Case Number: ITA 866/DEL/2021
Appellant: Parijat Trust, New Delhi
Respondent: ACIT-CPC, Bangalore
Assessment Year: 2014-15
Result: Deduction Allowed
Case Filed on: 2021-07-16
Order Type: Final Tribunal Order
Date of Order: 2022-07-13
Pronounced on: 2022-07-13
Parijat Trust, New Delhi, filed an appeal before the Income Tax Appellate Tribunal (ITAT), Delhi Bench “F”, New Delhi, challenging the order passed by the Assistant Commissioner of Income Tax (ACIT), Centralized Processing Center (CPC), Bangalore, for the assessment year 2014-15. The appeal focused on the denial of deductions under Chapter VI-A, specifically under Sections 80GGA and 35AC of the Income-tax Act, 1961, for donations made to eligible trusts.
The case was heard by Shri Kul Bharat, Judicial Member, and Shri Pradip Kumar Kedia, Accountant Member, on 13.07.2022, and the order was pronounced on the same day.
The main issue in the appeal was the denial of deductions under Chapter VI-A of the Income-tax Act for donations amounting to Rs. 24,72,966/- made by Parijat Trust to eligible trusts. The CPC, Bangalore, in its intimation under Section 143(1), had disallowed these deductions.
The appellant, represented by Ms. Vasanti B Patel, Adv., and Shri M A Gohel, CA, argued that the trust had not claimed any exemption under Section 11 of the Act and had been assessed as an Association of Persons (AOP). They contended that the deductions were wrongly denied based on an erroneous assumption that the trust claimed exemption under Section 11.
The respondent, represented by Ms. Moninder Kaur, Sr. DR, supported the orders of the lower authorities, arguing that the disallowance was appropriate under the circumstances.
The Tribunal noted that the issue at hand was similar to those decided in favor of the assessee in other cases, such as Sunflower Trust vs ITO(E) (ITA No. 5093/Del/2019) and Bhoopati Shikshan Pratishthan (ITA No. 4606/Mum/2019). The Tribunal found that the Ld. CIT(A)’s order was based on a misapprehension of the facts, as the appellant had been assessed as an AOP and not claimed exemption under Section 11.
The Tribunal referred to several judgments where similar issues were resolved in favor of the assessee, highlighting that deductions under Sections 80GGA and 35AC should be allowed if the donations were made to eligible trusts. Notably, the Mumbai Bench of the Tribunal in the case of Bhoopati Shikshan Pratishthan held that the assessee, being a charitable trust registered under Section 12A, was entitled to claim such deductions.
After considering the arguments and the relevant case laws, the Tribunal directed the Assessing Officer to grant the deduction under Chapter VI-A, specifically under Sections 80GGA and 35AC, as claimed by the appellant. The appeal in ITA No. 866/DEL/2021 was thus allowed.
In conclusion, ITA No. 866/DEL/2021 filed by Parijat Trust was allowed, with the Tribunal ordering the granting of the deduction for donations made to eligible trusts under Chapter VI-A of the Income-tax Act, 1961.
Order pronounced in the open court on 13th July, 2022.
Sd/- (Pradip Kumar Kedia)
ACCOUNTANT MEMBER
Sd/- (Kul Bharat)
JUDICIAL MEMBER
Date: 13.07.2022
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(A)
5. DR: ITAT
Assistant Registrar, ITAT, New Delhi
Parijat Trust vs ACIT-CPC, Bangalore: Dispute Over Deduction Under Chapter VI-A
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