ITO, Chandigarh V. M/s Chandigarh Golf Club, Chandigarh

ITA 1020/CHANDI/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 60993 (ITAT-CHANDIGARH)
• Duration Of Justice: 9 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 18-07-2012
• Assessment Year: 2008-2009
• Appeal Filed On: 25-10-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JYOTI KUMARCIT
• Assessee Lawyers: HARRY RIKHY
• Keywords: Benefit of exemption
• Section: 12; 11; 143(3); 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH A, CHANDIGARH BEFORE MS. SUSHMA CHOWLA, JUDICIAL MEMBER AND SHRI MEHAR SINGH, ACCOUNTANT MEMBER ITA NO.1020/CHD/2011 (ASSESSMENT YEAR:2008-09) THE INCOME TAX OFFICER, VS. CHANDIGARH GOLF CLUB, WARD 1(3), SECTOR 6, CHANDIGARH. CHANDIGARH. PAN: AABCK9292J (APPELLANT) (RESPONDENT) APPELLANT BY : SMT.JYOTI KUMAR,CIT DR RESPONDENT BY : SHRI HARRY RIKHY DATE OF HEARING : 19.07.2012 DATE OF PRONOUNCEMENT : 30.07.2012 O R D E R PER SUSHMA CHOWLA, J.M. : THIS APPEAL BY THE REVENUE IS AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS), CHANDIGARH DA TED 12.08.2011 RELATING TO ASSESSMENT YEAR 2008-09 AGAINST THE ORD ER PASSED U/S 143(3) OF INCOME TAX ACT, 1961 (IN SHORT THE ACT). 2. THE REVENUE HAS RAISED FOLLOWING GROUND OF APPEA L: ON THE FACTS & CIRCUMSTANCES OF THE CASE THE LD.CIT(A) HAS ERRED IN ALLOWING THE ASSESSEE THE BENEFIT OF EXEMPTION U/S 11 WHEREAS DURING ASSESSMENT PROCEEDINGS THE ASSESSEE WAS HELD TO BE NOT ENGAGED IN CHARITABLE ACTIVITIES AND WAS ALSO FOUND TO BE ENGAGED IN COMMERCIAL AND TRADING ACTIVITIES. 3. THE LEARNED A.R. FOR THE ASSESSEE AT THE OUTSET POINTED OUT THAT THE ASSESSEE WAS GRANTED REGISTRATION UNDER SE CTION 12A OF THE ACT SINCE 2000. HOWEVER, THE ASSESSING OFFICER ON THE BASIS OF 2 AMENDMENT IN SECTION 2(15) OF THE ACT IN ASSESSMENT YEAR 2008-09 SENT PROPOSAL TO THE COMMISSIONER OF INCOME TAX FOR RECONSIDERING THE REGISTRATION GRANTED UNDER SECTION 12A OF THE A CT AND VIDE HIS ASSESSMENT ORDER REJECTED THE CLAIM OF EXEMPTION UN DER SECTIONS 11 AND 12 OF THE ACT. IT WAS FURTHER POINTED OUT BY THE LEARNED A.R. FOR THE ASSESSEE THAT THOUGH AT PAGE 15 THE ASSESSI NG OFFICER HAD POINTED OUT THAT THE AMENDMENT IN SECTION 2(15) OF THE ACT WAS W.E.F. 1.4.2009 APPLICABLE FROM ASSESSMENT YEAR 200 9-10, BUT IT WAS APPLIED TO THE ASSESSMENT COMPLETED RELATING TO ASS ESSMENT YEAR 2008-09. THE LEARNED A.R. FOR THE ASSESSEE POINTED OUT THAT THE CIT (APPEALS) ALLOWED THE CLAIM OF THE ASSESSEE IN VIEW OF NON- REVOCATION OF THE REGISTRATION GRANTED UNDER SECTIO N 12AA OF THE ACT. THE LEARNED A.R. FOR THE ASSESSEE FURTHER POI NTED OUT THAT MEANWHILE THE COMMISSIONER OF INCOME TAX, CHANDIGAR H VIDE ORDER DATED 29.3.2012 HAS HELD THE ASSESSEE TO BE ENTITLE D TO REGISTRATION GRANTED UNDER SECTION 12AA OF THE ACT AND THE PROCE EDINGS INITIATED UNDER SECTION 12AA(3) OF THE ACT WERE DRO PPED. 4. THE LEARNED D.R. FOR THE REVENUE PLACED RELIANCE ON THE ORDER OF THE ASSESSING OFFICER. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. THE ASSESSEE WAS REGISTERED UNDER SECTION 12A OF TH E ACT VIDE ORDER NO.CIT/CHD/TECH/12A/22 DATED 19.12.2000. THE ACTIVITIES OF THE ASSESSEE WERE HELD TO BE CHARITABLE IN NATUR E AND CONSEQUENTLY THE ASSESSEE WAS CLAIMING THE EXEMPTIO N UNDER SECTIONS 11 AND 12 OF THE ACT. THE FINANCE ACT 200 8 HAD AMENDED PROVISIONS OF SECTION 2(15) OF THE ACT W.E.F. 1.4.2 009 AND THE SAID PROVISIONS WERE APPLICABLE FROM ASSESSMENT YEAR 2009-10. THE 3 INSTANT ASSESSMENT YEAR UNDER APPEAL BEFORE US IS A SSESSMENT YEAR 2008-09. THE ASSESSING OFFICER DURING THE COURSE O F ASSESSMENT PROCEEDINGS NOTED THE AMENDMENT IN THE PROVISIONS O F SECTION 2(15) OF THE ACT AND ALSO NOTED THE FACT THAT THE AMENDED PROVISIONS WERE APPLICABLE FROM ASSESSMENT YEAR 2009-10 ONWARDS, BU T MADE A PROPOSAL TO LOOK INTO THE ACTIVITIES OF THE ASSESSE E CLUB IN ORDER TO FIND OUT WHETHER IT QUALIFIED FOR EXEMPTION UNDER S ECTION 11 OF THE ACT. THEREAFTER THE ASSESSING OFFICER DISALLOWED T HE EXEMPTION CLAIMED UNDER SECTIONS 11 AND 12 OF THE ACT HOLDING THAT IT DOES NOT STAND THE TEST OF SCRUTINY AS AMENDED UNDER SEC TION 2(15) OF THE ACT. THE CIT (APPEALS) ALLOWED THE CLAIM OF THE AS SESSEE IN VIEW OF THE REGISTRATION GRANTED BY THE COMMISSIONER OF INCOME TAX, CHANDIGARH UNDER SECTION 12AA OF THE ACT DATED 19.1 2.2000, WHICH HAD NOT BEEN REVOKED AS ON DATE, THOUGH THE ASSESSI NG OFFICER HAD SENT A PROPOSAL TO THE COMMISSIONER OF INCOME TAX F OR REVIEW OF THE REGISTRATION GRANTED TO THE ASSESSEE UNDER SECT ION 12AA OF THE ACT. 6. WE ARE IN CONFORMITY WITH THE ORDER OF THE CIT ( APPEALS) THAT THE ASSESSEE HAVING BEING REGISTERED UNDER SECTION 12AA OF THE ACT BY THE COMMISSIONER OF INCOME TAX, CHANDIGARH WAS ENTITLED TO THE CLAIM OF EXEMPTION UNDER SECTIONS 11 AND 12 OF THE ACT ESPEC IALLY IN THE CIRCUMSTANCES WHERE THE SAID REGISTRATION WAS NOT R EVOKED. IN ANY CASE, THE PROVISIONS OF SECTION 2(15) OF THE ACT WERE APP LICABLE W.E.F. 2009-10 AND WERE NOT APPLICABLE TO THE ASSESSMENT PROCEEDIN GS RELATING TO ASSESSMENT YEAR 2008-09, I.E. THE YEAR US BEFORE US . FURTHER THE COMMISSIONER OF INCOME TAX, CHANDIGARH VIDE HIS ORD ER DATED 9.3.2012 HAS REVOKED THE PROVISIONS OF SECTION 12AA(3) OF TH E ACT AND HELD THE ASSESSEE TO CONTINUE TO BE REGISTERED UNDER SECTION 12A OF THE ACT VIDE ORDER DATED 19.12.2000. IN VIEW THEREOF, THE ASSES SEE IS ENTITLED TO THE 4 BENEFIT OF EXEMPTION UNDER SECTIONS 11 AND 12 OF TH E ACT. CONSEQUENTLY, GROUND OF APPEAL RAISED BY THE REVENUE IS DISMISSED . 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 30 TH DAY OF JULY, 2012. SD/- SD/- (MEHAR SINGH) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED 30 TH JULY, 2012 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH