The Dy. C.I.T., Central Circle, Agra V. Simpkins School, Agra

ITA 349/AGR/2010

• Counselvise Citation: 34920314 RSA 2010
• Duration Of Justice: 1 year(s) 3 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-11-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 15-11-2011
• Assessment Year: 2001-2002
• Appeal Filed On: 05-08-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K SHARMA
• Keywords: Deemed to accrue or arise in india
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI B.P. JAIN, ACCOUNTANT MEMBER ITA NO.349/AGR/2010 ASSESSMENT YEAR: 2001-02 DY. COMMISSIONER OF INCOME TAX, VS. SIMPKINS SCHOO L, CENTRAL CIRCLE, AGRA. MARUTI ESTATE, BODLA, AGRA. (PAN: AABAS 8932 P). (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI A.K. SHARMA, JR. D.R. RESPONDENT BY : SHRI DEEPENDRA MOHAN, C.A. DATE OF HEARING : 15.11.2011 DATE OF PRONOUNCEMENT : 15.11.2011 ORDER PER BENCH : THIS APPEAL OF THE REVENUE ARISES FROM THE ORDER OF LD. CIT(A)-II, AGRA DATED 24.05.2010 FOR THE ASSESSMENT YEAR 2001-02. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL:- 1. CIT(A) ERRED IN DELETING THE ADDITION ON ACCOUN T OF DEEMED INCOME AS PER SECTION 68 OF THE ACT AS EXEMPTION U/ S. 10(23C)(III) OF THE ACT IS ALLOWABLE ONLY ON THE INCOME WHICH ARE R ECEIVED IN THE COURSE OF ACTIVITIES CARRIED OUT BY THE ASSESSEE FO R WHICH EXEMPTION HAS BEEN GRANTED AND SUCH INCOME HAS BEEN DULY RECO RDED IN THE BOOKS OF ACCOUNTS MAINTAINED AND AUDITED AS PER PRO VISIONS OF THE I.T. ACT. THE EXEMPTION U/S 10(23C) CANNOT BE EXTENDED TO INCOME FROM OTHER ACTIVITIES WHICH IS DEEMED TO BE INCOME IN TE RMS OF SECTION 68 OF THE I.T. ACT. ITA NO.349/AGR/2010 A.Y. 2001-02 2 2. THAT THE ORDER OF THE LD. CIT(A) BEING ERRONEOUS IN LAW AND ON FACTS BE VACATED AND THE ORDER OF THE ASSESSING OFF ICER BE RESTORED. 3. THAT THE APPELLANT CRAVES LEAVE TO AMEND ANY ONE OR MORE OF THE GROUNDS OF THE APPEAL AS STATED ABOVE AS AND WH EN NEED FOR DOING SO MAY ARISE. 3. AT THE OUTSET, THE LD. AUTHORISED REPRESENTATIVE SHRI DEEPENDRA MOHAN, C.A. APPEARING FOR THE ASSESSEE INVITED OUR ATTENTI ON WHERE THE REVENUE HAS RAISED THE GROUND FOR DELETION OF ADDITION ON ACCOUNT OF D EEMED INCOME AS PER SECTION 68 OF THE INCOME TAX ACT, 1961 (THE ACT HEREINAFTER) WHICH IS THE BASIS FOR DENIAL OF EXEMPTION UNDER SECTION 10(23C)(III) OF THE ACT. I T WAS POINTED OUT BY THE LD. AUTHORISED REPRESENTATIVE THAT NO SUCH ADDITION HAS BEEN MADE BY THE ASSESSING OFFICER IN HIS ORDER DATED 29.12.2006 AND NO SUCH A DDITION HAS BEEN DEALT WITH BY THE LD. CIT(A)-II, AGRA IN HIS ORDER DATED 24.05.20 10. THEREFORE, THE GROUND TAKEN BY THE REVENUE IS AGAINST THE FACTS AVAILABLE ON RE CORD AND THE APPEAL OF THE REVENUE IS LIABLE TO BE DISMISSED. 4. THE LD. DEPARTMENTAL REPRESENTATIVE, ON THE OTHE R HAND, COULD NOT OPPOSE THE ARGUMENTS MADE BY THE LD. AUTHORISED REPRESENTA TIVE OF THE ASSESSEE SHRI DEEPENDRA MOHAN, CA. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE FACTS OF THE CASE. THE ARGUMENTS MADE BY SHRI DEEPENDRA MOHAN, C.A., THE L D. AUTHORISED REPRESENTATIVE OF THE ASSESSEE WERE FOUND TO BE CON VINCING THAT THE MAIN GROUND OF ITA NO.349/AGR/2010 A.Y. 2001-02 3 THE APPEAL BY THE REVENUE IS WITH REGARD TO THE DEL ETION OF ADDITION ON ACCOUNT OF DEEMED INCOME AS PER SECTION 68 OF THE ACT, WHICH A DDITION WAS NEVER MADE BY THE ASSESSING OFFICER AND HAS NEVER BEEN DEALT BY THE L D. CIT(A) IN HIS IMPUGNED ORDER. THEREFORE, THE GROUND OF THE REVENUE IS DEF ECTIVE WHICH CANNOT BE SUSTAINED AND, IN THE CIRCUMSTANCES AND FACTS OF TH E CASE, WE HAVE NO ALTERNATIVE BUT TO DISMISS THE APPEAL OF THE REVENUE. THUS, AL L THE GROUNDS OF THE REVENUE ARE DISMISSED. 6. IN THE RESULT, APPEAL OF THE REVENUE IN ITA NO.3 49/AGR/2010 IS DISMISSED. (ORDER PRONOUNCED IN THE OPEN COURT ON 15.11.2011). SD/- SD/- (H.S. SIDHU) (B.P. JAIN) JUDICIAL MEMBER ACCOUNTANT MEMBER DATE: 15 TH NOVEMBER, 2011 PBN/* COPY OF THE ORDER FORWARDED TO: APPELLANT/RESPONDENT/CIT CONCERNED/CIT(APPEALS) CO NCERNED/D.R., ITAT, AGRA BENCH, AGRA/GUARD FILE. BY ORDER ASSISTANT REGISTRAR INCOME-TAX APPELLATE TRIBUNAL, AGRA TRUE COPY