DCIT, CC-XXIII, KOLKATA, Kolkata V. Narula Educational Trust, Kolkata

ITA 1655/KOL/2014

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 1885 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 8 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-04-2017
• Appeal Filed By: Department
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 12-08-2014
• Court: TRIBUNAL
• Assessee Lawyers: G MALLIKAARJUNA
• Keywords: Benefit of exemption
• Section: 143(3); 260A; 12A; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C, BENC H KOLKATA BEFORE SHRI N.V.VASUDEVAN, JM & DR. A.L.SAINI, AM ./ ITA NO.1655/KOL/2014 ( / ASSESSMENT YEAR :2010-11) DCIT. CENTRAL CIRCLE-XXIII, AAYAKAR BHAVAN POORVA, 110,SANTI PALLY, 5 TH FLOOR KOLKATA-700107 VS. NARULA EDUCATIONAL TRUST 20,B.T.ROAD, KOLKATA-700002 ./ ./PAN/GIR NO. : AAATN4519P ( /APPELLANT ) .. ( / RESPONDENT ) /ASSESSEE BY : SHRI G MALLIKAARJUNA, CIT-DR /REVENUE BY : SHRI ANIL KOCHAR / DATE OF HEARING : 05/04/2017 /DATE OF PRONOUNCEMENT 26/04/2017 / O R D E R PER DR. ARJUN LAL SAINI, AM: THE CAPTIONED APPEAL FILED BY THE REVENUE, IS DIRE CTED AGAINST AN ORDER PASSED BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS) CENTRAL-III KOLKATA, IN APPEAL NO.33/CC-XXIII/CIT(A)/C-III/2013 -14/KOLKATA, DATED 30.06.2014, WHICH IN TURN ARISES OUT OF AN ORDER PA SSED BY THE ASSESSING OFFICER UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 ( HEREINAFTER REFERRED TO AS THE ACT), DATED 25.03.2013. 2. BRIEF FACTS QUA THE ASSESSEE ARE THAT THE ASSES SEE TRUST FILED ITS RETURN OF INCOME ON DATED 31.09.2010 DISCLOSING TOTAL INCO ME AT RS.NIL. THE RETURN OF INCOME OF THE ASSESSEE TRUST WAS PROCESSE D UNDER SECTION 143(1) OF THE ACT ON DATED 15.09.2011. SUBSEQUENTLY , THE ASSESSEE`S CASE WAS SELECTED FOR SCRUTINY UNDER SECTION 143 (2 ) OF THE ACT AND THE ASSESSING OFFICER HAD ASSESSED THE ASSESSEE TRUST I N THE STATUS OF AOP AND BENEFIT OF EXEMPTION U/S 11 IS DENIED. THE ASSE SSING OFFICER ITA NO.1655/KOL/2014 NARULA EDUCATIONAL TRUST 2 OBSERVED THAT LD COMMISSIONER OF INCOME TAX, CENTRA L-III, KOLKATA BY HIS ORDER U/S 12AA(3) OF THE I.T.ACT DATED 22/06/2010 C ANCELLED THE REGISTRATION OF THE TRUST WHICH THE TRUST ENJOYED U /S 12AA(3) OF THE ACT. THE SAID ORDER WAS QUASHED BY ITAT KOLKATA BY ITS O RDER DATED 24.02.2012 THEREBY RESTORING THE REGISTRATION U/S 1 2A OF THE ACT. HOWEVER, THE DEPARTMENT HAS FILED APPEAL U/S 260A AGAINST IT AT`S SAID ORDER BEFORE HON`BLE CALCUTTA HIGH COURT. HENCE, IN ORDER TO SAFEGUARD THE INTEREST OF REVENUE IN THE SITUATION IF HIGH COURT GIVES JUDGEMENT IN REVENUE`S FAVOUR, THE REGISTRATION U/S 12A IS STILL CONSIDERED TO BE CANCELLED AND THE ASSESSEE IS ASSESSED IN THE STATU S OF AOP AND BENEFIT OF EXEMPTION U/S 11 IS DENIED. THIS WAY, THE AO ASS ESSED THE TRUST IN THE STATUS OF ASSOCIATION OF PERSON (AOP) AND WORKED OU T THE TAXABLE INCOME OF THE AOP AT RS.1,97,90,220/-. 3. DISSATISFIED WITH THE ORDER OF THE ASSESSING OFF ICER, THE ASSESSEE TRUST FILED AN APPEAL BEFORE THE COMMISSIONER OF INCOME T AX (APPEALS) WHO HAS DELETED THE ADDITION MADE BY THE ASSESSING OFFI CER TREATING THE STATUS OF ASSESSEE IS THAT OF TRUST REGISTERED UNDER SECTI ON 12A OF THE ACT. THE LD CIT(A) OBSERVED THAT THE ACTION OF THE ASSESSING OFFICER WAS TO SAFEGUARD THE INTEREST OF THE REVENUE, BUT AT THAT POINT OF TIME THE ORDER OF THE HON`BLE ITAT WAS IN FORCE THEREFORE THE STATUS OF THE ASSESSEE IS THAT OF TRUST REGISTERED U/S 12A OF THE ACT. 4. NOT BEING SATISFIED WITH THE ORDER OF THE LD CIT (A), THE REVENUE IS IN APPEAL BEFORE US. THE SOLITARY GRIEVANCE OF THE OF THE REVENUE IS THA T ITA NO.1655/KOL/2014 NARULA EDUCATIONAL TRUST 3 LD CIT(A) ERRED IN TREATING THE ASSESSEE, AS IF , T HE ASSESSEE IS A TRUST REGISTERED UNDER SECTION 12A OF THE ACT. 5. THE LD DR FOR THE REVENUE HAS PRIMARILY REITERAT ED THE STAND TAKEN BY THE ASSESSING OFFICER, WHICH WE HAVE ALREADY NOTED IN OUR EARLIER PARA AND IS NOT BEING REPEATED FOR THE SAKE OF BREVITY. HOWEVER, THE LD AR FOR THE ASSESSEE SUBMITTED BEFORE US THAT STATUS OF THE ASSESSEE IS THAT OF TRUST REGISTERED U/S 12A OF THE ACT. THE LD AR FOR THE ASSESSEE ALSO STATED THAT THIS ISSUE IS SQUARELY COVERED BY THE J UDGMENT OF HON`BLE ITAT KOLKATA IN ASSESSEE`S OWN CASE IN ITA NO. 1531/K/20 12, A.Y. 2009-10. 6. SINCE THE ISSUE IS SQUARELY COVERED IN FAVOUR O F THE ASSESSEE, BY THE JUDGMENT IN ASSESSEE`S OWN CASE (SUPRA), THEREFORE, WE ARE OF THE VIEW THAT LD CIT(A) WAS THUS JUSTIFIED IN GIVING THE IMP UGNED RELIEF. WE UPHOLD HIS ACTION AND DECLINE TO INTERFERE IN THE MATTER. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE, IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 26/ 04/2017. SD/ - (N.V. VASUDEVAN) SD/ - (DR. A.L.SAINI) / JUDICIAL MEMBER / ACCOUNTANT MEMBER /KOLKATA ; $% DATED 26/04/2017 & ()* /PRAKASH MISHRA ,SR.PS. / COPY OF THE ORDER FORWARDED TO : / BY ORDER, / ( ASSTT. REGISTRAR) & ' , / ITAT, KOLKATA 1. / THE APPELLANT- DCIT, CC-XXIII, KOLKATA 2. / THE RESPONDENT.-NARULA EDUCATIONAL TRUST 3. 4 ( ) / THE CIT(A), KOLKATA. 4. 4 / CIT 5. 56 7 8 , 8 , / DR, ITAT, KOLKATA 6. 7 9 / GUARD FILE. 5 //TRUE COPY//