JESUS CALLS,CHENNAI vs. DCIT, CENTRAL CIRCLE-3(1), CHENNAI

ITA 797/CHNY/2025Status: DisposedITAT Chennai07 July 2025AY 2020-21Bench: me in the appeal filed by M/s.Karunya Educational and Research Trust, which is one of the entities of the appellant group, for AY 2017-18 in ITA No. 484/CIT(A)-20/2024-25 dated 28.02.2025, wherein after elaborate discussion, I had upheld that the entire arrangement of payment of software maintenance charges paid to M/s.PWDS through M/s.TFMSS, is not genuine transaction and it includes the amount transferred for the benefit of Shri Paul Dhinakaran and his family members.” "Since the facts an7 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the disallowance of software charges made by the lower authorities was incorrect. Regarding personal gifts, it was decided that these should be considered in the hands of the individual recipients and not the Trust, and that cash gifts below Rs. 50,000/- are not taxable. Consequently, the additions were deleted.

What were the facts?

The appeals arise from assessment orders passed under Section 143(3) r.w.s 153A of the Income-tax Act, 1961, concerning claims for software development and support charges. The Assessing Officer held these transactions as sham, lacking actual service. The CIT(A) upheld these additions, referencing a decision in a related trust's case.

What were the issues?

Whether the software charges claimed were for genuine services or sham transactions, and whether personal gifts received by individuals associated with the trust should be taxed in the hands of the trust.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 153A,Section 13(1)(c),Section 132,Section 12AA,Section 56(2)(x)(a),Section 56(1),Section 11

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI

Before: HON’BLE SHRI MANU KUMAR GIRI & HON’BLE SHRI S. R. RAGHUNATHA

Hearing: 05.06.2025Pronounced: 07.07.2025

Heard together (3 matters)

ITA Nos.796/Chny/2025
ITA Nos.797/Chny/2025
ITA Nos.798/Chny/2025

Read from the judgment's own cause title. This page is filed under one of them.

PER MANU KUMAR GIRI (Judicial Member)

1.

The captioned three appeals in ITA Nos.796/CHNY/2025 to 798/CHNY/2025 for assessment years (A.Y) 2019-20 to 2021-22 respectively arise out of the orders dated 03.03.2025 passed by the ld. Commissioner

The order continues below.

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