Jhansi Development Authority, Jhansi V. Dy. C.I.T., Range-6, Jhansi

ITA 232/AGR/2013

• Counselvise Citation: 23220314 RSA 2013
• Duration Of Justice: 1 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-08-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 14-08-2013
• Assessment Year: 2004-2005
• Appeal Filed On: 26-06-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: R K AGARWAL; RAHUL AGARWAL S
• Keywords: Charitable institution; Retrospective amendment
• Section: 143(3); 12AA; 10B; 12; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI A.L. GEHLOT, ACCOUNTANT MEMBER ITA NOS. 232 /AGRA/ 2013 ASSESSMENT YEARS 2004-2005 JHANSI DEVELOPMENT AUTHORITY VS. DY. COMMISSIONER OF I. TAX OPP. COMMISSIONERY CAMPUS RANGE-6, JHANSI. JHANSI (PAN AAALJ 0068 K) ITA NOS. 238 /AGRA/ 2013 ASSESSMENT YEARS 2004-2005 INCOME TAX OFFICER-6(1), VS. JHANSI DEVELOPMENT AUTHORITY JHANSHI VIKAS BHAVAN, JHANSI. (PAN ABUPS 8611G) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI R.K. AGARWAL & SHRI RAHUL AGARWAL, ADVOCATES RESPONDENT BY : SHRI WASEEM ARSHAD, SR. D.R. DATE OF HEARING : 14.08.2013 DATE OF PRONOUNCEMENT : 23.08.2013 ORDER PER A.L. GEHLOT,ACCOUNTANT MEMBER: THESE CROSS APPEALS HAVE BEEN FILED BY THE ASSESSE E AND REVENUE AGAINST THE ORDER DATED 28.02.2013 PASSED BY THE LE ARNED CIT(A)-I, AGRA FOR A.Y. 2004-05. 2. THE EFFECTIVE GROUNDS RAISED IN THESE APPEALS A RE REPRODUCED AS BELOW:- ITA NOS.232 /AGRA/2013 238/AGRA/2013, A.YS. 2004-05 2 ITA NO. 232/AGRA/2013 BY THE ASSESSEE:- 1. BECAUSE ON THE FACTS AND CIRCUMSTANCES OF THE C ASE, THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-1, AGRA HEREIN AFTER REFERRED TO AS CIT(A)-1, AGRA ERRED BOTH IN LAW AND ON FACTS IN REJECTING THE ADDITIONAL GROUND RAISED BY THE APPEL LANT. HE FAILED TO APPRECIATE THE LEGALITY OF THE ORDER DT. 21.10.2 010 PASSED BY THE LD. COMMISSIONER OF INCOME TAX (II), AGRA GRANT ING REGISTRATION W.E.F. 01.04.2003. IN DOING SO, THE LD . CIT(A)-1, AGRA HAS FURTHER IGNORED VARIOUS JUDICIAL DECISIONS . 2. BECAUSE ON THE FACTS AND CIRCUMSTANCES OF THE CA SE, THE LD. CIT (A)-1, AGRA ERRED BOTH IN LAW AND ON FACTS IN SUSTA INING AN ADDITION OF RS.11,39,756/-. HE FAILED TO APPRECIATE THAT THE APPELLANT IS ADMITTEDLY, NOT DOING ANY BUSINESS AND AS SUCH THE ESTIMATE OF INCOME IS WHOLLY ILLEGAL. 3. BECAUSE THE APPELLANT CRAVES LEAVE TO ALTER/MODI FY GROUNDS BEFORE OR AT THE TIME OF HEARING OF THE APPEAL. ITA NO. 238/AGRA/2013 BY THE REVENUE:- 1. THE LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN LAW AND ON FACTS IN ALLOWING RELIEF OF RS.31,53,210/- I GNORING THE FACT THAT THE ASSESSEE ITSELF HAD DECLARED 10% PROFIT ON THE AMOUNT OF WORK SALES AND REGISTRATION MONEY RECEIVED WHILE WO RKING INCOME/LOSS FOR A.Y. 2003-04. 