BADHTE KADAM, RAIPUR V. DY.. C.I.T.-1(1), RAIPUR

ITA 56/BIL/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 9093 (ITAT-RAIPUR)
• Duration Of Justice: 1 year(s) 11 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-05-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2008-2009
• Appeal Filed On: 07-05-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: P K MISHRA
• Assessee Lawyers: SWAT I HURKAT
• Keywords: Retrospective amendment
• Section: 12A; 56; 12; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RAIPUR BENCH, RAIPUR BEFORE S/SHRI N.S SAINI, ACCOUNTANT MEMBER AND GEORGE GEORGE K, JUDICIAL MEMBER ITA NO S . 56 & 57 /RPR /201 5 ASSESSMENT YEARS : 2008 - 09 & 2009 - 2010 BADHTE KADAM, 206, 2 ND FLOOR, RISHABH CHAMBERS, M.G. ROAD, RAIPUR VS. DCIT 1(1), CENTRAL REVENUE BUILDING, CIVIL LINES, RAIPUR PAN/GIR NO. AABTB 4280 (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SWAT I HURKAT, AR REVENUE BY : SHRI P.K.MISHRA, CIT DR DATE OF HEARING : 3 /05 / 2017 DATE OF PRONOUNCEMENT : 03 /05 / 2017 O R D E R PER N.S.SAINI, AM THESE ARE APPEAL S FILED BY THE ASSESSEE AGA INST THE SEPARATE ORDER S OF CIT(A) - RAIPUR , DATED 6.1.2015 , FOR THE ASSESSMENT YEAR S 2008 - 09 & 2009 - 2010, RESPECTIVELY . 2. THE SOLE ISSUE INVOLVED IN BOTH THE APPEAL S IS THAT THE LD CIT(A) ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER DISALLOWING EXEMPTION UNDER SECTION 11 OF THE ACT TO THE ASSESSEE. 2 ITA NOS. 56 & 57 /RPR/2015 ASSESSMENT YEARS:2008 - 09 & 2009 - 2010 3. THE BRIEF FACTS OF THE CASE ARE THAT THE REGISTRATION UNDER SECTION 12 OF THE ACT, 1961 WAS GRANTED TO THE ASSESSEE ON 7.6.2010 FROM ASSESSMENT YEAR 2010 - 2011 ONWARDS. FROM THE RETURN OF INCOME FILED BY THE ASSESSEE FOR ASSESSMENT YEAR 2008 - 09, THE ASSES SING OFFICER FOUND THAT THE ASSESSEE HAS CLAIMED EXEMPTION OF RS.5,79,918/ - U/S. 11 WITHOUT HAVING BEING REGISTERED U/S.12A OF THE ACT FOR THE YEAR UNDER REFERENCE. SIMILARLY, FOR THE ASSESSMENT YEAR 2009 - 2010, THE ASSESSING OFFICER NOTICED THAT THE ASSES SEE HAS CLAIMED EXEMPTION OF RS.20,08,117/ - U/S. 11 WITHOUT HAVING BEING REGISTERED U/S.12A OF THE ACT FOR THE YEAR UNDER REFERENCE . THEREFORE, HE DISALLOWED EXEMPTION TO THE ASSESSEE U/S.11 OF THE ACT OF RS.5,79,918/ - FOR THE ASSESSMENT YEAR 2008 - 09 AND RS.20,08,117/ - FOR THE ASSESSMENT YEAR 2009 - 2010. 4. ON APPEAL BEFORE THE CIT(A), THE ASSESSEE SUBMITTED THAT THE ASSESSEE IS A CHARITABLE SOCIETY REGISTERED UNDER CHHATTISGARH SOCIETY REGISTRATION ACT, 1973 AND WAS ENGAGED CHARITABLE ACTIVITIES AND MAINLY WORKS IN THE AREA O F EYE DONATION, BODY DONATION AND FUNERAL ACTIVITY. THE SOCIETY HAS BEEN REGISTERED U/S.12A FROM 7.6.2010 AND THE CIT, RAIPUR HAS GRANTED THE REGISTRATION O NLY AFTER BEING SATISFIED WITH THE OBJECT AND ACTIVITY CARRIED ON BY THE SOCIET Y. THE ASSESSING OFFICER HAS NOT OBJECTED TO THE CHARITABLE ACTIVITIES OF THE SOCIETY, BUT THE MATTER WAS ONLY THAT THE ASSESSEE WAS NOT AWARE OF LAW AND, THEREFORE, IT HAD NOT APPLIED FOR REGISTRATION IN TIME. LD A.R. RELIED ON AMENDMENT TO SECTION 12A INSERTED BY FINANCE ACT, 3 ITA NOS. 56 & 57 /RPR/2015 ASSESSMENT YEARS:2008 - 09 & 2009 - 2010 2014 AND IT WAS SUBMITTED THAT THE INTENTION OF THE LEGISLATION WAS TO CONSIDER THE FINANCIAL HARDSHIP OF THE SOCIETY TO FACE THE TAX BURDEN AND ALLOW THE APPEAL. THE CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE OBSERVING AS UNDER : THE SUBMISSION OF THE LD A.R. WAS CONSIDERED CAREFULLY WITH REFERENCE TO MATERIAL AVAILABLE ON RECORD. THE REGISTRATION U/S.12A WAS GRANTED TO THE APPELLANT ON 7.6.2010 I.E. FROM A.Y. 2011 - 12 ONWARDS. THE POWER OF THE CIT TO GRANT REGISTRATION WITH RE TROSPECTIVE EFFECT U/S.12A(A)(2) HAS BEEN WITHDRAWN W.E.F. 1.6.2007. THE APPELLANT SOCIETY FILED THE RETURN OF INCOME FOR THE A.Y. 2008 - 09 ON 30.3.2010 AFTER CLAIMING EXEMPTION OF RS.5,79,918/ - U/S.11 OF THE ACT. (IN THE ASSESSMENT YEAR 2009 - 2010 T HE APPELLANT SOCIETY FILED THE RETURN OF INCOME ON 30.3.2010 AFTER CLAIMING EXEMPTION OF RS. 20,08,117 / - U/S.11 OF THE ACT .) IN REPLY TO NOTICE U/S.148 DATED 2.7.2012, THE APPELLANT REQUESTED THE AO TO TREAT THE RETURN FILED ON 30.3.2010 AS RETURNED FILED IN RESPONSE TO NOTICE U/S.148. THE REASONS FOR CLAIMING NET SURPLUS OF INCOME OVER THE EXPENDITURE OF THE YEAR UNDER REFERENCE AS EXEMPT U/S.11 WITHOUT BEING REGISTERED U/S.12A SINCE NOT EXPLAINED, THE AO ASSESSED THE SAME AS INCOME OF THE YEAR. I FIND THAT REGISTRATION OF THE SOCIETY U/S.12A IS A CONDITION PRECEDENT TO CLAIM OF EXEMPTION U/S.11 AND 12 AS LAID DOWN BY HONBLE APEX COURT IN THE CASE OF U.P. FOREST CORPORATION VS DCIT, 297 ITR 1 AND THE AMENDMENT TO THE SECTION INSERTED BY FINANCE ACT, 2014 H AS NO RETROSPECTIVE EFFECT AND THEREFORE, IN VIEW OF THE STATUTORY PROVISIONS AND THE LEGAL PROPOSITIONS DISCUSSED ABOVE, I FIND NO INFIRMITY IN THE ORDER OF THE AO IN ASSESSING THE NET SURPLUS OF THE APPELLANT SOCIETY AS INCOME OF THE YEAR ASSESSABLE IN I TS HANDS IN THE YEAR UNDER REFERENCE, HENCE, IT IS CONFIRMED. 4 ITA NOS. 56 & 57 /RPR/2015 ASSESSMENT YEARS:2008 - 09 & 2009 - 2010 5. LD A.R. REITERATED THE SUBMISSIONS MADE BEFORE THE CIT(A). HE COULD NOT POINT OUT ANY SPECIFIC ERROR IN THE ORDER OF THE CIT(A) BY BRINGING ANY POSITIVE MATERIAL ON RECORD. WE, THEREFOR E, DO NOT FIND ANY INFIRMITY IN THE O RDER OF THE CIT(A) AND CONFIRM THE SAME BY DISMISSING THE GROUND OF APPEAL OF THE ASSESSEE. 6. IN THE RESULT, THE APPEAL S F ILED BY THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCE D IN THE OPEN COURT ON 03 /05 /2017 IN THE PRESENCE OF PARTIES. SD/ - SD/ - (GEORGE GEORGE K ) ( N.S SAINI) JUDICIAL MEMBER A CCOUNTANT MEMBER RAIPUR ; DATED 4 /05 /2017 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PRIVATE SECRETARY 1. THE APPELLANT : BADHTE KADAM, 206, 2 ND FLOOR, RISHABH CHAMBERS, M.G. ROAD, RAIPUR 2. THE RESPONDENT. DCIT 1(1), CENTRAL REVENUE BUILDING, CIVIL LINES, RAIPUR 3. THE CIT(A) RAIPUR 4. CIT , RAIPUR 5. DR, ITAT, RAIPUR 6. GUARD FILE. //TRUE COPY//