The ACIT, Gandhidham Circle, GANDHIDHAM V. M/s. Gandhidham Development Authority, Adipur-Kutch

ITA 292/RJT/2012

• Counselvise Citation: [2012] 120 COUNSELVISE.COM (IT) 0115 (ITAT-RAJKOT)
• Duration Of Justice: 2 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-08-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 25-07-2012
• Assessment Year: 2008-2009
• Appeal Filed On: 07-05-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Benefit of exemption
• Section: 12AA; 11

Judgement Text

, . .. . . . . . , , , , .. # , , , , & & & & ./ ITA NO. 292/RJT/2012 / ASSESSMENT YEAR:- 2008-09 THE ASSTT. COMMR. OF INCOME TAX, CIRCLE, GANDHIDHAM-KUTCH ( +/ APPELLANT) M/S GANDHIDHAM DEVELOPMENT AUTHORITY NR. GANDHIDHAM CO.OPERATIVE BANK, ADIPUR-KUTCH. PAN : AAALG0111E ,-+/ RESPONDENT . / APPELLANT SHRI AVINASH KUMAR, D.R. ,-+ 0 / BY RESPONDENT SHRI VIMAL DESAI, C.A. 0 / DATE OF HEARING 25/07/2012 0 / DATE OF PRONOUNCEMENT 03/08/2012 / / / / ORDER PER A.K. GARODIA, AM : THIS REVENUES APPEAL IS DIRECT ED AGAINST THE ORDER OF LD. C.I.T.(A)-II, RAJKOT DATED 24-02-2012 FOR A.Y. 2008 -09. THE GROUNDS RAISED BY THE REVENUE ARE AS UNDER. 1) THE LD.CIT(A) HAS ERRED IN LAW AND FACTS IN DELETI NG THE ADDITION OF RS.12,69,911/- MADE ON ACCOUNT OF DISALLOWANCE OF CLAIM U /S 11(1) (A) REJECTED. 2) THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN DEL ETING THE ADDITION OF RS.7,50,000/- MADE ON ACCOUNT OF INTEREST ON SPECIFIC FUN D INVESTMENT NOT INCLUDING IN COMPUTATION OF TOTAL INCOME. 2. LD. D.R. OF THE REVENUE SUPPORTED THE ASSESSMENT ORD ER WHEREAS LD.AR OF THE ASSESSEE SUPPORTED THE ORDER OF THE LD.CIT(A). HE FURTH ER SUBMITTED THAT LD.CIT(A) HAS FOLLOWED THE TRIBUNAL DECISION IN ASSESSEES OWN CASE FOR EA RLIER TWO YEARS I.E. A.Y.2004-05 & 2006-07. HE ALSO SUBMITTED THAT THESE TRIBUNAL ORDERS ARE AVAILABLE IN THE PAPER BOOK ON PAGE 2 TO 6 AND 7 TO 8. ITA-292/RJT/12 2 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PURSUED TH E MATERIAL ON RECORD AND HAVE GONE THROUGH THE ORDERS OF THE AUTHORITIES B ELOW AND THE TRIBUNAL DECISIONS CITED BY LD.AR OF THE ASSESSEE. WE FIND THAT THE LD.CI T(A) HAS DECIDED THIS ISSUE AS PER PARA NO.4.2 OF THE ORDER, WHICH IS REPRODUCED BELOW: I HAVE DULY CONSIDERED THE RIVAL SUBMISSIONS AND IT SEEN THAT THE ISSUE IS SQUARELY COVERED IN FAVOUR OF THE APPELLANT VIDE APPELLAT E ORDERS AND ITAT ORDERS FOR A.YS.2004-05 AND 2006-07 WHEREIN IT HAS BEEN HEL D THAT IF NO ORDER IS PASSED WITHIN A PERIOD OF SIX MONTHS ON THE APPLICATION OF REG ISTRATION U/S 12AA, THE LEGAL EFFECT IS THAT THE REGISTRATION IS DEEMED TO HAVE BEEN GRANTED AND HENCE THE APPELLANT CANNOT BE DENIED THE BENEFIT OF EXEMPTION U /S 11 ON THE GROUND OF ABSENCE OF REGISTRATION U/S 12AA. WHILE HOLDING SO, VARI OUS TRIBUNAL AND HIGH COURT JUDGMENTS ON THE SAME ISSUE HAVE BEEN CONSIDERED AND FOLLOWED. THE FACTS AND CIRCUMSTANCES ARE THE SAME IN THE YEAR UNDER APPE AL AS WELL. HENCE, RESPECTFULLY FOLLOWING THE DECISIONS OF THE EARLIER YEARS, I HOLD THAT THE DENIAL OF BENEFIT OF EXEMPTION U/S 11 ON THE GROUND OF ABSENCE O F REGISTRATION U/S 12AA IS NOT JUSTIFIED. THE A.O. IS THEREFORE DIRECTED TO GRA NT THE BENEFIT OF EXEMPTION U/S 11 TO THE APPELLANT AS PER THE LAW. THIS GROUND IS A LLOWED. 4. LD.DR OF THE REVENUE COULD NOT POINT OUT ANY DIF FERENCE IN FACTS IN THE PRESENT YEAR AS COMPARED TO EARLIER TWO YEARS I.E. A.Y.2004-05 AND 2006-07 IN WHICH THE TRIBUNAL HAS DECIDED THIS ISSUE IN FAVOUR OF THE ASSESSEE. HENCE, WE DO NOT FIND ANY REASON TO TAKE A CONTRARY VIEW IN THE PRESENT YEAR WIT H REGARD TO GROUND NO.1. 5. REGARDING GROUND NO.2, WE FIND THAT LD.CIT(A) HA S NOT DELETED THE ADDITION OF RS.7.5 LAKHS MADE BY THE A.O. HE HAS SIMPLY DIRECTED TH E A.O. TO GRANT THE EXEMPTION U/S 11 TO THE ASSESSEE ON THIS INCOME OF RS.7.5 LAKHS AS PER LAW. THEREFORE, GROUND NO.2 IS ALSO LIABLE TO BE REJECTED. WE ORDER, ACCORDING LY. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSE D. 0 # 03/08/2012 < 0 THIS ORDER PRONOUNCED IN OPEN COURT ON 03 /08/ 2012 . -SD- -SD- (T.K. SHARMA) (A.K. GARODIA) ( ) ( ) JUDICIAL MEMBER ACCOUNTANT MEMBER # / ORDER DATE 03/08/2012 /RAJKOT PUJARA/- ITA-292/RJT/12 3 0 00 0 ,? ,? ,? ,? @? @? @? @? / COPY OF ORDER FORWARDED TO:- 1. + / APPELLANT- ASSTT. COMMR. OF INCOME TAX, CIRCLE, GAND HIDHAM-KUTCH. 2. ,-+ / RESPONDENT-M/S GANDHIDHAM DEVELOPMENT AUTHORITY, A DIPUR. 3. B / CONCERNED C.I.T-I, RAJKOT. 4. B- / CIT (A)-II, RAJKOT 5. ? ,, , / DR, ITAT, RAJKOT 6. / GUARD FILE. / BY ORDER , TRUE COPY ASTT. REGISTRAR , INCOME TAX APPELLATE TRIBUNAL, RAJKOT. ITA-292/RJT/12 4 . . , .. #, & .. #