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TMI Blog2023 (9) TMI 1534X X X X Extracts X X X X X X X X Extracts X X X X ..... aised by the Revenue and dismiss the same. - SHRI PAWAN SINGH, JUDICIAL MEMBER AND Dr. ARJUN LAL SAINI, ACCOUNTANT MEMBER For the Appellant : Shri Hardik Kakadiya, C.A. For the Respondent : Shri Vinod Kumar, Sr. DR Order under Section 254(1) of Income Tax Act PER: PAWAN SINGH, JUDICIAL MEMBER: 1. These two appeals by the revenue are directed against the separate orders of learned National Faceless Appeal Centre, Delhi (NFAC)/ Commissioner of Income Tax (Appeals) (in short, the ld. CIT(A) dated 10/01/2023 and 05/01/2023 for the Assessment year (AY) 2014-15. In ITA No. 166/Srt/2023, the revenue has challenged the order of ld. CIT(A) in deleting the addition of Rs. 7,786/- made by Assessing Officer in assessment order dated 13/10/2016 passed under Section 143(3) of the Income Tax Act, 1961 (in short, the Act) and in ITA No. 167/Srt/2023, the revenue has filed appeal against deleting the disallowance of application of income under Section 11 and 13 of the Act of Rs. 30,52,808/- in assessment order dated 19/12/2019 passed under Section 143(3) r.w.s. Section 147 of the Act. Both the appeals of the revenue relate to A.Y. 2014-15. In both these appeals, certain facts are common, therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out any remuneration and expenses incurred for her memory by staff and student were for the object of the trust and could not be disallowed. 4. The ld. CIT(A) after considering the submission of assessee, held that incurring such small expenses or even a large amount of expenses, if the institution s income is larger for the commemoration of the founder of an institution or a substantial contributor of the trust for recollection of their contribution for the school who had devotedly acted for setting up the institution and also to appraise their ideology for the greater cause amongst the students and staff subsequent to their death, in no case, could be treated as infringement of provisions of Section 13(1)(c) r.w.s. 13(3) of the Act and accordingly allowed such expenses. Aggrieved by the order of ld. CIT(A), the Revenue has filed present appeal before this Tribunal. 5. We have heard the submissions of the learned Senior Departmental Representative (ld. Sr. DR) for the revenue and the learned Authorised Representative (ld. AR) of the assessee and have gone through the orders of the lower authorities carefully. Though, we find that the Revenue has challenged the deletion of addition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of provisions of Section 13 of the Act. The ld. CIT(A) also held that there is no element of benefit taken by interested person under Section 13(3) of the Act. We fully concur with the finding of ld. CIT(A) that incurring such a negligible amount which were disclosure of which was made honestly, require disallowance. Thus, we do not find any merit in the grounds of appeal raised by the Revenue and dismiss the same. 9. In the result, this appeal of revenue is dismissed. ITA No. 167/Srt/2023 for A.Y. 2014-15. 10. In this appeal, the revenue has raised following grounds of appeal: 1. Whether in the law and the facts of the case, the ld. CIT(A) erred in deleting the addition made by the Assessing Officer on account of disallowing the accumulation of income claimed u/s 11(1)(a) of Rs. 30,52,808/-, since the assessee trust had benefitted the persons specified U/s 13(3) of the Act, by incurring expenditure of Rs. 7,786/- on the celebration of chairperson s birthday, which was clear infringement of the provision of Section 13(1)(c)(ii) of the Act. 2. The appellant craves leave to add, amend, delete or modify grounds of appeal before the finalization of appeal. 11. Brief facts of the case a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capital receipt and not taxable as the receipt itself shows corpus donation which is capital in nature. The assessee furnished sample copies of donation receipts. On furnishing such evidences, the matter was remanded to the Assessing Officer to give his remand report after making proper verification. 13. The ld CIT(A) after considering the contents of assessment order and submissions of the assessee, in para 6 of his order held that the assessee has not raised separate ground of appeal with regard to corpus donation, therefore, he is not in a position to deal with such submission. However, on the denial of exemption under Section 11, the ld. CIT(A) held that the Assessing Officer made basis for denial of exemption of expenses incurred for birthday celebration by treating it personal in nature. As the ld. CIT(A) in other appeal has allowed relief to the assessee on disallowance of expenditure of birthday celebration by taking a view that there was no element of benefit to any interested person under Section 13(3) of the Act, so he also held that the Assessing Officer was not justified in denying the claim of exemption under Section 11 of the Act by invoking provisions of Section 13 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee is undertaking its activity for the purpose of object of the assessee-trust. The onus lies on the Assessing Officer to prove that application of violation of conditions specified in Section 13 of the Act. The ld. AR of the assessee submits that he has relied on number of decisions, copy of which has been placed in the paper book. 16. We have considered the rival submissions of both the parties and perused the record. We find that the tax effect involved in the present appeal is only Rs. 9,25,317/- as mentioned by I.T.O.(Exemption) /Revenue in Form-36/appeal form. Though, the revenue has pleaded in the grounds of appeal that tax effect involved in the present appeal is below the monetary limit specified by CBDT in its Circular No. 17/2019 dated 08/08/2019. However, the issue involved in the case falls under exception clause enumerated in para 10(c) of Circular No. 3/2018 dated 11/07/2018. We have perused the CBDT Circular No. 3/2018 dated 11/07/2018 which deals with the exception related with audit objection. We find that in entire assessment order, the Assessing Officer has not mentioned that action of reopening is based on audit objection or any such audit objection was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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