What did the Tribunal hold?

The Tribunal held that the issue was covered by a previous appellate order for AY 2010-11, where the Departmental appeal was dismissed. Therefore, the Revenue's appeal had no merit.

The Revenue appealed against the CIT(Appeals)'s order which partly allowed the assessee's appeal. The assessee, Woodstock School, had challenged the AO's assessment of income despite filing a deficit return.

What were the issues?

Whether payments made by the assessee society to third parties were covered by its objects, and if the CIT(Appeals) erred in allowing the assessee's appeal based on previous year's orders.

DCIT vs M/S. Woodstock School, Mussoorie | ITAT Delhi 2019

Income Tax Appellate Tribunal, DELHI BENCH: ‘Friday/D’ NEW DELHI

Before: SHRI G.D. AGRAWAL & SHRI BHAVNESH SAINI

For Respondent: DR Assessee by None

Hearing: 12.04.2019Pronounced: 12.04.2019

ORDER PER SHRI BHAVNESH SAINI, J.M. This appeal by Revenue has been directed against the order of Ld. CIT(Appeals), Dehradun dated 22.07.2015 for AY 2009-10 on the following grounds:

1. “The Ld.CIT(A) has erred in partly allowing the appeal of the assessee ignoring the fact that the payment to Shri Sonam Bhatia is not covered by any of the objects of the assessee society.

2. The Ld.CIT(A) has in allowing the appeal of the assessee ignoring the fact that the payment to M/s Mars Catering Services Pvt. Ltd., is not covered by any of the objects of the assessee society.”

The Ld.CIT(A) noted that assessee challenged the action of the AO in assessing income at Rs. 1,03,58,380/- even though the return was filed at (-) Rs. 6.95 crores (deficit). The assessees Counsel has filed detailed submissions to show that arrangement with M/s Mars Catering Services Pvt. Ltd. and Rokeby Guest House were not collusive and entirely need based. The Ld. CIT(A) considering the findings of the AO and submissions of the assessees Counsel found that issue is covered in favour of the assessee by appellate order for AY 2010-11. Accordingly, appeal of assessee was allowed.

It has been brought to our notice that ITAT ‘D’ Bench in the case of the same assessee in AY 2010-11 vide order dated 25.02.2019 dismissed the Departmental appeal. Copy of the order is placed on record. 4. In view of the above, we find that there is no merit in the Departmental appeal. The Ld. CIT(A) noted in his findings that issue is same as has been considered in AY 2010-11. Since in AY 2010-11 ITAT has dismissed the Departmental appeal on the same ground above. Therefore, there is no merit in the Departmental appeal, same is accordingly, dismissed. 5. In the result, the Departmental appeal is dismissed. Order pronounced in the open Court.

DCIT (EXEMPTION), UTTAR PRADESH vs. M/S. WOODSTOCK SCHOOL, MUSSOORIE

What did the Tribunal hold?

What were the facts?

What were the issues?

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