DCIT, Varanasi V. M/s Benares Club Ltd., Varanasi

ITA 233/ALLD/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 63347 (ITAT-ALLAHABAD)
• Duration Of Justice: 10 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-11-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 12-12-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: Y P SRIVASTA VA
• Assessee Lawyers: R P AGAWAL
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, ALLAHABAD BENCH, ALLAHABAD BEFORE : SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI A.L. GEHLOT, ACCOUNTANT MEMBER ITA NO. 231, 232 & 233/ALLD./2011 ASSTT. YEAR : 2008-09, 2007-08 & 2006-07 D.C.I.T., CIRCLE 1, VS. M/S. BENARES CLUB LTD ., VARANASI. CLUB ROAD, VARANASI. (PAN: AACCB 6089 M) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI Y.P. SRIVASTAVA, D.R. RESPONDENT BY : SHRI R.P. AGAWAL, ADVOCATE DATE OF HEARING : 08.11.2012 DATE OF PRONOUNCEMENT OF ORDER : 09 .11.2012 ORDER PER BHAVNESH SAINI, J.M.: ALL THE APPEALS BY THE REVENUE ARE DIRECTED AGAIN ST DIFFERENT ORDERS OF LD. CIT(A), VARANASI DATED 29.09.2011 FOR THE ABOVE ASS ESSMENT YEARS. 2. IN ASSESSMENT YEAR 2008-09, THE REVENUE HAS RAIS ED FOLLOWING GROUNDS OF APPEAL : 1. THAT THE ORDER OF THE LEARNED CIT(A) IS ERRONEO US IN LAW AND ON FACTS. 2. WHETHER, ON THE FACTS AND CIRCUMSTANCES OF THE C ASE, LD. CIT(A) IS JUSTIFIED IN DELETING THE ADDITION/DISALLOWANCE OF SHOP RENT RS.2,54,840/- AND BANK INTEREST RS.13,26,329/- IGNO RING THE FACT THAT THE RECEIPT IN THE NATURE OF RENT AND INTEREST RECE IVED FROM BANK ARE NOT COVERED BY THE PRINCIPLE OF MUTUALITY AS CLAIME D BY THE ASSESSEE, ITA NO. 231, 232 & 233/ALLD./2011 2 SINCE THE SAME ARE COMING FROM NON-MEMBERS. MOREOVE R, THE SAME ISSUE FOR THE EARLIER YEAR IS ALREADY SUBJUDICE BEF ORE THE HONBLE HIGH COURT. 3. SIMILARLY, IN THE REMAINING YEARS, THE REVENUE H AS RAISED THE SIMILAR GROUNDS EXCEPT THE AMOUNT OF SHOP RENT WAS RS.254,840/- AND BANK INTEREST OF RS.70,254/- IN ASSESSMENT YEAR 2007-08 AND SHOP RENT RS.2,54,83 2/- IN THE ASSESSMENT YEAR 2006-07. 4. THE LD. COUNSEL FOR THE ASSESSEE AT THE OUTSET S UBMITTED THAT THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE JUDGMENT O F HONBLE ALLAHABAD HIGH COURT IN THE CASE OF THE SAME ASSESSEE FOR THE ASSE SSMENT YEAR 2005-06 IN INCOME- TAX APPEAL NO. 188 OF 2011 WHEREBY THE DEPARTMENTAL APPEAL HAS BEEN DISMISSED. COPY OF THE JUDGMENT IS PLACED ON RECORD, IN WHICH THE HONBLE HIGH COURT CONFIRMED THE ORDER OF THE TRIBUNAL IN GRANTING EXE MPTION FROM TAXATION ON THE PRINCIPLE OF MUTUALITY. HE HAS FURTHER SUBMITTED TH AT IN TWO YEARS, THE TAX EFFECT IS BELOW RS.3,00,000/- AND THEREFORE, THOSE APPEALS AR E NOT MAINTAINABLE, HAVING BEEN FILED IN VIOLATION OF CBDT CIRCULAR. THE LD. DR, HO WEVER, RELIED UPON THE ORDERS OF THE ASSESSING OFFICER. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. THE AS SESSEE MADE THE CLAIM OF EXEMPTION OF INCOME FROM TAXATION ON THE PRINCIPLE OF MUTUALITY. THE LD. CIT(A) ITA NO. 231, 232 & 233/ALLD./2011 3 ACCEPTED THE CLAIM OF THE ASSESSEE BECAUSE THE SAME VIEW WAS TAKEN IN EARLIER YEAR AS WELL AND ALLOWED THE APPEALS OF THE ASSESSEE. TH E REVENUE IS MERELY AGGRIEVED IN THE PRESENT APPEALS THAT SINCE IN EARLIER YEAR, THE MATTER IS SUBJUDICE BEFORE THE HONBLE HIGH COURT, THEREFORE, THE ADDITION SHOULD NOT HAVE BEEN DELETED. HOWEVER, THE DEPARTMENTAL APPEAL HAS ALREADY BEEN D ISMISSED BY THE HONBLE HIGH COURT IN THE CASE OF SAME ASSESSEE FOR THE ASSESSME NT YEAR 2005-06 (SUPRA). THEREFORE, THE DEPARTMENTAL APPEALS ARE LIABLE TO B E DISMISSED. THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE. FURTHER IN ASSESSMENT YE AR 2007-08 AND 2006-07, THE TAX EFFECT IS BELOW RS.3,00,000/- AS PRESCRIBED BY THE BOARDS CIRCULAR NO. 03 OF 2011 DATED 09.02.2011. THEREFORE, THESE APPEALS OF THE R EVENUE ARE NOT MAINTAINABLE AND LIABLE TO BE DISMISSED ON THIS REASON ALSO. 6. IN THE RESULT, ALL THE DEPARTMENTAL APPEALS ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (A.L. GEHLOT) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER *AKS/- COPY OF THE ORDER FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A), CONCERNED BY ORDER 4. CIT, CONCERNED 5. DR, ITAT, ALLAHABAD 6. GUARD FILE ASSTT. REGISTRAR TRUE COPY