The I.T.O., Khargone V. M/s. Krishi Upaj Mandi Samiti, Khargone

ITA 270/IND/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 47895 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 2 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-07-2011
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 06-05-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ARUN DEWAN
• Assessee Lawyers: NITIN AGARWAL
• Section: 143(3); 12A; 12AA; 12

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL , INDORE BENCH, INDORE BEFORE SHRI JOGINDER SINGH, J.M. AND SHRI R.C.SHARMA, A.M. PAN NO. : AAALK0741L I.T.A.NO. 270 / IND /20 10 A.Y. : 2006 - 07 INCOME - TAX OFFICER, M/S. KRISHI UPAJ MANDI SAMITI, KHARGONE VS SEGAON, DISTT. KHARGONE APPELLANT RESPONDENT APPELLANT BY : SHRI ARUN DEWAN, SR. DR RESPONDENT BY : SHRI NITIN AGARWAL, CA O R D E R PER R. C. SHARMA, A.M. THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A) DATED 5. 2.2010, FOR THE ASSESSMENT YEAR 2006 - 07 IN THE MATTER OF ORDER PASSED U/S 143(3) OF THE INCOME - TAX ACT, 1961. 2. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORDS PERUSED. THE FACTS, IN BRIEF, ARE THAT THE ASSESSEE IS A KRISHI UPAJ MANDI SAMITI ESTABLISHED UNDER THE MADHYA PRADESH - : 2 : - 2 KRISHI UPAJ MANDI ADHINIYAM , 1972 BY A NOTIFICATION ISSUED BY THE GOVERNMENT OF MADHYA PRADESH, WITH THE OBJECT OF MAINTAINING/PROVIDING FACILITIES TO FARMERS FOR THE MARKETING OF THEIR AGRICULTURAL PRODUCE. THE AFFAIRS OF THE MANDI S AMITI ARE REGULATED BY ITS BYE - LAWS. THE MANDI SAMITI FUNCTIONS UNDER THE CONTROL, SUPERVISION AND GUIDANCE OF THE GOVT. OF M.P. FOR WHICH A MANDI BOARD HAS BEEN ESTABLISHED. HOWEVER, WHILE FRAMING THE ASSESSMENT, THE AO DID NOT CONSIDER AND GIVE EFFECT TO THE ORDER OF THE TRIBUNAL PASSED IN ASSESSEE S OWN CASE WHEREIN ASSESSEE WAS HELD TO BE ELIGIBLE FOR GRANT OF REGISTRATION U/S 12 - A A RETROSPECTIVELY W.E.F. THE DATE OF ITS CREATION. SINCE THE ORDER OF THE TRIBUNAL DATED 14.12.2007 IN ASSESSEE S OWN CAS E WAS NOT GIVEN EFFECT BY THE DIRECTOR (EXEMPTION), THE AO DID NOT ACCEPT THE ASSESSEE S STATUS AS HAVING BEEN REGISTERED AS CHARGEABLE INSTITUTION U/S 12A A , ACCORDINGLY, MADE VARIOUS ADDITIONS/DISALLOWANCES BY APPLYING THE PROVISIONS OF ACT AS APPLICABLE TO A BUSINESS ORGANIZATION. BY THE IMPUGNED ORDER, THE LD. CIT(A) HAS DELETED ALL THESE ADDITIONS/DISALLOWANCES AGAINST WHICH THE REVENUE IS IN FURTHER APPEAL BEFORE US. - : 3 : - 3 3. WE HAVE CONSIDERED THE RIVAL CONTENTIONS, CAREFULLY GONE THROUGH THE ORDERS OF THE AUT HORITIES BELOW. FROM THE RECORD, WE FOUND THAT THE ISSUE WITH REGARD TO GRANT OF REGISTRATION AND APPLICATION OF PROVISIONS OF SECTION 11/12A WAS CONTESTED BY THE ASSESSEE BEFORE THE AO, BUT HE HAS NOT CONSIDERED THE SAME AND EVEN THE LEGAL GROUND TAKEN B EFORE THE CIT(A) WAS ALSO NOT VCONSIDERED . IN VIEW OF THE DECISION OF THE TRIBUNAL IN ASSESSEE S OWN CASE, WE RESTORE THE MATTER BACK TO THE FILE OF THE AO WITH THE DIRECTION TO REFRAME THE ASSESSMENT BY CONSIDERING BENEFIT OF REGISTRATION TO THE ASSESSEE UNDER THE PROVISIOINS OF SECTION 11/12A OF THE INCOME - TAX ACT, 1961. IT IS PERTINENT TO MENTION HERE THAT THE TRIBUNAL VIDE ITS ORDER DATED 14.12.2007 HAVE CLEARLY DIRECTED THE D. I.(EXEMPTION) TO DO THE NEEDFUL WITHIN ONE MONTH FROM THE RECEIPT OF THIS ORD ER I.E. TO GRANT REGISTRATION RETROSPECTIVELY WITH THE DATE OF ITS CREATION. HOWEVER, IT APPEARS THAT THE ORDER OF THE TRIBUNAL HAV E NOT BEEN GIVEN EFFECT TO BY THE CONCERNED D.I. (EXEMPTION). WE, THEREFORE, DIRECT THE AO TO TAKE STATUS OF THE ASSESSEE AS HAVING BEEN GRANTED REGIST RATION U/S 12AA - : 4 : - 4 AND ALLOW ALL THE BENEFITS U/S 11/12A AND TO REFRAME THE ASSESSMENT ACCORDINGLY. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COUR T ON 14 TH JU LY , 2011. SD/ - SD/ - (JOGINDER SINGH) ( R.C.SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 1 4 TH JU LY , 2011 . CPU* 13 14 7