D.C.I.T,Circle, Shimla V. H.P.State Environment Protection & Pollution Control Board, New Shimla

ITA 1074/CHANDI/2014

• Counselvise Citation: [2015] 120 COUNSELVISE.COM (IT) 9778 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-04-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 09-04-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 04-12-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JYOTI KUMARI
• Assessee Lawyers: RAJINDER PRASA D
• Keywords: Cancellation of registration
• Section: 12A; 12AA; 12; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH A, CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI T.R.SOOD, ACCOUNTANT MEMBER ITA NO. 1074/CHD/2014 (ASSESSMENT YEAR : 2010-11) THE D.C.I.T., VS. H.P.STATE ENVIRONMENT PROTECTION CIRCLE SHIMLA. & POLLUTION CONTROL BOARD, NEW SHIMLA. PAN: AAALH0191B (APPELLANT) (RESPONDENT) APPELLANT BY : SMT.JYOTI KUMARI, CIT DR RESPONDENT BY : SHRI RAJINDER PRASAD DATE OF HEARING : 09.04.2015 DATE OF PRONOUNCEMENT : 10.04.2015 O R D E R PER BHAVNESH SAINI, J.M. : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX(APPEALS), SHIMLA DATED 4.9.2014 FOR ASSESSMENT YEAR 2010-11, CHALLENGING THE ORDER OF THE LEARNED CIT (APPEALS) IN ALLOWING REGISTRATION UNDER SECTION 12 A OF THE INCOME TAX ACT INSPITE OF THE FACT THAT THE REC EIPTS OF THE ASSESSEE ARE IN CONTRAVENTION TO THE AMENDED PROVISIONS OF SECTION 2(15) OF THE INCOME TAX ACT. 2 2. BRIEFLY, THE FACTS OF THE CASE ARE THAT THE ASS ESSEE CHALLENGED THE ORDER OF THE ASSESSING OFFICER BEFOR E THE LEARNED CIT (APPEALS) IN IGNORING THE ORDER OF THE I.T.A.T., CHANDIGARH BENCH DATED 28.8.2009 IN ITA NO.74/CHD/2 009 WHEREIN THE REGISTRATION OF THE ASSESSEE UNDER SECT ION 12AA OF THE ACT WAS RESTORED AND, THEREFORE, THE ASSESS EE WAS ENTITLED FOR ALL BENEFITS AVAILABLE UNDER SECTIONS 11 AND 12 OF THE ACT. IT WAS FURTHER STATED THAT THE ASSESS ING OFFICER HAS DENIED THE BENEFITS MERELY ON THE GROUND THAT T HE ABOVE DECISION OF THE TRIBUNAL HAS BEEN CHALLENGED IN THE HON'BLE H.P. HIGH COURT, WHICH IS PENDING FOR ADJUDICATION. THE ASSESSING OFFICER, THEREFORE, ADDED THE ENTIRE SURP LUS TO THE DECLARED INCOME OF THE ASSESSEE AND FRAMED THE ASSE SSMENT ACCORDINGLY. THE ASSESSEE WAS CONSTITUTED FOR A P ERIOD OF THREE YEARS AND RENEWED FROM TIME TO TIME BY THE S TATE GOVERNMENT UNDER THE WATER (PREVENTION & CONTROL OF POLLUTION) ACT WITH THE MAIN OBJECT OF PERFORMING T HE DELEGATED POWER AND FUNCTION TO PROVIDE FOR THE PRE VENTION AND CONTROL OF WATER POLLUTION AND THE MAINTAINING OR RESTORING OF WHOLESOMENESS OF WATER. THE ASSESSEE FILED RETURN OF INCOME AND CLAIMED REFUND. THE ASSESSEE WAS GRANTED REGISTRATION UNDER SECTION 12A OF THE ACT W HICH WAS SUBSEQUENTLY WITHDRAWN. THE WITHDRAWAL ORDER WAS CHALLENGED BY THE ASSESSEE BEFORE THE I.T.A.T. CHAN DIGARH BENCH, WHO VIDE ORDER DATED 28.8.2009 IN ITA NO.74/CHD/2009 ALLOWED THE APPEAL OF THE ASSESSEE . THE 3 ASSESSEE WAS INFORMED THAT THE SAID ORDER IS SUB-JU DICE AS THE