ASSISTANT DIRECTOR OF INCOME-TAX(EXEMPTION),TRIVANDRUM V. ELECTRONICS TECHNOLOGY PARKS- KERALA, TRIVANDRUM

CO 2/COCH/2016

AI Insights

The case involves appeals by the Assistant Director of Income Tax (Exemption) against Electronics Technology Park-Kerala concerning the assessment years 2009-10 and 2010-11. The core issue was whether the activities of Electronics Technology Park-Kerala were commercial in nature, thus falling under the last limb of section 2(15) of the Income Tax Act, 1961, which would disqualify them from receiving exemptions under section 11. The Commissioner of Income Tax (Appeals) had previously reversed the Assessing Officer's findings, leading to the Revenue's appeal. The Supreme Court's decision in a related case was cited, which influenced the Tribunal's decision to remand the case back to the Assessing Officer for a detailed factual verification.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 41930 (ITAT-COCHIN)
• Duration Of Justice: 8 year(s) 9 month(s) 8 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 23-10-2024
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 15-01-2016
• Other Referred Cases: ACIT vs. Ahmedabad Urban Development Authority [2022] 144 taxmann.com 78 (SC)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S. PANDIAN
• Assessee Lawyers: AKHIL VARGHESE
• Section: 11

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN Before Shri Satbeer Singh Godara, Judicial Member and Shri Amarjit Singh, Accountant Member ITA Nos. 285 & 286/Coch/2014 (Assessment Years: 2010-11 & 2009-10) Assistant Director of Income Tax (Exemption) Room No. 407, 4th Floor Aayakar Bhavan, Kowdiar Thiruvananthapuram 695003 vs. Electronics Techonology Park- Kerala, Park Centre, Technopark Campus, Karyavattom Thiruvananthapuram 695-81 [PAN: AAAAE2506N] (Appellant) (Respondent) CO No. 02/Coch/2016 (Arising out of ITA No. 286/Coch/2014) (Assessment Year: 2009-10) Electronics Techonology Park- Kerala, Park Centre, Technopark Campus, Karyavattom Thiruvananthapuram 695-81 [PAN: AAAAE2506N] vs. Assistant Director of Income Tax (Exemption) Room No. 407, 4th Floor Aayakar Bhavan, Kowdiar Thiruvananthapuram 695003 (Cross Objector) (Appellant in Appeal) Assessee by: Shri Akhil Varghese, CA Revenue by: Dr. S. Pandian, CIT-DR Date of Hearing: 22.08.2024 Date of Pronouncement: 23.10.2024 2 ITA No. 285/Coch/2014 Assistant Director of Income Tax (E) O R D E R Per Bench These Revenue’s twin appeals ITA.Nos.285 & 286/Coch/2014 and assessee’s cross-objections C.O.No.02/Coch./2016, arise against two separate order(s) of the Commissioner of Income Tax (Appeals), Thiruvananthapuram [CIT(A)], as under : Sl.No. ITA.No. AY Appeal No. Date of Order Proceedings u/sec. of the Income Tax Act, 1961 1. 285/Coch./2014 2010- 2011 ITA-43/TVM/ CIT(A)TVM/12- 13 28.02.2014 143(3) 2. 286/Coch./2014 2009- 2010 50/TVM/CIT(A) TVM/11-12 28.02.2014 3. C.O.No.2/Coch./2016 in ITA.286/Coch./2014 Heard both the parties. Case files perused. 2. It emerges during the course of hearing that the Revenue’s identical substantive ground(s) in its instant twin appeal challenge the CIT(A)’s action granting relief to the assessee thereby reversing the assessment findings wherein the Assessing Officer has held that the assessee is covered under the last limb of section 2(15) of the Act and therefore, it was carrying out its activities which are commercial in nature. The assessee’s cross objection CO No. 2/Coch/2016 on the other hand are found to be supportive of the CIT(A)’s action treating it as carrying out charitable activities only. 3 ITA No. 285/Coch/2014 Assistant Director of Income Tax (E) 3. We have given our thoughtful consideration to the rival contentions against the in support of the lower authorities’ findings. Suffice to say, there is hardly any dispute between the parties that these appeals stood adjourned suo moto in light of the assessee’s letter dated 14.09.2020 as under: - “14.09.2020 Please Quote: RK/101/IT The Registrar, Income Tax Appellate Tribunal, Cochin Bench, Cochin 1st Floor, Block C-I & C-II, Kendriya Bhavan, Kakkanad Cochin-682037. Sir, Sub: Request for adjournment- Electronics Technology Parks, Kerala- PAN AAAAE6638A Ref: 1. ITA No. 285/Coch/2014 (Α.Υ. 2010-11) 2. ITA No. 286/Coch/2014 (A.Y. 2009-10) 3. C.O. 02/Coch/2016 (A.Y. 2009-10) Kindly note that the above referred appeals are listed for consideration before the Hon'ble Forum, on 15.09.2020. Kindly note that we are awaiting the records from the office at Trivandrum, which is now functioning very marginally, due to Covid-19 pandemic. We may be granted an adjournment of hearing of the above referred appeals. Inconvenience caused, is deeply regretted. Thanking You, Yours faithfully” 4. It is in this backdrop that the learned CIT-DR submits before us that hon'ble apex court’s landmark decision in ACIT vs. Ahmedabad Urban Development Authority [2022] 144 taxmann.com 78 (SC) has categorically settled the issue that such business/commercial activities by the assessee concerned are covered under the last limb of section 2(15) of the Act, and not entitled for section 11 exemption therefore. 4 ITA No. 285/Coch/2014 Assistant Director of Income Tax (E) 5. Learned counsel on the other hand submitted that their lordships have restored the matter back to the Assessing Officer for his afresh factual verification keeping in mind the assessee’s objects vis-à-vis activities carried-out. We thus deem it appropriate to go by their lordships reasoning mutatis mutandis to restore the Revenue’s twin appeals and assessee’s cross objection herein back to the learned Assessing Officer for his afresh adjudication in very terms. 6. It goes without saying that the assessee shall be indeed at liberty to plead and prove all the relevant facts by filing all supportive evidence(s). Ordered accordingly. 7. These Revenue’s twin appeals ITA Nos. 285 & 286/Coch/2014 and assessee’s cross objection CO 2/Coch/2016 are allowed for statistical purposes in above terms. A copy of this common order be placed in the respective case files. Order pronounced in the open court on 23rd October, 2024 under Rule 34 of The Income Tax (Appellate Tribunal) Rules, 1963. Sd/- Sd/- (Amarjit Singh) Accountant Member (Satbeer Singh Godara) Judicial Member Cochin, Dated: 23rd October, 2024 n.p. Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File By Order Assistant Registrar ITAT, Cochin "