Sai Chhaya Educational Welfare society v. Joint Commissioner of Income-tax, Range-2, Ghaziabad
[Citation -2016-LL-1014-22]

Citation 2016-LL-1014-22
Appellant Name Sai Chhaya Educational Welfare society
Respondent Name Joint Commissioner of Income-tax, Range-2, Ghaziabad
Court ITAT-Delhi
Relevant Act Income-tax
Date of Order 14/10/2016
Assessment Year 2010-11
Judgment View Judgment
Keyword Tags opportunity of being heard • revenue authorities • transport business • audit report
Bot Summary: The brief facts of the case are that assessee filed its return of income on 13.10.2010 declaring NIL income. Against the assessment order, assessee preferred an appeal before the Ld. CIT(A) who vide his impugned order dated 02.3.2015 has dismissed the appeal of the assessee. Against the order of the Ld. CIT(A), assessee is in appeal before the Tribunal. During the hearing, Ld. AR of the assessee did not press the ground no3. 1 2, Ld. AR of the assessee stated that assessee has been maintaining the same system of books of accounts in the past and subsequent assessment year also and no such observation / addition has ever been made for any earlier and subsequent assessment years. In view of the above, Ld. AR of the assesee has stated that issue raised in ground no.1 2 may be decided in favour of the Assessee as no similar addition was ever made in earlier and in subsequent years by the Department. 1 2 are concerned, I find that as per AO the assessee is charging separate fee from the students for the transport/ sports facility and according to the AO the income of the assessee from running of transport / sports activity is not a charitable activity and therefore, taxable.


IN INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC-II, NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER I.T.A.No.3237/Del/2015 A.Y. 2010-11 SAI CHHAYA EDUCATIONAL & JOINT COMMISSIONER OF WELFARE SOCIETY VS. INCOME TAX, C/O RAMGYA SCHOOL, RANGE-2, GHAZIABAD E-7, SECTOR-50, NOIDA, UTTAR PRADESH UTTAR PRADESH (PAN: AABAS2034G) (APPELLANT) (RESPONDENT) Assessee by : Sh. Sanjay Gupta, CA Department by : Sh. Umesh Chander Dubey, Sr. DR ORDER This appeal by Assessee is directed against Order dated 02.3.2015 of Ld. CIT(A), Muzaffarnagar pertaining to assessment year 2010-11 on following grounds:- 1. On facts and circumstances of case, Ld. CIT(A) has erred in law in upholding addition of Rs. 38,44,571/- on account of income from bus and sports activities treating same as business income. 2. That Ld. CIT(A) has failed to appreciate scope of term education which includes sports activities as integral part of education. 3. That Ld. CIT(A) has erred in law in upholding disallowance of Rs. 4372195/- on account of depreciation claimed on fixed assets. 1 2. brief facts of case are that assessee filed its return of income on 13.10.2010 declaring NIL income. case was processed u/s. 143(1) of I.T. Act, 1961. case was selected under scrutiny and statutory notice u/s. 143(2) of I.T. Act dated 15.9.2011 and on 19.4.2012 u/s. 143(2) & 142(1) of I.T. Act alongwith questionnaire were issued to assessee. In response to these notices, assessee attended proceedings from time to time and furnished necessary details / explanation as called. books of accounts produced, have been test checked and case was discussed. Thereafter assessment was completed u/s. 143(3) of I.T. Act at total income of Rs. 38,44,570/- by AO vide his order dated 25.3.2013. 3. Against assessment order, assessee preferred appeal before Ld. CIT(A) who vide his impugned order dated 02.3.2015 has dismissed appeal of assessee. 4. Against order of Ld. CIT(A), assessee is in appeal before Tribunal. 5. During hearing, Ld. AR of assessee did not press ground no3. However, with regard to ground no. 1 & 2, Ld. AR of assessee stated that assessee has been maintaining same system of books of accounts in past and subsequent assessment year also and no such observation / addition has ever been made for any earlier and subsequent assessment years. He further stated that assessment for AY 2008-09 and AY 2009-10 and AY 2012-13 has been made u/s. 143(3) of I.T. Act. He further stated that scope of term education includes sports activities as integral part of education. In support of his contention, he filed Paper Book containing pages 1 to 40 containing copy of Certificate of registration u/s. 12AA of Act; Copy of Certificate of registration u/s. 80G(5) of Act; copy of ITR Acknowledgment 2 and Computation of total income for AY 2010-11 submitted alongwith return of income; copy of Audit Report in Form 10B of AY 2010-11 submitted alongwith return of income; copy of consolidated audited balance sheet and profit and loss account with Annexure as on 31.3.2010 relevant to AY 2010-11 submitted alongwith return of income; copy of Audited Balance Sheet as on 31.3.2010 relevant to AY 2010-11 of society (Sai Chhaya Educational and Welfare Society) submitted alongwith return of income; copy of Audited balance sheet and income and expenditure account with Annexure as on 31.3.2010 relevant to AY 2010-11 of School (Ramagya School) submittd alongwith return of income; copy of assessment orders u/s. 143(3) for AY 2008-09; Copy of Audited Balance Sheet and Income & Expenditure account with Annexure as on 31.3.2008 relevant to AY 2008-09 and copy of written arguments dated 15.7.2014 submitted before CIT(A). In view of above, Ld. AR of assesee has stated that issue raised in ground no.1 & 2 may be decided in favour of Assessee as no similar addition was ever made in earlier and in subsequent years by Department. 6. On other hand, Ld. DR has relied upon orders of authorities below and stated that order of Ld. CIT(A) is well reasoned and same does not need any interference on my part, therefore, same may be upheld. 7. I have heard both parties and perused records, especially orders of revenue authorities and Paper Book filed by Assessee s AR. As ground no. 3 was not pressed by Ld. AR of assessee, same is dismissed as not pressed. 3 7.1 With regard to ground no. 1 & 2 are concerned, I find that as per AO assessee is charging separate fee from students for transport/ sports facility and according to AO income of assessee from running of transport / sports activity is not charitable activity and therefore, taxable. However, Ld. AR has stated that activity of running transport/ sports is integral part of education. I also note that it was further contention of Ld. AR that same system of books of accounts in past and subsequent years and no such observations/ addition has ever been made. I also note that Ld. CIT(A) observed that assessee was required to maintain separate books of account for his transport business which he has not done and therefore, AO was fully justified in denying exemption u/s. 11(4A) of Act to assessee. I find that contention of assessee relating to maintaining same system of books of accounts in past and subsequent years on which no similar addition was made, was not considered by lower authorities while deciding issue in dispute. I also note that Assessee has also not filed relevant documents before me of this claim also. Therefore, in interest of justice, I remit back issue raised in ground no. 1 & 2 to file of AO to decide same afresh, under law, after giving adequate opportunity of being heard to assessee and Assesee is also directed to produce all 4 relevant documents/ information relating to his aforesaid claim before AO and fully cooperate with him. 8. In result, Appeal of Assessee is partly allowed for statistical purposes. Order pronounced in Open Court on 14/10/2016. SD/- [H.S. SIDHU] SIDHU] JUDICIAL MEMBER Date 14/10/2016 SRBHATNAGAR Copy forwarded to: - 1. Appellant - 2. Respondent - 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY By Order, Assistant Registrar, ITAT, Delhi Benches 5 Sai Chhaya Educational Welfare society v. Joint Commissioner of Income-tax, Range-2, Ghaziabad
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