Improvement Trust, Bathinda V. The Deputy Commissioner of Income tax, Bathinda

ITA 207/ASR/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 5737 (ITAT-AMRITSAR)
• Duration Of Justice: 1 year(s) 1 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-06-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 23-12-2010
• Assessment Year: 2006-2007
• Appeal Filed On: 27-04-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S K BANSAL
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR. BEFORE SH. H.L. KARWA, VICE PRESIDENT AND SH. MEHAR SINGH, ACCOUNTANT MEMBER I.T.A. NOS.206(ASR)/2010 ASSESSMENT YEARS:2005-06 PAN :AAATE1563E IMPROVEMENT TRUST, VS. THE ASSTT. COMMR. OF INCOME -TAX, BHATINDA. CIRCLE, BHATINDA, (APPELLANT) (RESPONDENT) I.T.A. NOS.207(ASR)/2010 ASSESSMENT YEARS:2006-07 IMPROVEMENT TRUST, VS. THE ASSTT. COMMR. OF INCOME -TAX, BHATINDA. CIRCLE, BHATINDA, (APPELLANT) (RESPONDENT) DEPARTMENT BY:SH. TARSEM LAL, DR ASSESSEE BY: SH. S.K. BANSAL, ADV ORDER PER MEHAR SINGH, AM, THESE TWO APPEALS FILED BY THE ASSESSEE ARE DIRECT ED AGAINST THE SEPARATE ORDERS OF CIT(A), BHATINDA, EACH DATED 04. 02.2010, PASSED UNDER SECTION 250(6) OF THE INCOME-TAX ACT, 1961 ( HEREIN AFTER REFERRED TO IN SHORT THE ACT) FOR THE ASSESSMENT YEARS 2005-06 & 2006- 07. BOTH THESE APPEALS WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY TH IS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2 2. THE BRIEF AND NEAT FACTS OF THE CASE, AS CULLED OUT FROM THE RELEVANT RECORDS ARE THAT THE ASSESSEE-IMPROVEMENT TRUST IS A STATUTORY BODY CONSTITUTED UNDER THE PUNJAB TOWN IMPROVEMENT ACT, 1922. THERE ARE ABOUT 20 TRUSTS IN PUNJAB FOR THE DEVELOPMENT OF CITIES, HOUSING ACCOMMODATION, RE-HOUSING SCHEME, DEVELOPMENT AND EXPANSION SCHEM E ETC. PREVIOUSLY THE INCOME OF SUCH TRUST WAS EXEMPT U/S 10(20A) UPTO 3 1.03.2002. SECTION WAS OMITTED AND ALL THE TRUSTS IN PUNJAB HAVE APPLIED R EGISTRATION U/S 12A. DURING THE PENDENCY OF REGISTRATION APPLICATION, TH E AO FRAMED THE ASSESSMENT OF THE ASSESSEE TRUST FOR THE ASSTT. YEA RS 2005-06 & 2006-07 ONLY AND MADE HUGE ADDITIONS OF RS.4.06 CRORE AND RS.11. 05 CRORE. 3. THE LD. COUNSEL FOR THE ASSESSEE, SH. S.K. BANSA L, CONTENDED THAT THE ASSESSEE-APPELLANT WAS GRANTED REGISTRATION UNDER S ECTION 12AA OF THE ACT VIDE ORDER DATED 13.08.2010. HE VEHEMENTLY CONTENDE D THAT ON THE DATE OF PASSING ASSESSMENT ORDER AND THE APPELLATE ORDER, T HERE WAS NO EXISTENCE OF THIS REGISTRATION OR GRANTED BY THE CIT. ACCORDING LY, THE ASSESSMENT ORDER DATED 19.03.2008 WAS FRAMED, AS IF, THERE WAS NO RE GISTRATION IN THE ASSESSEES CASE. SIMILARLY, THE LD. CIT(A), VIDE OR DER DATED 04.02.2010 CONFIRMED THE FINDINGS OF THE A.O. ON THE GROUND O F NON-AVAILABILITY OF REGISTRATION TO THE ASSESSEE UNDER SECTION 12AA OF THE ACT. THE LD. COUNSEL FOR THE ASSESSEE, PLEADED AND PRAYED THAT THE ISSUE MAY BE RESTORED TO THE FILE OF THE A.O. HAVING REGARD TO THE FACTUM OF GRANT O F REGISTRATION ON 16.08.2010 I.E. AFTER THE DATE OF ASSESSMENT ORDER AS WELL AS THE APPELLATE ORDER. 4. THE LD. DR, DID NOT RAISE ANY SERIOUS OBJECTIO N TO THE SUBMISSIONS OF THE ASSESSEE. 3 5. WE HAVE HEARD BOTH THE PARTIES, CONSIDERED THE RIVAL SUBMISSIONS AND OTHER RELEVANT MATERIAL PLACED ON RECORD. A REFERE NCE TO DOCUMENTARY EVIDENCES FILED BY THE LD. COUNSEL FOR THE ASSESSEE , CLEARLY REVEALS THAT THE ASSESSMENT ORDER WAS FRAMED ON 19.03.2008. SIMILARL Y, THE APPEAL OF THE AGAINST SUCH ORDER, WAS DECIDED BY THE CIT(A) ON 04 .02.2010. THE DATE OF THE ASSESSMENT ORDER AS WELL AS THE DATE OF THE APP ELLATE ORDER PRECEDES THE DATE OF REGISTRATION UNDER SECTION 12AA, GRANTED B Y THE CIT(A) ON 16.08.2010. THEREFORE, IT WOULD BE IN THE FITNESS O F THE FACTUAL POSITION OF THE CASE, AND IN THE LIGHT OF GRANT OF REGISTRATION TO THE ASSESSEE , THE ISSUE IS RESTORED TO THE FILE OF THE CIT(A), FOR FRESH ADJUD ICATION, IN ACCORDANCE WITH LAW, AFTER AFFORDING A REASONABLE OPPORTUNITY TO TH E ASSESSEE. 6. IN THE RESULT, BOTH THE APPEALS FILED BY THE ASS ESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. DECISION PRONOUNCED IN THE OPEN COURT ON 13 TH JUNE, 2011. SD/- SD/- (H.L. KARWA) (MEHAR SINGH) VICE PRESIDENT ACCOUNTANT MEMBER DATED 13 TH JUNE, 2011 /SKR/ COPY OF THE ORDER IS FORWARDED TO : 1. THE ASSESSEE: IMPROVEMENT TRUST, BHATINDA. 2. THE ACIT, CIR.1, BHATINDA. 3. THE CIT(A), BHATINDA. 4. THE CIT, BHATINDA. 5. THE SR DR, ASR. TRUE COPY