DCIT, (E), C-1, Chandigarh Vs The Patiala Improvement Trust, Patiala

IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH

BEFORE: SHRI. N.K.SAINI, VP & SHRI. R.L. NEGI, JM
ITA NO.468/Chd/2018
Assessment Year : 2013-14

The JCIT(OSD), (Exemptions)
Circle-1, Chandigarh
PAN NO: AAAJI0034L
Appellant

Vs

M/s Patiala Improvement Trust
Chotti Baradari, Patiala-Punjab
Respondent

ITA NO.847/Chd/2019
Assessment Year : 2014-15

The DCIT
C-1(E), Sector-17, Chandigarh
PAN NO: AAAJI0034L
Appellant

Vs

M/s Patiala Improvement Trust
Chotti Baradari, Patiala-Punjab
Respondent

ITA NO.164/Chd/2019
Assessment Year : 2015-16

The DCIT (E)
C-1, Sector-17, Chandigarh
PAN NO: AAAJI0034L
Appellant

Vs.

M/s Patiala Improvement Trust
Chotti Baradari, Patiala-Punjab
Respondent

Assessee by : Shri Ashok Goel, CA
Revenue by : Dr. G.S. Phani Kishore, CIT
Date of Hearing : 07/10/2020
Date of Pronouncement : 07/10/2020

Order

PER RAM LAL NEGI; JM

The Revenue has filed the captioned appeals against the orders dt. 02/01/2018, 22/03/2019 and 28/11/2018 passed by the Ld. Commissioner of Income Tax(Appeals) (for short “the CIT(A)”), Patiala pertaining to the A.Y. 2013-14, 2014-15 and 2015-16 respectively, whereby the Ld. CIT(A) has allowed theappeals filed by the assessee against the assessment orders passed under section 143(3) of the Income Tax Act, 1961 (for short the ‘Act’).

2. Since these appeals pertain to the same assessee and the Revenue has raised the common issue in all the three appeals, except in appeal pertaining to the Assessment year 2014-15, wherein the Revenue has challenged the action of the Ld. CIT(A) inter alia on the ground that the Ld. CIT(A) has erred in allowing the ground of appeal with respect to disallowance of donation expenditure of Rs. 4 crore, these appeals were clubbed, heard together and are being disposed of by this common order for the sake of convenience.

ITA No. 468/Chd/2018 AY 2013-14

3. Brief facts of the lead case pertaining to the Assessment year 2013-14 are that the assessee society registered under section 12A of the Act, 1961 with the Ld. CIT-1, Amritsar vide No. CIT-I/ASR/2006-07/213 dated 24/04/2006 & vide order No. CIT-I/ASR/ITI(Tech)/07-08/PS-81, dt. 26/10/2007, subsequently withdrawn vide order F.No. CIT/PTA/Tech/12AA, dt. 13/10/2014, filed its return of income for the assessment year under consideration declaring nil income after claiming exemption u/s 11 of the Act. The AO noticed that during the year relevant to the assessment year under consideration the assessee carried on the business of sale and purchase of residential plots and commercial properties and earned huge net profit of Rs. 9,95,74,223/-, which does not fall within the ambit of the advancement of any other object of general public utility under section 2(15) of the Act. Accordingly, the AO asked the assessee to justify its claim and after hearing the assessee rejected the claim of the assessee. The AO rejected the claim of the of the assessee and after making addition on account of disallowance of donation amounting and disallowance of service Tax paid, passed Assessment Order u/s 143(3) of the Act, determined the total income of the assessee at Rs. 11,00,93,437/-

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