The Tamil Chamber of Commerce, CHENNAI V. DIT, CHENNAI

ITA 2559/CHNY/2014

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 8049 (ITAT-CHENNAI)
• Duration Of Justice: 2 year(s) 3 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-01-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 08-10-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ASHISH TRIPATHI IRS
• Assessee Lawyers: SHRI V S MANOJ
• Keywords: Recovery proceedings; Cancellation of registration
• Section: 12; 11

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH (SMC) : CHENNAI . , BEFORE SHRI ABRAHAM P. GEORGE , ACCOUNTANT MEMBER ./I.T.A. NO. 2559/MDS/2014 / ASSESSMENT YEAR : 2010-2011. M/S. THE TAMIL CHAMBER OF COMMERCE, NEW NO.318 (OLD 174) SIVAKAMI COMPLEX, 1 ST FLOOR, THAMBU CHETTY STREET, CHENNAI 600 001. VS. THE DIRECTOR OF INCOME TAX (EXEMPTIONS) II (I/C) CHENNAI. [PAN AACCT 6458N] ( / APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI. SHRI. V.S.MANOJ, ADVOCATE /RESPONDENT BY : SHRI. ASHISH TRIPATHI, IRS, JCIT. ! '# /DATE OF HEARING : 11-01-2017 $% '# /DATE OF PRONOUNCEMENT : 25-01-2017 / O R D E R ASSESSEE IN THIS APPEAL IS AGGRIEVED THAT IT WAS DE NIED EXEMPTION CLAIMED BY IT U/S.11 OF THE INCOME TAX A CT, 1961 (IN SHORT THE ACT). ONE OTHER GRIEVANCE RAISED BY THE ASS ESSEE IS THAT INCOME RECEIVED BY IT FROM ITS MEMBERS WAS EXEMPT UNDER TH E PRINCIPLES OF MUTUALITY. ITA NO.2559/MDS/2014. :- 2 -: 2. LD. COUNSEL FOR THE ASSESSEE AT THE OUTSET SUBMITTE D THAT REGISTRATION GRANTED TO THE ASSESSEE U/S.12A(A) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) ON 25.09.2007 WAS CANCE LLED BY DIRECTOR OF INCOME TAX (EXEMPTIONS) ON 09.12.2011 INVOKING PO WERS VESTED ON HIM U/S.12AA(3) OF THE ACT. AS PER LD. COUNSEL ASS ESSEE HAD FILED A WRIT PETITION CHALLENGING THE ORDER OF THE DIRECTOR OF INCOME TAX (EXEMPTIONS) BEFORE HONBLE MADRAS HIGH COURT. LD. AUTHORISED REPRESENTATIVE SUBMITTED THAT HONBLE HIGH COURT HA D GRANTED A STAY OF RECOVERY OF TAX. IN ANY CASE AS PER LD. AUTHORI SED REPRESENTATIVE ON MERITS ISSUE WAS COVERED IN FAVOUR OF THE ASSESS EE BY THE DECISION OF CO-ORDINATE BENCH IN THE CASE OF MADRAS CHAMBER OF COMMERCE AND INDUSTRY VS. ACIT (2016) 46 CCH 681 AND ALSO THAT OF KOLKATA BENCH OF THE TRIBUNAL IN THE CASE OF INDIAN CHAMBER OF COMMERCE VS. ITO [(2015) 113 DTR 553)]. 3. CONTA, LD. DEPARTMENTAL REPRESENTATIVE SUBMITTED T HAT ADMITTEDLY ASSESSEE WAS NOT HAVING REGISTRATION REQ UIRED U/S.12A (A) OF THE ACT AND THEREFORE COULD NOT CLAIM EXEMPTION U/S.11 AND 12 OF THE ACT. 4. I HAVE CONSIDERED THE RIVAL CONTENTIONS AND PERUSE D THE ORDERS OF THE AUTHORITIES BELOW. THRESHOLD CONDITION FOR C LAIMING EXEMPTION U/.11 OF THE ACT IS THAT A PERSON WHO IS CLAIMING S UCH EXEMPTION IS REGISTERED U/S.12A(A) OF THE ACT. LD. COMMISSIONER OF INCOME TAX ITA NO.2559/MDS/2014. :- 3 -: (APPEALS) HAD NOTED THIS AT PARA 3.2 OF HIS ORDER T HAT REGISTRATION EARLIER GRANTED TO THE ASSESSEE STOOD CANCELLED BY DIRECTOR OF INCOME TAX (EXEMPTIONS) ON 09.12.2011 W.R.F. 01.04.2009, I NVOKING POWERS VESTED ON HIM UNDER SUBSECTION 3 THEREOF. NO DOUBT AS POINTED OUT BY THE LD. AUTHORISED REPRESENTATIVE ASSESSEE HAD MOV ED A WRIT PETITION BEFORE HONBLE JURISDICTIONAL HIGH COURT AGAINST CA NCELLATION OF THAT REGISTRATION. IN THE PETITION PRAYING FOR AN INTER IM STAY OF THE OPERATION OF THE ORDER OF THE DIRECTOR OF INCOME TA X (EXEMPTIONS) CANCELLING THE REGISTRATION, HONBLE HIGH COURT H AD GIVEN THE FOLLOWING DIRECTION ON 22 ND MARCH, 2012 IN MP NO.2/2012 IN W.P. NO.7037 & 7038/2012. THERE SHALL BE A ORDER OF STAY OF RECOVERY ALONE . 5. THUS, THE STAY IS ONLY FOR RECOVERY AND NOTHING ELS E. OPERATION OF THE ORDER OF THE DIRECTOR OF INCOME TAX (EXEMPTI ONS) HAD NOT BEEN STAYED. THUS MERITS OF THE CASE APART, ASSESSEE H AVING NOT SATISFIED WITH THRESHOLD CONDITION FOR CLAIMING EXEMPTION U/ S.11 OF THE ACT, I AM OF THE OPINION THAT ASSESSEE WAS CORRECTLY DENIE D CLAIM OF SUCH EXEMPTION UNDER THE SAID SECTION. FURTHER, FEES R ECEIVED BY THE ASSESSEE FOR ISSUING CERTIFICATES OF ORIGIN WERE FO R BOTH ITS MEMBERS AS WELL AS NON MEMBERS, THEREBY RULING OUT THE APPLICA TION OF PRINCIPLE OF ITA NO.2559/MDS/2014. :- 4 -: MUTUALITY. IN THE ABOVE CIRCUMSTANCES, I AM NOT IN CLINED TO INTERFERE WITH THE ORDER OF THE LD. COMMISSIONER OF INCOME TA X (APPEALS). HOWEVER, IF ASSESSEE SUCCEEDS IN ITS APPEAL OR WRIT PETITION AGAINST CANCELLATION OF REGISTRATION U/S.12A(A) OF THE ACT, IT CAN DEFINITELY MOVE A PETITION FOR REVIVING ITS APPEAL, IN SO FAR AS IT RELATES TO APPLICATION OF SECTIONS 11 & 12 OF THE ACT. WITH THESE OBSERVATIONS, WE DISMISS THE APPEAL OF THE ASSESSEE. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DISMI SSED. ORDER PRONOUNCED ON WEDNESDAY, THE 25TH DAY OF JANU ARY, 2017, AT CHENNAI. SD/- ( . ) (ABRAHAM P. GEORGE) $ % / ACCOUNTANT MEMBER &'! / CHENNAI ( / DATED:25TH JANUARY, 2017. KV ) '+, -,' / COPY TO: 1. / APPELLANT 3. .' () / CIT(A) 5. ,12 '3 / DR 2. / RESPONDENT 4. .' / CIT 6. 24 5! / GF