ADIT, CHENNAI V. Ramanaidu Charitable Trust, CHENNAI

ITA 1416/CHNY/2013

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 5396 (ITAT-CHENNAI)
• Duration Of Justice: 8 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2014
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 12-02-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 25-06-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: N MADHAVAN
• Assessee Lawyers: V S JAYAKUMAR
• Keywords: Reopening of assessment; Charitable institution
• Section: 147; 11

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , C B ENCH, CHENNAI . , !' # , $ % BEFORE SHRI A.MOHAN ALANKAMONY ACCOUNTANT MEMBER AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER ITA NOS.1416 & 1417/MDS/2013 & C.O. NO.131/MDS/2013 [ IN ITA NO.1416/MDS/2013 (AY:2007-08)] (ASSESSMENT YEARS: 2007-08 & 2009-10) THE ASSISTANT DIRECTOR OF INCOME TAX(EXEMPTIONS)-IV, ANNEX BUILDING, 3 RD FLOOR, 121, M.G.ROAD,CHENNAI-34. VS. M/S. RAMANAIDU CHARITABLE TRUST, 15, A-BLOCK, PRINCE VILLA, RAJAMANAR STREET, T.NAGAR,CHENNAI-600 017. PAN:AAATR0554J ( /APPELLANT) (RESPONDENT/CROSS OBJECTOR) / APPELLANT BY : MR. N.MADHAVAN, JCIT /RESPONDENT BY : MR.V.S.JAYAKUMAR, ADVOCATE / DATE OF HEARING : 12 TH FEBRUARY, 2014 /DATE OF PRONOUNCEMENT : 27 TH FEBRUARY, 2014 & / O R D E R PER CHALLA NAGENDRA PRASAD, JM: THE REVENUE FILED BOTH THESE APPEALS FOR THE ASSESSMENT YEARS 2007-08 AND 2009-10 AGAINST THE C OMMON ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-X II, CHENNAI DATED 28.03.2013 CHALLENGING THE ORDER OF T HE COMMISSIONER OF INCOME TAX (APPEALS) IN HOLDING THA T THERE IS NO VIOLATION UNDER SECTION 13(1)(C) OF THE ACT AND THE ITA NOS.1416 & 1417/MDS/2013 & C.O.NO.131/MDS/2013 2 ASSESSEE IS ELIGIBLE FOR EXEMPTION UNDER SECTION 11 OF THE ACT. THE CONTENTION OF THE REVENUE IS THAT COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN TREATING BUSINESS OF EXPLOITATION OF FILM RIGHTS AS INCIDENTAL TO THE CH ARITABLE ACTIVITY AS PER THE PROVISIONS OF SECTION 11(4A) OF THE ACT. 2. THE ASSESSEE FILED CROSS OBJECTION STATING THAT COMMISSIONER OF INCOME TAX (APPEALS) HAS NOT CONSID ERED THE GROUND RAISED CHALLENGING THE VALIDITY OF REASS ESSMENT PROCEEDINGS INITIATED BY THE ASSESSING OFFICER UNDE R SECTION 147 OF THE ACT. 3. THE COUNSEL FOR THE ASSESSEE SUBMITS THAT ASSESS EE HAS RAISED A GROUND BEFORE THE COMMISSIONER OF INCO ME TAX (APPEALS) CHALLENGING REOPENING OF ASSESSMENT MADE UNDER SECTION 147 BY THE ASSESSING OFFICER FOR THE ASSESS MENT YEAR 2007-08. HOWEVER, THE COMMISSIONER OF INCOME TAX (APPEALS) WHILE DISPOSING OF THE APPEAL HAS NOT CON SIDERED THE GROUND OF VALIDITY OF REOPENING OF ASSESSMENT M ADE UNDER SECTION 147 BUT DECIDED THE ISSUE ON MERITS FOR BOT H THE ITA NOS.1416 & 1417/MDS/2013 & C.O.NO.131/MDS/2013 3 ASSESSMENT YEARS I.E. 2007-08 AND 2009-10 AS THE IS SUE ON MERITS IS COMMON FOR BOTH THE ASSESSMENT YEARS. 4. ON A QUERY FROM THE BENCH, AS TO WHETHER GROUND RAISED IN CROSS OBJECTION BY THE ASSESSEE IS SERIO USLY PRESSING FOR, THE COUNSEL SUBMITS THAT THE GROUND R AISED CHALLENGING REOPENING IS PRESSED AND REQUESTED THAT THE GROUND MAY BE ADJUDICATED BY THIS TRIBUNAL OR MAY B E REMITTED BACK TO THE FILE OF THE COMMISSIONER OF IN COME TAX (APPEALS) FOR ADJUDICATION. 5. WE HAVE PERUSED THE GROUNDS OF APPEAL FILED BY T HE ASSESSEE BEFORE THE COMMISSIONER OF INCOME TAX (APP EALS) AND FOUND THAT ASSESSEE HAS CHALLENGED VALIDITY OF REOPENING OF ASSESSMENT MADE UNDER SECTION 147 OF THE ACT FOR THE ASSESSMENT YEAR 2007-08. HOWEVER, THE COMMISSIONER OF INCOME TAX (APPEALS) HAS NOT ADJUDICATED THIS GROUN D OF APPEAL IN THE COMMON ORDER PASSED BY HIM FOR THE ASSESSMENT YEAR 2007-08 AND 2009-10. THEREFORE, SIN CE THE COMMISSIONER OF INCOME TAX (APPEALS) DID NOT DISPOS E OF THE GROUND CHALLENGING REOPENING OF ASSESSMENT FOR THE ITA NOS.1416 & 1417/MDS/2013 & C.O.NO.131/MDS/2013 4 ASSESSMENT YEAR 2007-08, WE RESTORE BOTH THESE APPE ALS OF THE REVENUE TO THE FILE OF THE COMMISSIONER OF INC OME TAX (APPEALS) FOR ADJUDICATION OF THE GROUND OF VALIDIT Y OF REOPENING OF ASSESSMENT FOR THE ASSESSMENT YEAR 20 07-08 AS WELL AS ON MERITS, WITHOUT EXPRESSING ANY OPINIO N ON MERITS. THE COMMISSIONER OF INCOME TAX (APPEALS) W ILL CONSIDER THE GROUND RAISED BY THE ASSESSEE AGAINST REOPENING OF ASSESSMENT FOR THE ASSESSMENT YEAR 200 7-08 AND ALSO DECIDE GROUNDS ON MERITS, AFTER PROVIDING ADEQUATE OPPORTUNITY TO THE ASSESSEE. 6. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE A ND THE CROSS OBJECTION OF THE ASSESSEE ARE ALLOWED FOR STA TISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THURSDAY, T HE 27 TH DAY OF FEBRUARY, 2014 AT CHENNAI. SD/- SD/- (A.MOHAN ALANKAMONY) (CHALLA NAGEN DRA PRASAD) ACCOUNTANT MEMBER JUDI CIAL MEMBER CHENNAI, DATED THE 27 TH FEBRUARY, 2014. SOMU COPY TO: (1) ASSESSEE (4) CIT(A) (2) ASSESSING OFFICER (5) D.R. (3) CIT (6) G.F.