PEC UNIVERSITY OF TECHNOLOGY PENSION FUND TRUST,CHANDIGARH vs. DCIT CIRCLE-1 EXEMPTIONS, CHANDIGARH

आदेश/Order

Per Sanjay Garg, Judicial Member:

The present appeal has been preferred by the assessee the order dated 30.01.2019 of the Commissioner of Income Tax-2, Chandigarh

[hereinafter referred to as ‘CIT(A)’] upholding the action of the Assessing Officer / CPC in rejection of rectification application of the assessee moved u/s 154 of the Income Tax Act, 1961 (in short 'the Act').

ITA No. 553-Chd.-2019 PEC University of Technology Pension Fund Trust, Chandigarh 2 The brief facts of the case are that the assessee trust is an 2. irrevocable Pension Fund trust created on 01.03.2007 under the PEC

University of Technology Society to provide for the operation, control

and maintenance of the Pension Fund of the employees of PEC

University of Technology. The sole purpose of this fund is to make

provision for the payment of pensionary benefits including family

pension to the employees of the PEC University of Technology. The trust is not registered u/s 12AA of the Act. However, the assessee Trust

filed its return of income treating it to be a ‘charitable trust’ and application of income was claimed at Rs. 2,22,49,629/- as against the declared income of Rs. 2,00,57,061/-. The Assessing Officer / CPC

disallowed the entire claim of the application of income on the ground

that the assessee trust was not registered u/s 12A of the I.T. Act,

therefore, entire gross receipts of Rs. 2,22,49,629/- were added back to the returned income of the assessee in the proceedings carried out u/s 143(1) of the Act. Thereafter, assessee moved a rectification application

u/s 154 of the Act pleading that even if the assessee is assessed as an AOP, the assessee may be grated the claim of revenue expenditure

which has been claimed as application of income in the return of income. However, the said application was also rejected by the CPC.

appeal before the Ld. CIT(A), however, the Ld. CIT(A) also dismissed

ITA No. 553-Chd.-2019 PEC University of Technology Pension Fund Trust, Chandigarh 3

the appeal of the assessee. Hence, the assessee has come in appeal

before us.

circumstances, the claim of the expenditure has been allowed by the CPC for the assessment year 2016-17 vide order dated 26.9.2018, copy

of the assessment order has been placed on record. We find force in the contention of the Ld. Counsel for the assessee that if the assessee has not been treated as a charitable trust, still the income of the assessee is to be assessed as per the normal provisions of the Act and the admissible revenue expenditure is to be allowed against the income of the assessee.

In view of this, the impugned order of the CIT(A) is set aside, the matter is restored to the file of the Assessing Officer for deciding it afresh, treating the assessee’s income as an AOP and considering the claim of the assessee of allowability of expenditure which was inadvertently claimed as application of income in the return of income.

In the result, the appeal of the assessee is treated as allowed for statistical purposes.

Order pronounced in the Open Court on 27.01.2020. (संजय गग" / SANJAY GARG) (एन. के. सैनी / N.K. SAINI) उपा"य" /Vice President "या"यकसद"य/ Judicial Member Dated : 27.01.2020 “आर.के.”

ITA No. 553-Chd.-2019 PEC University of Technology Pension Fund Trust, Chandigarh 4 आदेशक"""त"ल"पअ"े"षत/ Copy of the order forwarded to : 1. अपीलाथ"/ The Appellant

आदेशानुसार/ By order, सहायकपंजीकार/