Saharanpur Development Authority, Saharanpur V. CIT, Muzaffarnagar

ITA 3888/DEL/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 3715 (ITAT-DELHI)
• Duration Of Justice: 9 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-07-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 06-07-2010
• Assessment Year: misc
• Appeal Filed On: 15-09-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R P SINGH
• Section: 12AA

Judgement Text

ITA NO.3888/DEL/2009 1 IN THE INCOME TAX APPELLAT E TRIBUNAL DELHI BENCH G NEW DELHI BEFORE SHRI G.E. VEERABHADRAPPA, VICE PRESIDENT AND SHRI A.D. JAIN, JUDICIAL MEMBER ITA NO.3888/DEL/2009 ASSTT. YEAR: ------- SAHARANPUR DEVELOPMENT AUTHORITY, VS COMMISSIO NER OF INCOME TAX, NEAR GANGA BHAWAN, MUZAFFARNAGAR. HAKIKAT NAGAR, SAHARANPUR. (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI SANJAY KUMAR RESPONDENT BY: SH. R.P. SINGH, SR. DR O R D E R PER G.E. VEERABHADRAPPA, V.P. THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDE R OF CIT, MUZAFFARNAGAR DATED 7.7.2009. 2. THE ASSESSEE IS AN AUTHORITY CREATED UNDER UTTAR PRADESH URBAN PLANNING AND DEVELOPMENT ACT, 1973 VIDE NOTIFICATIO N NO.1347/IX-A VAS-5- 95-68-DA-83 DATED MAY 3, 1995 ISSUED BY THE UP GOVE RNMENT AND PERFORMS THE FOLLOWING ACTIVITIES: A) MAKING THE MASTER PLAN BY EARMARKING THE AGRICU LTURE, COMMERCIAL, INDUSTRIAL AND RESIDENTIAL AREA OF THE CITY, SO THAT ANY OF THESE DO NOT MIX UP AND CREATE PROBLEM TO EA CH OTHER. B) MAKE RULES OF CONSTRUCTION IN ALL AREAS, LIKE IN RESIDENTIAL COLONIES DECIDING AREA IN ROADS, AREA IN PARKS, ARE A IN PLOTS ITA NO.3888/DEL/2009 2 AND THEREAFTER TOTAL CONSTRUCTION AREA IN A PLOT, B UILT-UP AND NON BUILT-UP AREA, NO. OF FLOORS, SETBACKS ETC. C) ENSURES PROPER DEVELOPMENT OF ROADS AND PARKS, S EWERAGE LINES, ELECTRIC POLES IN RESIDENTIAL COLONIES AND S IMILAR PROVISIONS IN OTHER SECTORS. IT FILED AN APPLICATION FOR REGISTRATION U/S 12AA O F THE ACT. THIS WAS CHALLENGED IN APPEAL BEFORE THE TRIBUNAL AND THE TR IBUNAL VIDE ITS ORDER DATED 20.6.2008 IN ITA NO.5008/DEL/2007 DIRECTED TH E GRANTING OF REGISTRATION U/S 12AA OF THE ACT. THE CIT THEREAFT ER APPEARS TO HAVE GRANTED REGISTRATION IN PURSUANCE OF THE SAID DIREC TION OF ITAT. AT THE SAME TIME, THE CIT TOOK PROCEEDINGS FOR CANCELLATION OF THE REGISTRATION U/S 12AA(3) OF THE ACT AFTER PROVIDING AN OPPORTUNITY O F BEING HEARD IN THE MATTER. THIS ORDER HAS BEEN CHALLENGED IN THE PRES ENT APPEAL. 3. WE HAVE HEARD BOTH THE SIDES AND HAVE GONE THROU GH THE RECORDS. IT HAS BEEN BROUGHT TO OUR NOTICE THAT THE SAID ORDER OF THE TRIBUNAL REFERRED TO EARLIER HAS ALREADY BEEN THE SUBJECT MATTER OF APPE AL BEFORE THE HIGH COURT. ONCE THE INSTITUTION HAS BEEN GRANTED REGISTRATION U/S 12AA OF THE ACT AND SUBSEQUENTLY THE COMMISSIONER IS SATISFIED THAT THE ACTIVITIES OF SUCH TRUST ARE NOT GENUINE OR THE ACTIVITIES ARE NOT BEING CARRIED OUT IN ACCORDANCE WITH THE OBJECTS OF THE TRUST OR INSTITUTION, AS THE CASE MA Y BE, HE SHALL PASS AN ORDER IN WRITING, CANCELLING THE REGISTRATION OF SUCH TRU ST OR INSTITUTION U/S 12AA(3) ITA NO.3888/DEL/2009 3 OF THE ACT. IN THE CASE BEFORE US, IT IS NOT THE C ASE OF THE COMMISSIONER OF INCOME TAX THAT ANY OF THESE TWO CONDITIONS ARE SAT ISFIED. HE HAS RE- APPRECIATED THE SAME FACTS WHICH WERE ALSO CONSIDER ED BY THE TRIBUNAL IN THE ORDER MENTIONED ABOVE WHILE DIRECTING THE GRANTING OF REGISTRATION. NOTHING NEW HAS COME TO THE KNOWLEDGE OF THE CIT TO WITHDRA W THE REGISTRATION ONCE GRANTED. IN A WAY, CIT IS REVERSING THE ORDER OF T HE TRIBUNAL WITHOUT ANY FRESH FACTS COMING TO HIS KNOWLEDGE AS REQUIRED U/S 12AA(3) OF THE ACT. WE HAVE, THEREFORE, NO HESITATION IN CANCELLING THE IM PUGNED ORDER AS UNWARRANTED AND WITHOUT ANY BASIS. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 6.7.2010. SD/- SD/- ( A.D. JAIN ) (G.E. VEERABHADRAPPA) JUDICIAL MEMBER VICE PRESIDENT DT. 6TH JULY 2010 GS COPY FORWARDED TO: 1. SAHARANPUR DEVELOPMENTAUTHORITY, SAHARANPUR. 2. CIT, MUZAFFARNAGAR. 3. CIT 4. DR BY ORDER DY. REGISTRAR ITA NO.3888/DEL/2009 4