Deputy Commissioner of Income Tax (Exemption),Circle, Jaipur V. Centre for Development Communication Trust, Jaipur

ITA 753/JPR/2018

• Counselvise Citation: [2018] 123 COUNSELVISE.COM (IT) 0648 (ITAT-JAIPUR)
• Duration Of Justice: 3 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-09-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 30-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Benefit of exemption; Cancellation of registration
• Section: 12AA; 12; 11

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH FOT; IKY JKWO] U;KF;D LNL; ,OA JH FOE FLAG ;K NO ] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM AND SHRI VIKRAM SING H YADAV, AM VK;DJ VIHY LA-@ ITA NO. 753/JP/2018 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2014-15. DEPUTY COMMISSIONER OF INCOME TAX (EXEMPTIONS) CIRCLE, JAIPUR. CUKE VS. CENTRE FOR DEVELOPMENT COMMUNICATION TRUST, 16, SHREE GOPAL PURA BYE PASS, JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AAAAC 0873 C VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : SHRI K.C. MEENA (ADDL. CIT) FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI PRAKUL KHURANA (ADVOCATE) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 27.09.2018. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 28/09/2018. VKNS'K@ ORDER PER VIJAY PAL RAO, JM : THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 1 ST MARCH, 2018 OF LD. CIT (A)-3, JAIPUR FOR THE ASSESSMENT YEAR 2014-15. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS :- 1. IN THE FACTS AND THE CIRCUMSTANCES OF THE CAS E AND IN LAW THE LD. CIT (APPEALS) HAS ERRED IN ALLOWING EXEMPTION U/S 11 OF THE IT ACT, 1961 TO THE ASSESSEE WITHOUT APPRECIATING THE FACT THAT AO HAS GIVEN DETAILED REASONS IN THE ASSESSMENT ORDER TO ESTABLISH THAT A CTIVITIES OF THE ASSESSEE ARE NOT CHARITABLE IN VIEW OF AMENDED PROV ISIONS OF SECTION 2(15) OF THE I.T. ACT, 1961. 2. IN THE FACTS AND THE CIRCUMSTANCES OF THE CASE A ND IN LAW THE LD. CIT (APPEALS) HAS ERRED IN NOT APPRECIATING THE FACT TH AT ASSESSEE IS NOT ENTITLED FOR BENEFIT OF EXEMPTION U/S 11 EVEN IT WA S REGISTERED U/S 12AA BY THE CIT IN PURSUANCE OF ORDER OF HONBLE IT AT AS THE ASSESSEE IS HIT BY THE PROVISIONS TO SECTION 2(15) OF THE AC T. 2 ITA NO. 753/JP/2018 CENTRE FOR DEVELOPMENT COMMUNICATION TRUST, JAIPUR. 3. IN THE FACTS AND THE CIRCUMSTANCES OF THE CASE A ND IN LAW THE LD. CIT (APPEALS) HAS ERRED IN NOT APPRECIATING THE FACT TH AT ASSESSEE IS ENGAGED IN RENDERING CONTRACTUAL SERVICES FOR CONSI DERATION IN REMOVING SOLID WASTE WHICH CANNOT BE HELD AS ACTIVI TY AS PRESERVATION OF ENVIRONMENT. 4. ANY OTHER QUESTION IN LAW AS DEEMED FIT IN THE F ACTS AND CIRCUMSTANCES OF THE CASE MAY ALSO BE FRAMED BEFORE THE HONBLE T RIBUNAL IN THE INTEREST OF JUSTICE. 2. WE HAVE HEARD THE LD. D/R AS WELL AS THE LD. A/R AND CONSIDERED THE RELEVANT MATERIAL ON RECORD. THE AO HAS DENIED THE BENEFIT OF SECTIONS 11 AND 12 OF THE IT ACT TO THE ASSESSEE ON THE GROUND THAT THE REGISTRA TION GRANTED UNDER SECTION 12AA OF THE ACT WAS WITHDRAWN BY THE LD. CIT (EXEMPTIONS ). THE ASSESSEE CHALLENGED THE SAID ACTION OF THE AO BEFORE THE LD. CIT (A) AND SU BMITTED THAT THE CANCELLATION/WITHDRAWAL OF REGISTRATION HAS BEEN QU ASHED BY THIS TRIBUNAL VIDE ORDER DATED 22.08.2013 IN ITA NO. 163/JP/2012, THEREFORE, THE ASSESSEE IS ELIGIBLE FOR EXEMPTION UNDER SECTIONS 11 AND 12 OF THE ACT. THE LD. CIT (A) ALLOWED THE CLAIM OF THE ASSESSEE IN VIEW OF THE FACT THAT THE REGISTRAT ION UNDER SECTION 12AA HAS BEEN RESTORED BY THIS TRIBUNAL. THE REVENUE HAS NOT DIS PUTED THE FACT THAT THE CANCELLATION OF REGISTRATION GRANTED TO THE ASSESSE E UNDER SECTION 12AA WAS RESTORED BY THIS TRIBUNAL AND, THEREFORE, THOUGH THE REVENUE HAS NOT ACCEPTED THE SAID ORDER, HOWEVER, SO LONG THE SAID ORDER OF THE TRIBUNAL IS IN EXISTENCE, THE BENEFIT OF EXEMPTION UNDER SECTIONS 11 AND 12 OF THE ACT CANNO T BE DENIED TO THE ASSESSEE. WE FURTHER NOTE THAT THE APPEAL FILED BY THE REVENU E AGAINST THE ORDER OF THIS TRIBUNAL IN RESPECT OF CANCELLATION OF REGISTRATION UNDER SECTION 12AA HAS BEEN DISMISSED BY THE HONBLE JURISDICTIONAL HIGH COURT. A COPY OF THE SAID JUDGMENT IN DB IT APPEAL NO. 30/2014 DATED 29 TH APRIL, 2016 HAS BEEN FILED BY THE ASSESSEE. 3 ITA NO. 753/JP/2018 CENTRE FOR DEVELOPMENT COMMUNICATION TRUST, JAIPUR. ACCORDINGLY, IN VIEW OF THE FACT THAT THE REGISTRAT ION UNDER SECTION 12AA WAS ALREADY RESTORED AND CONSEQUENTLY THE ASSESSEE IS ELIGIBLE FOR DEDUCTION UNDER SECTIONS 11 AND 12 OF THE ACT, THE DENIAL OF THE BENEFIT BY THE AO WILL NOT SUSTAIN. HENCE WE DO NOT FIND ANY ERROR OR ILLEGALITY IN THE IMPUGNED OR DER OF THE LD. CIT (A) IN GRANTING THE BENEFIT OF EXEMPTION UNDER SECTIONS 11 AND 12 O F THE ACT. 3. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER IS PRONOUNCED IN THE OPEN COURT ON 28/09/201 8. SD/- SD/- ( FOE FLAG ;KNO ) ( FOT; IKY JKWO (VIKRAM SINGH YADAV ) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 28/09/2018. DAS/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- THE DCIT (EXEMPTIONS), CIRCLE, JA IPUR. 2. THE RESPONDENT CENTRE FOR DEVELOPMENT COMMUNIC ATION TRUST, JAIPUR. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 753/JP/2018) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR 4 ITA NO. 753/JP/2018 CENTRE FOR DEVELOPMENT COMMUNICATION TRUST, JAIPUR.