ITO, SRIGANGANAGAR V. M/s. Krishi Upaj Mandi Samiti, KESRISINGHPUR

ITA 2/JODH/2014

• Counselvise Citation: 223314 RSA 2014
• Duration Of Justice: 1 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 24-02-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 01-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CO JP; N A JOSHI ITA JP
• Assessee Lawyers: RAKESH GUPTA
• Keywords: Charitable institution

Judgement Text

IN THE INCOMETAX APPELLATE TRIBUNAL JODHPUR BENCH: JODHPUR (BEFORE SHRI H.M. MARATHA, JUDICIAL MEMBER AND SHRI N.K. SAINI, ACCOUNTANT MEMBER) I.T.A. NO. 02/JODH/2014 ASSTT. YEAR- 2008-09 INCOME-TAX OFFICER, VS M/S. KRISHI UPAJ MANDI SA MITI, WARD-2, SURATGARH. DHAN MANDI, KESRISINGHPUR PAN NO. AABTK0293K I.T.A. NO. 03/JODH/2014 ASSTT. YEAR- 2008-09 INCOME-TAX OFFICER, VS M/S. KRISHI UPAJ MANDI SA MITI, WARD-2, SURATGARH. DHAN MANDI, SADULSHAHAR PAN NO. AABTK0294P I.T.A. NO. 04/JODH/2014 ASSTT. YEAR- 2008-09 INCOME-TAX OFFICER, VS M/S. KRISHI UPAJ MANDI SA MITI, WARD-2, SURATGARH. (F&V) DHAN MANDI, SRIGANGANAGAR PAN NO. AABTK0297Q (APPELLANT) (RESPONDENT) ASSESSEES BY:- SHRI RAKESH GUPTA. DEPARTMENT BY : SHRI N.A. JOSHI ITA /590JP/2011 & CO 68/JP/2011 2 DATE OF HEARING : 24/02/2014 DATE OF PRONOUNCEMENT : 25/02/2014 O R D E R PER: HARI OM MARATHA, J.M. THE ABOVE CAPTIONED APPEALS OF THE REVENUE PERTAIN ING TO A.Y. 2008-09 BUT FILED AGAINST KRISHI UPAJ MANDI SAMITIES KESA RISINGHPUR, SADULSHAHAR AND SRIGANGANAGAR, INVOLVE IDENTICAL ISSUE, THEREFORE, FOR THE SAKE OF CONGRUENCE, BRIEVITY AND CONVENIENCE WE ARE DECIDING THEM ALL B Y THIS COMMON ORDER. 2. TO SUMMARIES THE IDENTICAL FACTS OF THESE CASE I T IS NARRATED THAT THE ASSESSEES HAD INCURRED CERTAIN AMOUNTS OF EXPENDITU RE AND CLAIMED AS APPLICATION OF INCOME QUA CERTAIN RECEIPT. THE AO H AS ADDED THE DIFFERENCE BETWEEN THEM IN ITS TOTAL INCOME SAY, IN THE CASE O F KESHRISINGHPUR SAMITY, THE SAMITI HAS FILED ITS RETURN OF INCOME FOR A.Y. 2008 -09 ON 22.09.2008 AND REVISED THIS RETURN ON 25.09.2009, CLAIMING ITS STATUS AS A CHARITABLE TRUST. THE SAMITI HAD APPLIED / SPENT RS. 84,51,938/- DURING THE YEAR AND HAS CLAIMED IT AS APPLICATION OF INCOME AGAINST GROSS RECEIPTS OF RS. 1,06,99,435/-. BUT THE A.O. HAS ADDED THE DIFFERENCE OF RS. 22,47,497/- TOWARDS ASSESSEES TOTAL INCOME OF THE YEAR. THE LD. CIT(A) HAS ALSO SUSTAINED THIS AD DITION. HOWEVER, THE APPELLATE TRIBUNAL (AT) HAS VIDE ITS ORDER DATED 2 3.11.2012 HAS DELETED THIS ADDITION. IN THE MEANTIME, THE AO INITIATED PENALTY PROCEEDINGS U/S 271(1)(C) OF THE I.T. ACT, 1961 (THE ACT FOR SHORT) AND IMPOSE D A PENALTY OF RS. 11,46,000/- VIDE ORDER DATED 14.09.2012. IN APPEAL, THE LD. CIT (A) HAS DELETED THE ENTIRE PENALTY ON THE PREMISE THAT WHEN ADDITION HAS NOT S URVIVED IN VIEW OF THE ITA /590JP/2011 & CO 68/JP/2011 3 TRIBUNAL ORDER, THIS PENALTY WILL ALSO NOT SURVIVE. THE REVENUE HAS FILED THIS APPEAL. 