M/s. Punjab Institute of Medical Sciences, Jaandhar city V. The Dy. Commissioner of Income-tax, Jalandhar

ITA 485/ASR/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 8792 (ITAT-AMRITSAR)
• Duration Of Justice: 1 year(s) 7 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-03-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 15-03-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 24-07-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: PADAM BAHL
• Keywords: Competent authority; Benefit of exemption; Cancellation of registration
• Section: 12; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR BEFORE SH. A.D.JAIN, HONBLE JUDICIAL MEMBER AND SH. T.S. KAPOOR, HONBLE ACCOUNTANT MEMBER [ I.T.A NO.485(ASR)/2014 ASSESSMENT YEAR: 2011-12 M/S PUNJAB INSTITUTE OF MEDICAL SCIENCE, GARHA ROAD, JALANDHAR CITY. PAN:AAABP0193P VS. THE DCIT, CIRCLE-3, JALANDHAR. (APPELLANT) (RESPONDENT) APPELLANT BY: SH. PADAM BAHL (CA.) RESPONDENT BY: SH. TARSEM LAL (DR.) DATE OF HEARING: 15.03. 2016 DATE OF PRONO UNCEMENT: 18.03.2016 ORDER PER T. S. KAPOOR (AM): THIS IS AN APPEAL FILED BY ASSESSEE AGAINST THE ORD ER OF LEARNED CIT(A) DATED 23.05.2014 FOR ASST. YEAR. 2011-12. 2. THE ASSESSEE HAS RAISED THREE GROUNDS OF APPEAL, HOWEVER THE CRUX OF GRIEVANCE OF ASSESSEE IS ACTION OF LEARNED CIT(A ) BY WHICH HE HAD CONFIRMED THE ORDER OF ASSESSING OFFICER DENYING TH E BENEFIT OF EXEMPTION U/S 11 OF THE INCOME TAX ACT, 1961. 3. THE BRIEF FACTS OF THE CASE AS NOTED IN THE ASSE SSMENT ORDER ARE THAT THE ASSESSEE IS A SOCIETY REGISTERED WITH REGI STRAR OF SOCIETIES UNDER ITA NO.485 (ASR)/2014 ASST. YEAR:2011-12 2 THE SOCIETY REGISTRATION ACT, AND HAD FILED ITS RET URN OF INCOME DECLARING THE TOTAL INCOME AT RS. NIL AFTER CLAIMING EXEMPTIO N U/S 11 OF THE ACT. THE ASSESSING OFFICER, HOWEVER, DID NOT ALLOW THE E XEMPTION U/S 11 HOLDING THAT REGISTRATION OF THE SOCIETY U/S 12A(A) WAS CANCELLED VIDE ORDER OF CIT DATED 24.10.2013. THE LEARNED CIT(A) A LSO UPHELD THE ORDER OF ASSESSING OFFICER ON THE SAME REASONING. 4. AGGRIEVED THE ASSESSEE IS IN APPEAL BEFORE US. 5. AT THE OUTSET, THE LEARNED AR FILED A COPY OF TR IBUNAL ORDER DATED 29.09.2015 IN ITA NO.740(ASR)/2013 AND SUBMITTED TH AT VIDE THIS TRIBUNAL ORDER, THE ORDER OF CIT CANCELING THE REGI STRATION HAS BEEN SET ASIDE AND THEREFORE, THE ASSESSEE IS ELIGIBLE FOR E XEMPTION U/S 11 AS THE ONLY GROUND TAKEN BY THE AUTHORITIES BELOW FOR NOT CONSIDERING THE CLAIM U/S 11 WAS CANCELLATION OF REGISTRATION U/S 12A(A). 6. THE LEARNED DR, ON THE OTHER HAND, RELIED UPON T HE ORDER OF AUTHORITIES BELOW. 7. WE HAVE HEARD THE RIVAL PARTIES AND HAVE GONE TH ROUGH THE MATERIAL PLACED ON RECORD. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ONLY REASON FOR NON CONSIDERATIO N OF EXEMPTION U/S 11 WAS CANCELLATION OF REGISTRATION. THEREFORE, IT IS IMPORTANT TO GO THROUGH THE FINDINGS OF LEARNED CIT(A). FOR THE SAK E OF CONVENIENCE THE RELEVANT FINDINGS ARE REPRODUCED BELOW. ITA NO.485 (ASR)/2014 ASST. YEAR:2011-12 3 5.1 IN SUPPORT OF VARIOUS GROUNDS OF APPEAL, THE ASSESSEE SOCIETY HAS NOT FILED ANY SUBMISSIONS BUT ON EACH DATE OF HEARI NG IT HAS BEEN SUBMITTED THAT AS THE ORDER OF THE LD. CIT-II, JALA NDHAR DATED 24.10.2013, VIDE WHICH REGISTRATION GRANTED TO THE ASSESSEE SOCIETY UNDER SECTION 12A(A) OF THE ACT WAS CANCELLED, HAS BEEN CHALLENGED BY THE ASSESSEE SOCIETY BEFORE THE HONBLE ITAT, AM RITSAR, THE APPEAL PROCEEDINGS MAY BE KEPT IN ABEYANCE TILL THE DISPOSAL OF ITS APPEAL FILED AGAINST ORDER DATED 24.10.2013 IS DISP OSED OFF BY THE HONBLE ITAT, AMRITSAR. 5.2 I HAVE CONSIDERED THE OBSERVATIONS OF THE ASSESSING OFFICER AS MADE BY HIM IN THE ASSESSMENT ORDER. AS HUGE DEMAND IS I NVOLVED IN THE CASE OF ASSESSEE SOCIETY, THE APPEAL FILED BY THE A SSESSEE SOCIETY CANNOT BE KEPT IN ABEYANCE. I DO NOT THINK THAT FIL ING OF APPEAL BEFORE THE HONBLE ITAT, AMRITSAR AGAINST ORDER OF LD. CIT-II, JALANDHAR IS A VALID GROUND FOR KEEPING THE APPEAL PROCEEDINGS IN ABEYANCE. MOREOVER, THE EXEMPTION CLAIMED BY THE AS SESSEE SOCIETY UNDER SECTION 11&12 HAS BEEN DENIED BY THE ASSESSIN G OFFICER MAINLY ON THE GROUND THAT THE REGISTRATION GRANTED TO THE ASSESSEE SOCIETY UNDER SECTION 12A(A) OF THE ACT HAS BEEN CA NCELLED BY THE LD. CIT-II, JALANDHAR VIDE HIS OFFICE ORDER DATED 2 4.10.2013. IT HAS ALSO BEEN NOTICED THAT ONLY EXCESS OF INCOME OVER E XPENDITURE HAS BEEN BROUGHT TO TAX BY THE ASSESSING OFFICER WITHOU T DISALLOWING ANY OTHER EXPENDITURE CLAIMED BY THE ASSESSEE SOCIE TY. MOREOVER, NO FRUITFUL PURPOSE WILL BE SERVED BY KEEPING THE A PPEAL PROCEEDINGS IN ABEYANCE AS THE ASSESSING OFFICER HAS SIMPLY DEN IED THE EXEMPTION ON THE GROUND THAT THE REGISTRATION HAS B EEN CANCELLED. 5.3 IN VIEW OF THE ABOVE STATED FACTS AND MOST IMPORTAN TLY THE FACT THAT THE EXEMPTION GRANTED TO THE ASSESSEE SOCIETY UNDER SECTION 12A(A) OF THE ACT HAS BEEN CANCELLED BY THE LD. CIT-II, JA LANDHAR VIDE HIS ORDER DATED 24.10.2013, I AM HAVING NO HESITATION I N CONFIRMING THE ASSESSMENT MADE BY THE ASSESSING OFFICER AS THE SOL E GROUND FOR CLAIMING EXEMPTION UNDER SECTION 11 & 12 WAS THE GR ANT OF ITA NO.485 (ASR)/2014 ASST. YEAR:2011-12 4 REGISTRATION UNDER SECTION 12A(A) OF THE ACT WHICH STANDS CANCELLED NOW BY COMPETENT AUTHORITY. IN THE RESULT, ALL THE GROUNDS OF APPEAL TAKEN BY THE ASSESSEE SOCIETY ARE DISMISSED. WE FIND THAT THE HONBLE TRIBUNAL VIDE ORDER DATED 29.09.2015 HAS CANCELLED THE ORDER OF CIT BY WHICH HE HAD CANCELLE D THE REGISTRATION U/S 12A(A) OF THE ACT, THEREFORE, THE BASIS ON WHICH TH E EXEMPTION U/S 11 HAS BEEN DENIED DOES NOT SURVIVE. IN VIEW OF THE ABOVE, WE ARE IN AGREEMENT WITH ARGUMENT OF LEARNED AR THAT AFTER RESTORATION OF REGISTRATION BY HON,BLE TRIBUAL, THE ASSESSEE IS ELIGIBLE FOR EXEMP TION U/S 11. 8. IN VIEW OF THE ABOVE, THE APPEAL FILED BY ASSESS EE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 18 TH MARCH, 2016. SD/- SD/- (A.D. JAIN) (T. S. KAPOOR) JUDICIAL MEMBER ACCOUNTANT ME MBER DATED:18.03.2016. /PK/ PS. COPY OF THE ORDER FORWARDED TO: (1) THE ASSESSEE: (2) THE (3) THE CIT(A), (4) THE CIT, (5) THE SR DR, I.T.A.T., TRUE COPY BY ORDER (ASSISTANT REGISTRAR) INCOME TAX APPELLATE TRIBUNAL, AMRITSAR BENCH: AMRITSAR.