DEPARTMENT HAS FILED AN APPEAL BEFORE THE HON'B LE H.P. HIGH COURT, WHICH IS PENDING FOR ADJUDICATION. THE ASSESSING OFFICER REQUIRED THE ASSESSEE TO SHOW CAU SE AS TO WHY ITS ENTIRE INCOME BE NOT TAXED AS PER THE NORMA L PROVISIONS OF THE INCOME TAX ACT. THE ASSESSEE S UBMITTED THAT THE ISSUE OF CANCELLATION OF REGISTRATION AS W ELL AS ON MERITS, ADDITION ON ACCOUNT OF ACCUMULATION, ETC. H AS BEEN DECIDED IN THEIR FAVOUR BY THE I.T.A.T., CHANDIGARH BENCH AS WELL AS BY THE LEARNED CIT (APPEALS) FOR ASSESSMENT YEAR 2009-10. THE ORDER OF THE LEARNED CIT (APPEALS) H AS BEEN CHALLENGED BY THE ASSESSING OFFICER BEFORE THE TRIB UNAL, WHICH IS PENDING. THE ASSESSING OFFICER, HOWEVER, IN THE ASSESSMENT ORDER HELD THAT THE ASSESSEE WAS NOT CAR RYING OUT THE ACTIVITIES FOR WHICH REGISTRATION UNDER SEC TION 12AA HAD BEEN GRANTED. THE EXCESS OF INCOME OVER EXPE NDITURE WAS CONSIDERED AS INCOME AND ADDITION WAS ACCORDING LY MADE. 3. THE ASSESSEE SUBMITTED BEFORE THE LEARNED CIT (APPEALS) THAT THE I.T.A.T., CHANDIGARH BENCH HAS A LREADY DECIDED THE APPEAL OF THE ASSESSEE IN ITA NO.74/CHD /2009 WHEREIN REGISTRATION HAS BEEN RESTORED. THEREFORE , THE ASSESSEE IS ENTITLED FOR DEDUCTION UNDER SECTIONS 1 1 AND 12 OF THE ACT. THE SUBMISSIONS ON MERITS WERE ALSO M ADE. THE LEARNED CIT (APPEALS) FOLLOWING THE ORDER OF TH E TRIBUNAL IN ITA NO.74/CHD/2009 DECIDED THE ISSUE IN FAVOUR O F THE 4 ASSESSEE AND HELD THAT THE ASSESSEE WOULD BE TREATE D AS REGISTERED UNDER SECTION 12AA OF THE ACT. 4. AFTER HEARING THE RIVAL SUBMISSIONS WE DO NOT F IND ANY MERIT IN THE APPEAL OF THE REVENUE. THE REVEN UE HAS RAISED ONLY GROUND THAT THE LEARNED CIT (APPEALS) H AS ALLOWED REGISTRATION UNDER SECTION 12AA OF THE ACT. THIS ISSUE HAS ALREADY BEEN CONSIDERED IN DETAIL BY I.T. A.T., CHANDIGARH BENCH IN THE CASE OF THE ASSESSEE IN ITA NO.74/CHD/2009, AGAINST WHICH THE APPEAL OF THE REV ENUE IS PENDING BEFORE THE HON'BLE HIGH COURT. SIMILAR LY, THE I.T.A.T., CHANDIGARH BENCH IN ITA NO.835/CHD/2012 F OR ASSESSMENT YEAR 2009-10 VIDE ORDER DATED 16.4.2013 DISMISSED THE DEPARTMENTAL APPEAL BY FOLLOWING THE SAME ORDER OF THE TRIBUNAL IN ITA NO.74/CHD/2009. THER EFORE, THERE IS NO INFIRMITY IN THE ORDER OF THE LEARNED C IT (APPEALS) IN FOLLOWING THE ORDER OF THE TRIBUNAL TH ROUGH WHICH THE ASSESSEE WAS CONFERRED THE REGISTRATION U NDER SECTION 12AA OF THE ACT AND CONSEQUENTIALLY THE ASS ESSEE WOULD BE ENTITLED FOR DEDUCTION UNDER SECTIONS 11 A ND 12 OF THE ACT. MERELY BECAUSE THE DEPARTMENTAL APPEAL I S PENDING IN HON'BLE HIGH COURT AGAINST THE ORDER OF THE TRIBUNAL, IS NO GROUND TO TAKE DIFFERENT VIEW AT TH E STAGE. WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LE ARNED CIT 5 (APPEALS). THE DEPARTMENTAL APPEAL HAS NO MERIT A ND IS DISMISSED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 10 TH DAY OF APRIL, 2015. SD/- SD/- (T.R.SOOD) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 10 TH APRIL, 2015 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH