The DDIT(Exemption), Bhavnagar V. Agricultural Produce Market Committee, Dist.Bhavnagar

ITA 1284/AHD/2008

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 57321 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 11 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-03-2012
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 19-01-2012
• Assessment Year: 2005-2006
• Appeal Filed On: 10-04-2008
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RAJEEV AGARWAL
• Assessee Lawyers: S N DIVATIA
• Keywords: Depreciation
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH AHMEDABAD (BEFORE SHRI BHAVNESH SAINI, JM AND SHRI A. K. GARO DIA, AM) ITA NO.1284/AHD/2008 A. Y.: 2005-06 THE DDIT (EXEMPTION), AAYAKAR BHAVAN, NAKUBAUG, JASONATH CHOWK, BHAVNAGAR 364 001 VS AGRICULTURAL PRODUCE MARKET COMMITTEE, BOTAD (DIST. BHAVNAGAR PA NO. AAALT 0342 A (APPELLANT) (RESPONDENT) DEPARTMENT BY SHRI RAJEEV AGARWAL, CIT DR ASSESSEE BY SHRI S. N. DIVATIA, AR DATE OF HEARING: 19-01-2012 DATE OF PRONOUNCEMENT: 23-03-2012 O R D E R PER A. K. GARODIA: THIS IS REVENUES APPEAL, WHICH IS DIRECTED AGAINST THE ORDER OF THE LEARNED CIT(A)- X XI, AHMEDABAD DATED 7-1-2008 FOR ASSESSMENT YEAR 2005-06. 2. THE GROUNDS RAISED BY THE REVENUE ARE AS UNDER: 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION MADE, ON ACCOUNT OF: (I) PROVISIONS OF GRATUITY FUND AND PROVIDENT FUND, AMOUNT AGGREGATING TO RS.11,90,956/- (II) DEPRECIATION AMOUNTING TO RS.39,27,861/- (III) EXEMPTION CLAIMED U/S. 11(1) OF THE I. T. ACT AMOUNTING TO RS.14,17,807/- ITA NO.1284/AHD/2008 (AY 2005-06) DDIT (EXEMPTION), BHAVNAGAR VS AGRICULTURAL PRODUCE MARKET COMMITTEE, BOTAD 2 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD. CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF TH E ASSESSING OFFICER. 3. IT WAS SUBMITTED BY THE LEARNED DR OF THE REVENU E IN THE VERY BEGINNING THAT THE ISSUE REGARDING REGISTRATION OF THE ASSESSEE U/S 12AA OF THE IT ACT IS STILL PENDING BEFORE THE LEAR NED DIT (EXEMPTION) AS PER DIRECTION OF THE TRIBUNAL AND HENCE, THE LEA RNED CIT(A) WAS NOT JUSTIFIED IN DECIDING THE ISSUES ON MERIT BEFOR E SUCH DECISION REGARDING REGISTRATION U/S 12AA OF THE IT ACT. IN R EPLY, IT WAS SUBMITTED BY THE LEARNED AR OF THE ASSESSEE ALSO TH AT THE TRIBUNAL HAS RESTORED BACK THE ISSUES TO THE LEARNED DIT (EX EMPTION) FOR TAKING DECISION IN THE MATTER OF REGISTRATION OF TH E ASSESSEE TRUST U/S 12AA OF THE IT ACT IN ITA NO.3546/AHD/2007 DATED 16 -11-2007 AND HE SUBMITTED A COPY OF THE TRIBUNAL DECISION. HE HA S ALSO SUBMITTED THAT THIS MATTER IS STILL PENDING BEFORE THE LEARNE D DIT (EXEMPTION) ALTHOUGH VARIOUS REMINDERS ARE GIVEN BY THE ASSESSE E BEFORE HIM AND THE LAST REMINDER IS GIVEN ON 05-01-2012. HE SU BMITTED A COPY OF THIS REMINDER WHICH WAS SENT TO THE LEARNED DIT(EXE MPTION) BY SPEED POST. HE ALSO AGREED TO THIS PROPOSITION OF THE BEN CH THAT THE MATTER SHOULD GO BACK TO THE LEARNED CIT(A) FOR FRESH DECI SION AFTER THE ISSUE REGARDING REGISTRATION U/S 12AA OF THE IT ACT IS DE CIDED BY THE LEARNED DIT(EXEMPTION). 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIN D THAT IT IS AN ADMITTED FACT THAT THE ISSUE REGARDING REGISTRATION OF THE ASSESSEE TRUST U/S 12AA OF THE IT ACT IS STILL PENDING BEFOR E THE LEARNED DIT (EXEMPTION) ALTHOUGH THE SAME WAS RESTORED BACK BY THE TRIBUNAL TO ITA NO.1284/AHD/2008 (AY 2005-06) DDIT (EXEMPTION), BHAVNAGAR VS AGRICULTURAL PRODUCE MARKET COMMITTEE, BOTAD 3 HIS FILE IN NOVEMBER, 2007. IT IS ALSO THE SUBMISSI ON OF THE LEARNED AR OF THE ASSESSEE THAT VARIOUS REMINDERS ARE GIVEN TO THE LEARNED DIT(EXEMPTION) TO DISPOSE OF THIS MATTER BUT STILL THE SAME IS PENDING. WE ARE OF THE CONSIDERED OPINION THAT THE REVENUE A UTHORITY SHOULD TAKE APPROPRIATE ACTION TO DISPOSE OF SUCH MATTERS WITHIN A REASONABLE TIME. BUT AT THE SAME TIME, WE ALSO FEEL THAT THE LEARNED CIT(A) WAS NOT JUSTIFIED TO DECIDE THE ISSUES ON ME RIT WHEN THE LEGAL ISSUE REGARDING REGISTRATION OF THE ASSESSEE TRUST U/S 12AA OF THE IT ACT WAS PENDING BEFORE THE LEARNED DIT(EXEMPTION). HENCE, WE SET ASIDE THE ORDER OF THE LEARNED CIT(A) AND RESTORE T HE MATTER BACK TO HIS FILE FOR FRESH DECISION AFTER THE ISSUE REGARDI NG REGISTRATION U/S 12AA OF THE IT ACT IS DECIDED BY THE LEARNED DIT(EX EMPTION) AS PER THE ORDER OF THE TRIBUNAL. 5. UNDER THESE FACTS, WE DO NOT MAKE ANY COMMENT ON THE MERITS OF THE ISSUE BECAUSE WE HAVE RESTORED THE MATTER BA CK TO THE LEARNED CIT(A) FOR FRESH DECISION. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS ALLO WED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT. 23/3/12 SD/- SD/- (BHAVNESH SAINI) JUDICIAL MEMBER (A. K. GARODIA) ACCOUNTANT MEMBER ORDER PRONOUNCED ON SD/- SD/- 23/3 MKS (JM) AKG (AM) LAKSHMIKANT/ LAKSHMIKANT/ LAKSHMIKANT/ LAKSHMIKANT/- -- - ITA NO.1284/AHD/2008 (AY 2005-06) DDIT (EXEMPTION), BHAVNAGAR VS AGRICULTURAL PRODUCE MARKET COMMITTEE, BOTAD 4 COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE BY ORDER D Y. REGISTRAR, ITAT, AHMEDABAD