DUDHSAGAR RESEARCH AND DEVELOPMENT ASSOCIATION. (O/O. DUDHSAGAR DAIRY),MEHSANA vs. THE ACIT(EXEMPTION), CIRCLE-1,, AHMEDABAD

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ITA 1147/AHD/2018Status: DisposedITAT Ahmedabad17 January 2024AY 2014-15Bench: SHRI WASEEM AHMED (Accountant Member), SHRI SIDDHARTHA NAUTIYAL (Judicial Member)3 pages

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

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal found merit in the assessee's contention that if corpus donations are treated as revenue receipts, then Sections 11 and 12 of the Act should apply, making the assessee eligible for deductions.

What were the facts?

The assessee's appeal was initially dismissed regarding deduction under Section 11(1)(d). The assessee then raised an additional ground, arguing for eligibility under Sections 11 and 12 if corpus donations were treated as revenue receipts.

What were the issues?

Whether the assessee is eligible for deductions under Sections 11 and 12 of the Income Tax Act if corpus donations are treated as revenue receipts.

Which sections of the Income-tax Act were involved?

Section 11,Section 11(1)(d),Section 12

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD

Before: SHRI WASEEM AHMED & SHRI SIDDHARTHA NAUTIYAL

For Appellant: Shri Bandish Soparkar & Shri Parin Shah
For Respondent: Shri Sudhendu Das, CIT D.R
Hearing: 11.01.2024Pronounced: 17.01.2024

This appeal has been filed by the assessee against the order passed by the Ld. Commissioner of Income Tax (Appeals)-7, (in short “Ld. CIT(A)”), Ahmedabad in Appeal No. CIT(A)-7/138/16-17 vide order dated 28.02.2018 passed for Assessment Year 2014-15.

2.

The brief facts in relation to this case are that the ITAT vide order dated 11.10.2022 in Section 11(1)(d) of the Act. Subsequently, the assessee filed Miscellaneous Application, in which the assessee had submitted that the assessee had raised an additional ground of appeal that in case it is held that the assessee is not eligible for deduction under Section 11(1)(d) of the Act and the receipts are treated as Dudhsagar Research & Development Association vs. ACIT(E) Asst. Year –2014-15 - 2 - revenue receipts in the hands of the assessee, then, in the alternative, the assessee is eligible for deduction under Sections 11 and 12 of the Act. The ITAT recalled the order to hear the matter afresh to the limited extent of additional ground of appeal raised by the assessee.

3. The Additional ground raised by the assessee is reproduced for ready reference:

“1. Both the lower authorities ought to have granted benefits of Section 11 and 12 as corpus donation received from members are treated as revenue receipts. Appellant craves leave to add, amend, alter, change, delete and edit the above ground of appeal before or at the time of hearing of the appeal.”

4.

Before us, the counsel for the assessee submitted that in the event the corpus donation is treated as “revenue receipts” in the hands of the assessee trust, then the benefits of Sections 11 and 12 of the Act should be available to the assessee. We find merit in the contention of the assessee that since the corpus donation is to be treated as “revenue receipts”, then the said receipts are liable to be governed by the provisions of Sections 11 and 12 of the Act and the assessee is eligible for deduction under the aforesaid provisions, in accordance with law.

5.

In the result, the appeal of the assessee is allowed with respect to this additional ground of appeal. This Order pronounced in Open Court on 17/01/2024

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