assessee. No reasons were assigned for non-appearance. The matter was accordingly proceeded ex parte in the absence of the assessee.
The learned DR for the Revenue submitted that the assessee being a Trust, registered under s.12A of the Act, is governed by the special provisions contained in Chapter III of the Act concerning assessment of charitable trusts and therefore provisions of Chapter IV of the Act concerning determination of income under the head ‘income from house property’ would not apply to such trusts. The learned DR also relied upon the decision of the co-ordinate bench of Tribunal in The Anjuman-E-Himayath-E-Islam vs. ADIT(Exemption) ITA No. 2271/Mds./2014 order dated 02.06.2015 expressing the aforesaid view.
The findings of the CIT(A) on issue is reproduced hereunder:
“3. The appellant has filed return of income claiming income from house property at Rs.4,07,731/-. CPC Bangalore in the order u/s.154 has computed the income from house property at Rs. 5,82,473/-. The CPC Bangalore has not allowed the deduction u/s.24A claimed by the appellant. Appellant has contended that deduction u/s.24A from- house property is a statutory deduction and has not been allowed. The Hon'ble ITAT Chennai Bench-A, in the case of Anjuman-E-Himayath-E- lslam of 2014 for A.Y.2009-10 dated June 2, 2015 has held that in the case of trust Section 22 to 27 of the Act is not applicable. Therefore, CPC has correctly rejected the appellants claim. Appeal is accordingly dismissed.”
We notice that the identical issue of eligibility of standard deduction against ‘income from house property’ in the case of Public Trust came up before the co-ordinate bench of Tribunal in The Anjuman-E-Himayath-E-Islam (supra). The co-ordinate bench of the Tribunal has dealt with the issue as under:
“6.3 We have heard both the parties and carefully perused the materials available on record. Chapter-Ill refers to "income which does not form part of total income". Section-11 of the Act placed under Chapter-Ill deals with 'income from property held for charitable or religious purpose'. Section-11 (1)(a) provides that income derived from the property held under trust wholly for charitable or religious purpose, to the extent to which such income is applied, shall not be included in its total income. The Act also provides that upto 15% of the gross income received is accumulated and then the same shall also be exempt from the income of the trust. From the above it is clear that provision of the Act in Chapter-Ill deals with the manner in which the income of the assessee trust has to be applied in order to exempt such income from the total income. It is not a case of computation of income chargeable to tax as per the provisions Chapter IV under the head "C- income from house property". Therefore while determining the "income" of the assessee trust and its "application of income" for the purpose .of claiming exemption U/s.11(1)(a) of the Act, the provisions of Chapter-IV - Sections 22 to 27 of the Act which is applicable for computing the income chargeable to tax under the head 'income from house property' will not be attracted. However, provisions of section 22 to 27 of the Act will come into play when the assessee is not entitled to the benefit of Section-11(1)(a) of the Act and when such income of the Trust is chargeable to tax under the head "income from house property". It is pertinent to mention here that Hon'ble Calcutta High Court supra has held that income contemplated by the provisions of section 11 is the real income and not the income as assessed or assessable. Accordingly, while arriving at the rental income of the assessee-trust any expenditure incurred whatsoever related to the rental income has to be allowed as deduction and the net income which is the real income, will be treated as the income of the Trust. From our [Shree Punit Seva Ashram vs. ITO] A.Y. 2014-15 - 4 - above discussion the ground raised by the assessee on this issue will not survive and therefore, the order of the Revenue is upheld.”
The reasonings given by the Tribunal is self-explanatory and does not require any further delineation. The CIT(A) has, in our view, rightly held that assessee trust is not eligible for standard deduction under s.24(a) of the Act. In parity therewith, we see no error in the findings recorded by the CIT(A). We thus decline to interfere.
In the result, the appeal filed by the assessee is dismissed.
This Order pronounced in Open Court on 27/01/2020
Sd/- Sd/- (MAHAVIR PRASAD) (PRADIP KUMAR KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad: Dated 27/01/2020 True Copy S. K. SINHA आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. राज�व / Revenue 2. आवेदक / Assessee 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त- अपील / CIT (A) 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाइल / Guard file. By order/आदेश से,
उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, अहमदाबाद ।