Tuticorin Port Trust, Tuticorin V. ACIT, Tuticorin

CO 127/CHNY/2012

• Counselvise Citation: [2013] 122 COUNSELVISE.COM (IT) 8659 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 8 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 10-07-2013
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 10-07-2013
• Assessment Year: 2004-2005
• Appeal Filed On: 02-07-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Exemption for trust; Charitable institution; Assessment record
• Section: 143(3); 12AA; 147; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI BEFORE DR. O.K. NARAYANAN, VICE-PRESIDENT AND SHRI CHALLA NAGENDRA PRAS AD, JUDICIAL MEMBER ITA NO.1061 TO 1063/MDS/2012 & C.O NOS.126 TO 128/ MDS/2012 (IN ITA NOS. 1061 TO 1063/MDS/12) (ASSESSMENT YEARS: 2003-04 TO 2005-06) ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-I, TUTICORIN. VS. TUTICORIN PORT TRUST, HARBOUR ESTATE, TUTICORIN-628 004. PAN: AAALT0206D (APPELLANT) & (RESPONDENT/CROSS OBJECTOR) ITA NOS. 1474 TO 1479/MD S/2012 (ASSESSMENT YEARS: 2003-04 TO 2007-08 ) VOC PORT TRUST, (TUTICORIN PORT TRUST) HARBOUR ESTATE, TUTICORIN-628 004. PAN: AAALT0206D (APPELLANT) REVENUE BY ASSESSEE BY DATE OF HEARING DATE OF PRONOUNCEMENT VS. : : : : DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-I, TUTICORIN. (RESPONDENT) MR. SAILENDRA MAMIDI, CIT MR. N.DEVANATHAN, ADVOCATE 10 TH JULY, 2013 10 TH JULY, 2013 O R D E R PER CHALLA NAGENDRA PRASAD, JM: THE REVENUE HAS FILED THREE APPEALS FOR THE ASSESSMENT YEARS 2003-04 TO 2005-06 AGAINST THE ORD ERS OF THE COMMISSIONER OF INCOME TAX (APPEALS)-I MADURAI DATED ITA NO.1061 TO 1063/MDS/2012 C.O.NOS.126 TO 128/MDS/2 012 & ITA N OS. 1474 TO 1479/MDS/2012 2 29.02.2012 ARISING OUT OF THE ASSESSMENTS MADE UNDE R SECTION 143(3) READ WITH SECTION 147 OF THE ACT CON TENDING THAT THE COMMISSIONER OF INCOME TAX (APPEALS) OUGHT TO HAVE HELD THAT THE REOPENING MADE UNDER SECTION 147 IS V ALID. 2. THE ASSESSEE HAS FILED CROSS OBJECTIONS AGAINST THESE ORDERS OF THE COMMISSIONER OF INCOME TAX (APPEALS) SUPPORTING THE DECISION OF THE COMMISSIONER OF INCO ME TAX (APPEALS) IN HOLDING THAT THE REASSESSMENTS MADE UN DER SECTION 143(3) READ WITH SECTION 147 ARE NOT VALID. 3. THE ASSESSEE ALSO FILED SEPARATE APPEALS AGAINST THE ORDERS OF THE COMMISSIONER OF INCOME TAX (APPEALS) FOR THE ASSESSMENT YEARS 2003-04 TO 2005-06 DATED 29.02.201 2 ARISING OUT OF ASSESSMENTS ORDERS PASSED UNDER SEC TION 143(3) READ WITH SECTION 147 OF THE ACT CONTENDING THAT THE COMMISSIONER OF INCOME TAX (APPEALS) IS NOT JUSTIFI ED IN DETERMINING THE STATUS OF THE ASSESSEE AS ARTIFICIA L JURIDICAL PERSON AS AGAINST THE CLAIM OF THE ASSESSEE THAT I T IS A LOCAL AUTHORITY NOT LIABLE