Income Tax Officer (Exemption), Ward - 1, Bangalore V. M/s. Federation of Karnataka Chamber of Commerce & Industry, Bengaluru

ITA 2418/BANG/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 2023 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 3 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-03-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 22-11-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRIYADARSHI MISHRA
• Assessee Lawyers: A C RAJU
• Keywords: Charitable institution
• Section: 13; 11

Judgement Text

ITA NO.2418/BANG/2019 FEDERATION KARNATAKA CHAMBER OF COMMERCE & INDUSTRY, BENGALURU IN THE INCOME TAX APPELLATE TRIBUNAL BBENCH: BANGALORE BEFORE SHRI B. R. BASKARAN, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER ITA NO.2418/BANG/2019 ASSESSMENT YEAR: 2012 13 ITO (EXEMPTION) WARD-1 BENGALURU VS. FEDERATION OF KARNATAKA CHAMBER OF COMMERCE & INDUSTRY P.B. NO.9996, FEDERATION HOUSE K.G. ROAD BENGALURU 560 042 PAN NO : AAACF2404N APPELLANT RESPONDENT APPELLANT BY : SHRI PRIYADARSHI MISHRA, D.R. RESPONDENT BY : SHRI A.C. RAJU, A.R. DATE OF HEARING : 23.02.2021 DATE OF PRONOUNCEMENT : 10.03.2021 O R D E R PER B.R. BASKARAN, ACCOUNTANT MEMBER: THE REVENUE HAS FILED THIS APPEAL CHALLENGING THE O RDER DATED 23.9.2019 PASSED BY LD. CIT(A)-14, BENGALURU AND IT RELATES TO ASSESSMENT YEAR 2012-13. THE SOLITARY ISSUE URGED BY THE REVENUE IS WHETHER THE LD. CIT(A) WAS JUSTIFIED IN HOLDING THAT THE PROVISO TO SECTION 2(15) OF THE INCOME-TAX ACT,1961 ['THE ACT' FOR SHORT] WILL NOT APPLY TO THE ASSESSEE. 2. THE ASSESSEE IS A CHARITABLE TRUST AND FILED ITS RETURN OF INCOME DECLARING NIL INCOME AFTER CLAIMING EXEMPTIO N U/S 11 OF THE ACT. THE A.O. NOTICED THAT THE ASSESSEE HAS RECEIV ED INCOME BY WAY OF CHARGES COLLECTED FOR MEETINGS AND SEMINARS AN D ALSO OTHER ITA NO.2418/BANG/2019 FEDERATION KARNATAKA CHAMBER OF COMMERCE & INDUSTRY, BENGALURU PAGE 2 OF 3 TYPES OF RECEIPTS. HE TOOK THE VIEW THE ASSESSEE I S CARRYING ON COMMERCIAL ACTIVITIES AND HENCE THE PROVISO TO SEC. 2(15) OF THE ACT WOULD BE APPLICABLE TO THE ASSESSEE. HE FURTHER NO TICED THAT THE GROSS RECEIPTS FROM THE ABOVE SAID ACTIVITIES HAVE EXCEEDED THE LIMIT PRESCRIBED UNDER THE PROVISO TO SECTION 2(15) OF TH E ACT. ACCORDINGLY, THE AO TOOK THE VIEW THAT THE ASSESSEE IS NOT ELIGIBLE FOR EXEMPTION U/S 11 OF THE ACT AS PER THE PROVISO TO SECTION 2(15) OF THE ACT. ACCORDINGLY, HE DENIED EXEMPTION TO TH E ASSESSEE. THE LD. CIT(A) HELD THAT THE ASSESSEE WILL NOT BE HIT B Y THE PROVISO TO SECTION 2(15) OF THE ACT AND ACCORDINGLY, DIRECTED THE A.O. TO GRANT EXEMPTION TO THE ASSESSEE. ACCORDINGLY, THE REVENU E HAS FILED THIS APPEAL BEFORE US. 3. AT THE TIME OF HEARING, IT WAS NOTICED THAT THE TAX DEMAND RAISED BY THE A.O. IN THE ASSESSMENT ORDER, AFTER D ENYING EXEMPTION U/S 11 TO THE ASSESSEE, WAS ONLY RS.41.78 LAKHS, WH ICH IS BELOW THE MONETARY LIMIT PRESCRIBED BY THE CBDT FOR PREFERRIN G APPEALS BEFORE THE TRIBUNAL IN ITS CIRCULAR NO.17/2019 DATED 8.8.2 019. AS PER THE ABOVE SAID CIRCULAR, THE REVENUE IS PRECLUDED FROM PURSUING THE APPEALS FILED BEFORE THE TRIBUNAL, WHERE THE TAX EF FECT INVOLVED IN THOSE APPEALS IS LESS THAN RS.50 LAKHS. 4. IN VIEW OF THE ABOVE, WE ARE OF THE VIEW THAT TH E PRESENT APPEAL IS LIABLE TO BE DISMISSED AS THE SAME IS HIT BY THE MONETARY LIMITS PRESCRIBED BY THE CBDT. ACCORDINGLY, WE DIS MISS THE APPEAL OF THE ASSESSEE IN LIMINE, AS UNADMITTED. HOWEVER, LIBERTY IS GIVEN TO THE REVENUE TO SEEK RECALL OF THIS ORDER AS PER LAW, IF IT IS FOUND THAT THE ABOVE SAID CIRCULAR OF CBDT IS NOT APPLICA BLE TO THE FACTS OF THE PRESENT CASE. ITA NO.2418/BANG/2019 FEDERATION KARNATAKA CHAMBER OF COMMERCE & INDUSTRY, BENGALURU PAGE 3 OF 3 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 10 TH MAR, 2021 SD/- (BEENA PILLAI) JUDICIAL MEMBER SD/- (B.R. BASKARAN) ACCOUNTANT MEMBER BANGALORE, DATED 10 TH MAR, 2021. VG/SPS COPY TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASST. REGISTRAR, ITAT, BANGALORE.