3. WE HAVE HEARD BOTH SIDES. THE LD. SR. D.R. SHRI JOSHI HAS ARGUED THAT THE APPELLATE TRIBUNAL HAS NOT DELETED THIS VERY ADDITI ON WHICH HAS RESULTED INTO THE IMPUGNED PENALTY BUT HAS GIVEN A FINDING BY WHICH N O TAXABLE INCOME HAS REMAINED AS AN ADDITION. ON THE OTHER HAND THE CASE OF THE ASSESSEE IS THAT WHEN NO ADDITION REMAINS AFTER GIVING EFFECT TO THE TRIB UNAL ORDER IN QUESTION ANY PENALTY FOR CONCEALMENT OF INCOME OR FOR FURNISHING OF INACCURATE PARTICULARS OF INCOME WOULD NOT BE LEVIABLE. IN SUPPORT OF HIS CON TENTION HE HAS PRODUCED A COP OF APPELLATE TRIBUNALS ORDER DATED 23.11.2012. 4. WE HAVE GONE THROUGH THE ENTIRE RECORD AVAILABLE BEFORE US. WE HAVE ALSO PERUSED THE TRIBUNAL ORDER DATED 23.11.2012. WE HAV E CONSIDERED THE RIVAL SUBMISSIONS OF THE PARTIES. IT IS NOTICED THAT THIS ORDER DATED 23.11.2012 IS A COMMON ORDER PASS DIN THE CASES KRISHI UPAJ MANDI SAMITIES OF KESARISINGHPUR, SADULSHAHAR, SRI KARANPUR, RIDMALSA R ETC. THE APPELLATE TRIBUNAL HAS DELETED / REDUCED THE ADDITIONS IN EAC H CASE WHERE NO TAXABLE INCOME(S) REMAIN IN THEIR INDIVIDUAL HAND. OBVIOUSL Y WHEN THERE IS NO TAXABLE INCOME PENALTY WOULD NOT BE LEVIABLE U/S 271(1)(C) OF THE ACT. THIS TRIBUNAL ORDER HAS BEEN PASS DIN ITA NOS. 438, 439/JODH/201 1 AND ITA NO. 04, 05/JODH/2012 FOR THE A.Y. 2008-09. 5. SIMILAR IS THE POSITION OF FACTS IN OTHER CASES. THE FOLLOWING TABLE WILL DEPICT THE FACTUAL POSITION IN THE OTHER CASES :- NAME ADDITION MADE BY THE AO AMOUNT OF PENALTY IMPOSED TRIBUNAL ORDER (1) KRISHI UPAJ MANDI SAMITI, SADULSHAHAR 86,65,155/- 44,18,000/- DELETED BY THE APPELLATE TRIBUNAL. ITA /590JP/2011 & CO 68/JP/2011 4 (2) KRISHI UPAJ MANDI SAMITI, SRIGANGANAGAR 71,30,731/- 36,36,000/- DELETED BY THE APPELLATE TRIBUNAL. 6. THEREFORE, WITH THE SIMILAR REASONING, WE CONFIR M THE SEPARATE ORDERS OF LD. CIT(A), BIKANER, PASSED ON 30.10.2013 IN ALL TH ESE CASE AND DISMISS ALL THE APPEAL OF THE REVENUE. 7. IN THE RESULT ALL THE APPEALS OF THE REVENUE IN ITA NOS. 02/JODH/2014 (2008-09), ITA NO. 03/JODH/2014 (A.Y. 2008-09) AND ITA NO. 04/JODH/2014 (A.Y. 2008-09) ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 25 TH FEBRUARY, 2014. SD/- SD/- (N.K. SAINI ) (HARI OM MA RATHA) ACCOUNTANT MEMBER JUDICIAL MEMBER JODHPUR, DATED : 25 TH FEBRUARY, 2014. VL COPY FORWARDED TO :- 1. APPELLANT 2. RESPONDENT- 3. THE CIT (A) 4. THE CIT 5. THE D/R BY ORDER, AR ITAT JODHPUR.