DCIT(E), New Delhi V. M/s GS1 India, New Delhi

ITA 5042/DEL/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 5167 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-08-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 07-08-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RISHABH SANCHETI
• Keywords: Charitable institution; Cancellation of registration

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: B NEW DELHI BEFORE SHRI R.S. SYAL, HONBLE VICE PRESID ENT & SHRI K.N. CHARRY, JUDICIAL MEMBER ITA NO.-5042/DEL/2015 ( ASSESSMENT YEAR: 2011-12) DCIT(E) CIRCLE 1(1) NEW DELHI VS GS 1 INDIA (FORMERLY EAN INDIA) 330, 2 ND FLOOR, C WING,, AUGUST KRANT BHAWAN, BHIKAJI CAMA PLACE, NEW DELHI. AAATE0387N ASSESSEE BY SH. RISHABH SANCHETI, ADV. REVENUE BY SH. ANSHU PRAKASH, SR. DR ORDER PER SHRI K.N. CHARY, JUDICIAL MEMBER THIS IS AN APPEAL BY THE REVENUE CHALLENGING THE O RDER DATED 01.06.2015 IN APPEAL NO. 77/2014-15 PASSED BY THE L D. COMMISSIONER OF INCOME TAX (APPEALS)-40 (EXEMPTION) , NEW DELHI (HEREINAFTER REFERRED IN SHORT AS THE LD. CIT (A) ). 2. BRIEFLY STATED FACTS ARE THAT THE ASSESSEE IS A SOCIETY INVOLVED IN IMPORTING, DEVELOPING AND DISTRIBUTING OF BAR CO DE TECHNOLOGY TO DATE OF HEARING 17.08.2017 DATE OF PRONOUNCEMENT 18.08.2017 2 ITA NO.5042/DEL/2015 BE USED BY VARIOUS MANUFACTURERS AND INDUSTRIES WHI CH IS FOR THE GENERAL BENEFIT OF PUBLIC AT LARGE. IT WAS REGISTE RED UNDER THE SOCIETIES REGISTRATION ACT W.E.F. 07.06.1996, AND U /S 12AA(1) OF THE INCOME TAX ACT, 1961 (HEREINAFTER FOR SHORT CALLED AS THE ACT) W.E.F. 09.03.1998 AND THE INCOME OF THE ASSESSEE IS EXEMPT U/S 11(1) OF THE ACT. HOWEVER, APPLICATION U/S 10(23C)(IV) FOR AY 2008-09 ONWARDS WAS REJECTED BY THE DGIT (E) BY ORDER DATED 17.11.2008 AND THE EXEMPTION WAS CANCELLED BY DIT (E) BY ORDE R DATED 30.06.2009. 3. IN THE APPEAL PREFERRED BY THE ASSESSEE, THE HON BLE JURISDICTIONAL HIGH COURT VIDE ORDER DATED 26.09.20 13 IN W.P. (C) NO. 7797/2009 ALLOWED THE APPROVAL U/S 10(23C)(IV) OF THE ACT BY TREATING THE ASSESSEE AS CHARITABLE INSTITUTION AND SUBSEQUENTLY THE DGIT(E) ALLOWED EXEMPTION U/S 10(23C)(IV) OF TH E ACT VIDE ORDER DATED 23.10.2013 FOLLOWING THE ORDER OF THE H ONBLE HIGH COURT. HOWEVER, DURING THE SCRUTINY OF THE RETURN OF INCOME OF THE ASSESSEE FOR THE AY 2011-12, AO STATED THAT THE DEP ARTMENT HAS PREFERRED AN SLP BEFORE THE HONBLE SUPREME COURT A GAINST THE ORDERS OF THE DELHI HIGH COURT AND THE MATTER WAS S UBJUDICE, AS 3 ITA NO.5042/DEL/2015 SUCH, HE PROCEEDED AS PER THE PREVIOUS ORDERS AND M ADE AN ADDITION OF RS. 19,68,89,320/-. IN APPEAL, LD. CIT (A), BY WAY OF IMPUGNED ORDER, DIRECTED THE AO TO ALLOW EXEMPTION U/S 11(1) OF THE ACT WITH ALL CONSEQUENTIAL BENEFITS. 