Maharashtra Ex-Servicemen Corporation Ltd, Pune V. Income-tax Officer, Ward - 14 (4), Pune

ITA 384/PUN/2019

AI Insights

This case involves a series of appeals by the Maharashtra Ex-Servicemen Corporation Ltd. against the orders of the CIT(A) for various assessment years. The primary issue revolves around the eligibility of the assessee for registration under section 12AA of the Income-tax Act, 1961. The Pune Bench of the Tribunal had previously remanded the matter to the CIT (Exemption) to re-adjudicate the issue. The Tribunal in the current proceedings decided to remand all the matters back to the ld. A.O to re-adjudicate the issues in accordance with the findings of the ld. CIT (Exemption) on the registration issue.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 124338 (ITAT-PUNE)
• Duration Of Justice: 10 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-11-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 22-11-2022
• Assessment Year: misc
• Appeal Filed On: 06-01-2022
• Other Referred Cases: Ananda Social and Educational Trust vs. CIT, 272 Taxman 7
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER Sr.No. ITA No. Asstt. Year Appellant Respondent 1. 384/PUN/2019 2010-11 Maharashtra Ex- Servicemen Corporation Ltd.Raigad, Opp. National War memorial, Ghorpadi, Pune-411 001 PAN: AADCM 4072 G The I.T.O. Ward 14(4), Pune 2. 245/PUN/2020 2017-18 -do- The ITO Ward 14(1), Pune 3. 640/PUN/2019 2008-19 -do- The I.T.O. Ward 14(4) Pune. 4. 641/PUN/2019 2009-10 -do- -do- 5. 642/PUN/2019 2011-12 -do- -do- 6. 643/pun/2019 2013-14 -do- -do- 7. 644/PUN/2019 2014-15 -do- -do- Appellant by : Shri Kishor Phadke Respondent by : S/Shri Ganesh Bare and Ramnath P. Murkunde Date of Hearing : 23-11-2022 Date of Pronouncement : 24-11-2022 ORDER PER BENCH This batch of seven appeals preferred by the assessee emanates from separate orders of the ld. CIT(A)-7, Pune dated 06-12-1018 for A.Y. 2010-11, dated 07-11-2019 for A.Y. 2017-18, dated 15-02-2019 for A.Y. 2011-12 & dated 06-12-2018 for A.Y. 2013-14, and separate orders of the ld. CIT(A)-9, Pune, dated 15-02-2019 for A.Y. 2008-09, A.Y. 2009-10, & 2014-15 as per the grounds of appeal on record. 2. The facts and circumstances and issues involved in all these appeals are absolutely identical and similar and therefore, these cases were heard together and are disposed of by this consolidated order. 2 ITA 384, 245, 640 to 644 of 2019 Maharashtra Ex-servicemen Corpn. Ltd. 3. That opening his arguments, the ld. Counsel for the assessee submitted that in the case of the assessee the Pune Bench of the Tribunal has passed an order in ITA No. 129/PUN/2021 dated 16-06-2021 wherein the issue before the Tribunal was whether the assessee is eligible to get registration u/s 12AA of the Income-tax Act, 1961 (hereinafter referred to as “the Act”). In the said order, the Tribunal has remanded the matter back to the file of the ld. C.I.T. (Exemption) to re-adjudicate the issue on merits whether the assessee is eligible for registration u/s 12AA of the Act. It is the contention of the ld. Counsel that all these cases fixed before us for adjudication pertains to the assessments taken place prior to the order passed by Pune Bench of the Tribunal (supra). That whether now, the assessee would get registration u/s 12AA of the Act that would have a bearing on all these cases. Accordingly, he prayed that these matters may be remanded back to the file of ld. A.O with appropriate directions for re-adjudication as per law and based on the determination of the status of the assessee as regards the issue of grant of registration u/s 12AA of the Act. Accordingly, taking the totality of the facts and circumstances into consideration, the ld. A.O may pass necessary orders. The ld. D.R fairly conceded to these submissions. 