Ahmedabad Textile Industries Research Association, Ahmedabad V. The Deputy Commissioner of Income Tax, (Exemptions), Circle-1, Ahmedabad

ITA 1322/AHD/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 6230 (ITAT-AHMEDABAD)
• Duration Of Justice: 7 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-01-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 31-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: APPLICANT MUDIT NAGPAL
• Assessee Lawyers: VIJAY RANJAN
• Keywords: Application of stay
• Section: 11

Judgement Text

SP 1/AHD/2018 & ITA 1322/AHD/2017 AHMEDABAD TEXTILE IND. RES. ASSON VS. DCIT ASSESSMENT YEAR : 2012-13 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH, AHMEDABAD [CORAM: PRAMOD KUMAR AM AND S S GODARA JM] S.P. NO.01/AHD/2018 (ARISING OUT OF ITA NO.1322/AHD/2017) AND ITA NO.1322/AHD/2017 ASSESSMENT YEAR: 2012-13 AHMEDABAD TEXTILE INDUSTRIES RESEARCH ASSN. .... ......... APPELLANT/APPLICANT VIKRAM SARABHAI MARG, PO AMBAWADI VISTAR, AHMEDABAD 380 015 [PAN : AAATA 3045 R] VS. DCIT (EXEMPTIONS) ........ .......................RESPONDENT CIRCLE-1, AHMEDABAD APPEARANCES BY: VIJAY RANJAN FOR THE APPELLANT/APPLICANT MUDIT NAGPAL FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : 12.01.2018 DATE OF PRONOUNCING THE ORDER : 12.01.2018 O R D E R PER PRAMOD KUMAR, AM: 1. BY WAY OF THIS STAY APPLICATION, THE ASSESSEE AP PLICANT SEEKS A STAY ON COLLECTION/RECOVERY OF THE OUTSTANDING DEMAND FOR T AX AND INTEREST AGGREGATING TO RS.2,57,69,950/-, FOR THE ASSESSMENT YEAR 2012-13, IMPUGNED IN APPEAL BEFORE US. 2. WHEN THIS STAY APPLICATION WAS TAKEN UP FOR HEAR ING, IT WAS NOTICED THAT THE ORDER DATED 10.03.2017, IMPUGNED IN APPEAL, IN CONN ECTION WITH WHICH THE PRESENT STAY APPLICATION IS FILED, IS AN EX-PARTE ORDER. THE LEARNED CIT(A) HAS PASSED THE ORDER EX-PARTE AS THERE WAS NO COMPLIANCE TO THE NOTICES ISSUED B Y THE CIT(A) ON FOUR DIFFERENT DATES, FIXING THE DATE OF HEARING ON 28.06.2016, 21.07.2016, 16.08.2016 & 22.09.2016. 3. LEARNED REPRESENTATIVES FAIRLY AGREE THAT IN VIE W OF THE FACT THAT THE ORDER IMPUGNED IN APPEAL IS AN EX-PARTE ORDER AND THAT THEY HAVE NO OBJECTION TO THE MATTER BEING REMITTED TO THE FILE OF THE LEARNED CI T(A) FOR ADJUDICATION DE NOVO , AFTER SP 1/AHD/2018 & ITA 1322/AHD/2017 AHMEDABAD TEXTILE IND. RES. ASSON VS. DCIT ASSESSMENT YEAR : 2012-13 PAGE 2 OF 3 GIVING YET ANOTHER OPPORTUNITY OF HEARING TO THE AS SESSEE, THE APPEAL ITSELF CAN BE DISPOSED OF. THEREFORE, WITH THE CONSENT OF PARTIES , THE APPEAL HAS ALSO BEEN TAKEN UP FOR HEARING AT THIS STAGE ITSELF. 4. THE GRIEVANCES RAISED IN THE APPEAL ARE AS FOLLO WS:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE IMPUGNED ORDER PASSED BY THE LEARNED CIT(A) IS BAD IN LAW FOR THE REASON THAT THE APPELLANT SOCIETY WAS NOT ALLOWED ADEQUATE OPPORTUNITY OF BEI NG HEARD. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE, THE LEARNED CIT(A) ERRED IN HOLDING THAT THE APPELLANT SOCIETY IS NOT ELIGIBLE FOR EXEMPTION U/S. 10(21) READ WITH SECTION 35(1)(II) OF THE INCOME-TA X ACT. 3. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE LEARNED CIT(A) ERRED IN HOLDING THAT THE OBJECTS OF THE APPELLANT SOCIETY ARE NOT EXCLUSIVELY FOR 'PRESERVATION OF ENVIRONMENT' BUT THE SAME ARE FOR 'ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL UTILITY' WITHIN THE MEANING OF SE CTION 2(15) OF THE INCOME-TAX ACT AND IS THEREFORE, HIT BY THE FIRST PROVISO TO S ECTION 2(15) OF THE INCOME-TAX ACT. 4. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE, THE LEARNED CIT(A) ERRED IN HOLDING THAT THE APPELLANT SOCIETY IS INVO LVED IN CARRYING ON ACTIVITIES WHICH ARE IN THE NATURE OF TRADE, COMMERCE OR BUSIN ESS, OR RENDERING SERVICES IN RELATION TO TRADE, COMMERCE OR BUSINESS FOR FEE OR ANY OTHER CONSIDERATION AND, THEREFORE, BY VIRTUE OF THE FIRST PROVISO TO S ECTION 2(15) OF THE INCOME-TAX ACT IT IS NOT ELIGIBLE FOR EXEMPTION U/S. 11 OF THE INCOME-TAX ACT. 5. LEARNED COUNSEL FOR THE ASSESSEE SUBMITS THAT TH E ASSESSEE HAS DULY COMPLIED WITH THE HEARING NOTICES ISSUED BY THE CIT (A) INASMUCH AS THE ASSESSEE HAD FILED AN ADJOURNMENT PETITION ON THE LAST SCHED ULED DATE OF HEARING. HOWEVER, INSTEAD OF GRANTING ADJOURNMENT AS PRAYED OR PUTTIN G THE ASSESSEE TO NOTICE WITH RESPECT TO THE REJECTION OF THE ADJOURNMENT APPLICA TION, THE LEARNED CIT(A) HAS DISPOSED OF THE MATTER EX-PARTE. LEARNED COUNSEL SUBMITS THAT, IF GIVEN FURTHER OPPORTUNITY OF HEARING, THE ASSESSEE WILL DULY COMP LY WITH THE REQUISITIONS OF THE CIT(A) AND ENSURE EXPEDITIOUS DISPOSAL OF THE APPEA L ON MERITS. HE FURTHER UNDERTAKES TO ENSURE THAT IN CASE THE MATTER IS REM ITTED TO THE FILE OF THE CIT(A), HE WILL EXTEND FULL COOPERATION IN ENSURING EXPEDITIOU S HEARING AT THE EARLIEST. LEARNED DEPARTMENTAL REPRESENTATIVE, ON THE OTHER HAND, DOE S NOT SERIOUSLY OPPOSE THE REQUEST SO MADE BY THE ASSESSEE, BUT ADDS THAT WE M UST GIVE AN APPROPRIATE DIRECTION TO ENSURE THAT THERE IS EFFECTIVE COMPLIA NCE TO THE HEARING NOTICES OF THE CIT(A) AND THE MATTER IS PROPERLY REPRESENTED BEFOR E HIM. 6. HAVING PERUSED THE MATERIAL ON RECORD AND DULY C ONSIDERED THE RIVAL SUBMISSIONS, WE ARE OF THE CONSIDERED VIEW THAT, IN THE INTEREST OF JUSTICE, THIS MATTER SHOULD BE REMITTED TO THE CIT(A) FOR ADJUDICATION DE NOVO , AFTER GIVING YET ANOTHER OPPORTUNITY OF HEARING TO THE ASSESSEE, IN ACCORDAN CE WITH LAW, AND BY WAY OF A SP 1/AHD/2018 & ITA 1322/AHD/2017 AHMEDABAD TEXTILE IND. RES. ASSON VS. DCIT ASSESSMENT YEAR : 2012-13 PAGE 3 OF 3 SPEAKING ORDER. THE ASSESSEE IS ALSO DIRECTED TO E NSURE DUE CO-OPERATION IN EXPEDITIOUS DISPOSAL OF APPEAL ON MERITS. ORDERED, ACCORDINGLY. 7. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATIST ICAL PURPOSES. 8. AS THE RELATED APPEAL ITSELF STANDS DISPOSED OF, THE STAY PETITION FILED BY THE ASSESSEE IS RENDERED INFRUCTUOUS. 9. IN THE RESULT, STAY PETITION IS DISMISSED AS INF RUCTUOUS. PRONOUNCED IN THE OPEN COURT TODAY ON 12 TH DAY OF JANUARY, 2018. SD/- SD/- S S GODARA PRAMOD K UMAR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) AHMEDABAD, THE 12 TH DAY OF JANUARY, 2018 *BT COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER TRUE COPY ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD 1. DATE OF DICTATION: ......2 PAGES DICTATION PAD, AS DICTATED BY HONBLE AM, IS ATTACHED..12.1.18 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE T HE DICTATING MEMBER: 12.01.2018...... 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR . P.S./P.S.: .. 12.01.2018...... 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE TH E DICTATING MEMBER FOR PRONOUNCEMENT:.. 12.01.2018. 5. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK : ..... 15.01.2018................. 6. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK : . 7. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER: .. 8. DATE OF DESPATCH OF THE ORDER: ......