Andhra Pradesh State Certification Authority(Formerly Andhra Pradesh State Seed Certification Agency), Guntur V. The Deputy Commissioner of Income Tax(Exemptions), , Vijayawada

ITA 215/VIZ/2020

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 4363 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 year(s) 5 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-04-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2016-2017
• Appeal Filed On: 28-10-2020
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Charitable institution
• Section: 11; 142(1); 12A; 143(2)

Judgement Text

आयकरअपीऱीयअधिकरण, विशाखापटणम पीठ, विशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM श्री द ु व्ि ू रु आर एऱ रेड्डी, न्याययक सदस्य एिं श्री एस बाऱाक ृ ष्णन, ऱेखा सदस्य के समक्ष BEFORE SHRI DUVVURU RL REDDY, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकर अऩीऱ सं./I.T.A.No.215/Viz/2020 (ननधधारण वषा / Assessment Year : 2016-17) Andhra Pradesh State Seed Certification Authority R.A.R.S(Premises) ANGRAU LAMFARM Guntur [PAN : AAATA4858L] Vs. Dy.Commissioner of Income Tax (Exemptions) Vijayawada (अपीऱार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अऩीऱधथी की ओर से/ Appellant by : None प्रत्यधथी की ओर से / Respondent by : Shri SPG Mudaliar, DR स ु नवधई की तधरीख / Date of Hearing : 17.03.2022 घोषणध की तधरीख/Date of Pronouncement : 19.04.2022 O R D E R Per Shri Balakrishnan S, Accountant Member This appeal is filed by the assessee against the order of the Commissioner of Income Tax (Appeals)-2 [in short, “CIT(A)”], Guntur, in ITA No.10109/GNT/CIT(A)-2/2018-19 dated 10.02.2020 for the Assessment Year (A.Y.) 2016-17. 2 ITA No.215/Viz/2020, A.Y.2016-17 Andhra Pradesh State Seed Certification Authority, Guntur 2. Brief facts of the case are that the assessee is a seed certifying agency in the state of Andhra Pradesh, filed it’s return of income for the A.Y.2016- 17 admitting ‘Nil’ income after claiming exemption u/s 11 of the Income Tax Act, 1961 (in short ‘Act’). The case was selected for scrutiny under CASS and statutory notices u/s 143(2) and 142(1) along with questionnaire were issued and served on the assessee. In response to the notices, the assessee filed information electronically. The assessee was created as a Government Society and registered under the Andhra Pradesh (Telangana Area) Public Societies Registration Act, vide Registration No.334 of 1976 dated 22.04.1976. The main objective of the society is to maintain and make available to public, through certification, high quality seeds of notified kinds and varieties to ensure genetic identity and genetic purity. The assessee has also obtained registration u/s 12A of the Act vide order in F.No.Hqrs.1/173s/12A/DIT(E) dated 01.01.2014, however, the registration was cancelled by the DIT(E), Hyderabad vide order in F.No.DIT(E)/Hyd/12AA(3)/12-13 dated 30.04.2012 w.e.f. 01.04.2009. The AO, therefore, rejected the claim made by the assessee u/s 11 of the Act. 3. Aggrieved by the order of the Ld.AO, the assessee preferred an appeal before the Ld.CIT(A), Guntur. The Ld.CIT(A), after considering the submissions made by the assessee concluded as under : 3 ITA No.215/Viz/2020, A.Y.2016-17 Andhra Pradesh State Seed Certification Authority, Guntur “As per the DIT(E), Hyderabad order in F.No.DIT(E)/ Hyd/12AA(3)/12-13 dated 30.04.2012, it was held that the assessee society lost its character as a charitable organisation within the meaning of section 2(15) and also found to be not carrying out the activities as per the objectives of the assessee society. The Hon’ble ITAT, Visakhapatnam also confirmed the action of the DIT(E), Hyderabad cancelling the registration given u/s 12A of the I.T.Act. The writ petition filed by the assessee society was dismissed by the Hon’ble A.P. High Court vide writ petition No.31640 of 2011 dated 17.12.2012 with the finding that the DIT(E), Hyderabad has rightly rejected the application of the petitioner for approval u/s 10(23C)(vi) of the I.T.Act on the ground that the petitioner has not rendered its services directly to the farmers but is rendering its services directly to its clients / agents who are engaged in the trading of the certified seeds with profit motive and therefore, its activities are not for the advancement of any other object or general public utility and hence not for the charitable purpose in view of the second limb of the first proviso to section 2(15) of the I.T.Act.” 4. Aggrieved by the order of the Ld.CIT(A), the assessee is in appeal before us. None appeared for the assessee inspite of several opportunities provided to the assessee. 5. The Ld.DR relied on the decision of the Ld.CIT(A). 6. We have considered the submissions made by the Ld.DR. We find that the assessee, inspite of several opportunities provided has failed to appear and pursue the case. We, therefore, note that the assessee is not interested in pursuing the case before the Tribunal. In view of the above, we find no infirmity in the order of the Ld.CIT(A) and no interference is required. 7. In the result, appeal of the assessee is dismissed. 4 ITA No.215/Viz/2020, A.Y.2016-17 Andhra Pradesh State Seed Certification Authority, Guntur Order Pronounced in open Court on 19 th April, 2022. Sd/- Sd/- (द ु व्ि ू रु आर.एऱ रेड्डी) (एस बाऱाक ृ ष्णन) (DUVVURU RL REDDY) (S.BALAKRISHNAN) न्याययकसदस्य/JUDICIAL MEMBER ऱेखा सदस्य/ACCOUNTANT MEMBER Dated : 19.04.2022 L.Rama, SPS आदेश की प्रतितिति अग्रेतिि/Copy of the order forwarded to:- 1. ननधधाररती/ The Assessee– Andhra Pradesh State Seed Certification Authority, R.A.R.S(Premises), ANGRAU LAMFARM, Guntur 2. रधजस्व/The Revenue – Dy.Commissioner of Income Tax (Exemptions) Vijayawada 3. प्रधान आयकर आय ु क्त The Principal Commissioner of Income Tax, Vijayawada 4. आयकर आय ु क्त (अऩीऱ)/ The Commissioner of Income Tax (Appeals)-2, Guntur 5. ववभधगीय प्रनतननधध, आयकर अऩीऱीय अधधकरण, ववशधखधऩटणम/ DR,ITAT, Visakhapatnam 6.गधर्ा फ़धईऱ / Guard file आदेशधन ु सधर / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam