Income Tax Officer Ward-1, Chandrapur V. Agriculture Produce Market Committee, Chandrapur

ITA 189/NAG/2012

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 3193 (ITAT-NAGPUR)
• Duration Of Justice: 6 year(s) 10 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-04-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 25-05-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: M MANI
• Keywords: Charitable institution; Benefit of exemption
• Section: 12A; 12AA; 201; 11

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH , ( E - COURT), MUMBAI , BEFORE SHRI R.K.GUPTA , J M & SHRI RAJENDRA , A M ITA NO. 189 / N AG / 20 1 2 ( ASSESSMENT YEAR : 200 7 - 0 8 ) ITO WARD - 1, AAYKAR BHAWAN, RAILWAY STATION ROAD,CHANDRAPUR. VS. AGRICULTURE PRODUCE MARKET COMMITTEE, NAGPUR ROAD MUL,DIST - CHANDRAPUR - 441 224 PAN/GIR NO. : A A ALA 0458 J ( APPELLANT ) .. ( RESPONDENT ) /REVENUE BY : MR. PRAKASH MANE /ASSESSEE BY : MR. M.MANI DATE OF HEARING : 1 ST FEB ., 201 3 DATE OF PRONOUNCEMENT : 20 TH MARCH . ,201 3 O R D E R P ER SHRI R.K.G UPTA, JM : TH IS APPEAL HA S BEEN PREFERRED BY THE DEPARTMENT BEFORE THE ITAT NAGPUR BENCH, NAGPUR, AGAINST THE ORDER OF LEANED CIT (A) - I I , NAGPUR (MAHARASHTRA) RELATING TO THE ASSESSME NT YEAR 200 7 - 0 8 , WHICH HA S BEEN HEARD THROUGH E - COURT, MUMBAI . 2 . THE DEPARTMENT IS OBJECTING IN HOLDING THAT THE ASSESSEE IS ENTITLED EXEMPTION UNDER SECTION 11 OF THE ACT OF RS. 26,96,042/ - . 3 . IN THIS CASE, WHILE COMPLETING THE ASSESSMENT, THE BENEFIT OF EXEMPTION UNDER SECTION 11 OF THE ACT WAS NOT GRANTED AS THE ASSESSEE HAD NO REGISTRATION UNDER SECTION 12A. ITA NO . 189 /20 1 2 2 4 . THE ASSESSEE PREFERRED APPEAL BEFORE THE CIT(A) . IT WAS SUBMITTED THAT THE REGISTRATION UNDER SECTION 12A HAS BEEN GRANTED VIDE ORDER DATED 14 - 7 - 2011 RETROSPECTIVELY W.E.F. 21.03.2005. RELIANCE WAS ALSO PLACED ON VARIOUS CASE LAWS. AFTER CONSIDERING THE SUBMISSION, THE LEARNED CIT(A) GAVE THE FOLLOWING FINDING : - 4.0 IT IS SEEN THAT DURING THE A.YR. 2007 - 08, STATUS OF LOCAL AUTHORITY WAS WI THDRAWN. HOWEVER, APPELLANT WAS ELIGIBLE FOR REGISTRATION AS CHARITABLE TRUST. APPELLANT HAS SUBSEQUENTLY BEEN GRANTED REGISTRATION U/S.12AA OF THE IT ACT BY THE COMMISSIONER OF INCOME TAX - IV, NAGPUR ON 14.07.2011 W.E.F. 21.03.2005 FOLLOWING THE ITATS O RDER IN THE CASE OF AS THE APPELLANT. HOWEVER, THE APPELLANT HAS REGISTRATION UNDER SECTI ON 12AA, THE AO HAD CALCULATED THE INCOME KEEPING IN MIND THAT THE APPELLANT DOES NOT HAVE REGISTRATION U/S.12AA. HENCE, NOW A.O. IS DIRECTED TO RECOMPUTED INCOME AFTE R CONSIDERING THE REGISTRATION GRANTED BY THE C.I.T. 5 . NOW, THE DEPARTMENT IS IN APPEAL AGAINST THE AFORESAID FINDING OF THE CIT(A) HERE BEFORE THE TRIBUNAL. 6 . L EARNED DR PLACED RELIANCE ON THE ORDER OF THE AO. ON THE OTHER HAND, LEARNED COUNSEL OF TH E ASSESSEE PLACED RELIANCE ON THE ORDER OF LEARNED CITA). 7 . AFTER CONSIDERING THE ORDER OF THE AO AND CIT(A), WE FOUND NO INFIRMITY IN THE ORDE R OF THE CIT(A) . LEARNED CIT(A) AFTER ASCERTAINING THE FACT THAT LEARNED CIT HAS GRANTED REGISTRATION RETROSPEC TIVELY. THEREFORE, THE AO WAS DIRECTED TO RECOMPUTED THE INCOME OF THE ASSESSEE AFTER TAKING INTO CONSIDERATION THAT REGISTRATION UNDER SECTION 12AA HAS BEEN GR A NTED BY THE LEARNED CIT . THE FINDING OF THE LEARNED CIT(A) ARE REPRODUCED ABOVE IN THIS ORDER. H ENCE, WE SEEN NO ITA NO . 189 /20 1 2 3 REASON TO INTERFERE IN THE FINDING OF THE LEARNED CIT(A) . ACCORDINGLY, WE CONFIRM THE ORDER OF THE LEARNED CIT(A) . 8 . IN THE RESULT , APPEAL OF THE DEPARTMENT IS DISMISSED . ORDER PRONOUNCED IN TH E E - COURT ON THIS 2 0 TH DAY OF MAR , 201 3 . - 201 3 SD/ - SD/ - ( ) ( RAJENDRA ) ( ) ( R.K.GUPTA ) / ACCOUNTANT MEMBER / JUDI CIAL MEMBER MUMBAI ; DATED : 2 0 / 0 3 / 201 3 . /PKM , PS COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / THE CIT(A) , M UMBAI / NAGPUR . 4. / CIT 5. / DR, ITAT, MUMBAI / NAGPUR . 6. GUARD FILE. //TRUE COPY// / BY ORDER, ( ASSTT. REGISTRAR) / ITAT, MUMBAI