आयकरअपीलीयअिधकरण, िवशाखापटणमपीठ, िवशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM “DIVISION” BENCH, VISAKHAPATNAM (HYBRID HEARING)

(cid:373)ीलिलत कु मार, (cid:586)ाियकसद(cid:735)एवं(cid:373)ीएसबालाकृ (cid:705)न, लेखासद(cid:735)के सम(cid:407)

BEFORE SHRI LALIET KUMAR, HON’BLE JUDICIAL MEMBER &

SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकरअपीलसं./I.T.A.No.358/VIZ/2024 (िनधा१रण वष१/ Assessment Year: 2015-16)

Sri Kanaka Mahalakshmi Ammavari Temple v. Centralized Processing Center D.No. 22-71-26/B, SKML Temple Bangalore.

Kotha Road, Burujupeta Visakhapatnam – 530001, Andhra Pradesh [PAN: AAAJS1861M]

(अपीलाथ(cid:334)/ Appellant) ((cid:366)(cid:529)थ(cid:334)/ Respondent) करदाताकाঋितिनिध(cid:533)/ Assessee Represented by : Shri KSS Sarma, AR राज(cid:738)काঋितिनिध(cid:533)/ Department Represented by : Dr Satyasai Rath, CIT(DR)

सुनवाईसमा(cid:593)होनेकीितिथ/ Date of Conclusion of Hearing : 27.02.2025 घोषणाकीतारीख/Date of Pronouncement : 29.04.2025 आदेश /O R D E R PER SHRI S BALAKRISHNAN, ACCOUNTANT MEMBER:

1. This appeal is filed by the assessee against the order of Learned Commissioner of Income Tax (Appeals)-1, Gurugram [hereinafter in short “Ld.CIT(A)”] vide DIN & Order No.ITBA/APL/S/250/2024-25/1066099951(1) dated 26.06.2024 for the A.Y. 2015-16 arising out of the intimation passed under section 143(1) of Income Tax Act, 1961 (in short ‘Act’) processed by the CPC, Bangalore dated 29.03.2017.

2. Brief facts of the case are that, assessee is a Temple constituted under the AP charitable and Hindu ReligiousInstitutions and Endowments Act 30 of 1987. Assessee filed its return of income and claimed exemption under section 11 of the Act. However, CPC while processing the return under section 143(1) of the Act denied the exemption claimed by the assessee and computed the tax payable of Rs. 6,24,41,680/-. Aggrieved by the intimation passed by the CPC, Bangalore, assessee filed an appeal before the Ld. CIT(A). Ld. CIT(A) after considering the submissions made by the assessee relying on various judicial pronouncements partly allowed the appeal of the assessee by directing the Ld. Assessing Officer [hereinafter in short “Ld. AO"] to allow the revenue expenditure while computing the tax liability of the assessee. Ld. AO passed the consequential order dated 16.07.2024 by granting the relief as per the order of the Ld. CIT(A) dated 26.06.2024 and also reduced the capital receipts of Rs.7,09,44,112/- in the assessed income and computed the net taxable liability of Rs.44,49,683/-. Subsequently, Ld. AO revised the consequential order thereby passing another order under section 154 of the Act dated 15.10.2024 by disallowing the capital receipts amounting to Rs.7,09,44,112/- stating that there is a mistake apparent from the record while passing the giving effect order to the Ld. CIT(A) dated 26.06.2024.

3. Aggrieved by the order of the Ld. CIT(A), assessee is in appeal before us by raising various grounds. The grounds raised by the assessee are mostly argumentative in nature. The assessee has reproduced the assessment orders of subsequent years in the grounds of appeal. The issue emanating from the grounds raised by the assessee is with respect to the Ld. CIT(A) not granting relief for the capital receipts amounting to Rs.7,09,44,112/- and also considering Hundi collections as revenue income of the assessee. We now proceed to adjudicate the above two issues.

4. At the outset, Ld. Authorised Representative [hereinafter “Ld.AR”] submitted that the assessee has received the following amounts which are capital in nature: -

a. FDR Maturity Rs.6,53,63,782/-

b. Recovery of advances and deposit Rs.11,54,861/-

c. Specific Donations Rs.5,27,416/-

d. Other donations Rs.38,98,053/-

5. Ld.AR prayed that the above receipts cannot be considered as income of the assessee as they are being in the nature of capital receipt. Further, Ld.AR also submitted that as per Explanation 1(g) to section 65 of AP / TS Charitable Hindu Religious Endowments Act 1987, which stipul