2019 (11) TMI 1756 - AT - Income Tax

Exemption u/s 11 - Assessment of trust - voluntary donation received - Whether CIT-A erred deleting the disallowance made and accepted the assessee s claim as voluntary donation received whereas the alleged donations were in fact capitation fee collected for admission in an Engineering College run by Shri Venkateswara Educational and Health Trust? - HELD THAT - Perusal of the orders of the Co-ordinated Bench of this Tribunal in the assessee s own case in respect of all assessees clearly show that the Co-ordinated Bench of this Tribunal has confirmed the order of the learned CIT (Appeals) for the Assessment Year 2011-12 2017 (4) TMI 1605 - ITAT CHENNAI by holding that no interference was necessary in respect of the decision of the learned CIT (Appeals) who has extensively analyzed the issue and decided the matter by placing reliance on the various decisions of the Hon ble High Court and upheld the orders of the learned Commissioner of Income Tax (Appeals). Thus we find no reason to interfere in the order of the learned Commissioner of Income Tax (Appeals). Consequently, the appeals filed by the Revenue stands dismissed.

Summary

Issues involved:
Appeals filed by Revenue against deletion of disallowance for alleged capitation fee as voluntary donation in various charitable trusts.

Analysis:
1. The appeals were filed by the Revenue against the deletion of disallowance made for alleged capitation fee as voluntary donation in the cases of several charitable trusts. The issue revolved around the action of the Commissioner of Income Tax (Appeals) in accepting the assessee's claim as voluntary donation received, which the Revenue contested as capitation fee collected for admission in an Engineering College run by one of the trusts.

2. Both parties were represented by their respective authorized representatives. Since the issues were identical in all appeals, they were heard together and disposed of through a common order.

3. The Departmental Representative argued that the disallowance deletion by the Commissioner of Income Tax (Appeals) was improper, as the alleged donations were actually capitation fees. On the other hand, the Authorized Representative contended that decisions of the Co-ordinated Bench of the Tribunal in the assessee's own cases supported the claim of voluntary donation.

4. The Departmental Representative highlighted that voluminous evidence collected by the Revenue was not considered by the Commissioner of Income Tax (Appeals) and the Tribunal. However, it was acknowledged that finality had not been reached in one case pending before the High Court. The Authorized Representative emphasized that the Tribunal had previously upheld the Commissioner's decision based on jurisdictional discipline and legal precedents.

5. Upon reviewing the submissions and available records, the Tribunal noted that the Co-ordinated Bench had previously confirmed the Commissioner's orders for the Assessment Year 2011-12 in the assessee's cases. The Tribunal found no reason to interfere with the Commissioner's decision, as it was in line with jurisdictional discipline and supported by legal precedents. Consequently, the appeals filed by the Revenue were dismissed, and the orders of the Commissioner of Income Tax (Appeals) were upheld.

6. As a result, all appeals filed by the Revenue against the charitable trusts, including M/s. MAC Charities, M/s. MAC Public Charitable Trust, M/s. Sri Venkateswara Educational & Health Trust, and M/s. United Educational Foundation, were dismissed. The judgment was pronounced in open court on 13th November 2019 in Chennai.