SOMANY EDUCATION TRUST,KOLKATA vs. I.T.O (EXEMPTION) - II,KOLKATA, KOLKATA

ORDER Per Shri S.S.Viswanethra Ravi, J.M. This is an appeal by the assessee against the order dated 22.01.2013 passed by the CIT(A)-XXXVI, Kolkata for the assessment year 2000-01 passed under section 251 of the Income Tax Act, 1961.

1. That the order passed by the lower authorities are arbitrary and bad in the eye of law.

2. On the facts and in the circumstances of the case, the learned CIT(A) erred in sustaining the disallowance to the extent of 923569 and thereby he was wrong in confirming the disallowance made by the ld. A.O. to that extent irrespective of the fact that such expenses are regular and necessary for maintenance of the trust.

3. On the facts and in the circumstances of the case, the learned CIT(A) erred in passing order without affording proper opportunity and providing sufficient time to the assessee to produce relevant documents. 4. the appellant craves leave to amend, alter, modify, substitute, add to, abridge and/or rescind any or all of the above grounds.”

3. The brief facts of the case are that the assessee is a registered trust U/Sec 12 A of the Act and running three educational institutions. The return of income was filed declaring the total income at nil. The AO treated the assessee as an AOP and denied the exemption U/Sec 10(23C)(vi) of the Act and assessed the income of the assessee at Rs.35,19,420/- under section 143(3)/13(1)(d)(iii) of the Act. In appeal, CIT-A confirmed the order of AO in denying the exemption U/Sec 10(23C)(vi) of the Act and allowed the deduction of dividend income of Rs.9,93,644/- .CIT-A directed the AO to verify the expenditure and to allow the same as per law.

4. During such proceedings, the AO found that the expenditure incurred was not laid out wholly and exclusively for the purpose of making or earning income from schools and the college. Therefore AO did not allow various expenses as claimed by the assessee for the reason that the assessee is an AOP and disallowed Rs.25,25,776/-. The learned CIT-A as it noticed from the record directed to produce the relevant bills vouchers etc. as the case may be to substantiate the expenditure claimed. But however the assesse could produce vouchers showing an extent of Rs.63,011/- only and CIT-A restricted the disallowance to 9,23,569/- as against Rs.9,86,580/-and treated the same as non business expenditure.

5. Aggrieved as above the assessee before us contending that the AO did not grant the reasonable time to file all such details supporting its claim of expenditure in the proceedings giving effect to order of CIT-A. the learned AR submitted that that to carry out the objectives effectively the assessee trust incurred many administrative expenditure even that too was not considered by the AO on the ground that the assessee is an AOP and hence sought to remand back the file to AO for verification. The learned DR raised no objection. Therefore, we are of the view that in the interest of justice remand the case to the file of AO and in order to afford an opportunity to the assessee to put forth all the material evidence in support of its claim of expenditure before the AO and assessee shall not seek any further adjournments, taking into consideration the litigation had run into 10 years we direct the AO to complete the verification of the details and expedite the matter and pass appropriate orders, as per law. Thus grounds raised

by the assessee are allowed for statistical purposes.

6. In the result the appeal of the assessee is allowed for statistical purposes.

Order Pronounced in the Open Court on 06.05.2016 Sd/- Sd/- (P. M. Jagtap) (S.S.Viswanethra Ravi) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 06/05/2016 Talukdar (Sr.PS) Copy of the order forwarded to: 1. Somany Education Trust, 2, Red Cross Place, Kolkata – 700 001 2 I.T.O.(Exemption)-II, Kolkata 3. The CIT-I, 4. The CIT(A)-I, 5. DR, Kolkata Benches, Kolkata