Firozabad Shikohabad, Firozabad V. A.C.I.T., Circle-5, Firozabad

ITA 498/AGR/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 0239 (ITAT-AGRA)
• Duration Of Justice: 3 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-02-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 30-01-2013
• Assessment Year: 2006-2007
• Appeal Filed On: 19-10-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KK MISHRA
• Assessee Lawyers: ALOK FARSAIYA
• Keywords: Charitable institution; Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI BHAVNESH SAINI, JUDICIAL MEMBER ITA NO. 498/AGRA/2012 ASSTT. YEAR : 2006-07 FIROZABAD SHIKOHABAD VIKAS PRADHIKARAN, VS. A.C.I. T., CIRCLE-5, (DEVELOPMENT AUTHORITY) FIROZABAD. FIROZABAD. (PAN : AAACF 0020 B) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ALOK FARSAIYA, C.A. RESPONDENT BY : SHRI K.K. MISHRA, JR. D.R. DATE OF HEARING : 31.01.2013 DATE OF PRONOUNCEMENT OF ORDER : 01.02.2013 ORDER THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF LD. CIT(A)-II, AGRA DATED 31.03.2011 FOR THE ASSESSMENT YEAR 2006- 07, CHALLENGING THE ORDER OF THE LD. CIT(A) IN CONFIRMING THE ADDITION OF RS.7,2 6,878/- BEING INTEREST ON EARMARKED FUNDS. 2. THE AO DISCUSSED THIS ISSUE IN PARA 5 OF THE ASS ESSMENT ORDER AND BY REFERRING TO THE G.O. NOTED THAT SAME DEALS WITH AP PLICATION OF FUND FOR ADMINISTRATIVE PURPOSES AS PER WRITTEN SUBMISSIONS OF THE ASSESSEE. THE AO WAS, THEREFORE, OF THE VIEW THAT THE ADMINISTRATIVE INST RUCTIONS CANNOT BE SAID TO DEAL WITH THE TAXABILITY OF INTEREST INCOME AND THE G.O. IS NOT RELEVANT AS REGARDS THE ITA NO. 498/AGRA/2012 2 TAXABILITY OF INTEREST ACCRUED ON FDRS. THE ADDITIO N OF RS.7,26,878/- WAS ACCORDINGLY MADE CONSIDERING THE SAME TO BE INCOME FROM OTHER SOURCES. THE LD. CIT(A) NOTED IN THE APPELLATE ORDER THAT NOTHING HA S BEEN STATED IN SUPPORT OF THIS GROUND AND MOREOVER, THE ASSESSEE IS NOT CHARITABLE INSTITUTION AND ACCORDINGLY, DISMISSED THE APPEAL OF THE ASSESSEE. 3. THE LD. COUNSEL FOR THE ASSESSEE REFERRED TO PAG E 10 OF THE PAPER BOOK, WHICH IS WRITTEN SUBMISSION STATED TO BE FILED BEFO RE THE LD. CIT(A), IN WHICH THE ASSESSEE HAS AGITATED THE ISSUE BEFORE THE LD. CIT( A) ON THE BASIS OF THE G.O., COPY OF WHICH WAS ALSO FILED BEFORE THE LD. CIT(A). THE LD. COUNSEL FOR THE ASSESSEE, THEREFORE, POINTED OUT THAT THE LD. CIT(A) HAS WRON GLY RECORDED IN THE APPELLATE ORDER THAT HE HAS NOT ARGUED THIS GROUND OF APPEAL BEFORE HIM. ON THE OTHER HAND, THE LD. DR RELIED UPON THE ORDER OF THE LD. CIT(A). 4. I HAVE CONSIDERED THE RIVAL SUBMISSIONS AND THE MATERIAL ON RECORD. THE AO CONSIDERED THE TAXABILITY OF INTEREST ON FDRS IN DE TAIL IN THE ASSESSMENT ORDER AND REJECTED THE CONTENTION OF THE ASSESSEE WITH REGARD TO APPLICABILITY OF G.O. FOR THE PURPOSE OF TAXING THE INTEREST ON FDR. THE LD. COUN SEL FOR THE ASSESSEE IN THE PAPER BOOK FILED COPY OF WRITTEN SUBMISSIONS STATED TO BE FILED BEFORE THE LD. CIT(A), IN WHICH THE ASSESSEE AGITATED THIS ISSUE BEFORE THE L D. CIT(A). MOREOVER, SINCE IT IS AN ISSUE OF TAXABILITY OF INCOME IN THE HANDS OF TH E ASSESSEE, WHICH IS ARISING OUT OF ITA NO. 498/AGRA/2012 3 THE ASSESSMENT ORDER, THEREFORE, IT WAS INCUMBENT O N THE PART OF THE LD. CIT(A) TO HAVE CONSIDERED AND DISCUSSED THIS ISSUE IN DETAIL ON MERITS. ACCORDING TO SECTION 250(6) OF THE IT ACT, THE LD. CIT(A) SHALL HAVE TO GIVE REASONS FOR DECISION IN THE APPELLATE ORDER WHILE DECIDING THE ISSUE. IT, THERE FORE, APPEARS THAT THE ORDER OF THE LD. CIT(A) IS CONTRARY TO THE SUBMISSIONS OF THE LD . COUNSEL FOR THE ASSESSEE AND COPY OF THE WRITTEN SUBMISSIONS FILED IN THE PAPER BOOK AND IS A NON-SPEAKING ORDER ON THIS ISSUE. THE IMPUGNED ORDER, THEREFORE, CANNO T BE SUSTAINED IN LAW. I ACCORDINGLY SET ASIDE THE ORDER OF THE LD. CIT(A) A ND RESTORE THIS ISSUE TO HIS FILE WITH THE DIRECTION TO REDECIDE THIS ISSUE ON MERIT BY GIVING REASONABLE SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THE LD. CIT(A) SHALL PASS REASONED ORDER ON THIS ISSUE. ACCORDINGLY, THE APPEAL IS ALL OWED FOR STATISTICAL PURPOSES. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT. (BHAVNESH SAINI) JUDICIAL MEMBER *AKS/- COPY OF THE ORDER FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A), CONCERNED BY ORDER 4. CIT, CONCERNED 5. DR, ITAT, AGRA 6. GUARD FILE SR. PRIVATE SECRETARY TRUE COPY