Appeal details
Counselvise Citation
[2018] 118 COUNSELVISE.COM (IT) 2132 (ITAT-SURAT)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
3 year(s) 1 month(s) 28 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
30-07-2018
Appeal Filed By
Department
Order Result
Dismissed
Bench Allotted
DB
Assessment Year
2010-2011
Appeal Filed On
02-06-2015
Judgement Text
, IN THE INCOME TAX APPELLATE TRIBUNAL,SURAT BENCH,SURAT , , BEFORE SHRI C.M.GARG, JUDICIAL MEMBER AND SHRI O.P.MEENA, ACCOUNTANT MEMBER . / ITA NO.1559/AHD/2015/SRT [ [ / ASSESSMENT YEAR: 2010-11 THE INCOME TAX OFFICER, EXEMPTION WARD, SURAT. VS. THE SOUTHERN GUJARAT CHAMBER OF COMMERCE AND INDUSTRY, SAMRUDDHI, 4 TH FLOOR, NR. MAKAI BRIDGE, NANPURA, SURAT-395001 [PAN : AAAAT 4233 H] ( / APPELLANT) ( /RESPONDENT) / ASSESSEE BY : SHRI HIREN VEPARI, C.A /REVENUE BY : SHRIARVIND KUMAR SINGH, SR. D.R /DATE OF HEARING : 21-06-2018 / DATE OF PRONOUNCEMENT : 30-07-2018 / ORDER PERC.M.GARG, JUDICIAL MEMBER : THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-3, SURAT (CIT(A) FOR SHORT) DATED 09.03.2015 FOR THE ASSESSMENT YEAR (A.Y) 2010-11, WHICH IN TURN HAS ARISEN FROM THE ORDER DATED 30.03.2013 PASSED BY THE ERSTWHILE INCOME 2 ITA NO.1559/AHD/2015/SRT (A.Y: 2010-11) THE SOUTHERN GUJARAT CHAMBER OF COMMERCE AND INDUSTRY. TAX OFFICER(EXEMPTION), WARD, SURAT (IN SHORT 'THE AO') UNDER SECTION 143(3) OF INCOME TAX ACT, 1961 (IN SHORT 'THE ACT'). 2. THE SOLE GROUND RAISED BY THE REVENUE READS AS FOLLOWS: THE LD.COMMISSIONER OF INCOME-TAX (APPEALS) HAS ERRED IN LAW AND ON FACTS IN DIRECTING THE ASSESSING OFFICER TO ALLOW ADMINISTRATIVE EXPENDITURE OF RS.69,18,989/- 3. WE HAVE HEARD THE ARGUMENTS OF BOTH SIDES AND CAREFULLY PERUSED THE RELEVANT MATERIAL PLACED ON THE RECORD OF THE TRIBUNAL. THE LD. DEPARTMENTAL REPRESENTATIVE (DR) SUBMITTED THAT THE FIRST APPELLATE AUTHORITY HAS ERRED ON LAW AND FACTS IN DIRECTING THE ASSESSING OFFICER (AO) TO ALLOW IMPUGNED ADMINISTRATIVE EXPENDITURE. THE LD. ARSTRENUOUSLY SUBMITTED THAT THE ASSESSEE IS CHARGING HEAVY FEES FROM THE PARTICIPANTS AND THUS, ITS ACTIVITY PROFIT MAKING ACTIVITY WHICH DOES NOT FALL UNDER THE PURVIEW OF CHARITABLE PURPOSES AS THE ASSESSEE HAS EARNED HANDSOME PROFITS AND SURPLUS FROM THESE ACTIVITIES. THE LD. DR SUBMITTED THAT THE AO WAS RIGHT IN TREATING THE TOTAL NET EXCESS AMOUNT AS INCOME OF THE ASSESSEE AS THE SAME WAS NOT AN INCOME FROM HOUSE PROPERTY. THE LD. DR SUBMITTED THAT THE LD. CIT(A)HAS GRANTED RELIEF TO THE ASSESSEE WITHOUT ANY BASIS THEREFORE, IMPUGNED ORDER MAY KINDLY BE SET ASIDE BY RESTORING THAT OF THE AO. 4. REPLYING TO THE ABOVE, THE LD. ASSESSEES REPRESENTATIVE (AR) SUBMITTED THAT THE LD. CIT(A) HAS GRANTED RELIEF TO THE ASSESSEE BY CONSIDERING ALL RELEVANT FACTS AND PROVISIONS OF THE ACT THEREFORE, THE 3 ITA NO.1559/AHD/2015/SRT (A.Y: 2010-11) THE SOUTHERN GUJARAT CHAMBER OF COMMERCE AND INDUSTRY. SAME MAY KINDLY BE UPHELD BY DISMISSING THE APPEAL OF THE ASSESSEE. THE LD. AR SUBMITTED THAT THE AO HIMSELF IN THE ORDER PASSED U/S. 154 OF THE ACT FOR AY 2010-11 HAS ALLOWED THE EXPENDITURE OF RS. 68,29,451/- IN THE SUBSEQUENT RECTIFICATION ORDER THEREFORE, APPEAL OF THE REVENUE BECOME INFRUCTUOUS AND NOT SUSTAINABLE. 5. ON CAREFUL CONSIDERATION OF ABOVE RIVAL SUBMISSIONS, FROM PERUSAL OF THE RECTIFICATION ORDER DATED 09.10.2013 PASSED BY THE AO FOR AY 2010- 11, IT IS CLEARLY DISCERNABLE THE AO HIMSELF HAS ALLOWED IMPUGNED EXPENDITURE OF RS.68,29,451/- TO THE ASSESSEE BY PASSING THE RECTIFICATION ORDER WHICH COVERS ISSUE RAISED BY THE REVENUE IN THE PRESENT APPEAL CHALLENGING THE ORDER OF THE LD. CIT(A), WHEREIN HE ALLOWED ADMINISTRATIVE EXPENDITURE OF RS. 69,18,989/- TO THE ASSESSEE. THE LD. DR IN FAIRNESS, SUBMITTED THAT AFTER ORDER OF THE AO PASSED U/S. 154 OF THE ACT THE REVENUE HAS NOTHING TO SAY ON THE SOLE ISSUE RAISED IN THIS APPEAL. 6. THEREFORE, WE ARE INCLINED TO HOLD THAT AFTERRECTIFICATION ORDER PASSED BY THE AO NO ISSUE OR THIS SURVIVES FOR OUR ADJUDICATION IN THIS APPEAL HENCE, THE SOLE GROUND OF REVENUE IS DISMISSED. 7. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS DAY OF30 TH JULY, 2018. SD/ - SD/ - ( ) ( O.P.MEENA ) / ACCOUNTANT MEMBER ) ) (C.M.GARG) /JUDICIAL MEMBER 4 ITA NO.1559/AHD/2015/SRT (A.Y: 2010-11) THE SOUTHERN GUJARAT CHAMBER OF COMMERCE AND INDUSTRY. / SURAT ; DATED :30 TH JULY, 2018 / EDN / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT ; 2. / THE RESPONDENT ; 3. ( ) / THE CIT(A)-3, SURAT; 4. PRL. CIT, SURAT; 5. , , / DR, ITAT, SURAT; 6. / GUARD FILE .
