Hapur Commodity Exchange Ltd, Hapur V. ITO(Exemption), Ghaziabad

ITA 6266/DEL/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 7585 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 01-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 11; 12AA; 22; 20

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI SMC BENCH, NEW DELHI BEFORE SHRI N.K. BILLAIYA , ACCOUNTANT MEMBER ITA NO. 6 2 66 /DEL/201 8 [ASSESSMENT YEAR: 2 0 15 - 16 ] HAPUR COMMODITY EXCHANGE LTD VS. THE I.T.O, CHAMBER BUILDING , CHANDI ROAD WARD 63 (3) HAPUR NEW DELHI PAN: AAECT 8458 J [APPELLANT] [RESPONDENT] DATE OF HEARING : 22 . 0 4 .201 9 DATE OF PRONOUNCEMENT : 2 3 .0 4 .201 9 ASSESSEE BY : SHRI VINESH K. MAHESHWARI , C A. REVENUE BY : S HRI S .L. ANURAGI , SR. DR ORDER PER N .K. BILLAIYA, ACCOUNTANT MEMBER: THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX [APPEALS] - GHAZIABAD DATED 31 .0 2 .2018 PERTAINING TO A.Y 20 15 - 16 . 2 2. THE GRIEVANCE S OF THE ASSESSEE READ AS UNDER: 1. THAT INVOKING OF THE APPLICATION OF THE PROVISO TO SECTION 2(15) OF THE INCOME TAX ACT, 1961 BY THE ASSESSING OFFICER AND CONFIRMATION OF THE SAME BY THE COMMISSIONER OF INCOME TAX (APPEALS) IS CONTRARY TO FACTS AND LAW AND THEREFORE THE ORDER OF THE ASSESSING OFFICER OF INVOKING OF THE APPLICAT ION OF THE PROVISO IS UNLAWFUL AND IS LIABLE TO BE QUASHED. 2. THAT THE ADDITION MADE OF RS. 11,03,165/ - BY NOT ALLOWING THE EXEMPTION CLAIMED U/S 11 OF THE INCOME TAX ACT, 1961 ON ACCOUNT OF APPLICABILITY OF THE PROVISIONS OF PROVISO TO SECTION 2(15) OF THE INCOME TAX ACT, 1961 BY THE ASSESSING OFFICER AND CONFIRMATION OF THE SAME BY THE COMMISSIONER OF INCOME TAX (APPEALS) IS CONTRARY TO FACTS AND LAW AND IS LIABLE TO BE DELETED. 3. THAT THE DISALLOWANCE OF THE CLAIM OF THE APPELLANT FOR EXEMPTION U/S 11 BY THE AO AND CONFIRMATION OF THE SAME BY THE COMMISSIONER OF INCOME TAX (APPEALS) IS BAD IN LAW IN SPITE OF THE FACT THAT THE APPELLANT WAS APPROVED/REGISTERED U/S 12AA OF THE INCOME TAX ACT, 1961 AND SUCH REGISTRATION WAS NEITHER CANCELLED NOR ANY PRO CEEDINGS FOR CANCELLATION WERE INITIATED BY THE DEPARTMENT. 3 3. AT THE VERY OUTSET, THE LD. AR STATED THE ISSUES HAVE BEEN DECIDED BY THE TRIBUNAL IN ITA NO. 2235/DE L /2018 FOR A.Y 2014 - 15. IT IS THE SAY OF THE LD. AR THAT SINCE THERE ARE NO NEW FACTS, THE SAME VIEW SHOULD BE TAKEN, 4. THE LD. DR ALSO FAIRLY CONCEDED TO THIS SUBMISSION OF THE ASSESSEE THAT SIMILAR ISSUE WAS DECIDED BY THE TRIBUNAL IN ASSESSEE'S OWN CASE IN A.Y 2014 - 15. 5 . I HAVE CAREFULLY CONSIDER ED THE ORDERS OF THE AUTHORITIES BELOW . I FIND THAT THE GROUNDS RAISED IN THE APPEAL UNDER CONSIDERATION ARE IDENTICAL TO THE GROUNDS CONSIDERED BY THE CO - ORDINATE BENCH IN ITA NO. 2235/DEL/2018 , THE RELEVANT FINDINGS OF WHICH READ AS UNDER: ONCE ASSESSEE HAS BEEN GRANTED REGISTRATION U / S .12AA, THEN IT IS AXIOMATIC THAT COMPUTATION HAS TO BE DONE IN ACCORDANCE WITH SECTION 11 TO 13. THE AO HAS TO COMPUTE THE INCOME IN ACCORDANCE WITH SECTION 11 AND CANNOT HOLD THAT ASSESSEE IS NOT CHARITABLE. ACCORDINGLY, MATTER IS RESTORED BACK TO THE FILE OF T HE ASSESSING OFFICER TO STRICTLY COMPUTE THE INCOME IN ACCORDANCE WITH SECTION 11 AND BENEFIT CANNOT BE DENIED BY INVOKING THE PROVISO, BECAUSE IF ASSESSEES CASE IS HIT BY PROVISO THEN ONLY ID. CIT CAN CANCEL OR REVOKE THE 4 REGISTRATION. AS LONG AS REGISTRATION STANDS, ASSESSING OFFICER HAS TO GIVE CONSEQUENTIAL AND LEGAL EFFECT AS PER THE LAW. WITH THIS DIRECTION MATTER IS REMITTED ONLY FOR THE LIMITED PURPOSE OF COMPUTATION U/S. 11 AND CONSEQUENTLY THE APPEAL OF THE ASSESSE E IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. 6 . FINDING PARITY ON THE FACTS QUA THE ISSUES, I DIRECT THE ASSESSING OFFICER TO DECIDE IN LINE WITH THE DIRECTIONS GIVEN BY THE TRIBUNAL IN A.Y 2014 - 15. GROUNDS RAISED ARE ACCORDINGLY ALLOWED FOR STATISTI CAL PURPOSES. 7 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IN ITA NO. 6 2 66 /DEL/201 8 IS ALLOWED FOR STATISTICAL PURPOSES. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 2 3 . 0 4 .201 9 . S D / - [N.K. BILLAIYA] ACCOUNTANT MEMBER DATED: 2 3 R D APRIL, 2019. VL/ 5 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(A) ASST. REGISTRAR, 5. DR ITAT, NEW DELHI DATE OF DICTATION DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.PS/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER