ITO(E) Ward - 2(1) , New Delhi V. Sarv Hitkari Edu. Society, New Delhi

ITA 1917/DEL/2019

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 3514 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-04-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2009-2010
• Appeal Filed On: 04-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Benefit of exemption; Set aside
• Section: 147; 148; 12; 11; 143(3); 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘G’, NEW DELHI BEFORE SH. ANIL CHATURVEDI, ACCOUNTANT MEMBER AND SH. KUL BHARAT, JUDICIAL MEMBER ITA No.1917/Del/2019 (Assessment Year : 2009-10) ITO(E) Ward – 2(1), New Delhi PAN : AABTS 9050 K Vs. Sarv Hitkari Education Society 94-C, Pocket-B, Dilshad Garden, New Delhi (APPELLANT) (RESPONDENT) Assessee by --None-- Revenue by Shri Umesh Takyar, Sr. D.R. Date of hearing: 25.04.2022 Date of Pronouncement: 28.04.2022 ORDER PER ANIL CHATURVEDI, AM : This appeal filed by the Revenue is directed against the order dated 17.12.2018 of the Commissioner of Income Tax (Appeals)-40, Delhi relating to Assessment Year 2009-10. 2. Brief facts of the case as culled out from the material on record are as under:- 2 3. Assessee is a society which runs college of Engineering and Management at Kapurthalla, Punjab. Assessee filed its return of income for A.Y. 2009-10 on 22.09.2009 declaring Nil income. The case was initially selected for scrutiny and assessment was framed u/s 143(3) of the Act vide order dated 06.12.2011. AO thereafter noted that the registration granted u/s 12A of the Act on 27.12.1999 to the assessee was withdrawn retrospectively w.e.f A.Y. 2008-09 vide CIT(E), Delhi’s order F. No. CIT(E)/12A/withdrawal/2015-16/4974 dated 03.09.2015 and accordingly the exemption u/s 11 & 12 of the Act was no longer available to the assessee resulting into the income escaping assessment for A.Y. 2009-10. AO thus issued notice u/s 148 of the Act on 21.03.2016 and served on the assessee. Consequently the case of the assessee was taken up for scrutiny and subsequently assessment was framed u/s 147 r.w.s 143(3) of the Act vide order dated 30.12.2016 determining the total income at Rs.1,77,98,712/-. 4. Aggrieved by the order of AO, assessee carried the matter before CIT(A) who vide order dated 17.12.2018 in Appeal No.CIT(A), Delhi-40/10449/2016-17 granted substantial relief to the assessee. Aggrieved by the order of CIT(A), Revenue is now in appeal and has raised the following grounds: “1. Whether on the facts and circumstances of the case the Ld CIT(A) erred in allowing the benefit of exemption under section 11 & 12 of the Act to the assessee, despite the fact that the assesee was found to be indisputedly indulged in 3 “sham activities ” to get the approval of AICTE for setting up a polytechnic college. 2. The appellant craves leave to add, to alter or amend any ground of appeal raised at the time of hearing.” 5. On the date of hearing, none appeared on behalf of the assessee nor any adjournment application was filed on its behalf though the case file reveals that the notice of hearing was served on the assessee. In such a situation, we proceed to dispose of the appeals ex parte qua the assessee and after hearing the Learned DR. 6. Before us, at the outset, Learned DR fairly submitted that the re-assessment proceedings were initiated in view of the fact that registration u/s 12A was cancelled by CIT(E) vide order dated 03.09.2015 and addendum dated 04.09.2015. The order of CIT(E) cancelling the registration u/s 12A of the Act was challenged before ITAT. Hon’ble ITAT vide order of CIT(E) dated 30.11.2018 in ITA No.5816/Del/2015 allowed the appeal of the assessee and cancelled the order dated 03.09.2015. He submitted that the CIT(A) thus after considering the aforesaid order of ITAT had directed the AO to allow the benefit of exemption u/s 11 of the Act. He pointed to the relevant observations of CIT(A). He therefore submitted that in such a situation, the appeal be disposed of accordingly. 4 7. We have heard the Learned DR and perused the material available on record. We find that the registration u/s 12A of the Act was withdrawn by CIT(A) vide order dated 03.09.2015 and addendum order dated 04.09.2015. Against the cancellation of aforesaid order by CIT(E), assessee had carried the matter before Hon’ble Tribunal. Hon’ble Tribunal vide order dated 30.11.2018 had allowed the appeal of the assessee and cancelled the order of CIT(E) dated 03.09.2015. We find that CIT(A) after considering the aforesaid order of Tribunal, whereby the order of CIT(E) was cancelled, had directed the AO to allow the benefit of exemption u/s 11 of the Act. Before us, Revenue has not placed any material on record to demonstrate that the aforesaid order of Tribunal wherein the order of CIT(E) cancelling the registration has been set aside/overruled or stayed by higher judicial forum. We therefore find no reason to interfere with the order of CIT(A). Thus the ground of the Revenue is dismissed. 8. In the result, appeal of the Revenue is dismissed. Order pronounced in the open court on 28.04.2022 Sd/- Sd/- (KUL BHARAT) (ANIL CHATURVEDI) JUDICIAL MEMBER ACCOUNTANT MEMBER Date:- 28.04.2022 PY* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI