M/S. KRISHI UPAJ MANDI SAMITI, JAORA V. THE DCIT AND ACIT, Ratlam

ITA 104/IND/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 5714 (ITAT-INDORE)
• Duration Of Justice: 7 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-10-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 05-10-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 10-02-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MOHD JAVED
• Assessee Lawyers: GIRISH AGRAWAL
• Keywords: Opportunity of being heard; Revised return
• Section: 12A; 12AA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE .., .., % BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER AND SHRI O.P. MEENA, ACCOUNTANT MEMBER KRISHI UPAJ MANDI SAMITI, NEEMUCH .. ./ PAN: AAALK0424A VS. ACIT, RATLAM / APPELLANT / RESPONDENT KRISHI UPAJ MANDI SAMITI, NEEMUCH .. ./ PAN: AAALK0424A VS. DY. CIT, RATLAM / APPELLANT / RESPONDENT KRISHI UPAJ MANDI SAMITI, NEEMUCH .. ./ PAN: AAALK0424A VS. DY. CIT, RATLAM .. . / I.T.A. NO. 193/IND/2016 / ASSESSMENT YEAR: 2003-04 .. ./ I.T.A. NO. 173/IND/2016 / ASSESSMENT YEAR: 2004-05 .. ./ I.T.A. NO. 174/IND/2016 / ASSESSMENT YEAR: 2005-06 KUMC, JAORA & NEEMUCH V. DY. CIT, RATLAM. I.T.A.NOS. 104,175,192,193,173 & 174/IND/16 A.Y.S. 05-06,05-06, 04-05, 03-04, 04-05 & 05-06 PAGE 2 OF 11 / APPELLANT / RESPONDENT KRISHI UPAJ MANDI SAMITI, JAORA .. ./ PAN: AAALK0396F VS. DY. CIT, RATLAM / APPELLANT / RESPONDENT KRISHI UPAJ MANDI SAMITI, JAORA .. ./ PAN: AAALK0396F VS. DY. CIT, RATLAM / APPELLANT / RESPONDENT KRISHI UPAJ MANDI SAMITI, MANASA .. ./ PAN: AAALK0382R VS. DY. CIT, RATLAM / APPELLANT / RESPONDENT / APPELLANTS BY SHRI GIRISH AGRAWAL, CA / RESPONDENT BY SHRI MOHD. JAVED, SR. DR .. ./ I.T.A. NO. 192/IND/2016 / ASSESSMENT YEAR: 2004-05 .. ./ I.T.A. NO. 104/IND/2016 / ASSESSMENT YEAR: 2005-06 .. ./ I.T.A. NO. 175/IND/2016 / ASSESSMENT YEAR: 2005-06 KUMC, JAORA & NEEMUCH V. DY. CIT, RATLAM. I.T.A.NOS. 104,175,192,193,173 & 174/IND/16 A.Y.S. 05-06,05-06, 04-05, 03-04, 04-05 & 05-06 PAGE 3 OF 11 DATE OF HEARING 05.10.2016 # DATE OF PRONOUNCEMENT 05.10.2016 / O R D E R PER O.P. MEENA, ACCOUTANT MEMEBR. THESE SIX APPEALS ARE FILED BY THE THREE GROUP OF ASSESSEES AGAINST THE SEPARATE ORDERS OF LD. COMMIS SIONER OF INCOME-TAX (APPEALS), UJJAIN [HEREINAFTER REFERRED TO AS THE CIT(A)] ALL DATED 17.12.2015 AND PERTAINS TO ASSESS MENT YEARS 2003-04 TO 2005-06. 2. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE FACTS ARE COMMON IN ALL THE ABOVE APPEALS. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THE WRITTEN SYNOPSIS AND SUBM ITTED THE INFORMATION IN THE TABULATED FORM, WHICH READS A S UNDER :- S. NO . PARTICULARS MANDI MANASA I.T.A.NO. 175/IND/ 2016 MANDI-NEEMUCH I.T.A.NOS. 193/173 & 174/IND/2016 MANDI- JAORA I.T.A.NOS. 104 & 192/IND/2016 2005-06 2003-04 2004-05 2005-06 2004-05 2005-06 1. ORIGINAL RETURN FILED ON 26.10.05 07.07.2005 07.07.05 30.01.06 31.10.04 31.10.05 2. ASSESSMENT ORDER DATED 26.12.07 24.02.2006 01.11.06 28.12.07 01.11.06 28.12.07 3. ORDER OF HON'BLE I.T.A.T. FOR GRANT OF REGISTRATION U/S 12A 22.12.06 12.02.2007 12.02.07 12,02.07 22.12.06 22.12.06 KUMC, JAORA & NEEMUCH V. DY. CIT, RATLAM. I.T.A.NOS. 104,175,192,193,173 & 174/IND/16 A.Y.S. 05-06,05-06, 04-05, 03-04, 04-05 & 05-06 PAGE 4 OF 11 4. REGISTRATION U/S 12A GRANTED BY LD. CIT ON 21.02.07 29.03.2007 29.03.07 29.03.07 21.02.07 21.02.07 5. APPLICATION TO LD. AO WITH REVISED COMPUTATION AFTER GIVING EFFECT OF REGISTRATION GRANTED U/S 12A. 23.08.07 & 05.02.08 22.10.2007 22.10.07 22.10.07 26.06.08 26.06.08 6. REMINDER TO LD. AO 30.05.13 30.05.2013 30.05.13 30.05.13 30.05.13 30.05.13 7. REJECTION BY LD. AO AGAINST THE REMINDER APPLICATION 30.05.13 30.05.2013 30.05.13 30.05.2013 30.05.13 30.05.13 3. THE LD. COUNSEL FOR THE ASSESSEE FURTHER CONTENDED THAT COMMON GROUND PERTAINS TO GIVING EFFECT TO REV ISED COMPUTATION OF INCOME OF RESPECTIVE KRISHI UPAJ MAN DI SAMITI, ARISING FROM THE ORDER OF I.T.A.T., INDORE BENCH FO R RESPECTIVE KRISHI UPAJ MANDI SAMITI WHEREIN IT WAS DIRECTED TO G RANT REGISTRATION U/S 12A/12AA FROM THEIR RESPECTIVE DAT ES OF CREATION. IN VIEW OF GRANT OF REGISTRATION U/S 12A/ 12AA FROM THE DATE OF CREATION OF KUMS UNDER THE DIRECTIONS O F THE HON'BLE I.T.A.T., ASSESSEE FILED AN APPLICATION BEF ORE THE AO ALONGWITH REVISED COMPUTATION OF INCOME AND TAX BY C LAIMING DEDUCTION/EXEMPTION U/S 11 & 13 OF THE ACT. WITH TH IS APPLICATION IT WAS REQUESTED TO GIVE EFFECT TO THE ORDER OF KUMC, JAORA & NEEMUCH V. DY. CIT, RATLAM. I.T.A.NOS. 104,175,192,193,173 & 174/IND/16 A.Y.S. 05-06,05-06, 04-05, 03-04, 04-05 & 05-06 PAGE 5 OF 11 HON'BLE I.T.A.T. AND GRANT REFUND ALONGWITH APPLICAB LE INTEREST. 4. THE LD. COUNSEL FOR THE ASSESSEE FURTHER CONTENDED THAT THE SUBJECT MATTER IN ALL THESE APPEALS ARE CO VERED BY THE DECISION OF HON'BLE I.T.A.T., INDORE BENCH IN THE C ASE OF KRISHI UPAJ MANDI, BHANPURA MANDI, I.T.A.NOS. 106 & 107/IN D/2013 ORDER DATED 28.0-5.2013. THE LD. COUNSEL FOR THE AS SESSEE SUBMITTED THE WRITTEN SUBMISSIONS AND POINTED OUT TH E FINDING GIVEN IN PARA 3 OF THE I.T.A.TS ORDER, WHIC H READS AS UNDER :- PURSUANT TO DIRECTION OF THE TRIBUNAL VIDE ORDER DATED 22.12.2006 (ITA NO. 345/IND/2006) THE LD COMMISSIONER GRANTED REGISTRATION U/S 12A TO THE ASSESSEE VIDE ORDER DATED 21.02.2007 FROM THE DATE OF INCEPTION TO THE ASSESSEE. AT THE TIME OF FILING OF RETURN OF AY 2005-06 NO SUCH REGISTRATION U/S 12A WAS AVAILABLE TO THE ASSESSEE AND THUS RETURN OF INCOME DECLARING INCOME AT RS. 85,690/- WAS 'FLLED KUMC, JAORA & NEEMUCH V. DY. CIT, RATLAM. I.T.A.NOS. 104,175,192,193,173 & 174/IND/16 A.Y.S. 05-06,05-06, 04-05, 03-04, 04-05 & 05-06 PAGE 6 OF 11 ON 1.12.2005 WHICH WAS SUBSEQUENTLY REVISED AT RS. 82,720/- ON 23.12.2005. THE ASSESSEE VIDE ITS LETTE R DATED 22TH AUGUST 2007 INFORMED THE ASSESSING OFFICER THAT THE ASSESSEE GOT REGISTRATION U/S 12A OF THE ACT AND THUS ENTITLED TO GET EXEMPTION U/S 11. THE CLAIM OF THE ASSESSEE WAS MERELY DENIED ON THE PLEA THAT SINCE IN THE ORIGINAL RETURN THE ASSESSEE CLAIMED THE STATUS OF 'LOCAL AUTHORITY' AND NOT OF TRUST, ALSO VOLUNTARILY DISCLOSED TOTAL TAXABLE INC OME AND PAID TAXES THEREON, THEREFORE, THE EXEMPTION U/ S 11 IS NOT AVAILABLE TO THE ASSESSEE ' ' IT WAS EXPLAINED BY THE LD. COUNSEL THAT AT THE TIME OF FILING OF RETURN SINCE THE ASSESSEE WAS NOT HAVING REGISTRATION U/S 12A THEREFORE, THE RETURN W AS FILED IN THE STATUS OF LOCAL AUTHORITY AND SINCE SUCH REGI STRATION IS AVAILABLE FROM THE DATE INCEPTION ONE MORE OPPORTUNITY MAY BE GRANTED TO THE ASSESSEE TO EXPLAIN ITS CASE. THE LD. SR. DR THOUGH DE/ENDED TH E KUMC, JAORA & NEEMUCH V. DY. CIT, RATLAM. I.T.A.NOS. 104,175,192,193,173 & 174/IND/16 A.Y.S. 05-06,05-06, 04-05, 03-04, 04-05 & 05-06 PAGE 7 OF 11 IMPUGNED ORDER, BUT DID NOT OBJECT IF THE MATTER IS REMANDED BACK TO THE ASSESSING OFFICER WE REMAND BOTH THE APPEALS TO THE FILE OF THE LD. ASSESSING OFFICER TO EXAMINE THE CLAIM OF THE ASSESSEE / AUDIT REPORT AND DECIDE IN ACCORDANCE WITH LAW FOR WHICH DUE OPPORTUNITY OF BEING HEARD BE PROVIDED TO THE ASSESSEE ' 5. FURTHER, THE LD. AUTHORIZED REPRESENTATIVE OF THE ASSESSEE CONTENDED THAT THE LD. CIT(A) ALSO IN THE CASE OF THE ASSESSEE ITSELF HELD FOR THE SUBSEQUENT YEAR ASSESS MENT YEAR 2006-07 IN APPEAL NO. U-260/08-09 ORDER DATED 05.10 .2012 HAS ALLOWED THE APPEAL ON IDENTICAL GROUND. THE LD. CIT(A) HELD AS UNDER :- 'IN VIEW OF THE ABOVE FACTS AND IN ABSENCE OF ANY ADVERSE MATERIAL OR FINDING ON RECORD TO SHOW THAT THE APPELLANT HAS BEEN ESTABLISHED OR CARRIED OUT ACTIVITIES FOR PERSONAL OR PRIVATE GAINS, THE AO WA S NOT RIGHT IN TREATING THE APPELLANT AS NON CHARITAB LE KUMC, JAORA & NEEMUCH V. DY. CIT, RATLAM. I.T.A.NOS. 104,175,192,193,173 & 174/IND/16 A.Y.S. 05-06,05-06, 04-05, 03-04, 04-05 & 05-06 PAGE 8 OF 11 INSTITUTION. FURTHER, ONCE AN INSTITUTION HAS BEEN GRANTED REGISTRATION U S 12A A IT ACT THE AO IS PRIMA- FACIE BOUND BY SUCH REGISTRATION UNLESS SPECIFICALL Y CANCELLED OR WITHDRAWN BY THE PRESCRIBED AUTHORITY. THE SAME VIEW HAS BEEN HELD BY THE HON'BLE SUPREME COURT IN THE CASE OF ADDL. CIT V. SURAT CIT Y JHIMKHANA (2008) 300 ITR 214 AND MP MADHYM V. CIT (2000) 256 ITR 277 (MP).' IN PARA 3.10 PAGE 21, THE CIT(A) OBS ERVED AS UNDER :- ASSESSEE HAS FILED THE REVISED COMPUTATION DECLARING TOTAL INCOME RS. NIL ON 23-08-2007 CLAIMING EXEMPTION/DEDUCTION U/S 11 AT RS. 13,55,022/- OUT OF THE INCOME AT RS. 15,94,143/- CLAIMING 15% SET A PART FOR FUTURE AT RS. 2,39,121/- . AO IS HEREBY, ACCORDINGLY DIRECTED TO TAKE THE INCOME OF THE APPELLANT AS PER THE REVISED COMPUTATION FILED BY IT AFTER VERIFICATION FROM RECORDS. LD. CIT(A) IN PARA 3.7 AND 3.8, WHILE ALLOWING KUMC, JAORA & NEEMUCH V. DY. CIT, RATLAM. I.T.A.NOS. 104,175,192,193,173 & 174/IND/16 A.Y.S. 05-06,05-06, 04-05, 03-04, 04-05 & 05-06 PAGE 9 OF 11 THE APPEAL OF THE ASSESSEE FOR AY 2006-07 INTER ALIA RELIED ON THE DECISIONS OF HON'BLE ITAT INDORE BENCH IN THE CASE OF - KUMS BUHANPUR ITA NO. 277 & 278/LND/2008 - KUMS HARDA AND KUMS SHUJALPUR ITA NO. 201 & 185/LND/2009 WHEREIN ISSUE OF NON FILING OF REVISED RETURN OR FI LING BELATEDLY FOR THE CLAIM OF DEDUCTION / EXEMPTION U/ S 12A WAS DEALT. IN CASE OF OTHER TWO APPELLANTS ALSO SIMILAR ORDERS HAVE BEEN PASSED BY THE LD. CIT{A) FOR SUBSEQUENT YEARS WHEREIN THE APPEAL HAS BEEN ALLOWED ON SAME SET OF FACTS. THESE ORDERS FORM PART OF THE PAPER BOOKS ALREADY ON RECORD. 6. THE LD. AUTHORIZED REPRESENTATIVE OF THE ASSESSEE CONCLUDED HIS ARGUMENT THAT CONSIDERING THE ABOVE F ACTS, CIRCUMSTANCES OF THE CASE, SUBMISSIONS MADE, DOCUME NTS ON RECORD AND JUDICIAL PRECEDENCE, APPEALS OF THE ASSE SSEES MAY BE ALLOWED BY DIRECTING THE LD. AO TO CONSIDER THE CLAIM OF KUMC, JAORA & NEEMUCH V. DY. CIT, RATLAM. I.T.A.NOS. 104,175,192,193,173 & 174/IND/16 A.Y.S. 05-06,05-06, 04-05, 03-04, 04-05 & 05-06 PAGE 10 OF 11 ASSESSEE FOR GRANTING DEDUCTION / EXEMPTION U/S 11 & 13 OF THE ACT. 7. THE LD. SR. DEPARTMENTAL REPRESENTATIVE DID NOT RAI SE ANY OBJECTION TO THE ABOVE CONTENTION OF THE LD. AU THORIZED REPRESENTATIVE OF THE ASSESSEE. 8. WE HAVE HEARD THE RIVAL SUBMISSIONS AND HAVE PERUSED THE MATERIAL AVAILABLE ON RECORD. WE HAVE A LSO PERUSED THE ORDER OF I.T.A.T. INDORE BENCH. WE FIND THAT THE MATTER IS COVERED BY THE DECISION OF COORDINATED BE NCH OF I.T.A.T. IN I.T.A.NOS. 106 & 107/IND/2013 ORDER DAT ED 28.05.2013 IN THE CASE OF KUMS, BHANPURA MANDI. FU RTHER, IN THE MATTER OF THE ASSESSEES OWN CASE, THE LD. CI T(A) HAS ALLOWED THE APPEAL ON THE IDENTICAL GROUND FOR THE SUBSEQUENT ASSESSMENT YEAR 2006-07. THE LD. SR. DEPARTMENTAL REPRESENTATIVE COULD NOT CONTROVERT THE FINDING OF THE LD. CIT(A). CONSIDERING THE ABOVE DECISIONS OF I.T.A.T . AS WELL AS CIT(A), UJJAIN, WE ALLOW THE APPEALS OF THE ASSESSEE S AND DIRECT THE ASSESSING OFFICER TO CONSIDER THE CLAIM OF THE ASSESSEES FOR GRANTING DEDUCTION/EXEMPTION U/S 11 & 13 OF THE ACT AS PER KUMC, JAORA & NEEMUCH V. DY. CIT, RATLAM. I.T.A.NOS. 104,175,192,193,173 & 174/IND/16 A.Y.S. 05-06,05-06, 04-05, 03-04, 04-05 & 05-06 PAGE 11 OF 11 THE REVISED COMPUTATION FILED BY IT AFTER VERIFICAT ION FROM RECORDS. 9. IN THE RESULT, ALL THE APPEALS OF THE ASSESSEES ARE ALLOWED FOR STATISTICAL PURPOSES. THE ORDER HAS BEEN PRONOUNCED IN OPEN COURT ON THE 5 TH OCTOBER, 2016. SD/- (..) (D.T.GARASIA) JUDICIAL MEMBER SD/- (..) (O.P.MEENA) ACCOUNTANT MEMBER * / DATED : 5 TH OCTOBER, 2016. CPU*