Market Committee, Ladwa V. ACIT, Kurukshetra

ITA 1270/CHANDI/2010

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 57710 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 3 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-02-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 28-02-2012
• Assessment Year: 2005-2006
• Appeal Filed On: 08-11-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAI SHREE SHARMA
• Assessee Lawyers: NEERAJ GARG
• Keywords: Benefit of exemption
• Section: 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES B CHANDIGARH BEFORE SHRI H.L.KARWA, HON'BLE, VICE PRESIDENT AND SHRI MEHAR SINGH, ACCOUNTANT MEMBER ITA NO. 1270/CHD/2010 ASSESSMENT YEAR: 2005-06 THE MARKET COMMITTEE, VS THE ACIT, LADWA CIRCLE, KURUKSHETRA KURUKSHETRA PAN NO. AAIFM4798B (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI NEERAJ GARG RESPONDENT BY : SMT. JAISHREE SHARMA DATE OF HEARING : 29.02.2012 DATE OF PRONOUNCEMENT : 29.02.2012 ORDER PER H.L.KARW A, VP THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF CIT(A), KARNAL DATED 30.8.2010 RELATING TO ASSESSME NT YEAR 2005-06. 2. GROUND NO.1 OF THE APPEAL READS AS UNDER:- 1. THE LD. CIT(A) ERRED IN LAW WHILE GIVING DIRECTION TO ASSESSING OFFICER FOR VERIFICATION WHICH IS ALREADY ALLOWED BY ASSESSING OFFICER AND HIGH COURT OF PUNJAB & HARYANA (CHD.) 2 3. AT THE TIME OF HEARING OF APPEAL, SHRI NEERAJ GA RG, LD. COUNSEL FOR THE ASSESSEE DID NOT PRESS FOR THIS GROUND OF APPEAL AN D ACCORDINGLY WE DISMISS THE SAME. 4. GROUND NO.2 OF THE APPEAL READS AS UNDER:- 2. THE LD. CIT(A) ERRED IN LAW BY DISALLOWING EXPENDIT URE GIVEN TO BOARD AS PER PROVISION OF THE BOARD FOR BU DGET WHICH IS ALSO ALLOWED IN THE CASES OF MARKET COMMIT TEES OR TRUST BY THE ITAT, CHANDIGARH. 5. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSEE PAID A SUM OF RS. 97 LAKHS AS ADVANCE TO HARYANA STATE AGRICULTUR AL MARKETING BOARD (HSAMB) FOR CARRYING OUT CERTAIN WORKS. THE ASSESS EE SOUGHT TO CLAIM THE AFORESAID AMOUNT TO HSAMB AS APPLICATION OF INCOME ON ITS OBJECTS SO AS TO MEET THE STATUTORY REQUIREMENT OF APPLICATION OF 85 % OF ITS INCOME TO ENJOY THE BENEFIT OF EXEMPTION U/S 11 OF THE INCOME TAX A CT. IT SEEMS THAT THE ASSESSEE HAS NOT BEEN ABLE TO MAKE OUT A PROPER CAS E BEFORE THE DEPARTMENTAL AUTHORITIES. THE DEPARTMENTAL AUTHORITIES PROCEEDE D ON THE BASIS THAT THE ASSESSEE WAS SEEKING DEDUCTION OF SAID AMOUNT AS EX PENDITURE. THEY HELD THAT THE ASSESSEE WAS NOT ENTITLED TO DEDUCTION, FO R THE REASONS GIVEN IN THE APPELLATE ORDER PASSED BY LD. CIT(A). 6. BEFORE US, IT WAS SUBMITTED THAT ON BEHALF OF TH E ASSESSEE THAT THE ASSESSEE WAS NOT SEEKING DEDUCTION FOR A SUM OF RS. 97 LAKHS PAID AS ADVANCE TO HSAMB. ACCORDING TO ASSESSEE, IT WAS CLAIMING T HAT THE AFORESAID AMOUNT SHOULD BE TREATED AS APPLICATION OF INCOME FOR MEE TING STATUTORY REQUIREMENT OF APPLICATION OF 85% OF ITS INCOME SO AS TO BE ELI GIBLE FOR EXEMPTION OF ITS 3 ENTIRE INCOME. THIS ASPECT OF THE MATTER HAS NEITHE R BEEN EXAMINED BY THE ASSESSING OFFICER NOR BY THE LD. CIT(A) AS THE ASSE SSEE WAS NOT ABLE TO PROPERLY PRESENT ITS CASE BEFORE THEM. 7. AFTER HEARING THE RIVAL SUBMISSIONS, WE CONSIDER IT APPROPRIATE TO SET ASIDE THE ORDERS OF CIT(A) AND RESTORE THE MATTER B ACK TO THE ASSESSING OFFICER WITH A DIRECTION TO EXAMINE AS TO WHETHER T HE ASSESSEE HAS GIVEN ADVANCE OF RS. 97 LAKHS TO HSAMB AND, IF SO, WHETH ER IT CAN BE CONSIDERED AS APPLICATION OF INCOME FOR MEETING THE STATUTORY RECRUITMENT OF 85% OF ITS INCOME. THE ASSESSING OFFICER SHALL DISPOSE OF TH E MATTER AFRESH IN CONFORMITY WITH LAW AFTER GIVING REASONABLE OPPORTU NITY OF HEARING TO THE ASSESSEE. THE GROUND OF APPEAL IS TREATED TO BE A LLOWED FOR STATISTICAL PURPOSES. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 29 TH DAY OF FEBRUARY, 2012. SD/- SD/- (MEHAR SINGH) (H.L.KARWA) ACCOUNTANT MEMBER VICE PRESIDENT DATED : 29 TH FEBRUARY, 2012 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR TRUE COPY BY ORDER ASSISTANT REGISTRAR