GUJARAT SAFETY COUNCIL,VADODARA V. THE INCOME TAX OFFICER, WARD-EXEMPTION, VADODARA

MA 15/AHD/2025

AI Insights

The case involves Gujarat Safety Council, the appellant, who filed three Miscellaneous Applications requesting a modification of a previous Tribunal order concerning the application of accumulated income for the assessment years 2014-15, 2016-17, and 2017-18. The original Tribunal order directed the AO to verify the application of accumulated income specifically towards the acquisition of fixed assets. The appellant argued that this was only one of the modes of application under Section 11(5) of the Income Tax Act, 1961, and requested a broader verification to include all modes of investment. The Tribunal agreed that the initial directive was a mistake apparent from the record and modified the order accordingly.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 41159 (ITAT-AHMEDABAD)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 21-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B.P. SRIVASTAVA
• Assessee Lawyers: S.N. SOPARKAR; PARIN SHAH
• Keywords: Set aside; Opportunity of being heard

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER & SHRI NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER MISCELLANEOUS APPLICATION Nos. 13, 14 & 15/Ahd/2025 (in I.T.A. Nos. 901, 902 & 1037/Ahd/2023) (Ǔनधा[रण वष[ / Assessment Years : 2014-15, 2016-17 & 2017-18) Gujarat Safety Council 4th Floor, Midway Height, Kirti Mandir, Kalaghoda, Station Road, Vadodara, Gujarat, 390001 बनाम/ Vs. ITO Ward Exemption, Vadodara èथायी लेखा सं./जीआइआर सं./PAN/GIR No. : AAATG0943L (Appellant) .. (Respondent) अपीलाथȸ ओर से /Appellant by : Shri S. N. Soparkar, Sr. Advocate & Shri Parin Shah, AR Ĥ×यथȸ कȧ ओर से/Respondent by : Shri B. P. Srivastava, Sr.DR Date of Hearing 21/02/2025 Date of Pronouncement 21/02/2025 O R D E R PER SHRI NARENDRA PRASAD SINHA, AM: These three Miscellaneous Applications are filed by the assessee with a request to modify the common order of this Tribunal in ITA Nos. 901, 902 & 1037/Ahd/2023 dated 27/08/2024 for the A.Ys. 2014-15, 2016-17 & 2017-18. 2. Shri S. N. Soparkar, Ld. Sr. Counsel appearing for the assessee explained that the Tribunal vide order dated 27.08.2024 had set aside the matter to the file of the AO to verify the claim of the assessee for application of accumulated income towards acquisition of the fixed assets. He explained that the acquisition MA Nos. 13, 14 & 15/Ahd/2025 [Gujarat Safety Council vs. ITO] - 2 – of the fixed assets was only one of the mode of application as prescribed under Section 11(5) of the Income Tax Act, 1961 (in short ‘the Act’). He submitted that the direction should have been given to verify the application of accumulated income in respect of all the modes as prescribed u/s.11(5) of the Act and should not have been restricted only to the utilization towards acquisition of fixed assets. The Ld. Sr. Counsel submitted that this was the mistake apparent from the record and, therefore, the order dated 27.08.2024 needs to be suitably modified. 3. Per contra, Shri B. P. Srivastava, Ld. Sr. DR submitted that the Tribunal may pass the order in the matter as may deemed fit. 4. We have considered the submissions of the Ld. Sr. Counsel. The following direction was given vide para 7 of the order dated 27.08.2024: “7. In view of above facts, we deem it proper to set aside the matter to the file of the AO to verify the claim of the assessee for application of accumulated income towards acquisition of the fixed assets. The AO may decide the matter after allowing a proper opportunity of being heard to the assessee and after calling for the necessary evidences to verify the claim of the assessee. The assessee is also directed to produce the necessary evidences in respect of its claim before the AO.” 5. It is found that the matter was set aside to the file of the AO to verify the claim of the assessee for application of accumulated income towards acquisition of the fixed assets. As rightly pointed out by the Ld. Sr. Counsel, the investment in immovable property was only one of the mode of investment towards application of the accumulated income. When the matter was set aside to the AO to verify the application of accumulated income, the direction MA Nos. 13, 14 & 15/Ahd/2025 [Gujarat Safety Council vs. ITO] - 3 – should have been given to verify the application of income in respect of all the modes as prescribed u/s.11(5) of the Act. This is found to be a mistake apparent from the record which requires to be rectified. Therefore, the direction as given in the first line of para 7 of the order dated 27.08.2024 is modified and the first line of said para may now be read as under: “In view of above facts, we deem it proper to set aside the matter to the file of the AO to verify the claim of the assessee for application of accumulated income towards acquisition of the fixed assets and also towards any other mode of investment as prescribed u/s.11(5) of the Act. ……. 6. In the result, all the three Miscellaneous Applications preferred by the assessee are allowed. This Order pronounced on 21/02/2025 Sd/- Sd/- (T.R. SENTHIL KUMAR) (NARENDRA PRASAD SINHA) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad; Dated 21/02/2025 S. K. SINHA True Copy आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy of the Order forwarded to : 1. अपीलाथȸ / The Appellant 2. Ĥ×यथȸ / The Respondent. 3. संबंͬधत आयकर आयुÈत / Concerned CIT 4. आयकर आयुÈत(अपील) / The CIT(A)- 5. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय अͬधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड[ फाईल / Guard file. आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलȣय अͬधकरण, अहमदाबाद / ITAT, Ahmedabad "