Sports Authority of India, New Delhi V. ITO(E), New Delhi

ITA 2223/DEL/2009

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 7499 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-08-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 12-08-2010
• Assessment Year: 2002-2003
• Appeal Filed On: 25-05-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJNI KANT GUPTA
• Assessee Lawyers: YK KAPUR
• Keywords: Reasonable cause; Condonation of delay
• Section: 12A; 12AA; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH F NEW DELHI) BEFORE SHRI C.L. SETHI, JUDICIAL MEMBER AND SHRI K. G. BANSAL, ACCOUNTANT MEMBER ITA. NO.2223, 2224, 3145 & 3146/D/2009 ASSESSMENT YEARS: 2002-03 TO 2005-06 SPORTS AUTHORITY OF INDIA, VS. INCOME TAX OFFICER (E), JAWAHAR LAL NEHRU STADIUM, TRUST WARD-II, LODHI ROAD, NEW DELHI NEW DELHI PAN NO.AACTS-4979 L (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI Y.K. KAPUR, ADVOCATE RESPONDENT BY : SHRI RAJNI KANT GUPTA, CIT-DR ORDER PER BENCH: IN ALL THESE YEARS, THE ASSESSMENT ORDERS WERE FRAM ED ON THE BASIS THAT THE ASSESSEE IS NOT REGISTERED U/S 12A O R 12AA OF THE INCOME-TAX ACT, 1961. THE APPEALS WERE ALSO DECIDE D ON THE SAME BASIS. THUS, IT WAS HELD THAT THE ASSESSEE IS NOT ENTITLED TO DEDUCTION U/S 11 OF THE ACT. 2. THE LIMITED CASE IS MADE OUT BY THE LEARNED COUN SEL FOR THE ASSESSEE IS THAT THE ASSESSEE HAS BEEN GRANTED REGI STRATION BY H BENCH OF NEW DELHI TRIBUNAL IN THE CONSOLIDATED ORD ER PASSED IN I.T.A. NOS.263 & 1587/D/08 FOR ASSESSMENT YEAR 2000 -01 DATED 15.04.2010, A COPY OF WHICH HAS BEEN PLACED BEFORE US. THE REGISTRATION HAS BEEN GRANTED U/S 12AA W.E.F. ASSES SMENT YEAR 2 2000-01 BY CONDONATION OF DELAY. THEREFORE, ALL THE ASSESSMENTS HAVE TO BE MADE AFRESH BY TAKING INTO ACCOUNT THIS ORDER GRANTING REGISTRATION TO THE ASSESSEE. THE LEARNED DR FAIRL Y SUBMITTED THAT THE FACTS STATED BY THE LEARNED COUNSEL ARE CORRECT AND IN VIEW THEREOF FRESH ASSESSMENTS WILL HAVE TO BE MADE FOR ALL THES E YEARS BY TAKING INTO ACCOUNT THE PROVISIONS CONTAINED IN SECTIONS 1 1 TO 13 OF THE ACT. 3. WE HAVE CONSIDERED THE FACTS OF THE CASE AND SUB MISSIONS MADE BEFORE US. IT IS A MATTER OF FACT ON RECORD T HAT THE ASSESSEE WAS GRANTED REGISTRATION BY THE TRIBUNAL U/S 12AA W .E.F. ASSESSMENT YEAR 2000-01. THE FINDINGS OF THE TRIBUNAL ARE CO NTAINED IN PARAGRAPH 6 OF THE ORDER, WHICH IS REPRODUCED BELOW :- WE HAVE HEARD BOTH THE COUNSEL AND PERUSED THE REC ORD. WE FIND THAT REASONABLE CAUSE ATTRIBUTABLE FOR DELA Y IN THIS REGARD IS THAT THE ASSESSEE HAD APPLIED FOR EX EMPTION U/S 10(33) FOR ASSESSMENT YEARS 1995-96 TO 2002-03. THE ASSESSEE HAD ALSO BEEN REMINDING THE DIRECTOR GENERAL ALSO IN THIS REGARD TO GRANT THE EXEMPTION. THE LAW WAS AMENDED WITH EFFECT FROM 01.04.2003 OMITTIN G SECTION 10(23) BY FINANCE ACT, 2002. HENCE, PRIOR TO AMENDMENT OMITTING THE SECTION 10(23) THE ASSESSEE HAD NO IDEA EVEN TO SEEK REGISTRATION UNDER SECTION 12A OF THE ACT. THE ASSESSEE WAS PURSUING THE APPLICATION FOR GRANT OF EXEMPTION U/S 10(23) OF THE ACT. IN OUR CONSIDER ED OPINION, THE ABOVE IS SUFFICIENT CAUSE WARRANTING CONDONATION OF DELAY IN FILING FOR REGISTRATION. A S REGARDS THE PERIOD OF DELAY LEANED COUNSEL OF THE ASSESSEE FAIRLY AGREED THAT NO PURPOSE WILL BE SERVED IN GRANTING T HE EXEMPTION FROM ASSESSMENT YEAR 1985-86. THE ASSESSEES PURPOSE WOULD BE SERVED IF THE DELAY IS CONDONED AND REGISTRATION IS GRANTED FROM ASSESSMEN T YEAR 2000-01. ACCORDINGLY, CONSIDERING THE AFORES AID DISCUSSION AND ALSO KEEPING IN VIEW THE JURISDICTIO NAL HIGH COURTS OBSERVATION, WE DIRECT FOR CONDONATION OF D ELAY 3 AND GRANT OF REGISTRATION U/S 12AA W.E.F. ASSESSMEN T YEAR 2000-01. ALL THE APPEALS PENDING BEFORE US PERTAIN TO YEARS SUBSEQUENT TO ASSESSMENT YEAR 2000-01. THEREFORE, THE ASSESSM ENTS WILL HAVE TO BE MADE AFRESH ON THE FOOTING THAT THE ASSESSEE HAS BEEN REGISTERED BY THE DIT(E), NEW DELHI. THEREFORE, WE RESTORE ALL THE ASSESSMENTS TO THE FILE OF THE ASSESSING OFFICER WI THOUT MAKING ANY COMMENT WHATSOEVER ON MERITS OF THE GROUNDS OF APPE AL. 4. IN RESULT, ALL THE APPEALS ARE TREATED AS ALLOWE D FOR STATISTICAL PURPOSES. THIS ORDER WAS PRONOUNCED IN OPEN COURT ON 12.08.20 10. SD/- SD/- ( C.L. SETHI ) ( K.G. BANSA L ) JUDICIAL MEMBER ACCOUNTANT ME MBER DT.12.08.2010. NS COPY FORWARDED TO:- 1. SPORTS AUTHORITY OF INDIA, JAWAHAR LAL NEHRU STA DIUM, LODHI ROAD, NEW DELHI. 2. THE INCOME TAX OFFICER, TRUST WARD-II, NEW DELHI . 3. THE CIT 4. THE CIT (A), NEW DELHI. 5. THE DR, ITAT, LOKNAYAK BHAWAN, KHAN MARKET, NEW DELHI. TRUE COPY BY ORDER (ITAT, NEW DELHI).