The ITO(Exemptions), Ward-1, Ahmedabad V. Indian Medical Association National Social Security Scheme, Ahmedabad

ITA 1156/AHD/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 6072 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 9 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-02-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 04-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V K SINGH

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD .., , BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ I.T.A. NO.1156/AHD/2016 ( / ASSESSMENT YEAR : 2012-13) THE INCOME TAX OFFICER (EXEMPTIONS) WARD-1, AHMEDABAD-380 009 / VS. INDIAN MEDICAL ASSOCIATION NATIONAL SOCIETY SECURITY SCHEME AMA HOUSE, 2 ND FLOOR, NR.NATRAJ CINEMA ASHRAM ROAD AHMEDABAD-380 009 $ ./ ./ PAN/GIR NO. : AAATI 0813P ( $' / APPELLANT ) .. ( ($' / RESPONDENT ) $') / APPELLANT BY : SHRI V.K. SINGH, SR.DR ($'*) / RESPONDENT BY : SHRI BHADRESH, AR +,*- / DATE OF HEARING 20/02/2018 ./0*- / DATE OF PRONOUNCEMENT 23/ 02 /2018 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTAN CE OF THE REVENUE AGAINST THE APPELLATE ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS)-9, AHMEDABAD [CIT(A) IN SHORT] DATED 18/02/2016 ARISING IN THE ASSESSMENT ORDER PASSED UNDER S.143(3) OF T HE INCOME TAX ITA NO.1156/AHD /2016 ITO VS. INDIAN MEDICAL ASSOCIATION NATIONAL SOCIE TY SECURITY SCHEME ASST.YEAR 2012-13 - 2 - ACT, 1961 (HEREINAFTER REFERRED TO AS 'THE ACT') D ATED 24/03/2015 RELEVANT TO ASSESSMENT YEAR (AY) 2012-13. 2. THE REVENUE HAS AGITATED THE REVERSAL OF DISALLO WANCE OF ASSESSEES CLAIM FOR ACCUMULATION OF PROFIT UNDER S.11(2) OF T HE ACT AMOUNTING TO RS.61,50,000/- BY THE CIT(A). 3. WE HAVE EXAMINED THE ISSUE IN THE LIGHT OF THE O RDERS OF THE AUTHORITIES BELOW. THE CONTROVERSY IS IN NARROW CO MPASS WHERE THE ACCUMULATION IF NOT UTILIZED CAN BE TREATED AS INCO ME OF THE TRUST IN THE SUBSEQUENT AY 2013-14 AND NOT IN THE AY 2012-13. IT IS INTER ALIA ALLEGED THAT THE AO HAS WRONGLY COUNTED WINDOW OF FIVE YEARS AVAILABLE UNDER S.11(2) R.W.S. 11(3)(C) OF THE ACT. 4. WE FIND THAT THE CIT(A) HAS TAKEN NOTE OF THE RE LEVANT FACTS AND HELD THAT PERIOD OF FIVE YEARS CONTEMPLATED UNDER S .11(2)(A) WILL FALL IN THE SUBSEQUENT AY 2012-13 FOR THE PURPOSES OF UNUTI LIZED INCOME OF RS.61.50 LAKHS SET APART AND CLAIMED AS APPLICATION DURING AY 2007-08. THE RELEVANT OPERATIVE PARA OF THE ORDER OF THE CIT (A) READ AS UNDER:- 4.2. I HAVE CAREFULLY CONSIDERED THE RIVAL CONTE NTION AS WELL AS THE OBSERVATION OF THE AO. IT IS OBSERVED THAT AO HAS MADE AN ADDITION OF RS.61,50,000/- BEING AMOUNT ACCUMULATED U/S.11(2) O F THE ACT FOR AY 2007-08 ON THE GROUND THAT ACCUMULATED INCOME HAS N OT BEEN UTILIZED FOR THE PURPOSE FOR WHICH IT WAS ACCUMULATED AT THE END OF FIFTH YEAR. ITA NO.1156/AHD /2016 ITO VS. INDIAN MEDICAL ASSOCIATION NATIONAL SOCIE TY SECURITY SCHEME ASST.YEAR 2012-13 - 3 - THE AO HAS OBSERVED THAT TRUST HAS NOT UTILIZED RS. 61.50 LACS SET APART AND CLAIMED AS APPLICATION DURING AY 2007-08. IN I TS WRITTEN SUBMISSION APPELLANT HAS SUBMITTED THAT APPELLANT H AS BEEN SET UP TO PROVIDE SECURITY TO THE LIFE MEMBERS OF INDIA MEDIC AL ASSOCIATION NATIONAL SOCIAL SECURITY SCHEME. THE APPELLANT HAS GIVEN A NOTE DETAILING THE VARIOUS ASPECTS OF THE SCHEME. IT WA S SUBMITTED BY THE APPELLANT THAT APPLICATION WAS MADE BY IT DURING AY 2007-08 U/S.11(2) FOR ACCUMULATION OF INCOME. FIVE YEARS WERE COMPLE TED ON 31-3-2012. APPELLANT HAS RELIED UPON SECTION 11(3)(C) OF THE A CT. IT STATES AS FOLLOWS: 11(3)(C) IS NOT UTILIZED FOR THE PURPOSE FOR WHICH IT IS SO ACCUMULATED FOR SET APART DURING THE PERIOD REFERRE D TO IN CLAUSE (A) OF THAT SUB SECTION OR IN THE YEAR IMMEDIATELY FOLLOWING THE EXPIRY THEREOF. ACCORDING TO THE APPELLANT IF THE ACCUMULATED INCOM E IS NOT APPLIED WITHIN THE PERIOD FOR WHICH IT IS ACCUMULATED, THEN THE SAME IS TREATED AS INCOME AFTER EXPIRY OF FIVE YEARS. ACCORDING T O THE APPELLANT THE ACCUMULATION IF NOT UTILIZED WOULD BE TREATED AS IN COME OF THE TRUST FOR AY 2013-14 AND NOT FOR AY 2012-13, AS PERIOD OF FIV E YEARS OF ACCUMULATION WOULD BE ENDING ON 31-3-2012. I AGREE WITH THE CONTENTIONS OF THE APPELLANT. AS PER SECTION 11(3)(C) IF THE ACCUMULATED INCOME IS NOT UTILIZED BY THE TRUST , THEN IT WOULD BE CONSIDERED AS INCOME OF THE YEAR IMMEDIATELY FOLLOW ING THE EXPIRY OF PERIOD OF FIVE YEARS OF ACCUMULATION. THE YEAR UND ER CONSIDERATION IS AY 2012-13. THEREFORE, I AM OF THE CONSIDERED OPIN ION THAT AO HAS MADE AN ADDITION OF RS.61,50,000/- IN THE FIFTH YEA R OF ACCUMULATION I.E. AY 2012-13, THE YEAR UNDER CONSIDERATION. ACCORDIN GLY, AO IS DIRECTED TO DELETE THE ADDITION OF RS.61,50,000/-. THIS GRO UND OF APPEAL IS ALLOWED. 5. WE FIND THE CONCLUSION OF THE CIT(A) IS IN CONSO NANCE WITH THE PROVISIONS OF ACT AND DOES NOT CALL FOR ANY INTERFE RENCE. ITA NO.1156/AHD /2016 ITO VS. INDIAN MEDICAL ASSOCIATION NATIONAL SOCIE TY SECURITY SCHEME ASST.YEAR 2012-13 - 4 - 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. THIS ORDER PRONOUNCED IN OPEN COURT ON 23 / 0 2 /201 8 SD/- SD/- (..) ( ) ( S.S. GODARA ) ( PRADIP KUMAR KEDIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 23/ 02/2018 4..+,.+../ T.C. NAIR, SR. PS !'#$%$' / COPY OF THE ORDER FORWARDED TO : 1. $' / THE APPELLANT 2. ($' / THE RESPONDENT. 3. 567- 8- / CONCERNED CIT 4. 8- ( ) / THE CIT(A)-9, AHMEDABAD 5. 9:-+67 , 670 , 5 / DR, ITAT, AHMEDABAD 6. <, / GUARD FILE. / BY ORDER, (9-- //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 21.2.18 (DICTATION-PAD 5- P AGES ATTACHED AT THE END OF THIS APPEAL-FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 21/2/18 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S.23.2.18 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 23.2.18 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER