Greater Ludhiana Area Development Authority, Ludhiana V. CIT-III, Ludhiana

ITA 1036/CHANDI/2008

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 5474 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 year(s) 4 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-04-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 25-04-2011
• Assessment Year: misc
• Appeal Filed On: 28-11-2008
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Charitable institution
• Section: 12A; 15

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL: B BENCH: CH ANDIGARH BEFORE SHRI D K SRIVASTAVA, AM AND MS. SUSHMA CHOWL A, JM ITA NO. 1036/CHANDI/2008 GREATER LUDHIANA AREA V C.I.T.-III DEVELOPMENT AUTHORITY AAYAKAR BHAWAN PUDA BHAWAN RISHJI NAGAR FEROZEPUR ROAD LUDHIANA LUDHIANA PAN: AAALG 1055 F (APPELLANT-ASSESSEE) (RESPONDENT) APPELLANT BY: SHRI RAMESH TREHAN RESPONDENT B Y: SHRI S.K. MITTAL ORDER D K SRIVASTAVA: THE APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE LD. CIT(A) ON 29/30.9.2008 U/S 12AA(1)(B)(II ) OF IT ACT, ON THE FOLLOWING GROUNDS: 1 THAT THE LD. CIT-III, LUDHIANA WRONGLY REJECTED THE APPELLANTS APPLICATION FOR REGISTRATION U/S 12A OF INCOME-TAX ACT. 2 THAT THE LD. CIT-III, LUDHIANA HAS WRONGLY FAILE D TO PROPERLY AND CORRECTLY APPRECIATE THE NATURE OF ACTIVITIES CARRIED ON BY T HE APPELLANT AND OTHER RELEVANT FACTS AND CIRCUMSTANCES OF THE APPELLANTS CASE. 3 THAT THE LD. CIT-III, LUDHIANA HAS WRONGLY HELD THAT THE APPELLANT IS CARRYING ON ITS ACTIVITIES WITH THE MOTIVE OF PROFIT. 4 THAT THE LD. CIT-III, LUDHIANA HAS WRONGLY HELD THAT THE APPELLANT IS NEITHER A TRUST NOR AN INSTITUTION. 5 THAT THE LD. CIT-III, LUDHIANA HAS WRONGLY HEEL THAT THE APPELLANT IS NOT ENTITLED TO REGISTRATION U/S 12A IN ABSENCE OF ANY RECEIPT BY WAY OF VOLUNTARY CONTRIBUTIONS. 6 THAT THE ORDER PASSED BY THE LD. CIT-III, LUDHIA NA IS BAD IN LAW AS WELL AS ON FACTS AND THEREFORE, THE SAME DESERVES TO BE QUASHE D. 2. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT TH E ASSESSEE NAMELY GREATER LUDHIANA AREA DEVELOPMENT WAS BROUGHT INTO EXISTENCE AS AN A UTHORITY BY THE ORDER OF THE GOVERNMENT OF PUNJAB, DEPARTMENT OF HOUSING AND URB AN DEVELOPMENT VIDE ITS NOTIFICATION DATED 21.12.2008 FOR PROPER DEVELOPMENT AND RE-DEVE LOPMENT OF AREA FALLING WITHIN THE REVENUE DISTRICT OF LUDHIANA AND PHILLAUR TEHSIL OF JALANDHAR. THE ASSESSEE SUBMITTED AN APPLICATION BEFORE THE LD. CIT, LUDHIANA IN FORM NO . 10A ON 31.3.2008 SEEKING REGISTRATION U/S 12A(ASSESSING AUTHORITY) OF INCOME-TAX ACT AS A CHARITABLE INSTITUTE. THE LD. CIT PERUSED THE APPLICATION FILED BY THE ASSESSEE. HE HOWEVER DECLINED TO REGISTER THE ASSESSEE AS A CHARITABLE INSTITUTION U/S 12A OF INCOME-TAX A CT. ACCORDING TO HIM THE ASSESSEE WAS NOT ENGAGED EITHER IN RELIEF OF THE POOR, EDUCATION , MEDICAL RELIEF AND THE ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY. REFERR ING TO THE PROVISIONS OF SECTION 15 OF SEC 2, THE LD. CIT HELD THAT THE ASSESSEE WAS NOT ENGAGED IN THE ACTIVITIES WHICH WERE NOT IN THE NATURE OF TRADE, COMMERCE OR BUSINESS OR ANY ACTIVI TIES AND THEREFORE, THE ASSESSEE WAS NOT GREATER LUDHIANA AREA