2020 (12) TMI 1302 - AT - Income Tax

Assessment of trust - addition in respect of profit from business undertakings - setting off the loss incurred by the Trust from the profits of business undertakings - THAT - Hon ble Uttarakhand High Court in Assessee s case for A.Y. 2009- 10 2019 (2) TMI 1616 - UTTARAKHAND HIGH COURT has held that the Assessing Officer was not justified in denying the assessee exemption under Section 11/12 of the Act which is confirmed by the Hon ble Apex Court 2019 (8) TMI 535 - SC ORDER Besides this for A.Y. 2010-11 2011-12 2012-13 and 2013-14 as well the Tribunal has decided the identical issue in favour of the assessee. There is no change in facts in the present assessment year and no distinguishing facts were pointed out by the Ld. DR. Therefore the CIT(A) rightly allowed the appeal of the assessee. There is no need to interfere with the findings of the CIT(A). Hence appeal of the Revenue is dismissed.

Summary

Issues:
Appeal against deletion of additions in profit from business undertakings for A.Y. 2014-15 under sections 11 and 12 of the Income Tax Act, 1961.

Analysis:
The appeal was filed by the Revenue challenging the deletion of additions of ?4,18,82,260 made by the Assessing Officer in respect of profit from business undertakings for the assessment year 2014-15. The assessee trust, registered under section 12A(a) of the Income Tax Act, regularly filed its returns and claimed exemptions under sections 11, 12, and 12AA of the Act. The Assessing Officer noted that the trust was engaged in business activities and calculated the total income at ?4,18,82,260 after setting off losses and considering inter trust donations. The CIT(A) allowed the appeal of the assessee, leading to the Revenue's challenge.

The Revenue contended that the CIT(A) erred in deleting the additions made by the Assessing Officer. However, the assessee, supported by the CIT(A) order and judicial precedents, argued that the Assessing Officer was not justified in denying exemption under sections 11 and 12 of the Act. The High Court and the Supreme Court had previously ruled in favor of the assessee in similar cases, confirming the eligibility for exemption under sections 11 and 12.

Upon review, the Tribunal found that the High Court and the Apex Court had consistently held in favor of the assessee in previous assessment years. The Tribunal noted that there were no distinguishing facts presented by the Revenue for the current assessment year, and the CIT(A) had rightly allowed the appeal of the assessee based on established legal precedents. Consequently, the Tribunal dismissed the appeal of the Revenue, upholding the decision of the CIT(A) and confirming the allowance of exemption under sections 11 and 12 for the assessee trust.

In conclusion, the Tribunal pronounced the order on 18th December 2020, dismissing the Revenue's appeal and affirming the decision in favor of the assessee trust regarding the deletion of additions in profit from business undertakings for the assessment year 2014-15 under sections 11 and 12 of the Income Tax Act, 1961.