MAHIMA SHIKSHA SAMITI,JAIPUR vs. ACIT(EXEMPTION), JAIPUR

PDF · subscribers
ITA 831/JPR/2016Status: DisposedITAT Jaipur25 April 2017AY 2012-136 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the assessee society is eligible for exemption under Section 11 read with Sections 12 and 13 of the Act. Payments, expenditures, and contributions made by the assessee were considered valid applications of income.

What were the facts?

The assessee, Mahima Shiksha Samiti, filed appeals against the CIT(A)'s order concerning AY 2012-13 and 2013-14. The Revenue also filed cross-appeals. The core dispute involved the allowability of exemption under Section 11 despite alleged violations of Section 13.

What were the issues?

Whether the assessee is eligible for exemption under Section 11 when provisions of Section 13 are allegedly attracted, and whether depreciation is admissible on assets for which exemption under Section 11 has been allowed.

Which sections of the Income-tax Act were involved?

Section 11,Section 12,Section 13,Section 13(1)(c),Section 13(2)(a),Section 13(3),Section 32

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JAIPUR BENCHES, JAIPUR

Before: SHRI KUL BHARAT, JM & SHRI VIKRAM SINGH YADAV, AM vk;dj vihy la-@ITA No. 831/JP/2016

For Appellant: Shri Vinod Kumar Gupta (C.A.) jktLo dh vksj ls@
For Respondent: Shri R.S. Verma (Addl. CIT)
Hearing: 18/04/2017Pronounced: 25/04/2017

Heard together (4 matters)

ITA No. 831/JP/2016
ITA No. 968/JP/2016
ITA No. 832/JP/2016
ITA No. 969/JP/2016

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

आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR Jh dqy Hkkjr] U;kf;d lnL; ,oa Jh foØe flag ;kno] ys[kk lnL; ds le{k BEFORE: SHRI KUL BHARAT, JM & SHRI VIKRAM SINGH YADAV, AM vk;dj vihy la-@ITA No. 831/JP/2016 fu/kZkj.k o"kZ@Assessment Year :2012-2013 cuke Mahima Shiksha Samiti The ACIT (Exemption), Jaipur Vs. A-18, Shanti Path, Tilak Nagar, Jaipur LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAATM1883H vihykFkhZ@Appellant izR;FkhZ@Respondent vk;dj vihy la-@ITA No. 968/JP/2016 fu/kZkj.k o"kZ@Assessment Year :2012-2013 cuke The ACIT(E), Circle, Mahima Shiksha Samiti A-18, Shanti Vs. Path, Tilak Nagar, Jaipur Jaipur LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAATM1883H vihykFkhZ@Appellant izR;FkhZ@Respondent vk;dj vihy la-@ITA No. 832/JP/2016 fu/kZkj.k o"kZ@Assessment Year :2013-2014

cuke Mahima Shiksha Samiti The ACIT (Exemption), Jaipur Vs. A-18, Shanti Path, Tilak Nagar, Jaipur LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAATM1883H vihykFkhZ@Appellant izR;FkhZ@Respondent

vk;dj vihy la-@ITA No. 969/JP/2016 fu/kZkj.k o"kZ@Assessment Year :2013-2014

2 ITA No. 831,968,832 &969/JP/2016 Mahima Shiksha Samiti vs. ACIT (E),Jaipur cuke The ACIT (Exemption), Mahima Shiksha Samiti A-18, Shanti Vs. Jaipur Path, Tilak Nagar, Jaipur LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAATM1883H vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@ Assessee by : Shri Vinod Kumar Gupta (C.A.) jktLo dh vksj ls@ Revenue by : Shri R.S. Verma (Addl. CIT)

lquokbZ dh rkjh[k@ Date of Hearing : 18/04/2017 mn?kks"k.kk dh rkjh[k@Date of Pronouncement: 25/04/2017 vkns'k@ ORDER

PER: VIKRAM SINGH YADAV, A.M.

These are cross appeals filed by the Revenue and the assessee against the order of Ld. CIT (A), Jaipur dated 22.08.2016 and 26.08.2016 for A.Y. 2012-13 and 2013-14 respectively. Since common issues are involved, both the appeals were heard together and disposed off by this consolidated order.

Grounds of Revenue’s appeal:-

In its appeal for A.Y. 2012-13, the Revenue has taken the following grounds of appeal:-

“On the facts and in the circumstances of the case and in law, the ld CIT(A) has erred in: 1. Allowing assessee’s claim of exemption u/s 11 even though provisions of Section 13 are attracted. 2. Allowing the benefit of section 11(1) of the IT Act without considering the huge surpluses being earned by the society and

