ITO, Dindigul V. Christian Educational and Social Development Trust, Oddanchatram

ITA 1064/CHNY/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 86259 (ITAT-CHENNAI)
• Duration Of Justice: 9 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-02-2015
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 02-02-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 25-04-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: A V SREEKANTH
• Section: 12A; 148; 11

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI .. , ! , ' #$ BEFORE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER ./ ITA NOS. 1062, 1063 & 1064/MDS/2014 ' % &% / ASSESSMENT YEARS : 2006-07 TO 2008-09 THE INCOME TAX OFFICER, WARD I(1), DINDIGUL. V. M/S CHRISTIAN EDUCATION AND SOCIAL DEVELOPMENT TRUST, 138/10-8, APP NAGAR, ODDANCHATRAM. PAN : AAATC 9098 E (!(/ APPELLANT) (*+!(/ RESPONDENT) !( , - / APPELLANT BY : SHRI A.V. SREEKANTH, JCIT *+!( , - / RESPONDENT BY : NONE . , / / DATE OF HEARING : 02.02.2015 01& , / / DATE OF PRONOUNCEMENT : 02.02.2015 / O R D E R PER B.R. BASKARAN, ACCOUNTANT MEMBER: ALL THESE THREE APPEALS HAVE BEEN FILED BY THE R EVENUE CHALLENGING THE ORDERS PASSED BY THE LD. COMMISSION ER OF INCOME TAX (APPEALS)-II, MADURAI AND THEY RELATE TO THE AS SESSMENT YEARS 2006-07, 2007-08 AND 2008-09. 2 I.T.A. NOS.1062 TO 1064/MDS/2014 2. NONE APPEARED ON BEHALF OF THE ASSESSEE DESPITE SERVICE OF NOTICE AND HENCE, WE PROCEEDED TO DISPOSE THESE APP EALS EX PARTE WITHOUT THE PRESENCE OF THE ASSESSEE. 3. WE HEARD LD. D.R. AND PERUSED THE RECORD. WE NO TICE THAT THE ASSESSMENTS OF THE YEARS UNDER CONSIDERATION HA VE BEEN REOPENED BY THE ASSESSING OFFICER BY ISSUING NOTICE UNDER SECTION 148 OF THE INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT' ). IN THE REOPENED ASSESSMENTS, THE A.O. HAS NOTICED THAT THE ASSESSEE DID NOT HAVE REGISTRATION UNDER SECTION 12A OF THE ACT. HENCE, THE ASSESSING OFFICER DID NOT ALLOW EXEMPTION UNDER SECTION 11 OF THE ACT AND ACCORDINGLY, ASSESSED THE INCOME OF THE ASSESSEE. 4. IN THE APPEALS FILED BEFORE THE LD. CIT(APPEALS) , THE ASSESSEE RAISED AN ALTERNATIVE CONTENTION THAT ITS INCOME IS EXEMPTED UNDER SECTION 10(23C)(IIIAD) OF THE ACT. THE LD. CIT(APPEALS) WITHOUT CONDUCTING ANY EXAMINATION, AC CEPTED THE SAID SUBMISSIONS AND ACCORDINGLY, ALLOWED THE APPEA LS FILED BY THE ASSESSEE. 5. BEFORE US, LD. D.R. POINTED OUT THAT THE ALTERNA TIVE CLAIM MADE BY THE ASSESSEE REQUIRES EXAMINATION AND HENCE THE LD. CIT(APPEALS) HAS VIOLATED RULE 46A OF THE INCOME-TA X RULES, 1962 3 I.T.A. NOS.1062 TO 1064/MDS/2014 IN ENTERTAINING THE ALTERNATIVE PLEA AND IN NON-CON FRONTING THE SAME TO THE ASSESSING OFFICER. 6. WE FIND MERIT IN THE SAID CONTENTION OF THE LD. D.R. THE ALTERNATIVE CLAIM PUT FORTH BY THE ASSESSEE, IN OUR VIEW, SHOULD HAVE BEEN CONFRONTED TO THE ASSESSING OFFICER SINCE THE SAME REQUIRES PROPER EXAMINATION OF THE BOOKS OF ACCOUNT AND OTHE R RELEVANT DETAILS PERTAINING TO THE SAME. HENCE, WE ARE NOT ABLE TO SUSTAIN THE ORDERS PASSED BY THE LD. CIT(APPEALS). WE ARE OF THE VIEW THAT THE ALTERNATIVE CLAIM FOR DEDUCTION UNDER SECTION 1 0(23C)(IIIAD) REQUIRES FRESH EXAMINATION AT THE END OF THE LD. CI T(APPEALS), AFTER DULY CONFRONTING THE SAME TO THE ASSESSING OFFICER. ACCORDINGLY, WE SET ASIDE THE ORDERS PASSED BY THE LD. CIT(APPEALS) FOR THE YEARS UNDER CONSIDERATION AND REMIT ALL THE MATTERS TO HI S FILE WITH A DIRECTION TO DECIDE THEM AFRESH AFTER ELICITING THE VIEWS OF THE ASSESSING OFFICER ON THE ALTERNATIVE CONTENTION OF THE ASSESSEE AND TAKE APPROPRIATE DECISION IN ACCORDANCE WITH LAW. THE ASSESSEE SHOULD BE GIVEN NECESSARY OPPORTUNITY OF BEING HEAR D. 7. IN THE RESULT, ALL THE THREE APPEALS FILED BY TH E REVENUE ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSES. 4 I.T.A. NOS.1062 TO 1064/MDS/2014 ORDER PRONOUNCED IN THE OPEN COURT AFTER CONCLUSI ON OF HEARING ON THE 2 ND DAY OF FEBRUARY, 2015 AT CHENNAI. SD/- SD/- ( ! ) ( .. ) (VIKAS AWASTHY) (B.R. BASKARAN) ' /JUDICIAL MEMBER /ACCOUNTANT MEMBER /CHENNAI, A /DATED, THE 2 ND FEBRUARY, 2015. KRI. B , *'/C D &/ /COPY TO: 1. !( /APPELLANT 2. *+!( /RESPONDENT 3. . E/ () /CIT(A)-II, MADURAI 4. . E/ /CIT-II, MADURAI 5. FG *'/' /DR 6. GH% I /GF.