DCIT, Faizabad V. M/s Krishi Utpadan Mandi Samiti, Barabanki

ITA 476/LKW/2011

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 3343 (ITAT-LUCKNOW)
• Duration Of Justice: 1 year(s) 10 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-06-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 05-06-2013
• Assessment Year: misc
• Appeal Filed On: 05-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ALOK MITRA
• Assessee Lawyers: P K KAPOOR
• Keywords: Charitable institution
• Section: 12; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A : LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER I.T.A. NO. 476 /LKW/ 2011 ASSESSMENT YEAR: 2007 - 08 DY. C.I.T., VS. KRISHI UTPADANMANDI SAMITI, CIRCLE - FAIZABAD. RUDAULI, BARABANKI. PAN:AABTK0799H (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ALOK MITRA, D.R. RESPOND ENT BY : SHRI P. K. KAPOOR, C.A. DATE OF HEARING : 05 /0 6 /201 3 DA TE OF PRONOUNCEMENT :07/06/2013 ORDER PER SUNIL KUMAR YADAV: THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST THE ORDER OF CIT(A) ON A SOLITARY GROUND THAT CIT(A) HAS ERRED IN ALLOWING THE BENEFIT OF SECTION 11 OF I.T. ACT, 1961 WITHOUT APPRECIATING THE FACT THAT THE ACTIVITIES OF MANDI SAMITI ARE COMMERCIAL IN NATURE AFTER HOLDING THAT THE AMOUNT OF ` 16,27,960/ - VIKAS CESS WAS APPLIED FOR CHARITABLE PURPOSES WITHOUT APPRECIATING THE FACT THAT THE ASSESSEE COULD NOT ESTABLISH THE CASE F OR TREATING ITS INCOME EXEMPT AS PER SECTION 11 TO 13 OF THE I.T. ACT, 1961. 2. DURING THE COURSE OF HEARING OF THE APPEAL, THE LEARNED COUNSEL FOR THE A SSESSEE HAS INVITED OUR ATTENTION TO THE JUDGMENT OF HON'BLE SUPREME COURT IN THE CASE OF COMMISSIONER OF INCOME - TAX VS KRISHI UTPADAN MANDI 2 SAMITI [2012] 348 ITR 566 (SC) IN WHICH THE MANDI SAMITIS INCORPORATED AND REGISTERED UNDER THE UTTAR PRADESH KRISH I UTPADAN MANDI ADHINIYAM, 1964, ARE STATUTORILY ESTABLISHED UNDER SECTION 12 OF THE 1964 ADHINIYAM AND THE HON'BLE COURT HAS HELD THAT LOOKING TO THE PROVISIONS OF 1964 ADHINIYAM, THE TRANSFER OF THE AMOUNTS BY THE MANDI SAMITI CONSTITUTED APPLICATION OF INCOME U/S 11(1)(A) OF THE ACT. BESIDES OUR ATTENTION WAS ALSO INVITED TO THE ORDER OF THE TRIBUNAL IN THE CASE OF KRISHI UTPADAN MANDI SAMITI, MONGA I.T.A. NO.239 OF 2011 IN WHICH THE JUDICIAL MEMBER WAS A PARTY TO THE ORDER WITH THE SUBMISSION THAT IDEN TICAL ISSUE WAS EXAMINED BY THE TRIBUNAL AND HAVING RELIED UPON THIS JUDGMENT OF APEX COURT, THE TRIBUNAL HAS HELD THE PAYMENT TOWARDS VIKAS CESS IS APPLICATION OF INCOME BY THE ASSESSEE. SINCE THE IMPUGNED ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSES SEE THROUGH AFORESAID JUDGMENT, WE FIND NO ERROR IN THE ORDER OF CIT(A). ACCORDINGLY, WE CONFIRM THE SAME. 3. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DISMISSED. (ORDER PRONOUNCED IN THE OPEN COURT ON 07/06/2013 ) SD/. SD/. ( PRAMOD KUMAR) ( SUNIL KUMAR YADAV ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 07/06/2013 *SINGH COPY FORWARDED TO THE: 1. APPELLANT. 2. RESPONDENT. 3. CIT (A) 4. CIT 5. DR. ASSISTANT REGISTRAR