DEVELOPMENT AUTHORITY, LUDHIA NA 1036/CHANDI/2008 2 ELIGIBLE FOR REGISTRATION U/S 12A OF INCOME-TAX ACT . WITHOUT PREJUDICE TO THE AFORESAID FINDINGS, THE LD. CIT ALSO HELD THAT THE ASSESSEE W AS NEITHER A CHARITABLE INSTITUTE NOR A CHARITABLE TRUST. THEREFORE, THE BENEFITS OF SEC 1 2A/12AA WHICH WERE MEANT FOR CHARITABLE TRUST OR CHARITABLE INSTITUTE WERE NOT AVAILABLE TO THE ASSESSEE. IN THIS CONNECTION HE HAS REFERRED TO THE PROVISIONS OF SECTION 12A OF INCOME -TAX ACT. 3. AGGRIEVED BY THE ORDER PASSED BY THE LD. CIT, TH E ASSESSEE IS NOW IN APPEAL BEFORE THIS TRIBUNAL. AT THE TIME OF HEARING, THE LD. COU NSEL FOR THE ASSESSEE FAIRLY SUBMITTED THAT THE IDENTICAL ISSUES HAS ALREADY BEEN CONSIDERED BY THIS TRIBUNAL IN ITS ORDER DATED 1.6.2006 IN PUNJAB URBAN DEVELOPMENT AUTHORITY V. CIT, CHAND IGARH IN ITA NO. 764/CHANDI/2003 BY WHICH THE ORDER OF CIT REJECTING THE SIMILAR CLAIM U/S 12A WAS UPHELD BY THIS TRIBUNAL. HE SUBMITTED THAT THE PUNJAB URBAN DEVELOPMENT AUTHORI TY HAS NOT ACCEPTED THE ORDER AND THE MATTER IS PENDING FOR ADJUDICATION BEFORE THE HON'B LE PUNJAB & HARYANA HIGH COURT. HE HOWEVER FAIRLY SUBMITTED THAT THE AFORESAID ORDER P ASSED BY THIS TRIBUNAL IS SQUARELY COVER THE ISSUE IN APPEAL AGAINST THE ASSESSEE. 4. IN REPLY THE DR SUPPORTED THE ORDER PASSED BY TH E LD. CIT AND SUBMITTED THAT THE ISSUE WAS COVERED IN FAVOUR OF THE DEPARTMENT BY TH E ORDER PASSED BY THIS TRIBUNAL. 5. WE HAVE HEARD BOTH THE PARTIES AND CAREFULLY CON SIDERED THEIR SUBMISSIONS. PERUSAL OF PARA 5 OF THE ORDER PASSED BY THE LD. CIT SHOWS THAT THE PUDA BRANCH OF LUDHIANA HAS BEEN DISSOLVED FORMING A NEW AUTHORITY KNOWN AS GRE ATER LUDHIANA AREA DEVELOPMENT AUTHORITY. IT IS QUITE OBVIOUS THAT THE ACTIVITIES WHICH WERE EARLIER UNDERTAKEN BY PUDA AT LUDHIANA HAD NOT BEEN TAKEN OVER BY THE ASSESSEE. THEREFORE, THERE IS SIMILARITIES IN THE FACTS AND CIRCUMSTANCES BETWEEN THE CASE OF THE A SSESSEE AND THE CASE OF PUDA. IN THIS VIEW OF THE MATTER, THE AFORESAID ORDER PASSED BY T HIS TRIBUNAL IN PUDA V CIT, CHANDIGARH IN ITA NO. 764/CHANDI/2003 EXCLUSIVELY COVERS THE ISSU E AGAISNT THE ASSESSEE. THE LD. COUNSEL FOR THE ASSESSEE WAS FAIR ENOUGH TO CONCEDE THE AFORESAID POSITION. FOLLOWING THE ORDER OF THIS TRIBUNAL IN PUNJAB URBAN DEVELOPMENT AUTHORITY V CIT IN ITA NO. 764/CHANDI/2003 AND FOR THE REASONS GIVEN BY THE TR IBUNAL IN THE AFORESAID ORDER, WE DISMISS THE APPEAL FILED BY THE ASSESSEE. FOR THE SAKE OF READY REFERENCE THE REGISTRY IS DIRECTED TO ENCLOSE A COPY OF ORDER DATED 1.6.2006 IN THE CASE OF PUNJAB URBAN DEVELOPMENT AUTHORITY V. CIT IN ITA NO. 764/CHANDI/2003 WITH TH IS ORDER. 6. APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED ON APRIL, 2011 (SUSHMA CHOWLA) (D K SRIVASTAVA) JUDICIAL MEMBER ACCOUNTANT MEM BER CHANDIGARH: THE APRIL, 2011 SURESH COPY TO: 1. THE APPELLANT, GREATED LUDHIANA AREA DEVELOPMENT AUTHORITY, LUDHIANA 2. THE RESPONDENT, CIT-III, LUDHIANA 3. THE CIT(A), LUDHIANA 4. THE LD. CIT, 5. THE D.R, INCOME-TAX DEPARTMENT, CHANDIGARH GREATER LUDHIANA AREA DEVELOPMENT AUTHORITY, LUDHIA NA 1036/CHANDI/2008 3 TRUE COPY BY ORDER ASSISTANT REGISTRAR, ITAT, CHANDIGARH