JAWAHARLAL NEHRU PORT TRUST, URAN V. CIT-II, THANE

ITA 449/MUM/2012

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 71596 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-10-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: J
• Next Hearing Date: 09-10-2013
• Assessment Year: 2008-2009
• Appeal Filed On: 20-01-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Business income
• Section: 12A; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES J, MUMBAI BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER & SHRI N K BILLAIYA, ACCOUNTANT MEMBER ITA NO.449/MUM/2012 FOR ASST. YEAR: NA JAWAHARLAL NEHRU PORT TRUST, ADMINISTRATION BLDG., SHEVA, TAL URAN. PAN AAALJ0036D VS. THE CIT II, THANE (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI H K PANDA & MS. BHUMIKA VORA RESPONDENT BY : SHRI R K SAHU DATE OF HEARING : 09.10.2013 DATE OF PRONOUNCEMENT : 23.10.2013 O R D E R PER N.K.BILLAIYA (AM) : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE CIT-II, THANE, DATED 20.09.2011 FOR A.Y. 2008-09. 2. THE SOLE GRIEVANCE OF THE ASSESSEE IS THAT THE C IT ERRED IN CANCELLING THE REGISTRATION U/S. 12A OF THE ACT W.E.F. A.Y. 2008-0 9 HOLDING THAT THE ASSESSEE IS NOT ENGAGED IN ACTIVITIES WHICH ARE COVERED WITHIN THE MEANING OF SECTION 2(15) OF THE ACT. 3. A PERUSAL OF THE ORDER OF THE CIT SHOWS THAT CIT HAS INVOKED THE PROVISO TO SECTION 2(15) OF THE ACT AS INTRODUCED BY THE FINAN CE ACT 2008. THE CIT WAS OF THE FIRM BELIEF THAT THE ASSESSEE IS INVOLVED IN THE AC TIVITY OF RENDERING SERVICES IN RELATION TO TRADE COMMERCE FOR FEE AND, THEREFORE, IN VIEW OF THE AMENDED PROVISIONS OF SECTION 2(15), THE ASSESSEE TRUST IS NO LONGER A CHARITABLE ORGANIZATION UNDER THE 2 ITA NO.449/MUM/12 AY: 2008-09 I.T.ACT. THE CIT CANCELLED THE REGISTRATION GRANTE D EARLIER. AGGRIEVED BY THIS THE ASSESSEE IS BEFORE US. 3. THE COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE TRUST HAS INCOME FROM VARIOUS SOURCES SUCH AS INCOME UNDER THE HEAD BUSINESS, CAPITAL GAINS AND INCOME FROM OTHER SOURCES. IT IS THE SAY OF THE COUNSEL THAT EVEN IF THE AMENDED PROVISO IS APPLIED, IT WILL BE APPLICABLE ONLY TO T HE INCOME FROM BUSINESS, BEING NOT ELIGIBLE U/S. 11 OF THE ACT, WHEREAS INCOME FROM AL L OTHER SOURCES OTHER THAN BUSINESS INCOME WOULD STILL BE ELIGIBLE FOR EXEMPTI ON U/S. 11 OF THE ACT. THEREFORE, THERE IS NO REASON WHY THE REGISTRATION ALREADY GRA NTED SHOULD BE WITHDRAWN. PER CONTRA, THE DR SUPPORTED THE ORDER OF THE CIT. 4. WE HAVE CAREFULLY PERUSED THE ORDER OF THE CIT A ND THE SUBMISSIONS MADE BY THE COUNSEL. THE PROVISO RELIED UPON BY THE CIT TO SECTION 2(15) OF THE ACT IS APPLICABLE FROM 01.04.2009. IT APPEARS THAT REGIST RATION U/S. 12A WAS ALREADY GRANTED TO THE ASSESSEE CONSIDERING THE OBJECTS OF THE ASSESSEE TRUST. MERELY BECAUSE SOME PROVISO IS ADDED TO SECTION 2(15) WOUL D NOT ENTAIL THE CIT TO CANCEL THE REGISTRATION ALREADY GRANTED, MORE SO WHEN THE AMENDMENT IS PROSPECTIVE AND IS APPLICABLE FROM 01.04.2009. WE DO NOT FIND ANY REA SON FOR CANCELLING THE REGISTRATION FOR A.Y. 2008-09. ACCORDINGLY, WE DIR ECT THE CIT TO GRANT REGISTRATION FOR A.Y. 2008-09. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 23 RD OCTOBER, 2013 SD/- SD/- (VIJAY PAL RAO) (N.K.BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEM BER MUMBAI, DT : 23 RD OCTOBER, 2013 SA 3 ITA NO.449/MUM/12 AY: 2008-09 COPY FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE C.I.T, MUMBAI 4. THE CIT (A)- CONCERNED, MUMBAI 5. THE DR, J- BENCH, ITAT, MUMBAI //TRUE COPY// BY ORDER ASSISTANT REGISTRAR ITAT, MUMBAI BENCHES, MUMBAI