2023 (3) TMI 1163

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....tion 260A of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') arising from the order of the Income Tax Appellate Tribunal, Delhi Bench:'B' New Delhi dated 07.09.2021, in ITA No. 1887/DEL/2018, DCIT Exemption Circle, Ghaziabad Vs. Swami Omkarananda Saraswati Charitable Trust for the A.Y. 2014-15. By that order the Tribunal has dismissed revenue's appeal and confirmed the order of the CIT (Appeals) Haldwani, dated 12.12.2017. By that order the CIT (Appeals) had (i) deleted addition of Rs. 17,15,732/- being surplus arising in the conduct of charitable activity (ii) allowed depreciation Rs. 22,90,026/- (iii) allowed benefit of organisational donation Rs. 49,93,587/- and (iv) allowed benefit of corpus donation ....

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....a is not applicable in the income tax proceedings?" 4. At the very outset it may be noted, Swami Omkarananda Saraswati Charitable Trust (hereinafter described as 'the assessee') came into existence on 31.03.1989. It was registered with the Sub Registrar Dev Prayag, Uttarakhand on 10.4.1989. It is not in dispute that the objects of the trust were to develop schools and colleges to impart education and also to provide medical aid to the needy. Undisputedly, those objects were 'charitable' within the meaning of that word under Section 2(15) of the Act. Not only that, the assessee was granted registration under Section 12A of the Act by the CIT, Meerut on 01.4.1989. That registration remained valid and has continued through the....

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....rplus generated by the assessee in the pursuit of its 'charitable purpose' could not be taxed as profit. That view had been taken by the Tribunal in the appeal for the A.Y. 2010-11. Again it is not in dispute that the said order of the Tribunal and further orders have attained finality. The activity pursued by the assessee having remained same and it not being in dispute that the assessee was granted registration under Section 12 A of the Act which registration has also remained intact, it is not possible to allow the revenue to entertain another view in the subsequent Assessment Year solely because each Assessment Year is a separate unit. 9. While none may sucessfully contend or invoke res judicata in taxation matters, at the same....

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....bitious desire to extract more oil/revenue. 12. Being the live force that grants the State its legitimacy and purpose to exist, the little entity that the assessee is, must be protected and assured of same assessment process year after year, to grant to it an environment in which it may not only survive but may look to thrive. The decision in Radhasoami Satsang (supra) has been consistently applied by Courts for the last more than three decades. Therein it was observed:- "We are aware of the fact that, strictly speaking, res judicata does not apply to income-tax proceedings. Again, each assessment year being a unit, what is decided in one year may not apply in the following year but where a fundamental aspect permeating through the diffe....