TaxTMI 
TaxTMI 
2019 (6) TMI 695
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....nd in any view of the matter, action of ld. CIT(A) in confirming the action of Ld. AO in not allowing the development fees of Rs. 20,00,000/- paid to M/s. Agra Dioceasn Trust Association, Agra as application of income, is bad in law and against the facts and circumstances of the case." 3. The facts of the, case in brief, are that the assessee is a society and is registered with the Registrar of Society, U. P, under Society Registration Act. The assessee society has been granted registration u/s 12 AA of the IT Act by the CIT, Meerut vide order dated 28.05.2009. It filed its return of income on 06.11.2013 declaring nil income. The AO during the assessment proceedings observed that assesee has debited development fees of Rs. 20,00,000/- to the income and expenditure account. He, therefore, asked the assessee to explain the nature of payment of development fees of Rs. 20,00,000/- and also furnish the copy of agreement entered into and furnish the details of last five years. The assessee filed the requisite details alongwith a copy of letter dated 02.02.2016 by Agra Diocesan Trust Association (ADTA in short) a company registered u/s 25 of Company Act 1956 u/s 8 of the company Act 201....
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....that the payment has been made without agreement and ADTA is a company registered under company's Act which olding trust of Diocese of Agra and managing properties of many colleges, schools, churches etc. During the course of appellate proceedings it has been argued that the above said donation or contribution should be allowed as it is for the same purposes as that of appellant and placed reliance on CIT vs Thanthi Trust (SC) (1999) 239 ITR 502, CIT vs Shri Aurobindo Memorial Funds Society Madras 162 CTR 254, CIT vs Shri Ram Memorial Foundation (Del.) (2004) 140 Taxman 263, CIT vs H.P.S. Social Social Welfare Foundation (Del.) (2011) 198 Taxman 63. It is noted that neither during appellate proceedings nor during assessment proceedings appellant could prove that objective of ADTA is same as that of appellant and the donation is towards corpus of the ADTA. The memorandum of association of ADTA reveals that ADTA works for furtherance of religious and charitable work of church of North India and in management of property etc. Thus case laws relied upon by the appellant are not applicable to the facts and circumstances of appellant's case. Keeping in view above facts the donati....
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....32 regarding availability of exemption in the hands of charitable trusts of amounts paid as donation to other charitable trust and the decision of Hon'ble Gujarat High Court in the case of CIT Vs. Sarladevi Sara Bhai Trust No.2 reported 172 ITR 698. 9. The Ld. DR on the other hand heavily relied on the order of the Assessing Officer and CIT(A). 10. I have considered the rival arguments made by both the sides and perused the orders of the lower authorities. I find the Assessing Officer rejected the claim of development fees of Rs. 20 lacs paid to ADTA as application of income on the ground that the money has been siphoned off every year and further there is no such agreement between the assessee and ADTA. I find the Ld. CIT(A) upheld the action of the Assessing Officer which has been reproduced in the preceding paragraph. It is the submission of the Ld. Counsel for the assessee that the assessee is paying such development fees to ADTA since last so many years and the Assessing Officer in the past as well as subsequent years has accepted such expenditure as application of income in the orders passed u/s 143 (3). Further it is also his submission that donations are never made with....
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....IT(A) was not satisfied with the arguments advanced by the assessee and upheld the action of the Assessing Officer on the ground that although the payments have been made before the due date of filing of the return, however, they were paid after the due date prescribed under the EPF Act. It is the submission of the Ld. Counsel for the asseessee that in view of the decision of Hon'ble Supreme court in the case of CIT Vs. Alom Extrusions reported in 319 ITR 306 and various other decisions payments made prior to due date of filing of return as prescribed u/s. 139 (1) cannot be disallowed u/s. 36 (1) (va) r.w.s. 2 (24) (x). Since in the instant case admittedly the deposits towards EPF has been deposited prior to the due date of filing of return u/s. 139 (1) therefore, following the consistent view of the coordinate benches of the Tribunal I am of the considered opinion that no disallowance u/s. 36 (1) (va) r.w.s. 2 (24) (x) can be made. The ground raised by the assessee is accordingly allowed. 13. Ground No.4 of the appeal reads as under :- 1. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in not allowing the benefit of deem....
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...., Ld. CIT(A) ought to have considered income after depreciation in view of several judicial decisions. 2. That in any case and in any view of the matter, depreciation ought to have been deducted from the amount of income. 17. Referring to the decision of Hon'ble Supreme Court in the case of NTPC Limited Vs. CIT reported in 229 ITR 383 and the decision in the case of Singhad Technical Education Society reported in 397 ITR 344, he submitted that since the above grounds do not require fresh facts to be investigated and go to the root of the matter, therefore, the same should be admitted. 18. After hearing both the sides and considering the fact that no fresh facts are required to be investigated, the additional grounds raised by the assessee are allowed. 19. The facts of the case, in brief are that the Assessing Officer did not allow depreciation of 18,38,087/- being the depreciation claimed for the year as application of income. Although this ground has not been raised before the CIT(A), however in view of the additional grounds raised by the assessee which has been admitted, we proceed to adjudicate the same. The Hon'ble Supreme Court in the case of CIT Vs. Rajasthan & Guja....