FEDERATION OF INDIAN PILOTS, MUMBAI V. CHIEF CIT 1, NAVI MUMBAI

ITA 5527/MUM/2015

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 9175 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 10 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-10-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2014-2015
• Appeal Filed On: 04-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S PADMAJA
• Section: 12A; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL F BENCH, MUMBAI BEFORE S/ SHRI B.R. BASKARAN (AM) & AMARJIT SINGH (JM) I.T.A. NO. 5527 /MUM/20 15 (ASSESSMENT YEAR 20 14 - 15 ) FEDERATION OF INDIAN PILOTS OPERATI O N BUILDING , OLD AIRPORT, SANTACRUZ (E) MUMBAI - 400 029. P AN : AAATF0246R VS. CHIEF COMMISSIONER OF INCOME TAX - 1 AAYAKAR BHAVAN M.K. ROAD MUMBAI - 400 020. ( APPELLANT ) ( RESPONDENT ) ASSESSEE BY SHRI HARIDAS BHAT DEPARTMENT BY MS. S. PADMAJA DATE OF HEARING 10 . 10 . 201 7 DATE OF PRONOUNCEMENT 10 . 10 . 201 7 O R D E R PER B.R. BASKARAN (AM) : - THE ASSESSEE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 30.9.2015 PASSED BY LEARNED CCIT - 1, MUMBAI REJECTING THE APPLICATION FILED BY THE ASSESSEE SEEKING APPROVAL FOR EXEMPTION U/S. 10(23C)(VI) OF THE INCOME TAX ACT FOR ASSESSMENT YEAR 2014 - 15. 2. WE HEARD THE PARTIES AND PERUSED THE RECORD. THE ASSESSEE IS REGISTERED U/S. 12A OF THE ACT WITH THE OBJECTIVE TO CARRY ON ALL ACTIVITIES RELATING TO DEVELOPMENT OF PROFESSION OF FIELD OF AVIATION. THE ASSE SSEES NAME IS M/S INSTITUTION OF AVIATION AND AVIATION SAFETY (UNDER TRUST FEDERATION OF INDIAN PILOTS). THE ASSESSEE FILED AN APPLICATION BEFORE LEARNED CCIT SEEKING APPROVAL U/S. 10(23C)(VI) OF THE ACT. LEARNED CCIT REJECTED THE APPLICATION ON THE FOL LOWING GROUNDS : - (A) THE ASSESSEE HAS VIOLATED PROVISIONS OF SECTION 11(2) OF THE ACT BY NOT UTILIZING FUNDS ACCUMULATED BY IT U/S. 1 1 (2) WITHIN PRESCRIBED PERIOD OF FIVE YEARS AND ALSO FAILED TO DISCLOSE THE SAME IN THE RETURN OF INCOME FILED FOR A.Y. 2 011 - 12 & 2012 - 13. (B) THE ASSESSEE HAS MADE HUGE SURPLUS YEAR AFTER YEAR THROUGH ITS EDUCATION WING. FEDERATION OF INDIAN PILOTS 2 AGGRIEVED BY THE DECISION OF LEARNED CCIT, THE ASSESSEE HAS FILED THIS APPEAL BEFORE US. 3. LEARNED AR SUBMITTED THAT THE MATTER RELATING TO VIOLATION OF PROVISIONS OF SECTION 11(2) WAS ALSO RAISED BY THE AO IN THE ASSESSMENT PROCEEDING RELATING TO AY 2011 - 12. THE SAID ISSUE WAS CARRIED TO THE TRIBUNAL IN A.Y. 2011 - 12 AND THE COORDINATE BENCH, VIDE ITS ORDER DATED 3.12.2016 PASSED IN ITA NO. 5042/MUM/20 15, HAS RESTORED THE MATTER BACK TO THE FILE OF THE ASSESSING OFFICER FOR EXAMINING THE SAME AFRESH. ACCORDINGLY, LEARNED AR SUB MITTED THAT THE DECISION TAKEN BY THE ASSESSING OFFICER IN THE SET ASIDE PROCEEDINGS RELATING TO A.Y. 2011 - 12 WOULD HAVE BEARING ON THE DEFECT POINTED OUT BY LEARNED CCIT. IN THIS VIEW OF THE MATTER, THE LD A.R SUBMITTED THAT THIS ISSUE REQUIRES RECONSIDERATION AT THE END O F LD CCIT . 4. WITH REGARD TO THE SECOND OBJECTION, LEARNED AR PLACED RELIANCE ON THE CIRCULAR NO. 14 OF 2015 DATED 17.8.2015 ISSUED BY CBDT, WHEREIN THE CBDT HAS CLARIFIED THAT MERE GENERATION OF SURPLUS BY AN EDUCATION INSTITUTION FROM YEAR TO YEAR CANNOT BE A BASIS FOR REJECTION OF APPLICAT ION U/S. 10(23C)(VI) OF THE ACT I F IT IS UTILISED FOR EDUCATION PURPOSE , UNLESS ACCUMULATION IS CONTRARY TO THE MANNER PRESCRIBED UNDER LAW. THE LEARNED AR , ACCORDINGLY , SUBMITTED THAT THE VIEW TAKEN BY LEARNED CCIT ON THIS ISSUE IS NOT IN ACCORDANCE WITH THE CIRCULAR ISSUED BY CBDT. 5. WE HEARD LEARNED DEPARTMENTAL REPRESE NTATIVE AND PERUSED THE RECORD. HAVING REGARD TO THE SUBMISSIONS MADE BY LEARNED AR, WE ARE OF THE VIEW THAT THE APPLICATION FILED BY THE ASSESSEE BEFORE LEARNED CCIT REQUIRES RECONSIDERATION. ACCORDINGLY, WE SET ASIDE THE ORDER PASSED BY LEARNED CCIT AND RESTORE THE MATTER TO HIS FILE WITH THE DIRECTION TO EXAMINE THE APPLICATION FILED BY THE ASSESSEE AFRESH IN THE LIGHT OF THE DISCUSSION S MADE SUPRA. FEDERATION OF INDIAN PILOTS 3 6. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER HAS BE EN PRONOUNCED IN THE COURT ON 10 . 10 .201 7. SD/ - SD/ - (AMARJIT SINGH ) (B.R.BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED : 10 / 10 / 20 1 7 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// ( DY./ASSTT. REGISTRAR) PS ITAT, MUMBAI