Dy.Commissioner of Income Tax-6, Kanpur V. M/s Artificial Limbs Manufacturing Corporation Of India, Kanpur

ITA 514/LKW/2014

• Counselvise Citation: 51423714 RSA 2014
• Duration Of Justice: 3 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-09-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 02-06-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK MISHRA
• Assessee Lawyers: P K KAPOOR
• Keywords: Charitable institution
• Section: 12AA

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO.514/LKW/2014 ASSESSMENT YEAR:2010 - 11 DY.C.I.T. - 6, KANPUR. VS. M/S ARTIFICIAL LIMBS MANUFACTURING CORPORATION OF INDIA, G.T. ROAD, KANPUR. PAN:AABCA8899F (APPELLANT) (RESPONDENT) APPELLANT BY SHRI VIVEK MISHRA, CIT, D. R. RESPONDENT BY SHRI P. K. KAPOOR, C.A. DATE OF HEARING 06/08/2014 DATE OF PRONOUNCEMENT 1 7 /09/2014 O R D E R PER A. K. GARODIA, A.M. THIS IS REVENUES APPEAL DIRECTED AGAINST THE ORDER PASSED BY LEARNED CIT(A) - II, KANPUR, DATED 28/02/2014 FOR THE ASSESSMENT YEAR 2010 - 2011. 2. IN THIS APPEAL, THE REVENUE HAS RAISED THE FOLLOWING GROUNDS: 1. THAT THE COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN LAW AND ON FACTS IN DIRECTING THE A.O TO RE - COMPUTE THE INCOME OF THE ASSESSEE IN TERMS OF SECTIONS 11 TO 13 OF THE ACT WITHOUT APPRECIATING THAT THE ASSESSEE IS ENGAGED IN THE BUSINE SS OF MANUFACTURING, BUYING, SELLING, IMPORTING AND EXPORTING OF ARTIFICIAL LIMBS ACCESSORIES AND CONSTITUENTS THEREOF AND EARNING PROFIT AND IS NOT CHARITABLE INSTITUTION. 2. THAT THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS), BEING ERRONEOUS, UNJUST AND BAD IN LAW BE VACATED AND THE ORDER OF ASSESSING OFFICER BE RESTORED. 3. LEARNED D.R. OF THE REVENUE SUPPORTED THE ASSESSMENT ORDER. HE FURTHER SUBMITTED THAT IF THE PROVISIONS OF SECTION 13(8) ARE CONSIDERED THEN THE ASSESSEE IS NOT ELIGIBLE FOR E XEMPTION U/S 11 OF THE ACT. HE SUBMITTED 2 THAT THE ASSESSING OFFICER SHOULD BE DIRECTED TO CONSIDER THE PROVISIONS OF SECTION 13(8) OF THE ACT. 4. AS AGAINST THIS, LEARNED A.R. OF THE ASSESSEE SUPPORTED THE ORDER OF LEARNED CIT(A). HE ALSO SUBMITTED THAT THIS ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE TRIBUNAL DECISION IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2009 - 2010 IN I.T.A. NO.501/LKW/2012 DATED 13/06/2014. HE SUBMITTED COPY OF THIS TRIBUNAL DECISION WHICH IS AVAILABLE ON PAGE NO. 14 TO 16 OF THE PAPER BOOK. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND THAT CIT(A) HAS GIVEN DIRECTION TO ASSESSING OFFICER THAT HE SHOULD RECOMPUTE THE INCOME OF THE ASSESSEE IN TERMS OF SECTION 11 TO 13 OF THE ACT KEEPING IN VIEW THAT THE CIT(A) - II, KA NPUR HAS ALREADY GRANTED REGISTRATION U/S 12AA OF THE ACT. SECTION 13(8) OF THE ACT IS PART OF SECTION 13 WHICH HAS TO BE CONSIDERED BY THE ASSESSING OFFICER WHILE DECIDING THE ISSUE AS PER THE DIRECTIONS OF CIT(A). CONSIDERING THESE FACTS, WE DO NOT FIN D ANY REASON TO INTERFERE IN THE ORDER OF CIT(A) BUT WE STILL OBSERVE FOR THE SAKE OF CLARITY THAT THE ASSESSING OFFICER SHOULD ALSO CONSIDER THE PROVISIONS OF SUB SECTION (8) OF SECTION 13 OF THE ACT WHILE DECIDING THE ISSUE AS PER THE DIRECTION OF CIT(A) . 6. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DISMISSED. (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE) SD/. SD/. (SUN IL KUMAR YADAV) ( A. K. GARODIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 1 7 /09/2014. *C.L.SINGH COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. CONCERNED CIT 4. THE CIT(A) 5. D.R., I.T.A.T., LUCKNOW ASSTT. REGISTRAR