DCIT, Chandigarh V. M/s Amritsar Improvement Trust, Amritsar

ITA 685/CHANDI/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 4912 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 1 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-06-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 19-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAM MOHAN SINGHCIT
• Section: 28; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH A, CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS.ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO.685/CHD/2017 (ASSESSMENT YEAR : 2012-13) THE D.C.I.T., VS. AMRITSAR IMPROVEMENT TRUST, CIRCE-1(EXEMPTIONS), C-BLOCK, RANJIT AVENUE, CHANDIGARH. AMRITSAR. PAN: AAJFA4492K (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI RAM MOHAN SINGH,CIT DR RESPONDENT BY : S/SHRI SALIL KAPOOR, ADV. & SANAT KAPOOR, ADV. DATE OF HEARING : 20.03.2018 DATE OF PRONOUNCEMENT : 18.06.2018 ORDER PER SANJAY GARG, JUDICIAL MEMBER : THE PRESENT APPEAL HAS BEEN PREFERRED BY THE REVENU E AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-2, AMRITSAR (HEREINAFTER REFERRED TO AS LD.CIT (APPEALS)] DATED 19.1.2017, PASSED U/S 250(6 OF TH E INCOME TAX ACT, 1961 (IN SHORT THE ACT) IN APPEAL NO.82/ 2015-16 RELATING TO ASSESSMENT YEAR 2012-13. 2. THE REVENUE IS AGGRIEVED BY THE ACTION OF THE CI T (APPEALS) IN ALLOWING THE CLAIM OF EXEMPTION TO THE ASSESSEE TRUST UNDER SECTION 11 OF THE ACT. 3. AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT IN THIS CASE, THE ASSESSING OFFICER HAD MADE THE IMPUGNED ADDITION WHILE RELYING UPON THE DECISI ON OF ITA NO.685/CHD/2017 AY: 2012-13 2 THE AMRITSAR BENCH OF THE TRIBUNAL DATED 15.1.2013 IN THE OWN CASE OF THE ASSESSEE FOR ASSESSMENT YEARS 2006- 07 AND 2007-08, WHEREIN IT WAS HELD THAT THE AMRITSAR IMPROVEMENT TRUST DID NOT QUALIFY FOR EXEMPTION UND ER SECTION 11 OF THE ACT. 4. HOWEVER, THE ASSESSEE PREFERRED APPEAL AGAINST T HE ORDER OF THE TRIBUNAL DATED 15.1.2013 BEFORE THE HO N'BLE PUNJAB & HARYANA HIGH COURT. THE HON'BLE HIGH COUR T SET ASIDE THE ORDER OF THE TRIBUNAL AND REMANDED THE MA TTER TO THE FILE OF THE TRIBUNAL VIDE ORDER DATED 6.8.2014. 5. IN THE SET ASIDE PROCEEDINGS, THE I.T.A.T., AMRI TSAR BENCH VIDE ITS ORDER DATED 10.9.2015 DECIDED THE IS SUE IN FAVOUR OF THE ASSESSEE AND HELD THAT THE ASSESSEE W AS ENTITLED TO THE BENEFIT OF SECTION 11 R.W.S. 2(15) OF THE ACT AND THE DEVELOPMENT ACTIVITIES OF THE ASSESSEE WERE HELD TO BE FALLING UNDER THE PURVIEW AND SCOPE OF OBJECT O F GENERAL PUBLIC UTILITY. 6. THE LD.CIT(APPEALS) FOLLOWING THE DECISION OF TH E TRIBUNAL DATED 10.9.2015 IN THE OWN CASE OF THE ASS ESSEE FOR ASSESSMENT YEAR 2004-05 TO 2007-08 HELD THAT TH E ASSESSEE TRUST QUALIFY FOR EXEMPTION U/S 11 OF THE ACT AND THAT THE ACTIVITIES OF THE TRUST OF PLANNED DEVELOP MENT OF CITIES AND TOWNS WAS AN OBJECT OF PUBLIC UTILITY CO VERED U/S 2(15) OF THE ACT. HE, THEREFORE, ALLOWED THE APPEAL OF THE ASSESSEE. ITA NO.685/CHD/2017 AY: 2012-13 3 7. BEING AGGRIEVED BY THE ABOVE ORDER OF THE CIT(AP PEALS), THE REVENUE HAS PREFERRED THE PRESENT APPEAL BEFORE THIS TRIBUNAL. THE LD. COUNSEL FOR ASSESSEE AT THE OUTSE T HAS INVITED OUR ATTENTION TO THE ORDER OF THE HON'BLE JURISDICTIONAL PUNJAB & HARYANA HIGH COURT DATED 23.12.2016 PASSED IN THE OWN CASE OF THE ASSESSEE B EARING ITA NO.76/2016 ALONGWITH OTHER APPEALS WHEREIN THE HON'BLE HIGH COURT FOLLOWING ITS DECISION PASSED IN ITA NO.147/2016 TITLED AS CIT(E) VS. IMPROVEMENT TRUST, MOGA HAS DISMISSED THE APPEALS OF THE REVENUE. IT IS PE RTINENT TO NOTICE HERE THAT IN THE CASE OF IMPROVEMENT TRUST, MOGA, WHICH WAS DECIDED ALONGWITH THE CASE OF TRIBUNE TRU ST VS. CIT, REPORTED IN (2016) 76 TAXMANN.COM 363 (P&H), T HE HON'BLE HIGH COURT HAS HELD THAT THE ASSESSEE, NAME LY MOGA IMPROVEMENT TRUST IS UNDOUBTEDLY AN AUTHORITY CONSTITUTED BY OR UNDER A LAW, NAMELY, THE PUNJAB T OWN IMPROVEMENT ACT, 1922. FURTHER, IT IS ENGAGED FOR T HE PURPOSE OF DEALING WITH AND SATISFYING THE NEED FOR HOUSING ACCOMMODATION. IT IS ALSO CONSTITUTED FOR THE PURPO SE OF PLANNING, DEVELOPMENT OF IMPROVEMENT OF CITIES, TOW NS AND VILLAGES OR BOTH AS IS EVIDENT FROM SECTIONS 22 TO 28 OF THE PUNJAB TOWN IMPROVEMENT ACT, 1922. THE HON'BLE HIGH COURT CONSIDERING THE ABOVE ACTIVITIES OF MOGA IMPR OVEMENT TRUST HELD THAT THE SAME WOULD FALL WITHIN THE MEAN ING OF ADVANCE OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILI TY AS SPECIFIED U/S 2(15) OF THE ACT. ITA NO.685/CHD/2017 AY: 2012-13 4 AS DISCUSSED ABOVE, FOLLOWING THE SAID DECISION IN THE CASE OF MOGA IMPROVEMENT TRUST DATED 23.12.2016 (SU PRA), THE APPEAL OF THE REVENUE IN THE OWN CASE OF THE AS SESSEE, THEREFORE, WAS DISMISSED. THE LD.CIT(APPEALS) HAS F OLLOWED THE ORDER OF THE TRIBUNAL DATED 10.9.2015 (SUPRA), WHICH HAS BEEN FURTHER UPHELD BY THE HON'BLE HIGH COURT. IN VIEW OF THIS, THERE IS NO MERIT IN THE APPEAL OF THE REV ENUE. THE SAME IS ACCORDINGLY, DISMISSED. 10. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 18.06.2018. SD/- SD/- (ANNAPURNA GUPTA) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 18 TH JUNE, 2018 *RATI* COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. THE CIT 5. THE DR ASSISTANT REGISTRAR, ITAT, CHANDIGARH