Agricultural Market Committee, Denduluru V. ITO, Ward-2, , Eluru

ITA 446/VIZ/2017

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 1000 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 year(s) 4 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 26-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS SUMAN MALIK
• Section: 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , HONBLE ACCOUNTANT MEMBER ITA NO. 446 / VIZ /201 7 (ASST. YEAR : 20 0 7 - 0 8 ) AGRICULTURAL MARKET COMMITTEE, DENDULURU , W . G . DISTRICT. V S . IT O , WARD - 2 , ELURU . PAN NO. AACTA 0409 P (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI G.V.N. HARI ADV OCATE . DEPARTMENT BY : MRS. SUMAN MALIK SR. DR DATE OF HEARING : 22 / 1 1 /201 8 . DATE OF PRONOUNCEMENT : 28 / 1 1 /201 8 . O R D E R PER V. DURGA RAO, JUDICIAL MEMBER TH IS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) , VIJAYAWADA , DATED 2 8 /0 2 /201 7 FOR THE ASSESSMENT YEAR 200 7 - 0 8 . 2. FACTS OF THE CASE, IN BRIEF, ARE THAT ASSESSEE IS A STATUTORY BODY CONSTITUTED UNDER ANDHRA PRADESH (AGRICULTURAL PRODUCE AND LIVESTOCK) MARKETS ACT, 1966. THE ASSESSEE FILED ITS RETURN OF INCOME BY ADMITTING NIL INCOME. DURING THE COURSE OF ASSESSMENT PROCEEDINGS , THE ASSESSING OFFICER HAS NOTICED THAT 2 ITA NO. 446/VIZ/2017 ( AGRICULTURAL MARKET COMMITTEE ) THERE WAS AN EXCESS INCOME OF RS. 15,28,174/ - OVER THE EXPENDITURE. FORM NO. 10 FILED ALONG WITH THE RETURN OF INCOME DID NOT CONTAIN DETAILS , LIKE 1) QUANTUM OF INCOME BEING ACCUMULATED OR SET APART, 2) THE PERIOD FOR WHICH THE INCOME WAS BEING ACCUMULATED OR SET APART AND 3) THE PURPOSES OF ACCUMULATION OF INCOME. FURTHER , COLUMN N O . 6 OF THE FORM NO. 10, IT COULD BE NOTED THAT THE SURPLUS AM OUNT WAS KEPT IN TREASURY. THE ASSESSEE HAS NOT GIVEN PROPER REPLY, THEREFORE, THE ASSESSING OFFICER DENIED EXEMPTION CLAIMED UNDER SECTION 11 OF THE ACT AND ADDED THE ENTIRE EXCESS INCOME OVER EXPENDITURE I.E. RS.15,28,174/ - TO THE TOTAL INCOME OF THE AS SESSEE. 3 . ON APPEAL BEFORE THE LD. CIT(A) , THE ASSESSEE FILED A DETAILED SUBMISSION AND REQUESTED TIME TO FILE RECTIF IED /REVISED FORM NO.10 ON 30/01/2017 . THE LD. CIT(A) CONFIRMED THE ORDER OF THE ASSESSING OFFICER ON THE GROUND THAT THE ASSESSEE FAILED TO FILE THE REVISED FORM NO. 10 RECTIFY ING THE DEFECTS POINT ED OUT BY THE ASSESSING OFFICER DURING THE COURSE OF APPELLATE PROCEEDINGS TILL DATE AND THE PERIOD OF INVESTMENT HAD ALREADY LAPSED. 4 . BEFORE US, LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT ON 30/01/2017, ASSESSEE HAS REQUESTED THE LD. CIT(A) FOR SUFFICIENT TIME TO FILE THE RECTIFIED FORM NO. 10 , BUT WITHOUT CONSIDERING, LD.CIT(A) CONFIRMED THE ORDER OF THE ASSESSING OFFICER. 3 ITA NO. 446/VIZ/2017 ( AGRICULTURAL MARKET COMMITTEE ) 5. ON THE OTHER HAND, LD. DEPARTMENTAL REPRESENTATIVE STRONGLY SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 6 . THE ASSESSEE IS A STATUTORY BODY CONSTITUTED UNDER ANDHRA PRADESH MARKETS ACT, 1966 AND ALSO REGISTERED UNDER SECTION 12A OF THE ACT. THE ASSESSEE H AS EXCESS INCOME OF RS. 15,28,174/ - OVER THE EXPENDITURE AND FILED FORM NO. 10 BEFORE THE ASSESSING OFFICER. THE FORM FILED BY THE ASSESSEE DID NOT CONTAIN FULL DETAILS AND ALSO SOME DEFECTS, THEREFORE, THE ASSESSING OFFICER DENIED EXEMPTION CLAIMED BY TH E ASSESSEE UNDER SECTION 11 OF THE ACT AND THE ENTIRE EXCESS INCOME OVER THE EXPENDITURE IS ADDED TO THE TOTAL INCOME OF THE ASSESSEE. THE ASSESSEE FILED AN APPEAL BEFORE THE LD. CIT(A) , AND ON 30/01/2017, A DETAILED REPLY WAS FILED AND REQUESTED THE LD. CIT(A) TO GRANT SOME MORE TIME TO FURNISH RECTIFIED/REVISED FORM NO. 10 . THIS IS RECORDED BY THE LD. CIT(A) IN HIS ORDER, HOWEVER, THE LD. CIT(A) WITHOUT GIV ING FURTHER OPPORTUNITY, CONFIRMED THE ORDER OF THE ASSESSING OFFICER. BY CONSIDERING THE ENTIRE FACTS AND CIRCUMSTANCES OF THE CASE, WE ARE OF THE OPINION THAT THE LD. CIT(A) OUGHT TO HAVE GIVEN SOME MORE TIME TO FURNISH RECTIFIED/REVISED FORM NO. 10 . THER EFORE, WE SET ASIDE THE ORDER PASSED BY THE LD. CIT(A) AND REMIT THE MATTER BACK TO THE LD. CIT(A) TO ADJUDICATE THE ISSUE AFTER CONSIDERING THE RECTIFIE D /REVISED FORM NO. 10 IN ACCORDANCE WITH LAW. IT IS ALSO 4 ITA NO. 446/VIZ/2017 ( AGRICULTURAL MARKET COMMITTEE ) DIRECTED THE ASSESSEE TO FILE THE RECTIFIED/R EVISED FORM NO. 10 ON THE DATE GIVEN BY THE LD. CIT(A) WITHOUT FAIL. IN VIEW OF THE ABOVE, THIS APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 7 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE S . ORDER PR ONOUNCED IN OPEN COURT ON TH IS 2 8 T H DAY OF NOV ., 201 8 . S D / - S D / - ( D.S. SUNDER SINGH ) ( V. DURGA RAO ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 2 8 T H NOVEMBER , 201 8 . VR/ - COPY TO: 1. THE ASSESSEE AGRICULTURAL MARKET COMMITTEE, DENDULURU, W.G. DISTRICT. 2. THE REVENUE - ITO, WARD - 2, ELURU. 3. THE PR. CIT , RAJAHMUNDRY. 4. THE CIT(A) , VIJAYAWADA. 5. THE D.R . , VISAKHAPATNAM. 6. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SR. PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.