4. AGGRIEVED BY THE IMPUGNED ORDER, THE REVENUE IS IN APPEAL BEFORE US. 5. WE HAVE CAREFULLY GONE THROUGH THE RECORD. IT I S SUBMITTED BY THE LD. DR AND ALSO WE COULD FOUND FROM THE ORDER O F THE LD.CIT (A) THAT PURSUANT TO THE ORDERS DATED 26.09.2013 OF THE HONBLE JURISDICTIONAL HIGH COURT IN ASSESSEES OWN CASE FO R THE AY 1996-97, BY ORDER DATED 23.10.2013, LD. DGIT (E) HAD ALLOWED THE EXEMPTION U/S 10(23C)(IV) OF THE ACT TO THE ASSESSEE AND AGAI NST THE CANCELLATION OF REGISTRATION U/S 12AA(3) OF THE ACT W.E.F. 2009-10 A COORDINATE BENCH OF THIS TRIBUNAL IN ITA NO. 3733/D EL/2009 VIDE ORDER DATED 11.10.2013 ALLOWED THE APPEAL OF THE AS SESSEE BY PLACING RELIANCE ON THE ABOVE ORDER OF THE HONBLE JURISDIC TIONAL HIGH COURT IN ASSESSEES OWN CASE. FURTHER, FOR THE ASSESSMEN T YEARS 2009-10 AND 2010-11 THE LD. CIT (A), VIDE ORDERS DATED 24.1 2.2013 AND 23.03.2015, ALLOWED THE PLEA OF THE ASSESSEE. AFTE R RECORDING ALL 4 ITA NO.5042/DEL/2015 THESE FACTS IN THE IMPUGNED ORDER LD. CIT (A), CONS IDERED THE ASSESSMENT ORDER AND CONTENTIONS OF THE ASSESSEE IN THE LIGHT OF THE ORDERS REFERRED TO ABOVE AND HELD THAT THE ACTIVITI ES OF THE ASSESSEE ARE COVERED U/S 2(15) OF THE ACT UNDER THE SIXTH LI MB AND THAT THE ASSESSEE IS ELIGIBLE FOR EXEMPTION U/S 11(1) OF THE ACT. THERE IS NO CHANGE OF CIRCUMSTANCES SINCE THE DATE OF THE ORDER OF THE HONBLE HIGH COURT AND ALSO FROM THE FACTS RELEVANT TO THE ASSESSMENT YEARS 2009-10 AND 2010-11. IN THE CIRCUMSTANCES, WHILE R ESPECTFULLY FOLLOWING THE ORDER OF THE HONBLE JURISDICTIONAL H IGH COURT AND ALSO IN VIEW OF THE FACT THAT THE LD. CIT (A) GRANTED RE LIEF IN RESPECT OF THE ASSESSMENT YEARS 2009-10 AND 2010-11 ALSO, WE FIND NO LEGAL INFIRMITY IN THE ORDER OF THE LD. CIT (A) AND WE CO NFIRM THE SAME. CONSEQUENTLY, THE GROUNDS OF APPEAL OF THE REVENUE ARE DISMISSED. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 18.08.2017 SD/- SD/- (R.S. SYAL) (K.N. CHARY) VICE PRESIDENT JUDICIAL MEMBE R DATED:18.08.2017 *KAVITA ARORA 5 ITA NO.5042/DEL/2015 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT TRUE COPY ASSISTANT REGISTRAR ITAT NEW DELHI DRAFT DICTATED ON 17.08.2017 DRAFT PLACED BEFORE AUTHOR 18.08.2017 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. 18.8.17 APPROVED DRAFT COMES TO THE SR.PS/PS 18.8.17 KEPT FOR PRONOUNCEMENT ON 18.8.17 FILE SENT TO THE BENCH CLERK 18.8.17 DATE ON WHICH FILE GOES TO THE AR DATE ON WHICH FILE GOES TO THE HEAD CLERK. DATE OF DISPATCH OF ORDER.