DCIT, Circle-1(1), Hyderabad, Hyderabad V. Andhra Pradesh State Civil Supplies Corporation Limited, Hyderabad, Hyderabad

ITA 117/HYD/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 2718 (ITAT-HYDERABAD)
• Duration Of Justice: 6 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-08-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 10-08-2017
• Assessment Year: 2012-2013
• Appeal Filed On: 25-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MOHARANA
• Assessee Lawyers: D V ANJANEYULU
• Section: 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ITA.NO.117/HYD/2017 ASSESSMENT YEAR 2012 - 2013 DCIT, CIRCLE - 1(1), HYDERABAD. VS. M/S. AP STATE CIVIL SUPPLIES CORPORATION LTD., HYDERBAD. PAN: AABCA7164R (APPELLANT) (RESPONDENT) FOR ASSESSEE: SHRI D.V. ANJANEYULU FOR REVENUE : SHRI MOHARANA, DR DATE OF HEARING : 10.08.2017 DATE OF PRONOUNCEMENT : 10.08.2017 ORDER PER D. MANMOHAN , VP. THIS APPEAL IS FILED AT THE INSTANCE OF THE ASSESSEE AND IT PERTAINS TO THE ASSESSMENT YEAR 2012 - 2013. FOLLOWING GROUNDS WERE URGED BY THE REVENUE BEFORE THE TRIBUNAL. LD. CIT(A) ERRED IN DELETING THE ADDITION MADE BY THE A.O. ON ACCOUNT OF DENIAL OF EXEMPTION CLAIMED BY THE ASSESSEE U/S 11 BY RELYING ON THE DECISION OF THE ITAT IN THE ASSESSEES OWN CASE FOR THE AYS 2009 - 10 & 2011 - 12. (II) LD. CIT(A) OUGHT TO HAVE CONSIDERED THAT THE ACTIVITY OF THE ASSESSEE INVOLVED CARRYING ON ACTIVITY IN THE NATURE OF TRADE, COMMERCE OR BUSINESS OR ANY ACTIVITY OF RENDERING ANY SERVICE IN RELATION TO TRADE, COMMERCE OR BUSINESS AS ENVISAGED IN PROVISO TO SECTION 2(15) OF THE INCOME TAX ACT AND THEREFORE ACTIVITY OF ASSESSEE IS NOT CHARITABLE IN NATURE WITH IN THE MEANING OF SECTION 2(15) OF I.T. ACT AND THE ASSESSEE IS NOT ELIGIBLE FOR EXEMPTION U/S 11 OF THE ACT. (III) THE LD. CIT(A) ERRED IN TREATING THE ASSESSEE AS CHARITABLE ORGANIZATION ELIGIBLE FOR DEDUCTION U/S 11 OF THE INCOME TAX ACT ON THE BASIS OF DE3CISION OF HONBLE ITAT IN THE CASE OF THE ASSESSEE WHICH IN TURN RELIED UPON THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF CIT VS. APSRTC & OTHER DECISIONS WITHOUT APPRECIATING THE FACT THAT AFTER INSERTION OF PROVISO TO SECTION 2(15) OF THE INCOME TAX ACT WITH EFFECT FROM 1.4.2009 THE ACTIVITY OF THE ASSESSEE CANNOT BE TREATED AS CHARITABLE IN NATURE. 2 2. AT THE OUTSET, IT MAY BE NOTICED THAT THE ISSUE STANDS SQUARELY COVERED BY THE DECISION OF THE ITAT , HYDERABAD IN THE ASSESSEES OWN CA SE FOR THE ASSESSMENT YEARS 2009 - 10 AND 2011 - 12 (160 ITD 117). IN FACT, LD CIT (A) FOLLOWED THE AFORECITED DECISION AND DIRECTED THE A.O. TO ALLOW EXEMPTION U/S 11 R.W.S 2(15) OF THE ACT. UNDER THESE CIRCUMSTANCES, WE HOLD THAT THE ORDER PASSED BY THE LD . CIT(A) DOES NOT CALL FOR ANY INTERFERENCE AND ACCORDINGLY DISMISS TH E APPEAL FILED BY THE REVENUE. PRONOUNCE D ACCORDINGLY IN THE OPEN COURT ON 10 TH AUGUST, 2017. S D / - S D / - (CHANDRA POOJARI ) (D. MANMOHAN) ACCOUNTANT MEMBER VICE PRESIDENT HYDERABAD, DATED: 10 TH AUGUST , 2017 OKK, SR.PS COPY TO 1. M/S. AP STATE CIVIL SUPPLIERS CORPORATION LTD., D.NO.6 - 3 - 655/1/A, CIVIL SUPPLIES BHAVAN, SOMAJIGUDA, HYDERABAD 500 082. 2. DY. COMMISSIONER OF INCOME TAX, CIRCLE - 1(1), 8 TH FLOOR, C - BLOCK, ROOM NO.836, IT TOWERS, HYDERABAD 500004. 3. CIT (A) - 8, HYDERABAD. 4. PR. CIT - 1, HYDERABAD. 5. D.R. ITAT B BENCH, HYDERABAD. 6. GUARD FILE