4. We have heard the submissions of the parties in respect of all these appeals before us and have also considered the Pune Tribunal decision (supra) in assessee‟s case placed on record. The Pune Bench of the Tribunal in ITA No. 129/PUN/2021 (supra) observed and held as follows: “9. We heard the rival submissions and perused the material on record. The issue in the present appeal relates to the grant of registration u/s 12AA of the Act. We carefully gone through the MOA, we found that the appellant company is formed to provide reemployment to ex-servicemen etc. On perusal of clause set out in Memorandum of Association, we are unable to discern clause creating an interest in property in favour of the public for any of the object listed u/s 2(15) of the Act, which is sine qua non for creation of charity. In-fact, we may point out that covenant in the MOA does permit the appellant company to distribute the profits in the form of dividend amongst its members and does not set out a condition that the income earned by the appellant company shall be deployed for the objects of the company. This would make the appellant company a 3 ITA 384, 245, 640 to 644 of 2019 Maharashtra Ex-servicemen Corpn. Ltd. commercial organization. However, the view of the ld. CIT (Exemption) that the appellant company is a commercial organization merely because it is generating huge revenue from year to year with mark-up on the cost of 10% to 12% cannot be upheld. The ld. CIT (Exemption) had not considered the matter in proper perspective. Therefore, in the interest of justice, the matter should be remanded back to the file of the ld. CIT (Exemption) for de-novo consideration of application on the touchstone of law laid down by the Hon’ble Supreme Court in the case of Ananda Social and Educational Trust vs. CIT, 272 Taxman 7 after giving due opportunity of being heard to the appellant. Thus, the grounds of appeal raised by the assessee are partly allowed for statistical purposes.” 5. The Tribunal in the aforesaid decision has remanded the matter back to the file of the ld. CIT (Exemption). Therefore, it has to be seen what exactly is the status determined by the ld. CIT(Exemption) as regards to the assessee and whether the ld. CIT(Exemption) would grant registration u/s 12AA of the Act to the assessee or not. This decision thus certainly has a bearing on all these appeals placed before us. Therefore, without going into the merits of all these cases considering the submissions made before us and the aforesaid order of Pune Bench of the Tribunal (supra) in assessee‟s own case, we remand all these matters to the file of the ld. A.O to re-adjudicate the issue as per law on the basis of the findings of the ld. CIT (Exemption) determining the issue of grant of registration u/s 12AA of the Act vis-à-vis the assessee. The ld. A.O shall comply with the provisions of natural justice. Accordingly all the grounds of appeal in respect of these appeals are allowed for statistical purposes. 6. In the result, all these appeals are allowed for statistical purposes. Order pronounced in the open Court on this 24 th November 2022. Sd/- sd/- (INTURI RAMA RAO) (PARTHA SARATHI CHAUDHURY) ACCOUNTANT MEMBER JUDICIAL MEMBER Pune; Dated, this 24 th day of November 2022 Ankam 4 ITA 384, 245, 640 to 644 of 2019 Maharashtra Ex-servicemen Corpn. Ltd. Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. The CIT(A) 7/9, Pune 4. The Pr. C.I.T. 6, Pune 5. The D.R. ITAT „A‟ Bench Pune. 6. Guard File BY ORDER, Sr. Private Secretary ITAT, Pune /// TRUE COPY /// 5 ITA 384, 245, 640 to 644 of 2019 Maharashtra Ex-servicemen Corpn. Ltd. Date 1 Draft dictated on 23-11-2022 Sr.PS 2 Draft placed before author 23-11-2022 Sr.PS 3 Draft proposed and placed before the second Member JM/AM 4 Draft discussed/approved by second Member AM/JM 5 Approved draft comes to the Sr. PS/PS Sr.PS/PS 6 Kept for pronouncement on 24-11-2022 Sr.PS/PS 7 Date of uploading of order 24-11-2022 Sr.PS/PS 8 File sent to Bench Clerk 24-11-2022 Sr.PS/PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R 11 Date of dispatch of order