Ganapathi Jana Seva Bhander, Kolkata V. I.T.O.(Exemption) ward 1(1), Kolkata

ITA 1442/KOL/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 5067 (ITAT-KOLKATA)
• Duration Of Justice: 5 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-11-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 12-06-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: DHRUBAJYOTI RAY
• Assessee Lawyers: PARASH NATH KESHARI
• Keywords: Benefit of exemption
• Section: 12A; 12AA; 10; 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH KOLKATA [BEFORE SRI S. S. GODARA, JUDICIAL MEMBER] ./I.T.A NO.1442/KOL/2019 ( [ [ / ASSESSMENT YEAR: 2013-14) GANAPATHI JANA SEVA BHANDAR 31, SHAKESPEARE SARANI, 4 TH FLOOR, ROOM NO.405A & B, KOLKATA VS. ITO(EXEMPTION), WARD-1(1), KOLKATA ./ ./PAN/GIR NO.: AAATG2294E (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI PARASH NATH KESHARI, FCA RESPONDENT BY : SHRI DHRUBAJYOTI RAY, JCIT, SR. DR / DATE OF HEARING : 11/11/2019 /DATE OF PRONOUNCEMENT : 22/11/2019 / O R D E R PER SHRI S. S. GODARA: THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2013-14 ARISES AGAINST THE COMMISSIONER OF INCOME TAX (A) - 25, KOLKATA ORDER DATED 25.04.2019 PASSED IN CASE NO.121/CIT(A)-25/KOL/2015-16 INVOLVING PROCEEDINGS U/S 154 OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE ASSESSEES SOLE SUBSTANTIVE GRIEVANCE IN THE INSTANT APPEAL IS THAT BOTH THE LOWER AUTHORITIES HAVE ERRED IN LAW AS WELL FACTS IN DISALLOWING SECTION 10(34) EXEMPTION IN RESPECT OF DIVIDEND RECEIVED AMOUNTING TO RS.10,57,484/-. LEARNED COUNSELS CASE DURING THE HEARING IS THAT THE IMPUGNED EXEMPTION HAS BEEN WRONGLY DENIED TO THE TAXPAYER. THE REVENUES CASE ON THE OTHER HAND RESTS ON SECTION 11(7) OF THE ACT WHICH READS AS UNDER: GANAPATHI JANA SEVA BHANDAR I.T.A NO.1442/KOL/2019 PAGE | 2 (7) WHERE A TRUST OR AN INSTITUTION HAS BEEN GRANTED REGISTRATION UNDER CLAUSE (B) OF SUB- SECTION (1) OF SECTION 12AA OR HAS OBTAINED REGISTRATION AT ANY TIME UNDER SECTION 12A [AS IT STOOD BEFORE ITS AMENDMENT BY THE FINANCE (NO.2) ACT, 1996 (33 OF 1996)] AND THE SAID REGISTRATION IS IN FORCE FOR ANY PREVIOUS YEAR, THEN, NOTHING CONTAINED IN SECTION 10 [OTHER THAN CLAUSE (1) AND CLAUSE (23C) THEREOF] SHALL OPERATE TO EXCLUDE ANY INCOME DERIVED FROM THE PROPERTY HELD UNDER TRUST FROM THE TOTAL INCOME OF THE PERSON IN RECEIPT THEREOF FOR THAT PREVIOUS YEAR.] 3. LEARNED COUNSELS CASE IN REBUTTAL IS THAT THE TRIBUNALS COORDINATE BENCHS ORDER IN ITA NO.2112/KOL/2007 ADIT VS. MAYANK WELFARE TRUST HAS ALREADY DECIDED THE ISSUE AGAINST THE DEPARTMENT. I HAVE GIVE MY THOUGHTFUL CONSIDERATION TO THE RIVAL CONTENTIONS. I FIND NO MERIT IN ASSESSEES GRIEVANCE SEEKING TO DELETE THE IMPUGNED DISALLOWANCE OF SECTION 10(34) EXEMPTION OF DIVIDEND INCOME TO THE TRUST SECTION 11(7) OF THE ACT MAKES IT CLEAR THAT A TRUST OR AN INSTITUTION; ENJOYING SECTION 12AA REGISTRATION OR SECTION 12A (AS IT STOOD BEFORE ITS AMENDMENT) BY THE FINANCE ACT (2) OF 1996 IS NOT ELIGIBLE FOR ANY OF THE EXEMPTION BENEFITS OTHER THAN SECTION 10(23C) OF THE ACT. THIS TRIBUNALS COORDINATE BENCHS DECISION (SUPRA) DOES NOT TAKE NOTE OF THE SAME AS IN EVIDENT FROM THE OPERATIVE PARA 6 OF THE ORDER. THE SAME IS TREATED AS PER INCURIAM AS PER THE CASE LAW (1993) 202 ITR 222 (AP). I CONCLUDE IN THESE FACTS BOTH THE LOWER AUTHORITIES HAVE RIGHTLY DISALLOWED THE IMPUGNED EXEMPTION TO THE ASSESSEE TRUST. THE ASSESSEE FAILS IN ITS SOLE SUBSTANTIVE GRIEVANCE. 4. THE ASSESSEES APPEAL IS DISMISSED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 22.11.2019. SD/- (S. S. GODARA) JUDICIAL MEMBER /KOLKATA; / DATE:22/11/2019 (RS, SR.PS) GANAPATHI JANA SEVA BHANDAR I.T.A NO.1442/KOL/2019 PAGE | 3 / COPY OF THE ORDER FORWARDED TO : TRUE COPY BY ORDER ASSISTANT REGISTRAR, I.T.A.T, KOLKATA BENCHES, KOLKATA . 1. THE APPELLANT - GANAPATHI JANA SEVA BHANDAR 2. THE RESPONDENT- ITO(EXEMPTION), WARD-1(1), KOLKATA 3. ( ) / THE CIT(A), KOLKATA [SENT THROUGH EMAIL] 4. / CIT 5. , , / DR, ITAT, KOLKATA [SENT THROUGH EMAIL] 6. [ / GUARD FILE.