3 ITA No. 831,968,832 &969/JP/2016 Mahima Shiksha Samiti vs. ACIT (E),Jaipur

expenses were incurred for the benefit of persons covered u/s 13(3) of the IT Act. 3. Allowing salary expenses to the extent of the following amounts:- Rs. 13,76,020/- ( Mr. Mohini Bakshi), Rs. 2,84,020/- ( Mr. M.S. Bakshi), Rs. 10,58,020/- ( Mrs. Sandeep Bakshi) Rs. 89,696/- ( Mrs. Indu Tikkoo) and Rs. 26,020/- ( Mr. Preeti Bakshi) which is higher than reasonable. 4. Allowing contribution made to Jaipur Nation University during the year under considering as application of income u/s 11 of the Act despite the fact that the assistance provided to JNU is the violation of byelaws of the society as well as the violation of provisions of Sections 13(1)(c) and 13(2)(a) of the Income Tax Act, 1961.” Ground of Assessee’s appeal:-

In its appeal for A.Y. 2012-13, the assessee has taken the following solitary ground of appeal is as under:-

“(i) Under the facts and circumstances of the case and in law, Ld. A.O. has erred in holding that depreciation under section 32 of the Income Tax Act, 1961 is not admissible in respect of the assets on which exemption has been allowed under section 11 of the Income Tax Act, 1961 while applying the income for charitable purpose. Further, Ld. CIT (A) erred by upholding the same.”

2.

Similar grounds of appeal have been taken by the Revenue and assessee in their respective appeals for A.Y. 2013-14.

3.

At the outset, the Ld. AR submitted that all grounds of appeal as taken by the Revenue as well as by the assessee have been decided in

4 ITA No. 831,968,832 &969/JP/2016 Mahima Shiksha Samiti vs. ACIT (E),Jaipur

favour of the assessee by this very Bench vide its order dated 03.03.2017 for AY 2010-11 and AY 2011-12. It was further submitted that there are no changes in the facts and circumstances of the case as well as in the legal position, hence, it was prayed that the earlier decision taken by this Bench vide its order dated 03.03.2017 may kindly be followed in respect of appeals filed by the Revenue as well as the assessee for both the assessment years under consideration.

3.

The Ld. DR is heard who has relied on the order of the Assessing Officer in respect of grounds of appeal taken by the Revenue and relied on the order of Ld. CIT.(A) in respect of ground of appeal taken by the Revenue. The LD DR fairly agreed that the issues under consideration are covered by the earlier decision passed by this Bench vide its order dated 03.03.2017.

5.

This Bench has recently examined all this issues which have been raised in the impunged appeals at length in ITA No. 105/JP/2016 and others in assessee’s own case for AY 2010-11 and AY 2011-12 and vide our consolidated order dated 03.03.2017 have decided the issues in favour of the assessee society and at para 103 held as under:

“In light of above discussion and in the entirety of facts and circumstances of the case, taking into consideration the rival contentions advanced by both the parties, Hon’ble Supreme Court decision in the case of Queens’s educational society and others, various other High Courts decisions referred supra as well as orders passed by Coordinate Benches in earlier years, the assessee society is held eligible for exemption under section 11 read with section 12 and 13 of the Act. The payment of salary to persons specified in section 13(3), incurrence of foreign travel expenditure, contribution to Jaipur National University and

5 ITA No. 831,968,832 &969/JP/2016 Mahima Shiksha Samiti vs. ACIT (E),Jaipur

additions to fixed assets during the year qualify for due application of income in accordance with the above said provisions. In the result, all the grounds taken by the Revenue are dismissed and ground taken by the assessee society is allowed.”

6.

Admittedly, there are no changes in the facts and circumstances of the case as well as in the legal position in respect of the issues under consideration. The Ld. CIT(A) has also decided all these matters following the earlier orders passed by the Co-ordinate Benches as well as by her for A.Y. 2010-11 and 2011-12. Hence, our findings and directions contained in our earlier order dated 03.03.2017 shall apply mutatis mutandis in respect of all the issues under consideration in respect of both the impunged assessment years.

In the result, appeals filed by the Revenue are dismissed and appeals filed by the assessee are allowed in respect of both the impunged assessment years.

Order pronounced in the open court on 25/04/2017

Sd/- Sd/- ¼dqy Hkkjr ½ ¼foØe flag ;kno½ (Kul Bharat) (Vikram Singh Yadav) U;kf;d lnL;@Judicial Member ys[kk lnL;@Accountant Member Tk;iqj@Jaipur fnukad@Dated:- 25/04/2017. *Santosh. आदेश की प्रतिलिपि अग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू 1. vihykFkhZ@The Appellant- M/s Mahima shiksha Samiti A-18, Shanti Path, Tilak, Nagar, Jaipur.

6 ITA No. 831,968,832 &969/JP/2016 Mahima Shiksha Samiti vs. ACIT (E),Jaipur 2. izR;FkhZ@ The Respondent- ACIT (E), Jaipur. 3. vk;dj vk;qDr@ CIT 4. vk;dj vk;qDr@ CIT(A) 5. विभागीय प्रतिनिधि] आयकर अपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत. 6. xkMZ QkbZy@ Guard File {ITA No. /831,968,832&969JP/2016} vkns'kkuqlkj@ By order,

सहायक पंजीकार@Aेेज. त्महपेजतंत

More judgments on Section 11

All 7,190 judgments and leading authorities on Section 11 →

Recent GST High Court judgments

Search GST case law →