FOR TAX. ITA NO.1061 TO 1063/MDS/2012 C.O.NOS.126 TO 128/MDS/2 012 & ITA N OS. 1474 TO 1479/MDS/2012 3 4. SIMILAR GROUND WAS RAISED BY THE ASSESSEE IN ITS APPEALS FILED AGAINST THE ORDERS OF THE COMMISSIONE R OF INCOME TAX (APPEALS) DATED 29.02.2012 FOR THE ASSE SSMENT YEARS 2005-06 TO 2007-08 ARISING OUT OF ASSESSMENTS MADE UNDER SECTION 143(3) OF THE ACT. 5. THERE IS A DELAY OF 9 DAYS IN FILING OF THE CROS S OBJECTIONS AS WELL AS 66 DAYS IN FILING OF ALL THE SIX APPEALS BY THE ASSESSEE. THE ASSESSEE HAS FILED CONDONATION PETITION EXPLAINING THE REASONS WHY THE APPEALS COULD NOT BE FILED IN TIME AND HAVING GONE THROUGH THE PETITIONS FILED FO R CONDONATION OF DELAY, WE FEEL THAT THERE IS A REASO NABLE CAUSE IN FILING OF THE APPEALS BELATEDLY. THEREFORE, IN T HE INTEREST OF JUSTICE, THE DELAY IS CONDONED AND THE APPEALS & CR OSS OBJECTIONS ARE ADMITTED FOR HEARING. 6. AT THE TIME OF HEARING, THE COUNSEL FOR THE ASSE SSEE SUBMITS THAT THE ASSESSING OFFICER WHILE COMPLETING THE ASSESSMENTS FOR ALL THESE ASSESSMENT YEARS UNDER S ECTION ITA NO.1061 TO 1063/MDS/2012 C.O.NOS.126 TO 128/MDS/2 012 & ITA N OS. 1474 TO 1479/MDS/2012 4 143(3) AND 143(3) READ WITH SECTION 147 DETERMINED THE STATUS OF THE ASSESSEE AS A DOMESTIC COMPANY LIABLE FOR TAX AS AGAINST THE STATUS OF LOCAL AUTHORITY CLAIMED BY THE ASSESSEE. THE COUNSEL SUBMITS THAT THE COMMISSIONER OF INCOME TAX (APPEALS) DETERMINED THE STATUS OF THE A SSESSEE AS ARTIFICIAL JURIDICAL PERSON IN ALL THESE ASSESSM ENTS. THE COUNSEL FOR THE ASSESSEE FURTHER SUBMITS THAT IN TH E MEANWHILE THE COMMISSIONER OF INCOME TAX-I, MADURA I HAS GRANTED REGISTRATION UNDER SECTION 12AA OF THE ACT TO THE ASSESSEE WITH EFFECT FROM 1.4.2002 BY ORDER DATED 3 0.03.2010 VIDE PROCEEDINGS IN C.NO.464/02/2007-08/CIT-I, MADU RAI. THE COUNSEL SUBMITS THAT IN VIEW OF THE ORDER OF T HE COMMISSIONER OF INCOME TAX UNDER SECTION 12AA OF T HE ACT, THE ASSESSING OFFICER PASSED CONSEQUENTIAL ORDER G IVING EFFECT TO THIS ORDER OF THE COMMISSIONER OF INCOME TAX-I FOR ALL THESE ASSESSMENT YEARS MODIFYING THE ASSESSMEN TS MADE UNDER SECTION 143(3) / 143(3) READ WITH SECTION 147 OF THE ACT. THEREFORE, THE COUNSEL SUBMITS THAT IN VIEW OF THE ORDER OF THE COMMISSIONER OF INCOME TAX-I, MADURAI PASSED UNDER SECTION 12AA AND THE CONSEQUENTIAL ORDERS PASSED BY THE ITA NO.1061 TO 1063/MDS/2012 C.O.NOS.126 TO 128/MDS/2 012 & ITA N OS. 1474 TO 1479/MDS/2012 5 ASSESSING OFFICER GIVING EFFECT TO THE COMMISSIONER OF INCOME TAX-I S ORDER MODIFYING THE ASSESSMENTS, ALL THESE PRESENT APPEALS BECOME INFRUCTUOUS. 7. THE DEPARTMENTAL REPRESENTATIVE FAIRLY CONCEDES THAT ALL THESE APPEALS BECOME INFRUCTUOUS IN VIEW OF THE ORDER PASSED BY THE COMMISSIONER OF INCOME TAX-I, MADURAI UNDER SECTION 12AA AND THE CONSEQUENTIAL ORDERS PASSED B Y THE ASSESSING OFFICER MODIFYING THE ASSESSMENTS GIVING EFFECT TO THE ORDER OF THE COMMISSIONER OF INCOME TAX-I UNDE R SECTION 12AA, DETERMINING THE STATUS OF THE APPELLANT AS A CHARITABLE INSTITUTION AND GRANTING EXEMPTION UNDER SECTION 11 OF THE ACT TO THE ASSESSEE. 8. HEARD BOTH SIDES. PERUSED THE ORDERS OF THE LOWE R AUTHORITIES, THE ORDER PASSED BY THE COMMISSIONER OF INCOME TAX-I, MADURAI UNDER SECTION 12AA AND THE CONSEQU ENTIAL ORDERS PASSED BY THE ASSESSING OFFICER FOR ALL THES E ASSESSMENT YEARS FOR GIVING EFFECT TO THE ORDER OF THE COMMISSIONER OF INCOME TAX-I PASSED UNDER SECTION 12AA OF ITA NO.1061 TO 1063/MDS/2012 C.O.NOS.126 TO 128/MDS/2 012 & ITA N OS. 1474 TO 1479/MDS/2012 6 THE ACT. WE FIND FROM THE ASSESSMENT RECORDS IN ALL THESE APPEALS THAT THE ASSESSEE HAS CLAIMED ITS STATUS AS LOCAL AUTHORITY BUT THE ASSESSING OFFICER DETERMINED THE STATUS AS A DOMESTIC COMPANY LIABLE FOR TAX. THE COMMISSIONER O F INCOME TAX (APPEALS) HELD THAT THE ASSESSEE IS AN ARTIFICIAL JURIDICAL PERSON LIABLE FOR TAX . HOWEVER, THE COMM ISSIONER OF INCOME TAX-I, MADURAI BY ORDER DATED 30.03.2010 UND ER SECTION 12AA HAS GRANTED REGISTRATION TO THE ASSESS EE WITH EFFECT FROM 1.4.2002 TREATING THE ASSESSEE AS A CHA RITABLE TRUST. THE ASSESSING OFFICER PASSED CONSEQUENTIAL ORDERS FOR ALL THESE ASSESSMENT YEARS GIVING EFFECT TO THE ORD ER OF THE COMMISSIONER OF INCOME TAX-I PASSED UNDER SECTION 1 2AA MODIFYING THE ASSESSMENTS MADE UNDER SECTION 143(3) / 143(3) READ WITH SECTION 147 RECOMPUTED THE INCOME OF THE ASSESSEE GRANTING EXEMPTION UNDER SECTION 11 OF THE ACT. IN THE CIRCUMSTANCES, WE HOLD THAT ALL THESE APPEALS B ECOME INFRUCTUOUS AS THE ASSESSEE HAS BEEN GRANTED REGIST RATION UNDER SECTION 12AA OF THE ACT AND TREATED AS A CHAR ITABLE TRUST ELIGIBLE FOR EXEMPTION UNDER SECTION 11 OF TH E ACT. THUS ALL THE APPEALS ARE DISMISSED AS INFRUCTUOUS. ITA NO.1061 TO 1063/MDS/2012 C.O.NOS.126 TO 128/MDS/2 012 & ITA N OS. 1474 TO 1479/MDS/2012 7 9. AS THE APPEALS OF THE REVENUE ARE DISMISSED AS INFRUCTUOUS, THE CROSS OBJECTIONS FILED BY THE ASSE SSEE IN SUPPORT OF THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) BECOME INFRUCTUOUS AND THE SAME ARE DISM ISSED ACCORDINGLY. 10. IN THE RESULT, ALL THE APPEALS FILED BY THE REVENUE AS WELL AS ASSESSEE AND THE CROSS OBJECTIONS FILED BY THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON WEDNESDAY, THE 10 TH DAY OF JULY, 2013, AT CHENNAI. SD/- SD/ - (DR. O.K.NARAYANAN) (CHALLA NAG ENDRA PRASAD) VICE PRESIDENT JUDICIAL MEMBER CHENNAI, DATED THE 10 TH JULY, 2013. SOMU COPY TO: (1) ASSESSEE (4) CIT(A) (2) A.O. (5) D.R. (3) CIT (6) G.F.