2. THE LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN LAW AND ON FACTS IN ALLOWING RELIEF OF RS.31,53,210/- I GNORING THE FACT THAT THE ASSESSEE HAD CONTINUED TO FOLLOW THE MERCA NTILE SYSTEM OF ACCOUNTING AS IN PRECEDING YEARS. 3. THE LD. COMMISSIONER OF INCOME TAX (APPEALS) BEI NG ERRONEOUS IN LAW AND ON FACTS DESERVES TO BE QUASHED AND THAT OF THE ASSESSING OFFICER DESERVES TO BE RESTORED. 4. THAT THE APPELLANT CRAVES LEAVE TO ADD OF ALTER ANY OR MORE GROUND OR GROUND OF APPEAL AS MAY BE DEEMED FIT AT THE TIME OF HEARING OF APPEAL. ITA NOS.232 /AGRA/2013 238/AGRA/2013, A.YS. 2004-05 3 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E FILED RETURN OF INCOME ON 27.05.2005 DECLARING AN INCOME OF RS.54,06,320/- IN THE STATUS OF LOCAL AUTHORITY. THE ASSESSEE BEING A DEVELOPMENT AUTHORI TY WAS EARLIER CLAIMING EXEMPTION UNDER SECTION 10(20A) OF THE ACT. HOWEVER , AFTER OMISSION OF THE SAID SECTION BY THE FINANCE ACT, 2002 W.E.F. 01.04. 2003 WHEREIN TAKEN AWAY THE GENERAL EXEMPTION GRANTED TO SUCH AUTHORITY. TH E A.O. WHILE MAKING ASSESSMENT UNDER SECTION 143(3) OF THE ACT, MADE AD DITION OF RS.42,92,966/- ON ACCOUNT OF PROFIT EARNED BY THE ASSESSEE-JHANSI DEVELOPMENT AUTHORITY OF PROJECT DEVELOPMENT WORK OF HOUSING ACCOMMODATION F OR THE PUBLIC. APART FROM THE ADDITION OF RS.42,92,966/-, THE A.O. MADE ADDITION OF RS.2,22,522/- DISALLOWING EXPENDITURE ON PROJECT DEVELOPMENT OF SARANDHARA NAGAR. THE A.O. COMPLETED ASSESSMENT ON TOTAL INCOME OF RS.99, 21.810/- AS AGAINST INCOME OF RS.54,06,320/- DECLARED BY THE ASSESSEE. THAT IT IS A CASE OF MULTI ROUND OF LITIGATION. ON EARLIER ROUND OF LITIGATION THE ASSESSEE FILED APPEAL AGAINST THE ORDER OF A.O. PASSED UNDER SECTION 143( 3) OF THE ACT BEFORE CIT(A). THE CIT(A) VIDE ORDER DATED 31.01.2011 DECI DED THE APPEAL. THE ASSESSEE FILED APPEAL BEFORE I.T.A.T., AGRA BENCH. I.T.A.T., AGRA BENCH VIDE ORDERS DATED 23.11.2012 AND 09.08.2012 ON APPEAL FI LED BY THE ASSESSEE AS WELL AS REVENUE, HAS SET ASIDE THE ORDER OF THE CIT (A) AND DIRECTED CIT(A) TO CONSIDER THE ADDITIONAL GROUND TAKEN BY THE ASSESSE E FOR CONSIDERING ITS STATUS AS BEING REGISTERED UNDER SECTION 12AA OF THE ACT. AS PER THE ORDER OF CIT-II, ITA NOS.232 /AGRA/2013 238/AGRA/2013, A.YS. 2004-05 4 AGRA REGISTRATION UNDER SECTION 12AA WAS GRANTED WI TH RETROSPECTIVE EFFECT 01.04.2003. THE MATTER WAS RESTORED TO THE CIT(A) B Y THE ITAT WITH DIRECTION TO COMPUTE THE INCOME AS PER THE SECTION 11 CONSIDE RING REGISTRATION UNDER SECTION 12AA OF THE ACT. IN CONSEQUENCE TO THE DIRE CTION OF THE I.T.A.T., THE CIT(A) HAS TAKEN UP THE MATTER FOR RE-ADJUDICATION . DURING THE APPELLATE PROCEEDING BEFORE CIT(A), THE ASSESSEE HAS RAISED S OME ADDITIONAL GROUNDS, WHICH WAS RAISED DURING THE FIRST APPELLATE PROCEED ING FOR COMPUTATION OF INCOME AS THE SECTION 11 OF THE ACT IN VIEW OF THE REGISTRATION BEING GRANTED TO THE ASSESSEE UNDER SECTION 12AA CONTENDING THAT IN TERMS OF REPORT UNDER SECTION 10B FILED BEFORE THE CIT(A). DURING APPELLA TE PROCEEDING, IT WAS REQUESTED TO THE CIT(A) TO ADMIT THE ADDITIONAL GRO UNDS AND REPORT UNDER SECTION 10B EXERCISING POWER UNDER SECTION 251(1)(A ) OF THE ACT. THE CIT(A) ADMITTED THE ADDITIONAL GROUND OBSERVING AS UNDER : - I HAVE ADMITTED THE ADDITIONAL GROUND TAKEN BY THE LD. AR FOR DETERMINATION OF ITS INCOME CONSIDERING ITS STATUS AS A CHARITABLE ORGANIZATION REGISTERED U/S 12AA FOR THE YEAR UNDER CONSIDERATION. 4. THE ABOVE OBSERVATION HAS BEEN MADE BY THE CIT(A ) AT PAGE NOS. 10 & 11 OF HIS ORDER. THE CIT(A) AFTER ADMISSION OF THE ADDITIONAL GROUND HAS OBSERVED THAT THOUGH THE ASSESSEE HAS GOT THE REGIS TRATION UNDER SECTION 12AA OF THE ACT, BUT ITS ACCOUNTS WERE NOT AUDITED AS PE R THE PROVISIONS OF SECTION 12A(B) OF THE ACT AND RULE 17B IN FORM 10B. THEREFO RE, THE PROVISIONS OF ITA NOS.232 /AGRA/2013 238/AGRA/2013, A.YS. 2004-05 5 SECTION 11 OF THE ACT WERE NOT FOUND TO BE ACCEPTAB LE FOR COMPUTATION OF INCOME OF THE ASSESSEE. THE CIT(A) DID NOT ACCEPT T HE REPORT FILED BY THE ASSESSEE IN FORM 10B OBSERVING AS UNDER :- (CIT(A) PAGE NOS. 10 & 11) NOW DURING THE PRESENT APPEAL PROCEEDING UNDERTAKE N BY ME AS PER THE DIRECTION OF THE HONBLE ITAT AGRA, THE APP ELLANT HAS FILED THE AUDIT REPORT U/S 10B REQUESTING TO ACCEPT THIS AUDI T REPORT HAVING CONTERMINOUS POWER WITH THE AO BUT AS PER THE DECIS ION OF THE HONBLE SUPREME COURT IN CASE OF CIT VS. KANPUR COAL SYNDIC ATE (1964) 53 ITR 225 AND JUTE CORPORATION OF INDIA LIMITED VS. C IT(SC) 187 ITR 688, THE CIT(A) HAS CONTERMINOUS POWER ONLY WITH RE SPECT TO CARRYING OUT FURTHER ENQUIRIES TO DECIDE THE ISSUE UNDER APP EAL BUT SUCH CONTERMINOUS POWERS CANNOT BE EXERCISED WITH RESPEC T TO STATUTORY POWERS GIVEN TO THE AO UNDER THE ACT WITH RESPECT T O MAKING OF ASSESSMENTS AND IN THIS PROCESS, RECEIVING CERTAIN STATUTORY REPORTS SUCH AS AUDIT REPORT IN FORM 10B. AS PER THE PROVIS ION OF SECTION 12A(B), SUCH AUDIT REPORT IS REQUIRED TO BE FURNISH ED ALONG WITH THE RETURN OF INCOME FOR THE RELEVANT ASSESSMENT YEAR. AS PER RECORD, NO SUCH AUDIT REPORT WAS FILED ALONG WITH THE RETURN O F INCOME OF THE ASSESSMENT YEAR UNDER APPEAL AND IN FACT, INSTEAD O F THE AUDIT REPORT U/S 10B, THE AUDIT REPORT IN FORM 3CD WAS FILED APPLICA BLE FOR A BUSINESS CONCERN AND NOT A CHARITABLE ORGANIZATION REGISTERE D U/S 12AA. THEREFORE, SUCH AUDIT REPORT FURNISHED BEFORE ME IN FORM 10B AT APPELLATE STAGE TO FULFILL THE CONDITION FOR COMPUT ATION OF INCOME AS PER THE PROVISION OF SECTION 11 CANNOT BE ACCEPTED. 5. THE CIT(A) HAS ALSO EXAMINED THE ISSUE FROM ANOT HER ANGLE STATING THAT EVEN FOR THE SAKE OF ARGUMENT, IF ITS ASSUMED THAT INCOME OF THE ASSESSEE HAS TO BE COMPUTED AS PER THE PROVISION OF SECTION 11 BEING CHARITABLE ORGANIZATION, IT CAN BE SHOWN THAT THE I TS INCOME IS NOT FULLY EXEMPT BECAUSE IT HAS NOT FULFILLED THE CONDITIONS PRESCRIBED IN SECTION 11 OF THE I.T. ACT. THE CIT(A) NOTED THAT THE ASSESSEE DID NOT UTILIZE 85% OF ITA NOS.232 /AGRA/2013 238/AGRA/2013, A.YS. 2004-05 6 ITS RECEIPT, THEREFORE, CLAIMING EXEMPTION FOR ITS WHOLE INCOME IS NOT CORRECT. THE ASSESSEE DID NOT SATISFY THE PROVISION OF SECTION 11(2) OF THE ACT, WHICH PROVIDES THAT THE ASSESSEE HAS TO INFORM THROUGH A NOTICE TO ITS A.O. IN WRITING IN FORM 10 AS PER RULE 17 OF THE AC T GIVING THE DETAILS FOR WHICH THE EXCESS AMOUNT WOULD BE SET APART OR ACCUM ULATED AND UTILIZED WITHIN FIVE YEARS AND SUCH MONEY IS TO BE INVESTED IN THE SPECIFIED SECURITIES AS MENTIONED IN SECTION 11(5) OF THE ACT AND SUCH NOTICE IS TO BE GIVEN BEFORE EXPIRY OF TIME ALLOWED UNDER SECTION 1 39(1) OF THE ACT. THE CIT(A) FURTHER NOTED THAT THE EXCESS AMOUNT HAS TO BE DEPOSITED BY THE ASSESSEE IN SCHEDULED BANK BUT NO SUCH NOTICE WAS G IVEN TO THE A.O. THEREFORE, ASSESSEES INCOME CANNOT BE TAKEN AS EXE MPT. THE CIT(A) DISMISSED THE ADDITIONAL GROUND AS UNDER :- (CIT(A) PAGE NO. 13) CONSIDERING ALL THE FACTS AND CIRCUMSTANCES OF THE CASE AS DISCUSSED IN THIS PARA ABOVE, THE ADDITIONAL GROUND RAISED BY THE APPELLANT CLAIMING THE ENTIRE INCOME TO BE EXEMPT O N THE GROUND THAT IT IS GRANTED THE STATUS OF CHARITABLE TRUST WITH R ETROSPECTIVE EFFECT FROM 01.04.2003 IS NOT FOUND TO BE TENABLE ON LEGAL GROUND AS WELL AS ON MERIT BECAUSE EXCEPT GETTING REGISTRATION U/S 12 AA, THE ASSESSEE(APPELLANT) HAS NOT FULFILLED ANY OTHER CON DITIONS FOR THE PURPOSE OF COMPUTATION OF ITS INCOME AS PR THE PROV ISIONS OF SECTION 11 AND HENCE, ADDITIONAL GROUND RAISED BY THE APPEL LANT IS DISMISSED. ITA NOS.232 /AGRA/2013 238/AGRA/2013, A.YS. 2004-05 7 6. THE CIT(A), WHILE CONSIDERING THE GROUNDS ON MER IT, ALLOWED PART RELIEF CONFIRMING THE ADDITION TO THE EXTENT OF RS. 11,39,756/- OUT OF THE ADDITION OF RS.54,06,320/- AND DELETED THE ADDITION WHICH WAS MADE BY THE A.O. ON ACCOUNT OF DISALLOWANCE OF EXPENDITURE. SIN CE THE CIT(A) HAS PARTLY ALLOWED THE APPEAL, THEREFORE, BOTH THE REVE NUE AS WELL AS ASSESSEE ARE IN APPEAL BEFORE US. 7. WE HAVE HEARD LD. REPRESENTATIVES OF THE PARTIES AND RECORDS PERUSED. ON PERUSAL OF ORDER OF CIT(A), WE FIND THA T THE CIT(A) IN HIS OWN INTERPRETATION WAS OF THE VIEW THAT HE IS NOT EMPOW ERED TO ACCEPT THE AUDIT REPORT FILED BY THE ASSESSEE IN FORM 10B. THE ACTIO N OF THE CIT(A) IS CONTRARY TO THE INSTRUCTION NO. 1148 DATED 09.02.19 78. THE RELEVANT ABSTRACT OF THE INSTRUCTION IS REPRODUCED AS BELOW: - INSTRUCTION NO:1148, SECTION(S) REFERRED: 12A(B), STATUTE: INCOME TAX ACT, 1961 DATE OF ISSUE:9/2/1978 UNDER SECTION 12A(B) OF THE INCOME-TAX ACT, 1961, IN THECASE OF A CHARITABLE OR RELIGIOUS TRUST OR INSTITUTION WHOSE TOTAL INCOME WITHOUT GIVING EFFECT TO THE PROVISIONS OF SECTION 11 AND 1 2 OF THE INCOME-TAX ACT 1961 EXCEEDS TWENTY-FIVE THOUSAND RUPEES IN ANY PREVEIOUS YEAR, THE ACCOUNTS OF THE TRUST OR INSTITUTIONS SHOULD BE AUDITED BY AN ACCOUNTANT AS DEFINED IN THE EXPLANATION BELOW SUB- SECTION (2) OF SECTION 288 AND THE PERSON IN RECEIPT OF THE INCOME SHOULD ALONG WITH THE RETURN OF INCOME FOR THE RELEVANT ASSESSMENT YE AR THE REPORT IN FORM 10B DULY SIGNED AND VERIFIED BY SUCH ACCOUNTAN T. 2. THE BOARD HAVE AND OCCASION TO CONSIDER WHETHER THE REQUIREMENT OF FILING AUDIT REPORT ALONG WITH THE RETURN OF IN COMEIS MANDATORY SO AS TO DISENTITLE THE TRUST FROM CLAIMING EXEMPTI ON UNDER SECTION 11 ITA NOS.232 /AGRA/2013 238/AGRA/2013, A.YS. 2004-05 8 AND 12 IN CASE OF OMISSION OF FURNISHING SUCH REPOR T IN THE PRESCRIBED FORM ALONG WITH THE RETURN. NORMALLY IT SHOULD BE P OSSIBLE FOR A TRUST TO FILE THE AUDITORS REPORT ALONG WITH THE RETURN OF INCOME. HOWEVER, IN CASES WHERE FOR REASONS BEYOND THE CONTROL OF TH E ASSESSEE SOME DELAY HAS OCCURRED IN FILING THE SAID REPORT, THE E XEMPTION AS AVAILABLE TO SUCH TRUST UNDER SECTION 11 AND SECTIO N 12 MAY NOT BE DENIED MERELY ON ACCOUNT OF DELAY IN FURNISHING THE AUDITORS REPORT, AND THE ITO SHOULD REPORT REASONS FOR ACCEPTING A B ELATED AUDIT REPORT. 8. IN THE ABOVE INSTRUCTION, IT IS CLEARLY STATED T HAT THE EXEMPTION AS AVAILABLE TO SUCH SECTIONS 11 AND 12 OF THE ACT MAY NOT BE DENIED MERELY ON ACCOUNT OF DELAY IN FURNISHING THE AUDIT REPORT. IT IS ALSO RELEVANT TO STATE THAT THE MATTER HAS BEEN SENT BACK BY ITAT TO CIT(A) FOR EXAMINING THE CASE OF THE ASSESSEE, IN THE LIGHT OF THE FACT THAT REGISTR ATION UNDER SECTION 12AA HAS BEEN GRANTED THEREFORE, CASE IS ACCORDINGLY TO BE E XAMINED IN THE LIGHT OF SECTIONS 11 AND 12 OF THE ACT. SINCE THE CIT(A) HAV ING CO-TERMINUS POWER OF THE A.O., THEREFORE, HE IS BOUND TO ACCEPT THE AUDI T REPORT FILED BY THE ASSESSEE IN FORM 10B. THE HONBLE GUJARAT HIGH COURT IN THE CASE OF ITO VS. VXL INDIA LTD., [2009] 312 ITR 187 (GUJ) HAS HELD THAT THE AUDIT REPORT SUBMITTED BEFORE COMPLETION OF ASSESSMENT IS SUFFICIENT COMPL IANCE. ACCORDING TO LAW LAID DOWN BY THE HONBLE APEX COURT IN THE CASE OF GOETZE (INDIA) LTD. VS. COMMISSIONER OF INCOME-TAX, 157 TAXMAN 1(SC). THE C IT(A) IS EMPOWERED TO CONSIDER ASSESSEES CLAIM AT HIS STAGE. SIMILAR VIEW IS TAKEN BY THE HONBLE MADHYA PRADESH HIGH COURT IN THE CASE OF CIT VS. ME DICAPS LTD. [2010] 323 ITR 554 (MP). ITA NOS.232 /AGRA/2013 238/AGRA/2013, A.YS. 2004-05 9 9. IN THE CASE UNDER CONSIDERATION, THE ITAT HAS SE NT BACK THE MATTER TO THE FILE OF CIT(A) AFTER ADMITTING THE ADDITIONAL G ROUNDS OF APPEAL AND DIRECTED TO DECIDE THE MATTER IN ACCORDANCE WITH LA W. WHEN THE MATTER IS SENT BACK TO THE FILE OF CIT(A) THE FACTS BECOMES PECULI AR AND THE FACTS OF THE CASE AND SECTIONS 11 AND 12 ARE REQUIRED TO BE EXAMINED ACCORDINGLY. THE CIT(A) OUGHT TO HAVE ADMITTED SUCH INFORMATION AND FORM 10 B AT HIS STAGE AS THE ASSESSEE SUBMITTING SUCH MATERIAL WHICH ARE ADMITTE D ON THE ISSUE AND IN THE INTEREST OF THE JUSTICE THEY ALL REQUIRED TO BE CON SIDERED BEFORE COMING TO THE CONCLUSION. THE CIT(A) DID NOT EXAMINE THE CASE AS PER DIRECTION OF THE I.T.A.T. AND IN ACCORDANCE WITH SECTIONS 11 AND 12 OF THE ACT. HE DID NOT PUT THE COMPLETE FACTS ON RECORD AFTER EXAMINING THE RE LEVANT MATERIALS AND SUBMISSION OF THE ASSESSEE. IN ABSENCE OF COMPLETE FACTS ON RECORD, THE ISSUE CANNOT BE DECIDED AT THIS STAGE. IN THE LIGHT OF TH E FACT AND CONSIDERING THE FACT THAT FOR DECIDING THE ISSUE THE COMPLETE FACTS ARE REQUIRED TO PUT ON RECORD. SINCE RECORDS AND MATERIALS ARE AVAILABLE WITH A.O. THEREFORE, WE THINK IT PROPER TO SEND BACK THE ISSUE TO THE FILE OF THE A. O. IN STEAD OF CIT(A) TO DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW AND IN ACCORDANCE WITH SECTIONS 11 AND 12 KEEPING IN VIEW THAT THE ASSESSE E HAS GRANTED REGISTRATION UNDER SECTION 12AA W.E.F. 01.04.2003. BEFORE PARTIN G FROM THE MATTER IT IS RELEVANT TO STATE THAT A.O. WHILE DECIDING THE ISSU E AFRESH IN ACCORDANCE WITH LAW WILL NOT BE INFLUENCED BY THE OBSERVATION OF TH E CIT(A) MADE IN THE ITA NOS.232 /AGRA/2013 238/AGRA/2013, A.YS. 2004-05 10 IMPUGNED ORDER WHICH WE HAVE SET ASIDE. THE A.O. IS DIRECTED TO DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW, IN THE LIGHT O F THE ABOVE DISCUSSIONS AND IN ACCORDANCE WITH LAW, AFTER PROVIDING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. 10. THE CIT(A) HAS ALSO DECIDED THE ISSUE ON MERIT WHICH IS ALSO A PRE- MATURED DECISION. AS THE CIT(A) DID NOT EXAMINE THE CASE OF THE ASSESSEE IN THE LIGHT OF SECTIONS 11 AND 12 OF THE ACT, WE, THE REFORE, SET ASIDE THE ORDER OF THE CIT(A) ALLOWING PART RELIEF. SINCE CIT(A) ALLOW ED PART RELIEF, THEREFORE, REVENUE IS ALSO IN APPEAL. SINCE WE SET ASIDE THE O RDER OF THE CIT(A) AND SENT BACK THE MATTER TO THE FILE OF THE A.O. THE GROUNDS OF APPEAL RAISED IN THE REVENUES APPEAL ARE ALSO BEING SENT BACK TO THE FI LE OF THE A.O. WITH THE DIRECTION AS STATED ABOVE. 11. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE AND REVENUE ARE ALLOWED FOR STATISTICAL PURPOSES. SD/- SD/- (BHAVNESH SAINI) (A.L. GEHLOT) JUDICIAL MEMBER ACCOUNT ANT MEMBER AMIT/ ITA NOS.232 /AGRA/2013 238/AGRA/2013, A.YS. 2004-05 11 COPY OF THE ORDER FORWARDED TO:- 1. APPELLANT 2. RESPONDENT 3. CIT (APPEALS) CONCERNED 4. CIT CONCERNED 5. D.R., ITAT, AGRA BENCH, AGRA 6. GUARD FILE. BY ORDER SR. PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL, AGRA TRUE COPY