The Indo Korean Cultural and Information Centre, CHENNAI V. DDIT, CHENNAI

ITA 1442/CHNY/2014

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 81144 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-09-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 20-08-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 26-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR S MOHARANA
• Assessee Lawyers: R VIJAYARAGHAVAN
• Keywords: Depreciation
• Section: 143(3); 12AA

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL C BENCH, CHE NNAI . , . ! ! ! ! , ' ' ' ' # # # # $ $$ $ BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER & SHRI V. DURGA RAO, JUDICIAL MEMBER I.T.A. NO. 1442/MDS/2014 ASSESSMENT YEAR : 2009-10 M/S. THE INDO-KOREAN CULTURAL AND INFORMATION CENTRE, NO. 51, 6 TH MAIN ROAD, RAJA ANNAMALAIPURAM, CHENNAI 600 028. [PAN : AAEFT4177F] VS. THE DEPUTY DIRECTOR OF INCOME TAX (EXEMPTIONS) I, CHENNAI 600 034. (APPELLANT) (RESPONDENT) %& ' ( /APPELLANT BY : SHRI R. VIJAYARAGHAVAN, ADVOCATE )*%& ' ( /RESPONDENT BY : DR. S. MOHARANA, CIT ' + /DATE OF HEARING : 20.08.2014 ,- ' + / DATE OF PRONOUNCEMENT : 05.09.2014 . . . . / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) VII, CHENNAI D ATED 26.03.2014 FOR THE ASSESSMENT YEAR 2009-10. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE I S A SOCIETY REGISTERED UNDER THE TAMIL NADU SOCIETIES REGISTRATION ACT, 19 75. IT ALSO GOT REGISTERED UNDER SECTION 12AA OF THE INCOME TAX ACT VIDE ORDER DATED 25.09.2006. THE RETURN FILED BY THE ASSESSEE WAS PROCESSED UNDER SE CTION 143(1) OF THE ACT. I.T.A. I.T.A. I.T.A. I.T.A.. .. .NO. NO. NO. NO.1 11 14 44 442 4242 42/M/ /M/ /M/ /M/14 1414 14 2 AFTER DUE PROCESS, THE ASSESSMENT WAS COMPLETED UND ER SECTION 143(3) OF THE ACT BY DETERMINING TOTAL LOSS OF THE ASSESSEE AT .5,13,619/-. IN THE ASSESSMENT ORDER, THE ASSESSING OFFICER DISALLOWED DEPRECIATION AND ALSO OBSERVED THAT THE OBJECTS AND ACTIVITIES OF THE ASS ESSEE ARE NOT CHARITABLE IN NATURE. 3. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFOR E THE LD. CIT(APPEALS). THE LD. CIT(APPEALS), BY ENHANCING THE ASSESSMENT A T .86,34,717/- INSTEAD OF LOSS ARRIVED AT .5,13,619/-, OBSERVED THAT THE OBJECTS OF THE ASSES SEE RELATE TO DEVELOPMENT OF TRADE AND INDUSTRY AND SOM E OF THE OBJECTS ARE ALSO RELATED TO ART, CULTURE, PUBLICATION OF BOOKS, PERI ODICALS, ETC. MOREOVER, THE RECEIPT OF CORPUS FUND AND MEMBERSHIP FEE FROM CORP ORATE MEMBERS REVEAL THE PREDOMINANT NATURE OF ACTIVITY IN THE NATURE OF TRADE, COMMERCE OR BUSINESS. 4. AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 5. THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT HE LD. CIT(APPEALS) ENHANCED THE ASSESSMENT WITHOUT ISSUING NOTICE, WHI CH IS OF MANDATORY AS PER SECTION 251(2) OF THE ACT. THEREFORE, IT HAS TO BE REMITTED BACK TO THE LD. CIT(APPEALS) TO RECONSIDER THE ISSUE AFTER ISSUING NOTICE TO THE ASSESSEE. 6. ON THE OTHER HAND, THE LD. DR HAS NOT RAISED AN Y SERIOUS OBJECTION FOR REMITTING THE MATTER BACK TO THE LD. CIT(APPEALS). I.T.A. I.T.A. I.T.A. I.T.A.. .. .NO. NO. NO. NO.1 11 14 44 442 4242 42/M/ /M/ /M/ /M/14 1414 14 3 7. WE HAVE HEARD BOTH SIDES, PERUSED THE MATERIALS ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. THE ONLY P OINT FOR ADJUDICATION BEFORE US IS WHETHER THE ORDER PASSED BY THE LD. CIT(APPEA LS) IGNORING THE PROVISIONS OF SECTION 251(2) OF THE ACT IS CORRECT OR NOT. THE LD. CIT(APPEALS) ENHANCED THE ASSESSMENT WITHOUT ISSUING NOTICE TO THE ASSESS EE, WHICH IS MANDATORY ACCORDING TO SUB-CLAUSE (2) OF SECTION 251 OF THE A CT. THEREFORE, WE SET ASIDE THE ORDER OF THE LD. CIT(APPEALS) AND REMIT THE MAT TER BACK TO THE LD. CIT(APPEALS) TO DECIDE THE ISSUE AFRESH AFTER ISSUI NG SHOW-CAUSE NOTICE TO THE ASSESSEE. ACCORDINGLY, THE APPEAL FILED BY THE ASSE SSEE IS ALLOWED FOR STATISTICAL PURPOSE. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED ON FRIDAY, THE 5 TH OF SEPTEMBER, 2014 AT CHENNAI. SD/- SD/- (A. MOHAN ALANKAMONY) ACCOUNTANT MEMBER (V. DURGA RAO) JUDICIAL MEMBER CHENNAI, DATED, THE 05.09.2014 VM/- . ' )'+/0 10-+ /COPY TO: 1. %& / APPELLANT, 2. )*%& / RESPONDENT, 3. 2 ( ) /CIT(A), 4. 2 /CIT, 5. 03 )'+' /DR & 6. 4! 5 /GF.