Bargachia Cluster of Metal Product Manufacturers, Howrah V. DDIT (E-I), HQRS., KOLKATA, Kolkata

ITA 2191/KOL/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 54587 (ITAT-KOLKATA)
• Duration Of Justice: 10 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-10-2011
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 10-12-2010
• Court: TRIBUNAL
• Department Lawyers: K R MONDAL
• Assessee Lawyers: I BAN ERJEE
• Keywords: Opportunity of being heard
• Section: 12AA

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL, BEN CH A, KOLKATA () BEFORE , ,, , , SHRI MAHAVIR SINGH, JUDICIAL MEMBER. /AND . .. . ! ! ! !. .. . , '# SHRI C.D.RAO, ACCOUNTANT MEMBER $ $ $ $ / ITA NO . 2191/KOL/2010 %& '(/ ASSESSMENT YEAR : (*+ / APPELLANT ) BARGACHIA CLUSTER OF METAL PRODUCT MANUFACTURERS, HOWRAH (PAN:AAECB 0627 K ) - % - - VERSUS - . (-.*+/ RESPONDENT ) D.D.I.T., (EXEMPTION- I),HQRS. KOLKATA *+ / 0 '/ FOR THE APPELLANT: SHRI I.BANERJEE -.*+ / 0 '/ FOR THE RESPONDENT: SHRI K.R.MONDAL 1%2 / !# /DATE OF HEARING : 17.10.2011. 3' / !# /DATE OF PRONOUNCEMENT : 17.10.2011 '4 / ORDER ( (( ( . .. . ! ! ! !. .. . ) )) ), , , , '# PER SHRI C.D.RAO, AM THIS APPEAL IS FILED BY ASSESSEE AGAINST THE ORDER DATED 22.09.2010 OF THE LD. D.I.T. (EXEMPTION), KOLKATA. 2. THE ONLY ISSUE RAISED BY ASSESSEE IN THIS APPEA L IS RELATING TO REJECTION OF REGISTRATION U/S 12AA OF THE IT ACT. 3. AT THE TIME OF HEARING THE LD. COUNSEL APPEARIN G ON BEHALF OF ASSESSEE HAS SUBMITTED THAT THE LD.D.I.T(EXEMPTION), KOLKATA IS NOT JUSTIFIED IN REJECTING THE APPLICATION FOR RECOGNITION U/S 12AA BASED ON ARBIT RARY, SUPERFICIAL AND CONTRARY INTERPRETATION OF THE CONTENTS OF THE APPLICATION A S WELL AS THE OBJECTS OF THE ASSESSEE AS WELL PREVAILING PROVISIONS OF SECTION 2(15) OF THE IT ACT, 1961. HE FURTHER SUBMITTED THAT THE LD. DIT(EXEMPTION), KOLKATA HAS NOT APPREC IATED THE ACTIVITIES TO BE ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY COMPRISED IN SECTI ON 2(15) AS WELL AS THE IMMUNITY 2 GRANTED IN THIS BEHALF BY THE SECOND PROVISO THERET O, INTRODUCED BY FINANACE ACT, 2010 WITH EFFECT FROM 1.04.2009. THEREFORE HE REQUESTED TO SET ASIDE THE ORDER OF THE LD. DIT(EXEMPTION), KOLKATA AND DIRECT THE DIT (EXEMPTI ON), KOLKATA TO GRANT THE REGISTRATION U/S 12AA OF THE IT ACT. 4. ON THE OTHER HAND, THE LD. DR APPEARING ON BEHAL F OF THE REVENUE HAS RELIED ON THE ORDER OF THE LD. D.I.T. (EXEMPTION), KOLKATA. 5. AFTER HEARING THE RIVAL SUBMISSIONS AND ON CAREF UL PERUSAL OF MATERIAL AVAILABLE ON RECORD, THE RELEVANT OBSERVATIONS OF THE LD. DIT (EXEMPTION), KOLKATA ARE AS UNDER :- . IT IS ALSO SEEN FROM THE PAPERS THAT THE COMPANY W AS CREATED BY THE METAL PRODUCTS MANUFACTURERS WITH AN OBJECT TO PROMOTE, FORM, ESTA BLISH AND RUN A CLUSTER OF METAL PRODUCTS. HOWEVER, ANY ACTIVITIES DONE FOR THE DEVE LOPMENT OF THIS CLUSTER IS FOR THE BENEFIT OF THE METAL PRODUCTS MANUFACTURERS ONLY. T HE ACTIVITIES OF COMPANY WILL BE ONLY FOR CONVENIENCE AND BENEFIT FOR THE MANUFACTUR ERS BUSINESS. THE RETURN OF COMPANY WILL BENEFIT ONLY MEMBER MANUFACTURERS. IT IS ALSO SEEN THAT ANY AID OR GRANT RECEIVED IN THE NAME OF THIS INSTITUTION IS RELATED WITH THE MUTUAL BENEFIT OF THE CLAUSE MANUFACTURERS ONLY AND NOT FOR THE GENERAL PUBLIC A T LARGE. THESE ACTIVITIES ARE IN NATURE OF TRADE, COMMERCE AND BUSINESS WITH PRINCIP LE OF MUTUALITY WHICH DOES NOT QUALIFY THE PROVISO OF SECTION 2(15) OF THE I.T.ACT 61. 5.1. KEEPING IN VIEW OF THE ABOVE ARGUMENTS PUT FOR TH BY THE LD. COUNSEL FOR ASSESSEE WE ARE OF THE VIEW THAT ORDER PASSED BY TH E LD. DIT(EXEMPTION), KOLKATA IS NOT IN ACCORDANCE WITH LAW. THEREFORE WE SET ASIDE THE MATTER TO THE LD. D.I.T.(EXEMPTION),. KOLKATA TO PASS A SPEAKING ORDE R IN ACCORDANCE WITH LAW AFTER GIVING A REASONABLE OPPORTUNITY OF BEING HEARD TO A SSESSEE. 6. IN THE RESULT THE APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 17.10.2011. SD/- SD/- , , , , MAHAVIR SINGH, JUDICIAL MEMBER . .. . ! ! ! !. .. . , , , , '# '# '# '# , C.D.RAO, ACCOUNTANT MEMBER. ( (( (!# !# !# !#) )) ) DATE: 17.10.2011. R.G.(.P.S.) 3 '4 / -5 6'5'7- COPY OF THE ORDER FORWARDED TO: 1. BARGACHIA CLUSTER OF METAL PRODUCT MANUFACTURERS, C /O BARGACHIA CENTRAL LOCK FACTORY, BARGACHIA, HOWRAH-711404. 2 THE D.I.T. (EXEMPTION), KOLKATA . 3. THE CIT, 4. THE CIT(A)- 5. DR, KOLKATA BENCHES, KOLKATA .5 -/ TRUE COPY, '4%1/ BY ORDER, DEPUTY /ASST. REGISTRAR , ITAT, KOLKATA BENCHES