Kolkata Metropolitan Development Authority, Kolkata V. ACIT, Circle - 50, Kolkata, Kolkata

ITA 2414/KOL/2016

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 6621 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 6 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-06-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 23-12-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: G MALLIKARJUNA
• Assessee Lawyers: SAURABH BAGARIA
• Section: 12AA; 12; 11

Judgement Text

1 ITA NO.2414/KOL/2016 KOLKATA METROPOLITAN DEVELOPME NT AUTHORITY A.Y.2012-13 IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH C KOL KATA [BEFORE HONBLE SHRI J.SUDHAKAR REDDY, AM & SHRI S.S.VISWANETHRA RAVI, JM ] ITA NO.2414/KOL/2016 ASSESSMENT YEAR : 2012-13 KOLKATA METROPOLITAN DEVELOPMENT -VERSUS- A.C.I.T., CIRCLE-50, AUTHORITY, KOLKATA KOLKATA (PAN: AAALK 0714 F) (APPELLANT) (RESPONDENT) FOR THE APPELLANT: SHRI SAURABH BAGARIA, ADVOCA TE FOR THE RESPONDENT: SHRI G.MALLIKARJUNA, CIT(DR) DATE OF HEARING :23.04.2018. DATE OF PRONOUNCEMENT : 27.06.2018. ORDER PER S.S.VISWANETHRA RAVI, JM THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 29.09.2016 PASSED BY C.I.T-(A)-15, KOLKATA FOR A.Y.2012-13. 2. THE ONLY ISSUE TO BE DECIDED IS AS TO WHETHER T HE CIT(A) IS JUSTIFIED IN NOT GIVING EXEMPTION U/S 11 OF THE ACT IN THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. THE LD. AR SUBMITS THAT THE ISSUE IS COVERED BY THE DECISION OF COORDINATE BENCH OF THIS TRIBUNAL IN ASSESSEES OWN CASE FOR A .Y.2006-07 AND 2007-08 AND REFERRED TO PARA NO.10 OF THE SAID ORDER. THE LD. D R RELIED ON THE ORDER OF THE CIT(A). 4. HEARD BOTH THE RIVAL CONTENTIONS AND PERUSED TH E MATERIAL AVAILABLE ON RECORD WE FIND THAT THE DEPARTMENT OF REVENUE HAS GRANTED REGISTRATION U/S 12AA TO THE ASSESSEE BY AN ORDER DATED 09.07.2012 W.E.F. 01.04. 2011. THE CO-ORDINATE BENCH OF THIS TRIBUNAL DISCUSSED THE ISSUE IN TERMS OF AMEND MENT BROUGHT IN FINANCE ACT (NO.2) W.E.F. 01.10.2014 AND HELD THE SAID AMENDMEN T SHOULD BE READ AS RETROSPECTIVE IN OPERATION AND THE ASSESSEE IS ENTITLED FOR EXEMP TION U/S 11 OF THE ACT FOR A.Y.2006- 07 AND 2007-08 ALSO. AS NOTED ABOVE, BENEFIT OF EXE MPTION U/S 11 OF THE ACT HAS BEEN GRANTED TO THE ASSESSEE FROM 01.04.2011 AND SINCE, THE A.Y. CONSIDERATION IS 2012-13 2 ITA NO.2414/KOL/2016 KOLKATA METROPOLITAN DEVELOPME NT AUTHORITY A.Y.2012-13 AND THEREFORE, ASSESSEE IS ENTITLED TO GET EXEMPTIO N U/S 11 OF THE ACT. ACCORDINGLY WE DIRECT THE AO TO ADJUDICATE THE ISSUE AFRESH IN ACC ORDANCE WITH LAW. THE RELEVANT PORTION OF ORDER OF CO-ORDINATE BENCH SUPRA, IS RE PRODUCED HEREIN BELOW :- 10. IN VIEW OF THE AFORESAID FACTS AND RESPECTFULL Y FOLLOWING THE JUDICIAL PRECEDENT RELIED UPON HEREINABOVE, WE HOLD THAT THE AMENDMENT BROUGHT IN FINANCE (NO.2) ACT, 2014 W.E.F. 1.10.2014 IN SECTIO N 12A(2) OF THE ACT SHOULD HAVE TO BE CONSTRUED AS RETROSPECTIVE IN OPERATION AND ACCORDINGLY THE ASSESSEE WOULD BE ENTITLED FOR EXEMPTION U/S 11 AND 12 OF TH E ACT FOR THE ASST YEARS 2006- 07 AND 2007-08 ALSO. HENCE WE ALLOW THE ADDITIONAL GROUND RAISED BY THE ASSESSEE FOR BOTH THE YEARS UNDER APPEAL BEFORE US. SINCE THE PRELIMINARY GROUND OF CLAIM OF EXEMPTION U/S 11 AND 12 FOR THE ASST YE ARS 2006-07 & 2007-08 IS ALLOWED , THE REGULAR GROUNDS RAISED BY THE ASSESSE E ON THE VALIDITY OF PROCEEDINGS AND THE MERITS THEREON ARE NOT REQUIRED TO BE ADJUDICATED HEREIN. HENCE WE DIRECT THE LD AO TO GRANT EXEMPTION U/S 11 AND 12 OF THE ACT FOR THE ASST YEARS 2006-07 AND 2007-08 AND ADJUDICATE THE M ERITS OF THE ADDITION AFRESH IN ACCORDANCE WITH LAW. WE MAKE IT CLEAR THAT OUR O PINION ON THE MERITS OF THE ADDITION ARE LEFT OPEN AND DIRECT THE LD AO TO ADJU DICATE THE SAME AFRESH IN ACCORDANCE WITH LAW, AFTER GRANT OF EXEMPTION U/S 1 1 AND 12 OF THE ACT FOR THE ASST YEARS 2006-07 AND 2007- 08 . 11. IN THE RESULT, THE APPEALS OF THE ASSESSEE IN ITA NOS. 723& 724/KOL/2013 ARE DISMISSED AS WITHDRAWN AND APPEALS OF THE ASSESSEE IN ITA NOS. 523 & 524/KOL/2015 FOR THE ASST YEARS 2006-07 AND 2007-08 RESPECTIVELY ARE ALLOWED FOR STATISTICAL PURPOSES. 5. IN VIEW OF THE ABOVE WE SET ASIDE THE ORDER OF C IT(A) AND GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED FOR STATISTICAL PURPOSE. O RDER PRONOUNCED IN THE OPEN COURT ON 27.06.2018. SD/- SD/- [J.SUDHAKAR REDDY] [ S.S.VISWANETHRA RAVI ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 27.06.2018. [RG SR.PS] 3 ITA NO.2414/KOL/2016 KOLKATA METROPOLITAN DEVELOPME NT AUTHORITY A.Y.2012-13 COPY OF THE ORDER FORWARDED TO: 1.KOLKATA METROPOLITAN DEVELOPMENT AUTHORITY, UNNAY AN BHAVAN, G-BLOCK, 3 RD FLOOR, SALT LAKE, KOLKATA-700091. 2. A.C.I.T., CIRCLE-50, KOLKATA. 3. C.I.T.(A)-15, KOLKATA 4. C.I.T. -7, KOLKATA.. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER, SENIOR PRIVATE SECRETARY HEAD OF OFFICE/D.D.O., ITAT, KOLKATA BENCHES