M/s The Kakinada Port Export and Import Shore Labour Pool, Kakinada, Visakhapatnam V. The Commissioner of Income Tax, Rajahmundry

ITA 85/VIZ/2010

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 2895 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 6 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-08-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 09-02-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D S SUNDER SINGH
• Assessee Lawyers: G V S S PRASAD
• Keywords: Charitable institution; Opportunity of being heard
• Section: 12AA

Judgement Text

ITA NO.85 OF 10 KAKINADA PORT EXPORT KAKINADA PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER ITA NO. 85/VIZAG/2010 ASSESSMENT YEAR: NA THE KAKINADA PORT EXPORT AND IMPORT SHORE LABOUR POOL, KAKINADA VS. CIT, RAJAHMUNDRY (APPELLANT) PAN NO: AABTT 6905 A (RESPONDENT) APPELLANT BY: SHRI G.V.S.S. PRASAD, CA RESPONDENT BY: SHRI D.S. SUNDER SINGH, (DR) ORDER PER SHRI B. R. BASKARAN, ACCOUNTANT MEMBER: THE APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 8-12-2009 PASSED BY LEARNED CIT, RAJAHMUNDRY REJECTING THE AP PLICATION FILED BY THE ASSESSEE SEEKING REGISTRATION U/S 12AA OF THE ACT. 2. THE ASSESSEE IS A TRUST CREATED FOR THE WELFARE OF CASUAL WORKERS ENGAGED FOR LOADING AND UNLOADING OF GOODS AT PORT, RAILWAY S ETC. IT FILED AN APPLICATION IN FORM NO.10 A WITH THE LEARNED CIT, RAJAHMUNDRY SEEK ING REGISTRATION U/S 12AA OF THE ACT IN THE STATUS OF A CHARITABLE TRUST. THE LE ARNED CIT REJECTED THE APPLICATION AS HE WAS OF THE VIEW THAT THE BENEFITS FROM THE AC TIVITIES OF THE TRUST CANNOT BE SAID TO HAVE PUBLIC CHARACTER AS IT DOES NOT ENURE FOR THE BENEFIT OF THE WORKERS WORKING OUTSIDE THE PURVIEW OF KAKINADA PORT. AGGRI EVED BY THE ORDER OF THE LEARNED CIT, THE ASSESSEE IS IN APPEAL BEFORE US. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULL Y PERUSED THE RECORD. THE MAIN OBJECTION OF THE LEARNED CIT IS THAT THE BENEF ITS OF THE ACTIVITIES OF THE TRUST REACHES ONLY THE LABOURERS/WORKERS ENGAGED IN THE K AKINADA PORT. IN THAT REGARD THE LEARNED AUTHORISED REPRESENTATIVE SUBMITTED THA T AN OBJECT BENEFICIAL TO A SECTION OF THE PUBLIC IS ALSO AN OBJECT OF GENERAL PUBLIC UTILITY. TO SUPPORT HIS CONTENTIONS, THE LEARNED AUTHORISED REPRESENTATIVE PLACED RELIANCE ON THE FOLLOWING CASE LAW WHEREIN A SIMILAR VIEW HAS BEEN EXPRESSED. ITA NO.85 OF 10 KAKINADA PORT EXPORT KAKINADA PAGE 2 OF 2 A) AHMEDABAD RANA CASTE ASSOCIATION VS. CIT, 82 ITR 704 (SUPREME COURT) B) CIT VS. ANDHRA PRADESH POLICE WELFARE SOCIETY, 1 48 ITR 287 (A.P) C) GIRIJAN COOPERATIVE CORPORATION LTD., VS. CIT, 1 78 ITR 359 (A.P) WE HAVE GONE THROUGH THE ABOVE CITED CASE LAW AND N OTICE THAT THE VIEW EXPRESSED BY THE LEARNED CIT WITH REGARD TO THE PUB LIC CHARACTER IS AGAINST THE DECISION PRONOUNCED IN THE ABOVE SAID CASE LAW. IN VIEW OF THE ABOVE, WE DO NOT FIND MERIT IN THE ORDER PASSED BY LEARNED CIT AND A CCORDINGLY SET ASIDE HIS ORDER AND RESTORE THE MATTER BACK TO HIS FILE WITH A DIRE CTION TO CONSIDER THE APPLICATION FILED BY THE ASSESSEE AFRESH IN ACCORDANCE WITH THE LAW AFTER AFFORDING NECESSARY OPPORTUNITY OF BEING HEARD. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TRE ATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 27 TH AUGUST, 2010. SD/- SD/- (SUNIL KUMAR YADAV) (B R BASKARAN ) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM, DATE:27-08- 2010 COPY TO 1 THE KAKINADA PORT EXPORT AND IMPORT SHORE LABOUR PO OL, KAKINADA, C/O SHRI G.V.S.S. PRASAD, CA, FLAT NO.6, 5 TH FLOOR, MADHURI MANOR APARTMENTS, OPP: ANDHRA BANK, LAWSONS BAY COLONY, VISAKHAPATNAM 5300 17 2 . THE CIT RAJAHMUNDRY 3 THE DR, ITAT, VISAKHAPATNAM. 4 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM