ACIT, Lucknow V. M/S Lucknow Gramodyog Sansthan, Lucknow

ITA 478/LKW/2011

• Counselvise Citation: 47823714 RSA 2011
• Duration Of Justice: 6 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-02-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 06-02-2012
• Assessment Year: misc
• Appeal Filed On: 05-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V V SINGH
• Assessee Lawyers: PRADEEP KAPOOR
• Keywords: Question of law

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B , LUCKNOW BEFORE SHRI S UNIL KUMAR YADAV , JUDICIAL MEMBER AND SHRI B. R. JAIN , ACCOUNTANT MEMBER ITA NO. 478/LKW/2011 ASSESSMENT YEAR: 2005 - 06 ACIT RANGE IV, LUCKNOW V. M/S LUCKNOW GRAMODYOG SAN STHAN LUCKNOW PAN: AAAAL0066E (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI. V. V. SINGH, D.R. RESPONDENT BY: SHRI. PRADEEP KAPOOR, C.A. DATE OF HEARING: 06.02.2012 DATE OF PRONOUNCEMENT: 23.02.2012 O R D E R PER S UNIL KUMAR YADAV : THIS APPE AL IS PREFERRED BY THE REVENUE AGAINST THE ORDER OF THE LD. CIT(A) ON FOLLOWING GROUNDS: - 1 . THE ID. CIT(A) HAS ERRED IN LAW AND ON FACT IN FAILING TO APPRECIATE THAT THE A.O. HAS RIGHTLY DISALLOWED THE SALARY PAID TO THE LADY FAMILY MEMBERS AS THEY HAD NEIT HER RENDERED ANY SERVICES NOR WERE THEY QUALIFIED TO RENDER THE SAME. 2 . THE ID. CIT(A) HAS ERRED IN LAW AND ON FACT IN FAILING TO APPRECIATE THAT THE ASSESSEE IS NOT ELIGIBLE FOR EXEMPTION UNDER SECTION 10(23B) AND THE A.O. HAD RIGHTLY OBSERVED THAT THE ASSE SSEE WAS EXISTING A ND CA RR YING OUT THE ACTIVITIES OF VILLAGE : - 2 - : INDUSTRIES BASICALLY FOR THE PROFIT/BENEFIT AND WELL BEING OF ITS PRINCIPAL OFFICE BEARERS AND THEIR RELATIVES AND ACCORDINGLY THE ASSESSEE IS NOT ENTITLED FOR EXEMPTION UNDER SECTION 10(23B) OF THE INCOME TAX ACT, 1961. 2 . DURING THE COURSE OF HEARING OF THE APPEAL, THE LD. COUNSEL FOR THE ASSESSEE HAS INVITED OUR ATTENTION THAT THE IDENTICAL ISSUES WERE RAISED BEFORE THE TRIBUNAL IN ASSESSMENT YEAR 2006 - 07 AND THE TRIBUNAL HAS ACCEPTED THE CLAIM O F THE ASSESSEE RELYING UPON ITS EARLIER ORDER FOR ASSESSMENT YEAR 1994 - 95 AND 1993 - 94. COPY OF THE ORDER OF THE TRIBUNAL DATED 14.12.2009 PASSED IN ITA NO. 523/LUC/2009 FOR ASSESSMENT YEAR 2006 - 07 IS PLACED ON RECORD. DURING THE COURSE OF HEARING, THE LD . COUNSEL FOR THE ASSESSEE HAS FURTHER CONTENDED THAT AGAINST THE AFORESAID ORDER OF THE TRIBUNAL, THE REVENUE WENT IN APPEAL BEFORE THE HON'BLE HIGH COURT AND THE HON'BLE HIGH COURT HAS AFFIRMED THE ORDER OF THE TRIBUNAL. IT WAS FURTHER POINTED OUT THAT IN THE ASSESSMENT YEAR UNDER CONSIDERATION , WHILE ADJUDICATING THE IMPUGNED ISSUES THE LD. CIT(A) HAS FOLLOWED THE AFORESAID ORDER OF THE TRIBUNAL FOR ASSESSMENT YEAR 2006 - 07. THEREFORE, THE IMPUGNED ISSUES ARE SQUARELY COVERED IN FAVOUR OF THE ASSESSEE. 3 . THE LD. D.R., ON THE OTHER HAND, HAS PLACED RELIANCE UPON THE ORDER OF THE LD. CIT(A). 4 . WE HAVE CAREFULLY EXAMINED THE ORDER S OF THE LOWER AUTHORITIES , ORDER OF THE TRIBUNAL DATED 14.12.2009 AND ALSO THE ORDER OF THE HON'BLE HIGH COURT IN ASSESSEES OWN CA SE FOR ASSESSMENT YEAR 2006 - 07 AND IT IS NOTICED THAT THE IDENTICAL ISSUES WERE RAISED BEFORE THE TRIBUNAL IN ASSESSMENT YEAR 2006 - 07. RELYING UPON ITS ORDER FOR ASSESSMENT YEAR 1994 - 95 AND 1993 - 94, THE TRIBUNAL HAS ACCEPTED THE CLAIM OF THE ASSESSEE AND DISMISSED THE APPEAL OF THE REVENUE. AGAINST THE DISMISSAL OF ITS APPEAL, THE REVENUE WENT IN APPEAL BEFORE THE HON'BLE HIGH C OURT, BUT THE : - 3 - : SAME WAS DISMISSED BY THE HON'BLE HIGH COURT IN LIMINE AS NO SUBSTANTIAL QUESTION OF LAW WAS INVOLVED. COPY OF TH E ORDER OF THE HON'BLE HIGH COURT IS ALSO PLACED ON RECORD. IT IS ALSO NOTICED FROM RECORD THAT THE DISALLOWANCE MADE BY THE ASSESSING OFFICER IN THE YEAR UNDER CONSIDERATION WAS FOR THE SAME REASONS AS IN ASSESSMENT YEAR S 2006 - 07 AND 2005 - 06. IN ASSESSM ENT YEAR 2006 - 07, THE MATTER ATTAINED FINALITY IN FAVOUR OF THE ASSESSEE. THEREFORE , THERE IS NO JUSTIFICATION TO TAKE A CONTRARY VIEW IN THE IMPUGNED ASSESSMENT YEAR I.E. ASSESSMENT YEAR 2005 - 06. WE, THEREFORE, FOLLOWING THE ORDER OF THE TRIBUNAL FOR AS SESSMENT YEAR 2006 - 07, CONFIRM THE ORDER OF THE LD. CIT(A) ON BOTH THE ISSUES. 5 . IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 23.2.2012. SD/ - SD/ - [B. R. JAIN ] [ S UNIL KUMAR Y ADAV ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 23.2.2012 JJ: 0602 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT 5 . DR ASSISTANT REGISTRAR