ITO (EXEMPTION), Jaipur V. RAJASTHAN KHADYA PADARTH VYAPAR SANGH, Jaipur

ITA 360/JPR/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 1963 (ITAT-JAIPUR)
• Duration Of Justice: 5 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-11-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 08-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R A VERMA
• Assessee Lawyers: S L PODDAR
• Section: 143(3); 12AA

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH FOT; IKY JKO] U;KF;D LNL; ,OA JH HKKXPAN] YS[KK L NL; DS LE{K BEFORE: SHRI VIJY PAL RAO, JM & SHRI BHAGCHAND, AM VK;DJ VIHY LA- @ ITA NO. 360/JP/2017 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR : 2012-13 THE ITO(E), WARD-1, JAIPUR. CUKE VS. M/S RAJASTHAN KHADYA PADARTH VYAPAR SANGH, B-20, 1 ST FLOOR CHANDPOLE BAZAAR, JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AAAAR0336D VIHYKFKHZ@ APPELLANT IZR;FKHZ@ R ESPONDENT FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SHRI S.L. PODDAR (ADV.) JKTLO DH VKSJ LS @ REVENUE BY : SHRI R.A. VERMA (ADDL.CIT) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 17/10/2017 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT: 03/11/2017 VKNS'K@ ORDER PER: VIJAY PAL RAO, J.M. THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF DATED 09.02.2017 OF CIT (A)-5, JAIPUR FOR A.Y. 2012-13. T HE REVENUE HAS RAISED THE FOLLOWING GROUNDS AS UNDER:- 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE CIT(A) HAS ERRED IN DELETING THE DISALLOWANCE OF RS . 29,72,642/- BY HOLDING THAT IT IS NOT THE CASE OF THE AO THAT P ERSONAL OR NON- GENUINE EXPENSES HAVE BEEN DEBITED IN THE FORM OF MAHA SAMMELAN EXPENSES WHEREAS THE AO HAS DISALLOWED TH ESE EXPENSES ON THE GROUND OF NON-REGISTRATION U/S 12AA AND ALSO ON ACCOUNT OF NOT FOR THE BENEFIT OF PUBLIC AT LARGE. ITA NO. 360/JP/2017 ITO VS. M/S RAJASTHAN KHADYA PADARTH VYAPAR SANGH 2 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW THE CIT(A) HAS ERRED IN ALLOWING THE AMOUNT OF RS. 35,0 0,000/- SET APART U/S 11(2), IN SPITE OF THE FACT THE ASSESSEE REGISTRATION GRANTED U/S 12AA BY HONBLE ITAT, WAS CHALLENGED BE FORE THE HONBLE HIGH CURT WHICH IS PENDING. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW THE CIT(A) HAS ERRED IN DELETING RS. 1,89,955/- BEING 1 5% OF SURPLUS AS THE ORDER OF ITAT IN RESPECT OF GRANTING REGISTR ATION U/S 12AA HAS BEEN CHALLENGED BEFORE HONBLE HIGH COURT. 2. THE ASSESSEE IS A TRADE ASSOCIATION AND FILED A N APPLICATION FOR REGISTRATION U/S 12AA OF THE ACT. THE LD. CIT(EXEMP TION), JAIPUR VIDE ITS ORDER DATED 18.03.2015 DISMISSED THE APPLICATION FO R REGISTRATION U/S 12AA. THEREAFTER THE ASSESSING OFFICER COMPUTED AS SESSMENT U/S 143(3) WHEREBY THE ASSESSEE WAS DENIED THE EXEMPTIO NS U/S 11(1) AND CONSEQUENTLY THE INCOME OF THE ASSESSEE WAS DETERMI NED AT RS. 64,45,893/-.THE ASSESSEE CHALLENGED THE ACTION OF T HE AO BEFORE THE CIT(A). THE LD. CIT NOTED THE FACT THAT THIS TRIBUN AL VIDE ORDER DATED 27.09.2016 GRANTED REGISTRATION TO THE ASSESSEE AND CONSEQUENTLY THE ASSESSEE WAS ELIGIBLE FOR THE BENEFIT U/S 11(1) OF THE ACT. HENCE, THE LD. CIT(A) DELETED THE ADDITION MADE BY THE AO. AGGRIEV ED BY THE ORDER OF THE LD. CIT(A) THE REVENUE HAS FILED THIS APPEAL. 3. WE HAVE HEARD THE LD. DR AS WELL AS LD. AR AND C ONSIDERED THE RELEVANT MATERIAL ON RECORD. THE ASSESSING OFFICER HAS MADE VARIOUS ITA NO. 360/JP/2017 ITO VS. M/S RAJASTHAN KHADYA PADARTH VYAPAR SANGH 3 ADDITIONS AND ASSESSED RECEIPT OF THE ASSESSEE TO T AX. IN VIEW OF THE FACT THAT THE APPLICATION FOR REGISTRATION U/S 12AA WAS REJECTED BY THE LD. CIT(E) AND SUBSEQUENTLY THIS TRIBUNAL VIDE ORDE R DATED 29.09.2016 IN ITA NO. 335 OF 2015 SET ASIDE THE ORDER OF THE LD. CIT(EXEMPTION) AND DIRECTED THE LD. CIT(E) TO GRANT REGISTRATION T O THE ASSESSEE ASSOCIATION U/ 12AA OF THE ACT. THE REVENUE CHALLEN GED THE SAID DECISION OF THE TRIBUNAL GRANTING REGISTRATION U/S 12AA TO THE ASSESSEE BEFORE THE HONBLE RAJASTHAN HIGH COURT BUT COULD N OT SUCCEED AS THE HONBLE HIGH COURT VIDE ITS ORDER DATED 10.07.2017 HAS DISMISSED THE APPEAL OF THE REVENUE. THUS THE DECISION OF THE TRI BUNAL GRANTING REGISTRATION U/S 12AA HAS BEEN UPHELD BY THE HONBL E JURISDICTIONAL HIGH COURT. THE REVENUE HAS RAISED THE GROUNDS IN THE PR ESENT APPEAL THAT THE DECISION OF THE TRIBUNAL GRANTING REGISTRATION U/S 12AA HAS BEEN CHALLENGED BEFORE THE HONBLE HIGH COURT. IN VIEW O F THE FACT THAT THE APPEAL OF THE REVENUE HAS BEEN DISMISSED BY THE HON BLE RAJASTHAN HIGH COURT THERE IS NO MERIT AND SUBSTANCE IN THE P RESENT APPEAL OF THE REVENUE. HENCE, WE DO NOT FIND ANY ERROR OR ILLEGAL ITY IN THE IMPUGNED ORDER BY THE LD. CIT (APPEAL) IN GRANTING THE BENEF IT U/S 11(1) OF THE ACT. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISS ED. ITA NO. 360/JP/2017 ITO VS. M/S RAJASTHAN KHADYA PADARTH VYAPAR SANGH 4 ORDER PRONOUNCED IN THE OPEN COURT ON 03/11/2017 SD/- SD/- HKKXPAN FOT; IKY JKO (BHAGCHAND) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 03/11/2017. * SANTOSH. VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- THE ITO(E),WARD-1, JAIPUR. 2. IZR;FKHZ@ THE RESPONDENT- M/S RAJASTHAN KHADYA PADARTH VYAPAR SANGH, B-20, 1 ST FLOOR CHANDPOLE BAZAAR, JAIPUR. 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR. 6. XKMZ QKBZY@ GUARD FILE {ITA NO. 360/JP/2017} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR