ITO (E), New Delhi V. Bureau of Indian Standards, New Delhi

ITA 2174/DEL/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 90939 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-04-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 15-04-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 12-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A MISHRA
• Assessee Lawyers: LALITHA KRISHNAMURTHY
• Keywords: Benefit of exemption
• Section: 143(3); 12A; 12; 10; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH A : NEW DELHI) BEFORE SHRI GEORGE GEORGE K, JUDICIAL MEMBER AND SHRI I.R. RAO, ACCOUNTANT MEMBER ITA NO.2174/DEL./2013 (ASSESSMENT YEAR : 2009-10) ITO (E), TRUST WARD III, VS. BUREAU OF INDIAN STA NDARDS, NEW DELHI. MANAK BHAWAN, 9, BAHADUR SHAH ZAFAR MARG, NEW DELHI 110 002. (PAN : AAATB0431G) (APPELLANT) (RESPONDENT) ASSESSEE BY : SMT. LALITHA KRISHNAMURTHY, CA REVENUE BY : SMT. A. MISHRA, CIT DR DATE OF HEARING : 15.04.2015 DATE OF PRONOUNCEMENT : .04.2015 O R D E R PER GEORGE GEORGE K., JM : THIS APPEAL, AT THE INSTANCE OF THE REVENUE, IS DIR ECTED AGAINST THE ORDER OF THE CIT (A)-XXI, NEW DELHI DATED 30.01.201 3. THE RELEVANT ASSESSMENT YEAR IS 2009-10. 2. THE ASSESSEE WAS REGISTERED U/S 12A VIDE ORDER D ATED 15.01.1976 ISSUED BY THE DEPARTMENT. THE ASSESSEE WAS ALSO AC CORDED EXEMPTION U/S 10(23C)(IV) BY THE DIRECTOR GENERAL OF INCOME-TAX ( EXEMPTIONS) VIDE ORDER NO.167 DATED 30.04.2008/02.05.2008 FOR THE AS SESSMENT YEAR 2007- ITA NO.2174/DEL./2013 2 08 AND ONWARDS. THE MAIN THRUST OF BUREAU OF INDIA N STANDARDS IS TOWARDS BUILDING A QUALITY CULTURE AND CONSCIOUSNESS AMONGS T CONSUMERS WITH FORMULATION AND IMPLEMENTATION OF NATIONAL STANDARD S. 3. THE ASSESSING OFFICER, IN THE COURSE OF ASSESSME NT PROCEEDINGS, OBSERVED THAT THE ASSESSEE IS NEITHER IN THE FIELD OF EDUCATION NOR IN THE FIELD OF MEDICAL RELIEF OR RELIEF OF POOR AND ALSO OBSERVED THAT THE ASSESSEE CANNOT BE CONSIDERED FOR THE BENEFIT OF EXEMPTION U /S 10(23C)(IV) AND U/S 11 & 12 OF THE INCOME-TAX ACT, 1961 (FOR SHORT, THE ACT) AFTER VERIFYING THE APPLICABILITY OF THE PROVISO TO SECTION 2(15) OF TH E ACT SINCE ITS ACTIVITIES ARE FALLING WITHIN THE SCOPE OF GENERAL PUBLIC UTI LITY. 4. THE AO, ON THE BASIS OF OBSERVATIONS MADE IN ASS ESSMENT ORDER AND AMENDED PROVISION OF LAW W.E.F. AY. 2009-10, MADE A PROPOSAL FOR RECONSIDERATION OF EXEMPTION ACCORDED U/S 10(23C)(I V) AND THE SAME WAS FORWARDED TO DGIT (E) UNDER CLAUSE (I) OF THE FIRST PROVISO TO SECTION 143(3) OF THE ACT. IN THE MEANWHILE, THE AO KEPT TH E PROCEEDINGS IN ABEYANCE TILL THE ORDER OF THE DGIT(E). THE DGIT (E ) VIDE ORDER DATED 24.02.2012 WITHDREW THE 10(23C)(IV) EXEMPTION W.E.F . AY 2009-10 AND ONWARDS. THEREFORE, THE AO COMPLETED THE ASSESSMENT ON 19.04.2012 AND ASSESSED THE INCOME AT RS.71,96,90,352/-. 5. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFO RE THE FIRST APPELLATE AUTHORITY. DURING THE COURSE OF APPELLAT E PROCEEDINGS, THE ASSESSEE SUBMITTED THAT THE ASSESSEE WENT IN APPEAL BEFORE THE HONBLE ITA NO.2174/DEL./2013 3 DELHI HIGH COURT AGAINST THE ORDER OF THE DGIT (E) DATED 24.02.2012 AND THE HONBLE HIGH COURT HAS ALLOWED THE APPEAL IN FA VOUR OF THE ASSESSEE AND DIRECTED TO ALLOW EXEMPTION U/S 10(23) OF THE A CT. IT IS SUBMITTED BY THE ASSESSEE THAT IN COMPLIANCE OF THE ORDER OF THE HONBLE HIGH COURT, THE DGIT (E), NEW DELHI VIDE ORDER DATED 04.12.2012 HAS ALLOWED THE EXEMPTION U/S 10 (23) OF THE ACT. THE CIT (A), AF TER PERUSING THE ORDER OF THE HONBLE DELHI HIGH COURT AND THE ORDER OF DGIT (E) DATED 04.12.2012, HELD THAT THE ASSESSEE IS NOT A COMMERC IAL ORGANIZATION AND IT IS NOT HIT BY NEWLY AMENDED PROVISION TO SECTION 2( 15) APPLICABLE FROM AY 2009-10 AND ALSO HELD THAT THE ASSESSEE DESERVED TH E EXEMPTION U/S 11/12 OF THE ACT. 7. THE REVENUE BEING AGGRIEVED IS IN APPEAL BEFORE US BY TAKING THE FOLLOWING GROUNDS :- 1. 'ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN HOLDING THAT TH E ACTIVITIES OF THE ASSESSEE ARE CHARITABLE IN NATURE AND NOT IN THE NATURE OF TRADE, BUSINESS OR COMMERCE PARTICULARLY WHEN TH E RECEIPTS OF THE ASSESSEE ARE FROM SALES/SERVICES, FEES/SUBSC RIPTION, ROYALTY & PUBLICATION AND OTHER INCOME. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LD.CIT(A) HAS FAILED TO APPRECIATE THE FACT THAT THE EXEMPTION WAS DENIED TO THE ASSESSEE ON THE BASIS O F THE TDS CERTIFICATES FILED, WHICH REFLECTS THAT THESE ARE R ECEIVED FROM THE DIFFERENT PARTIES AND OF THE NATURE OF FEES FRO M PROFESSIONAL/TECHNICAL SERVICES/CONTRACTUAL RECEIPT S ARE COMMERCIAL IN NATURE AND THE ACTIVITIES OF THE ASSE SSEE IS COVERED BY THE AMENDED PROVISO TO SECTION 2(15) OF THE ACT. ITA NO.2174/DEL./2013 4 9. WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. THE CONTROVERSY IN THIS CASE ARISES WHEN THE ASSESS ING OFFICER FORWARDED A PROPOSAL FOR RECONSIDERATION OF EXEMPTION ACCORDED U/S 10(23)(IV) TO THE DGIT (E) AND THE DGIT (E) VIDE ORDER DATED 24.02.20 12 HAS WITHDRAWN THE 10(23C)(IV) EXEMPTION W.E.F. AY 2009-10 AND ONW ARDS. ACCORDINGLY, THE ASSESSING OFFICER ASSESSED THE INCOME VIDE ORDE R DATED 18.04.2012 U/S 143(3) R.W.S. 153(4)(IIA) OF THE ACT. THE ASSESSEE WENT IN WRIT PETITION BEFORE THE HONBLE JURISDICTIONAL HIGH COURT AGAINS T THE ORDER OF THE DGIT (E) DATED 24.02.2012 AND THE HONBLE HIGH COURT HAS ALLOWED THE WRIT PETITION OF THE ASSESSEE VIDE JUDGMENT DATED 26.09. 2012 ALLOWING EXEMPTION U/S 10(23) OF THE ACT. IN VIEW OF THE JU DGMENT OF HONBLE HIGH COURT, THE ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER ON THIS ISSUE DOES NOT SURVIVE. THE ORDER OF THE CIT (A) BEING I N CONFORMITY WITH THE ORDER OF THE HONBLE HIGH COURT, WE SEE NO REASON T O INTERFERE WITH THE ORDER OF THE CIT (A) AND THE SAME IS UPHELD. IT IS ORDERED ACCORDINGLY. 10. IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS MISSED. ORDER PRONOUNCED IN OPEN COURT ON THIS 17 TH DAY OF APRIL, 2015. SD/- SD/- (I.R. RAO) (GEORGE GEORGE K.) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED THE 17 TH DAY OF APRIL, 2015 TS ITA NO.2174/DEL./2013 5 COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A)-XXI, NEW DELHI 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.