EASTERN ZONAL CULTURAL CENTRE,KOLKATA vs. I.T.O.,WARD-1(2)(EXEMPTION), KOLKATA

Appearances by: Shri Gautam Banerjee, FCA, appeared on behalf of the assessee. Shri Supriyo Pal, JCIT D/R, appearing on behalf of the Revenue. Date of concluding the hearing : July 20th, 2020 Date of pronouncing the order : July 24th, 2020 ORDER Per J. Sudhakar Reddy, AM :-

This appeal filed by the assessee is directed against the order of the Learned Commissioner of Income Tax (Appeals) – 25, Kolkata, (hereinafter the “ld.CIT(A)”), passed u/s. 250 of the Income Tax Act, 1961 (the ‘Act’), dt. 10/05/2019 for the Assessment Year 2014-15.

3. After hearing rival contentions we find that the issue is covered in favour of the assessee and against the revenue by the decision of the ‘SMC’ Bench of the Tribunal in the case of M/s. Sahara Utsrga Welfare Society vs. DCIT in order dt. July 13th, 2020, while deciding the identical issue held as follows:- “2. After hearing rival contentions, I find that the sole issue is whether the assessee is entitled to accumulation of 15% on the gross receipts and whereas the Assessing Officer held that the assessee is entitled to 15% of the net receipt.

Assessment Years: 2014-15 Eastern Zonal Cultural Centre Eastern Zonal Cultural Centre The ‘B’ Bench of the ITAT in the assessee’s own case in order dt. The ‘B’ Bench of the ITAT in the assessee’s own case in ITA No. 2436/Kol/2018, order dt. The ‘B’ Bench of the ITAT in the assessee’s own case in ITA No. 2436/Kol/2018, order dt. 22/01/2020, for the Assessment Year 2012 22/01/2020, for the Assessment Year 2012-13, on the same issue held as follows: e same issue held as follows:- “.....We note that in the provisions of section 11(1) it has been clearly mentioned “… 15% of the We note that in the provisions of section 11(1) it has been clearly mentioned “… 15% of the We note that in the provisions of section 11(1) it has been clearly mentioned “… 15% of the income”, hence it is gross income of the assessee trust and not the net income. Therefore, based on income”, hence it is gross income of the assessee trust and not the net income. Therefore, based on income”, hence it is gross income of the assessee trust and not the net income. Therefore, based on this factual position as me this factual position as mentioned in Section 11(1) as noted above, we direct the Assessing Officer ntioned in Section 11(1) as noted above, we direct the Assessing Officer to allow 15% exemption on gross receipts. to allow 15% exemption on gross receipts.

4. Respectfully following the same, we hold that the assessee is entitled to the Respectfully following the same, we hold that the assessee is entitled to the Respectfully following the same, we hold that the assessee is entitled to the accumulation of 15% on the gross receipt as per provisions accumulation of 15% on the gross receipt as per provisions of Section 11 of the Act. of Section 11 of the Act.