The DCITGandhinagar Circle, Gandhinagar V. Industrial Extension Bureau, Gaziabad

ITA 1943/AHD/2015

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 6373 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 6 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-01-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2011-2012
• Appeal Filed On: 01-07-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: A C SHAH HEARING CONCLUDED ON
• Keywords: Exemption for trust; Charitable institution
• Section: 143(3); 12A; 11

Judgement Text

ITA NO.1943/AHD/2015 ASSESSMENT YEAR: 2011-12 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD C BENCH, AHMEDABAD [CORAM: PRAMOD KUMAR AM AND S S GODARA JM] ITA NO.1943/AHD/2015 ASSESSMENT YEAR: 2011-12 DEPUTY COMMISSIONER OF INCOME TAX (EXEMPTIONS), CIRCLE 1, AHMEDABAD. .....................APPELLANT VS. INDUSTRIAL EXTENSION BUREAU, .......... ....... RESPONDENT BLOCK NO.18, 2 ND FLOOR, UDYOG BHAVAN, SECTOR-11, GANDHINAGAR. [PAN: AAATI 0635 D] APPEARANCES BY PRASOON KABRA FOR THE APPELLANT A.C. SHAH FOR THE RESPONDENT HEARING CONCLUDED ON: 01.01.2018 ORDER PRONOUNCED ON : 02.01.2018 O R D E R PER PRAMOD KUMAR, AM: 1. BY WAY OF THIS APPEAL, THE ASSESSING OFFICER APP ELLANT HAS CHALLENGED CORRECTNESS OF LEARNED CIT(A)S ORDER DATED 13.04.2 015, IN THE MATTER OF ASSESSMENT UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961, F OR THE ASSESSMENT YEAR 2011-12. 2. GRIEVANCE RAISED BY THE APPELLANT IS AS FOLLOWS :- I) THE LD. COMMISSIONER OF INCOME TAX (APPEALS) HA S ERRED IN LAW AND ON FACTS IN DELETING THE DISALLOWANCE MADE BY THE A.O. , IN NOT TREATING THE ASSESSEE TRUST AS A TRUST ELIGIBLE FOR EXEMPTION UN DER SECTION AND THEREBY IN NOT GRANTING DEDUCTION OF 15% OF INCOME AS ACCUMULATION OF RS.77,66,786/- AND ALSO NOT GRANTING DEDUCTION OF R S.52,18,512/- UNDER CLAUSE (2) TO EXPLANATION 11(1) AMOUNTING IN ALL TO RS.1,29,85,298/-. II) ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. COMMISSIONER OF INCOME TAX (APPEALS) OUGHT TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. ITA NO.1943/AHD/2015 ASSESSMENT YEAR: 2011-12 PAGE 2 OF 3 III) IT IS, THEREFORE, PRAYED THAT THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) MAY BE SET ASIDE AND THAT OF THE ASSE SSING OFFICER BE RESTORED. 3. LEARNED REPRESENTATIVES FAIRLY AGREE THAT THE IS SUE IS COVERED, IN FAVOUR OF THE ASSESSEE, BY HONBLE JURISDICTIONAL HIGH COURTS JU DGEMENT IN ASSESSEES OWN CASE, AS EVIDENT FROM FOLLOWING OBSERVATION MADE IN THE ASSE SSMENT ORDER. 6. A SHOW CAUSE NOTICE WAS ISSUED TO THE ASSESSEE VIDE THIS OFFICE LETTER DTD.17.02.2014, THE RELEVANT PORTION OF THE SAME IS REPRODUCED AS UNDER: 'IT IS SEEN THAT, YOUR ORGANIZATION WAS CREATED BY VIRTUE OF A MEMORANDUM OF ASSOCIATION. THE BUREAU WAS NOT REGIS TERED AS A TRUST UNDER THE BOMBAY TRUST ACT BUT WAS REGISTERED U/S. 12A OF THE I.T. ACT. THUS, YOURS IS NOT A CHARITABLE TRUST. ACCORDINGLY, YOU HAD SHOWN NIL INCOME AFTER CLAIMING INCOME EXEMPT U/S. 11 OF THE I.T. ACT. YOU ARE THEREFORE ASKED TO SHOW CAUSE AS TO WHY THE SAID EX EMPTION SHOULD NOT BE WITHDRAWN. IT IS ALSO SEEN THAT, YOU HAD SET APART/ACCUMULATED INCOME U/S.11(2) OF THE ACT. PLEASE EXPLAIN WHETHER YOU HA VE FILED FORM NO.10 R/W RULE 17 OF THE IT RULES WITH THIS OFFICE. IF SO, PL EASE FURNISH A COPY OF THE SAME. IF NOT, PLEASE SHOW CAUSE AS TO WHY CLAIM FO R ACCUMULATION OF INCOME SHOULD NOT BE REJECTED AND TREATED AS TAXABL E INCOME.' 7. IN RESPONSE TO THE SAID SHOW CAUSE NOTICE THE A SSESSEE HAS SUBMITTED ITS REPLY VIDE LETTER DTD. 26.02.2014, I HAVE GONE THRO UGH THE SAME AND THE SAME IS FOUND NOT ACCEPTABLE. THE ASSESSEE HAS SUBMITTED TH AT HON'BLE GUJARAT HIGH COURT HAS DISMISSED THE APPEAL OF THE REVENUE. IT I S EXTREME NECESSARY TO POINT OUT HERE THAT TO KEEP THE ISSUE ALIVE, THE DEPARTME NT HAS RECOMMENDED THE SLP BEFORE THE HON'BLE APEX COURT. 4. IN THE IMPUGNED ORDER, LEARNED CIT(A) HAS MERELY FOLLOWED THE BINDING JUDICIAL PRECEDENT. WE SEE NO INFIRMITY IN THE STAND OF THE LEARNED CIT(A). IN VIEW OF THESE DISCUSSIONS, AND BEARING IN MIND ENTIRETY OF THE CA SE, WE APPROVE THE CONCLUSIONS ARRIVED AT BY THE LEARNED CIT(A) AND DECLINE TO INT ERFERE IN THE MATTER. ITA NO.1943/AHD/2015 ASSESSMENT YEAR: 2011-12 PAGE 3 OF 3 5. IN THE RESULT, THE APPEAL IS DISMISSED. PRONOUN CED IN THE OPEN COURT ON THIS 2 ND DAY OF JANUARY, 2018. SD/- SD/- S S GODARA PRAMOD KUMAR (JUDICIAL MEMBER) (ACCOUNTANT MEM BER) DATED: 2 ND JANUARY, 2018. PBN/* COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) CIT (4) CIT(A) (5) DR (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD