DIVYAJYOTHI EDUCATIONAL AND CHARITABLE TRUST,THIRUVANANTHAPURAM vs. ITO, THIRUVANANTHAPURAM

The present appeal of the assessee is arising from the order of the Addl/JCIT(A)-Bhubaneswar dated 20/01/2024in DIN No. ITBA/APL/S/250/2024-25/1072320240(1) and relates to the assessment year 2016-17.

In this appeal, there is delay of 107 days in filing the appeal. For the reasons mentioned in the affidavit, we hereby condone the delay of 107 days and decide the matter on merits.

Brief background of the case is that the assessee has preferred this appeal against the order of the ld Addl/JCIT(A), Bhubaneswar, who in turn affirmed the order of the Assessing Officer passed u/s.143(3) of the Act dated 26.12.2018, wherein, addition of Rs.2,42,89,718/- has been made by the Assessing Officer. During the course of assessment proceedings, the Assessing Officer observed that the assessee has purchased certain books for library. The Assessing Officer was of the view that the books purchased by the assessee for subject Physics, Chemistry and Mathematics (PCM) text are expenditure of capital in nature and hence, same cannot be allowed as revenue expenditure.

Before the ld Addl/JCIT(A), the assessee has pointed out that in the case of Trust and hence it is the application of income which is to be considered and not the nature of expenses, whether it is in capital or in revenue field. However, the ld Addl/JCIT(A), Bhubaneswar could not find any force in the submission of the assessee and affirmed the view of the Assessing Officer.

Aggrieved with the order of ld Addl/JCIT(A), Bhubaneswar, the assessee has come in appeal before us.

Ld counsel for the assessee reiterated the submissions made before the lower authorities.

Ld D.R. relied upon the orders of lower authorities.

After considering the rival submissions, we are of the opinion that the disallowance made by the Assessing Officer vis-à-vis purchase of PCM text books is not tenable inasmuch as it is an admitted fact that the assessee trust is enjoying the exemption u/s.11 & 13 of the Act.

In the result, appeal of the assessee stands allowed.

The present appeal of the assessee is arising from the order of the Addl/JCIT(A)-Agra dated 31/01/2025 in DIN No.ITBA/APL/S/250/2024-25/1072788329(1) and relates to the assessment year 2018-19.

In this appeal, there is also delay in filing the appeal. For the reasons mentioned in the affidavit, we hereby condone the delay in filing the appeal and decide the matter on merits.

At the outset, it is observed that the ld Addl/JCIT(A), Agra has dismissed the appeal of the assessee without condoning the delay happed before the ld Addl.JCIT(A). It is observed that the CPC order is dated 17.10.2019 and the assessee has filed the appeal somewhere in September, 2021 and from December, 2019 ut-po 28.2.2022, there was Covid period. Considering the factual aspect, we restore this matter to the file of the ld Addl/JCIT(A) after condoning the delay happened before the ld Addl/JCIT(A). Ld Addl/JCIT(A) is directed to decide the appeal of the assessee on merits.