Sahara India Karyakarta Contributory, Lucknow V. Income Tax Officer-3(4) , Lucknow

ITA 627/LKW/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 3339 (ITAT-LUCKNOW)
• Duration Of Justice: 5 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-06-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 30-05-2013
• Assessment Year: 2009-2010
• Appeal Filed On: 31-12-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RANU BISWAS
• Assessee Lawyers: J J MEHROTRA
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A : LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER I.T.A. NO. 627 /LKW/ 2012 ASSESSMENT YEAR: 2009 - 10 SAHARA INDIA KARYAKARTA CONTRIBUTORY VS. INCOME TAX OFFICER - 3(4), PROVIDENT FUND TRUST, LUCKNOW. SAHARA INDIA BHAWAN, 1, KAPOORTHALA COMPLEX, ALIGANJ, LUCKNOW. PAN:AADTS4367H (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI J. J.MEHROTRA, C.A. RESPONDENT BY : SMT. RANU BISWAS, D.R. DATE O F HEARING : 30 /0 5 /201 3 DATE OF PRONOUNCEMENT :07/06/2013 ORDER PER SUNIL KUMAR YADAV: THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) ON VARIOUS GROUNDS BUT THEY ALL RELATE TO AN ISSUE THAT THE ASSESSING OFFICER HAS FRAMED THE ASSESSMENT AFTER TREATING THE ASSESSEE AS A NON - RECOGNIZED PROVIDENT FUND TRUST AND SUBJECTED THE RECEIPTS OF THE TRUST TO TAX BY TREATING THEM AS INCOME. 2 2. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. DURING THE COURSE OF HEA RING OF THE APPEAL, THE LEARNED COUNSEL FOR THE ASSESSEE HAS INVITED OUR ATTENTION THAT THE ASSESSEE HAS APPLIED FOR RECOGNITION UNDER RULE 3(1) OF THE FOURTH SCHEDULE PART - A OF THE INCOME TAX ACT, 1961 READ WITH RULE78 OF THE INCOME TAX RULES, 1962 VIDE A PPLICATION DATED 09/10/2002 BUT IT WAS GRANTED ON 23/04/2013 BY THE CIT WITH EFFECT FROM 1 ST OCTOBER, 2002. UNDISPUTEDLY, WHEN THE ASSESSMENT WAS FRAMED THE ORDER OF RECOGNITION WAS NOT PASSED IN FAVOUR OF THE ASSESSEE AND THE ASSESSEE WAS TREATED AS NON - RECOGNIZED PROVIDENT FUND TRUST AND RECEIPTS WERE SUBJECTED TO TAX. THE ORDER OF THE ASSESSING OFFICER WAS CONFIRMED BY CIT(A) AND THE APPEAL WAS DISPOSED OF ON 12/10/2012 AND THE ORDER OF RECOGNI TION WAS PASSED ON 23TH APRIL, 2013. THE LEARNED COUNSEL F OR THE ASSESSEE FURTHER CONTENDED THAT SINCE BY VIRTUE OF THIS ORDER THE ASSESSEE IS RECOGNIZED PROVIDENT FUND TRUST SINCE OCTOBER, 2002, THEREFORE, FOR THE RELEVANT ASSESSMENT YEAR THE ASSESSEE IS REQUIRED TO BE ASSESSED AS A RECOGNIZED PROVIDENT FUND TRU ST BUT IT WAS ASSESSED AS NON RECOGNIZED PROVIDENT FUND TRUST ON ACCOUNT OF NON AVAILABILITY OF CERTIFICATE FROM THE CIT. SINCE THE ORDER HAS BEEN PASSED AND THE ASSESSEE IS RECOGNIZED AS PROVIDENT FUND TRUST, THE ASSESSMENT BE MADE IN THE SAME STATUS F OR WHICH THE MATTER MAY BE RESTORED TO THE FILE OF ASSESSING OFFICER FOR READJUDICATION. 3. THE LEARNED D.R. DID NOT OBJECT THE FACTUAL ASPECT. 4. WE HAVE GIVEN A THOUGHTFUL CONSIDERATION TO THE RIVAL SUBMISSIONS AND FROM A PERUSAL OF THIS ORDER OF CIT G RANTING RECOGNITION TO THE 3 ASSESSEE UNDER RULE 3(1) OF PART - A OF FOURTH SCHEDULE OF THE I.T. ACT, 1961, WE ARE OF THE VIEW THAT THE MATTER SHOULD BE RESTORED TO THE FILE OF THE ASSESSING OFFICER TO READJUDICATE THE ISSUE AFTER TREATING THE ASSESSEE TO BE R ECOGNIZED PROVIDENT FUND TRUST IN THE LIGHT OF THE ORDER PASSED BY THE CIT WITH EFFECT FROM 1 ST OCTOBER, 2002. ACCORDINGLY, WE SET ASIDE THE ORDER OF CIT(A) AND RESTORE THE MATTER TO THE FILE OF THE ASSESSING OFFICER WITH THE DIRECTION TO READJUDICATE THE ISSUE IN THE LIGHT OF THE RECOGNITION ORDER OF THE CIT AFTER AFFORDING PROPER OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 5. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT ON 07/06/201 3 ) SD/. SD/. ( PRAMOD KUMAR) ( SUNIL KUMAR YADAV ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 07/06/2013 *SINGH COPY FORWARDED TO THE: 1. APPELLANT. 2. RESPONDENT. 3. CIT (A) 4. CIT 5. DR. ASSISTANT REGISTRAR