DCIT, Mohali V. Professional Golf Tour of India, Mohali

ITA 479/CHANDI/2014

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 80960 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-10-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 27-10-2014
• Assessment Year: 2010-2011
• Appeal Filed On: 05-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR AMARVEER SING HDR
• Section: 12AA; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH B CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI T.R.SOOD, ACCOUNTANT MEMBER ITA NO. 479/CHD/2014 ASSESSMENT YEAR: 2010-11 THE D.C.I.T., V THE PROFESSIONAL GOLF CIRCLE 6(1), TOUR OF INDIA, MOHALI. # 1180, PHASE V, MOHALI. PAN: AABTP2044E (APPELLANT) (RESPONDENT) APPELLANT BY : DR. AMARVEER SING H,DR RESPONDENT BY : SHRI TEJ MOHAN SINGH DATE OF HEARING : 27.10.2014 DATE OF PRONOUNCEMENT : 29.10.2014 O R D E R PER BHAVNESH SAINI,JM THIS APPEAL BY REVENUE IS DIRECTED AGAINST THE ORDE R OF LD. CIT(APPEALS) CHANDIGARH DATED 20.02.2013 FOR ASSESS MENT YEAR 2010-11 CHALLENGING THE ORDER OF THE LD. CIT(APPEAL S) IN NOT TREATING THE AMOUNT OF RS. 25 LACS AS INCOME OF THE ASSESSEE. 2. BRIEFLY, THE FACTS OF THE CASE ARE THAT AT THE T IME OF ASSESSMENT, ASSESSEE HAS CLAIMED EXEMPTION UNDER SE CTION 11 OF THE ACT AND CLAIMED THAT THE APPEAL FOR REGISTRATIO N UNDER SECTION 12AA IS PENDING BEFORE THE TRIBUNAL. AT TH E TIME OF FILING OF THE RETURN, THE ASSESSEE WAS NOT HAVING A NY REGISTRATION UNDER SECTION 12AA OF THE ACT. THEREFORE, ASSESSEE SOCIETY COULD NOT CLAIM EXEMPTION UNDER SECTION 11 OF THE ACT. T HE ASSESSING OFFICER FOUND THAT ASSESSEE SOCIETY HAD RAISED LOAN AMOUNT OF 2 RS. 25 LACS BUT IT WAS NOT INCLUDED IN THE TOTAL RE CEIPTS OF THE SOCIETY. IN THE ABSENCE OF REGISTRATION UNDER SECT ION 12AA OF THE ACT IN FAVOUR OF THE ASSESSEE, THE ENTIRE EXCESS OF RS. 40,33,104/- WAS TREATED AS TAXABLE INCOME. THE ASS ESSEE CHALLENGED THE FINDINGS OF THE ASSESSING OFFICER BE FORE LD. CIT(APPEALS) TREATING RS. 25 LACS LOAN AMOUNT AS IN COME OF THE ASSESSEE. THE ASSESSEE PLEADED BEFORE LD. CIT(APPE ALS) THAT NOW REGISTRATION HAS BEEN GRANTED TO THE ASSESSEE UNDER SECTION 12AA OF THE ACT BY ORDER OF ITAT CHANDIGARH BENCH D ATED 18.04.2013 IN ITA NO. 551/2009. THE LD. CIT(APPEAL S) CONSIDERING THAT REGISTRATION IS ALLOWED UNDER SECT ION 12AA IN FAVOUR OF THE ASSESSEE, THEREFORE, ASSESSEE WOULD B E ENTITLED FOR EXEMPTION UNDER SECTION 11 OF THE ACT AND ACCORDING LY, DIRECTED THE ASSESSING OFFICER TO COMPUTE INCOME OF THE ASSE SSEE AS THE ASSESSEE IS REGISTERED UNDER SECTION 12AA OF THE AC T. FURTHER, IT WAS HELD THAT RS. 25 LACS UNSECURED LOAN COULD NOT BE TREATED AS INCOME OF THE ASSESSEE AND ACCORDINGLY, ADDITION WA S DELETED. 3. ON CONSIDERATION OF THE RIVAL SUBMISSIONS, WE DO NOT FIND ANY MERIT IN THE APPEAL OF THE REVENUE. THE ASSESS EE HAS BEEN GRANTED REGISTRATION UNDER SECTION 12AA OF THE ACT, THEREFORE, INCOME OF THE ASSESSEE HAS TO BE COMPUTED WITH THE AID OF SECTION 11 OF THE ACT. THE LOAN AMOUNT OF RS. 25 L ACS COULD NOT BE TREATED AS INCOME OF THE ASSESSEE IN THE ABSENCE OF ANY FINDING GIVEN AGAINST THE ASSESSEE. THE ASSESSING O FFICER TREATED THE ENTIRE EXCESS AMOUNT AS INCOME OF THE ASSESSEE IN THE ABSENCE OF REGISTRATION UNDER SECTION 12AA OF THE A CT WHICH IS LATER ON GRANTED IN FAVOUR OF THE ASSESSEE. THUS, THERE IS NO BASIS, WHAT-SO-EVER FOR THE ASSESSING OFFICER TO MA KE ADDITION 3 AGAINST THE ASSESSEE. THE DEPARTMENTAL APPEAL FAIL S AND IS DISMISSED. 4. IN THE RESULT, DEPARTMENTAL APPEAL IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON 29 TH OCT., 2014. SD/- SD/- (T.R.SOOD) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 29 TH OCTOBER,2014. POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT, DR ASSISTANT REGISTRAR, ITAT CHANDIGARH