DDIT, Hyderabad V. A.P.Industrial Infrastruture, Hyderabad

ITA 850/HYD/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 3103 (ITAT-HYDERABAD)
• Duration Of Justice: 11 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-07-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 03-06-2010
• Assessment Year: 2006-2007
• Appeal Filed On: 15-07-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VASUNDHARA SINHA
• Assessee Lawyers: B SATYANARAYANA MURTHY
• Keywords: Charitable institution
• Section: 2; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI G.C.GUPTA, VICE PRESIDENT AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMEBR ITA NO.850/HYD/2009 ASSTT. YEAR 2006-07 DY. DIRECTOR OF INCOME TAX (E)- III HYDERABAD V/S. AP INDUSTRIAL INFRASTRUCTURE CORPORATION LTD., HYDERABAD (PAN NO. AABCA 9029 K) (APPELLANT) (RESPONDENT) APPELLANT BY : SMT. VASUNDHARA SINHA, DR RESPONDENT BY : SHRI B.SATYANARAYANA MURTHY O R D E R PER SHRI G.C. GUPTA, VICE PRESIDENT: THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YEAR 200 6-07 IS DIRECTED AGAINST THE ORDER OF THE CIT (A). THE REVISE D GROUNDS OF APPEAL OF THE REVENUE ARE AS UNDER: ' 1. THE LEARNED CIT (A)'S ORDER IS ERRONEOUS BOTH IN LAW AND IN FACTS. 2. THE CIT (A) FAILED TO APPRECIATE THAT ASSESSEE I S NOT A CHARITABLE INSTITUTION WITHIN THE MEANING OF SEC. 2 (15) OF THE I.T. ACT. IT IS DOING BUSINESS OF DEVELOPMENT O F INDUSTRIAL ESTATES, CREATING INFRASTRUCTURES AND EI THER SELL THEM OR LEASE OUT TO ENTREPRENEURS FOR CONSIDERATIO N. ITA NO.850/HYD/2010 AP INDUSTRIAL INFR.CORPN, HYDERABAD. 2 3. THE CIT (A) FAILED TO APPRECIATE THAT THE ASSESS EE HAS VIOLATED THE PROVISIONS OF SEC.13 OF THE I.T. ACT A S UNDER: (I) THE ASSESSEE HAS INVESTED OR CONTINUES TO HAVE INVESTED CERTAIN PART OF ITS INCOME OR THE FUNDS IN OTHER COMPANIES WHICH ARE NOT STATUTORY COMPANIES OR GOVT . COMPANIES AS DEFINED U/S 617 OF THE COMPANIES ACT. (II) IN THE MEMORANDUM OF ARTICLES OF ASSOCIATION, THERE IS A CLAUSE TO THE EFFECT THAT THE DIVIDENDS BE DECLAR ED AS PER THE BOARD'S RESOLUTION. 2. THE LEARNED DEPARTMENTAL REPRESENTATIVE HAS RELIE D ON THE ORDER OF THE ASSESSING OFFICER. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE IS A CHARITABLE INSTITUTION A ND HAS NOT VIOLATED ANY OF THE PROVISIONS OF THE SEC.13 OF THE IN COME TAX ACT 1961. HE SUBMITTED THAT THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF THE HYDERABAD TRIBUNAL IN ASSESSEE'S OWN CASE FOR THE IMMEDIATELY PRECEDING ASSESSMENT YEAR 2005-06 IN ITA NO.1457/ HYD/2008 DATED 18-12-2008 WHEREIN THE EXEMPTION U/S 1 1 OF THE INCOME TAX ACT WAS ALLOWED TO THE ASSESSEE. 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND THAT THE ISSUE IN THE GROUNDS OF APPEAL OF THE REVENUE REGARDING GR ANT OF EXEMPTION OF INCOME TO THE ASSESSEE U/S 11 OF THE INCOME TAX ACT IS CO VERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF THE HYDERABAD TRIBUNAL IN ASSESSEE'S OWN CASE FOR THE EARLIER ASSESSMENT YEAR 2005-06 VI DE ORDER DATED 18-12-2008 (SUPRA) WHEREIN HELD THAT TH E ASSESSEE IS ENTITLED TO EXEMPTION U/S 11 OF THE ACT AND THE REVEN UE'S APPEAL WAS DISMISSED BY THE TRIBUNAL. WE BEING IN AGREEMENT WITH THE DECISION OF ITA NO.850/HYD/2010 AP INDUSTRIAL INFR.CORPN, HYDERABAD. 3 THE TRIBUNAL IN ASSESSEE'S OWN CASE FOR THE EARLIER ASSESSME NT YEAR 2005-06 CITED (SUPRA) DECIDING THE ISSUE IN FAVOUR OF THE ASSESSEE, CONFIRM THE ORDER OF THE CIT (A) GRANTING EXEMPTION TO THE ASSESSEE U/S 11 OF THE ACT AND THE GROUNDS OF THE APPEALS OF THE REVENUE ARE DISMISSED. 4. IN THE RESULT THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 9-7-2010. SD/- SD/- (CHANDRA POOJARI) (G.C. GUPTA) ACCOUNTANT MEMBER VICE-PRESIDENT PVV/SPS DATE: 9TH JULY, 2010. COPY FORWARDED TO: 1. THE DY. DIRECTOR OF INCOME TAX (E)-III, A.P. OLYMP IC BHAVAN, LB STADIUM BASHEERBAGH, HYDERABAD 500004 2. A.P. INDUSTRIAL INFRASTRUCTURE CORPORATION LTD., 6T H FLOOR, PARISHRAMA BHAVAN, BASHEERBAGH, HYDERABAD 3. THE COMMISSIONER OF INCOME-TAX (APPEALS)IV, HYDERABA D. 4. THE DIRECTOR OF INCOME TAX (EXEMPTIONS), HYDERABAD 5 THE DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD.