ACIT(E), CIRCLE-2(1), NEW DELHI vs. SHIKSHANTAR WELFARE SOCIETY, NEW DELHI

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘B’, NEW DELHI BEFORE SH. ANIL CHATURVEDI, ACCOUNTANT MEMBER AND SH. SANJAY GARG, JUDICIAL MEMBER (THROUGH VIDEO CONFERENCING) (Assessment Year : 2013-14) ACIT(E) Vs. Shikshantar Welfare Circle – 2(1) Society, S-518, New Delhi Lower Ground Floor Greater Kailash-1 PAN : AABAS 8148 P New Delhi - 110048 (APPELLANT) (RESPONDENT) Assessee by --None-- Revenue by Ms. Nidhi Srivastava, CIT-D.R. Date of hearing: 22.09.2021 Date of Pronouncement: 27.09.2021 ORDER PER ANIL CHATURVEDI, AM:

This appeal filed by the Revenue is directed against the order dated 15.12.2017 of the Commissioner of Income Tax (Appeals)-40, Delhi relating to Assessment Year 2013-14.

2 u/s 80G of the Act. Assessee filed its return of income for A.Y. 2013-14 on 26.09.2013 declaring total income of Rs. Nil. The case was selected for scrutiny and thereafter assessment was framed u/s 143(3) of the Act vide order dated 29.03.2016 and excess application over income was determined at Rs.11,77,102/-. Aggrieved by the order of AO, assessee carried the matter before the CIT(A) who vide order dated 15.12.2017 in Appeal No.479/2016-17 granted substantial relief to the assessee. Aggrieved by the order of CIT(A), Revenue is now in appeal before us and has raised the following grounds of appeal: 1. “On the basis of facts and circumstances of the case and in law, the Ld. CIT(A) has erred in allowing the asessee's claim of carry forward of current year's loss and set-off of excess deficit pertaining to earlier years without appreciating the fact that the scheme of taxation of charitable or religious trust/institution as codified u/s 11, 12 and 13 there is no provision for computing loss from property held under trust/institution on account of excess application of income/funds of the trust.

2. On the basis of facts and circumstances of the case and in law, the Ld. CIT(A) has erred in allowing the asessee's claim of carry forward of current year's loss and set-off of excess deficit pertaining to earlier years without appreciating the fact that the normal computation of income under respective heads as envisaged u/s. 15 to 59 are not applicable to the computation of income in respect of charitable trust/ institution for the purpose of claiming exemption under section 11, 12 and 13 and, therefore the provisions relating to set-off of loss from one source against the income from another source, set-off of loss from one head against income from another head and carry forward and set-off of loss against the income of subsequent years as envisaged u/s. 70 to 79 are also not applicable to the charitable trusts/ institutions.

3. The appellant craves leave to add, to alter or amend any ground of appeal raised above at the time of hearing.”

3 4. On the date of hearing none appeared on behalf of the assessee though the notice date of hearing was issued to the assessee. The case file also reveals that the notice of hearing was returned back by the Postal Authorities with the remark “No such person in this address”. In view of these facts, we proceed to dispose of the appeal ex parte qua the assessee after considering the material on record and after hearing by the Learned DR.