COMMISSIONER OF INCOME TAX EXEMPTIONS LUCKNOW AND ANOTHER V. M/S MUZAFFARNAGAR DEVELOPMENT AUTHORITY

IAPL/47/2022

AI Insights

The case revolves around the Muzaffarnagar Development Authority's appeal for exemption under Section 11 of the Income Tax Act, 1961, which was initially denied by the Assessing Officer and the CIT(A). The ITAT, however, granted the exemption based on a retroactive registration under Section 12AA, effective from April 30, 2008. The Commissioner of Income Tax Exemptions Lucknow challenged this decision, leading to the present appeal. The High Court dismissed the appeal, affirming the Tribunal's decision, as the registration under Section 12AA was granted and recognized from the specified date, making the exemption claims for the relevant assessment years valid.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 728495 (HC-ALLAHABAD)
• Appeal Type: Others
• Pronouncement Date: 07-07-2022
• Assessment Year: misc
• Other Referred Cases: Goetz India Ltd., Dalmia Power
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Assessee Lawyers: ASHISH AGRAWAL
• Keywords: Exemption; Income Tax; ITAT; Registration; Revised return
• Section: 11; 12AA

Judgement Text

"Court No. - 3 Case :- INCOME TAX APPEAL No. - 47 of 2022 Appellant :- Commissioner Of Income Tax Exemptions Lucknow And Another Respondent :- M/S Muzaffarnagar Development Authority Counsel for Appellant :- Ashish Agrawal Hon'ble Surya Prakash Kesarwani,J. Hon'ble Jayant Banerji,J. Heard Sri Ashish Agrawal, learned counsel for the appellant. This appeal has been filed against the order dated 23.09.2021 passed by the Income Tax Tribunal, Delhi Bench: 'E' New Delhi. It is undisputed that revised return was filed by the respondent assessee to claim benefit/ exemption under Section 11 of the Income Tax Act, 1961 on the account of the fact that its appeal with regard to Registration under Section 12AA was allowed by the ITAT vide order dated 12.01.2015 in ITA No.4231/Del/2013 with effect from the date of its grant, i.e. 30.04.2008. It has not been denied by learned counsel for the appellant before us that the order of the ITAT dated 12.01.2015 has become final. In this background of brief facts, the Tribunal has considered the submissions of the parties and recorded findings of fact as under:- \"5. The Ld. AR submitted that as regards Ground No. 1 to 4, the 12 Registration was restored by the Tribunal vide order dated 12/1/2015. Therefore, the Assessing Officer has wrongly denied the claim of the exemption u/s 11 of the Act. The Ld. AR relied upon the decision of the Hon'ble Supreme Court in case of Goetz India Ltd. and submitted that the CIT(A) should have entertain the claim of the assessee for Exemption u/s 11 at the time of appellate proceedings which was totally denied by the CIT(A) 6. The Ld. DR relied upon the assessment order and the order of the CIT(A). The Ld. DR also relied upon the decision of Dalmia Power (S.C). The Ld. DR further submitted that the revised return filed by the assessee was after the expiry of the time limit available under the statute and the decision of the Hon'ble Supreme Court in Goetz India will not be applicable in the present case 7. We have heard both the parties and perused the material available on record. It is pertinent to note that the Registration u/s 12AA was granted to the assessee vide Tibunals order and same was pointed out by the assessee before the CIT(A) which was not at all considered. Since, the Registration was granted w.e.f. 30/04/2008, the claim of the assessee for Assessment Year 2012-13 & 2013-14 are valid claim for exemption u/s 11. Therefore, the appeal of the assessee being ITA No. 191/DEL/2018 (A.Y 2012-13) is allowed. Both the appeals are identical in nature and no distinguishing facts were pointed out by both the parties, hence, ITA No. 192/DEL/2018 (A.Y 201314) allowed. 9. In result, both the appeals of the asessee are allowed.\" We find that findings recorded by the Tribunal are findings of fact based on consideration of relevant materials on record. No substantial questions of law are involved in the impugned order of the Tribunal. In view of the aforesaid, the appeal is dismissed. Order Date :- 7.7.2022 NLY Digitally signed by NAND LAL YADAV Date: 2022.07.08 17:05:21 IST Reason: Location: High Court of Judicature at Allahabad "