Krishi Upaj Mandi Samiti, V. ACIT,

ITA 90/JAB/2012

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 5623 (ITAT-JABALPUR)
• Duration Of Justice: 1 year(s) 6 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 31-08-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K K UPADHYAYA
• Assessee Lawyers: G N PUROHIT
• Keywords: Opportunity of being heard; Earning of tax free income
• Section: 143(3); 12A; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, JABALPUR BENCH, JABALPUR BEFORE : SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI T.S. KAPOOR, ACCOUNTANT MEMBER ITA NO.90/JAB./2012 ASST. YEAR :2006-07 KRISHI UPAJ MANDI SAMITI, VS. A.C.I.T., CIRCLE UMARIYA (M.P.) KATNI. (PAN: AAATK 9619 F) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI G.N. PUROHIT, ADVOCATE RESPONDENT BY : SHRI K.K. UPADHYAYA, DR DATE OF HEARING : 26.03.2014 DATE OF PRONOUNCEMENT : 28.03.2014 ORDER PER BHAVNESH SAINI, J.M.: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF LD. CIT(A), JABALPUR DATED 15.12.2011 FOR THE ASSESSMENT YEAR 2 006-07. 2. THE ASSESSEE IN THE PRESENT APPEAL HAS CHALLENGE D THE ORDER OF THE LD. CIT(A) IN NOT ALLOWING BENEFIT OF SECTION 11 OF THE IT ACT AS PER ORDER OF THE TRIBUNAL AND ALSO CHALLENGED THE ADDITION OF RS.3,48,668/-. 3. THE AO IN THIS CASE PASSED ORDER U/S. 143(3) AND MADE ADDITION OF RS.3,48,668/- ON ACCOUNT OF DISALLOWANCE OF PROVISI ON EXPENSES. THE LD. CIT(A) ITA NO. 90/JAB./2012 2 CONFIRMED THE ADDITION AS WELL AS DID NOT GRANT BEN EFIT TO THE ASSESSEE OF SECTION 11 BECAUSE NO CERTIFICATE OF REGISTRATION WAS FILED BE FORE HIM U/S. 12A OF THE IT ACT. 4. ON CONSIDERATION OF THE RIVAL SUBMISSIONS, WE AR E OF THE VIEW, THE MATTER REQUIRES RECONSIDERATION AT THE LEVEL OF THE ASSESS ING OFFICER. THE LD. COUNSEL FOR THE ASSESSEE PLACED ON RECORD ORDER OF LD. CIT-II, JABALPUR DATED 28.05.2009 WHEREBY THE ASSESSEE WAS GRANTED REGISTRATION U/S. 12A OF THE IT ACT W.E.F. 01.04.2008. THE ASSESSEE PREFERRED APPEAL AGAINST T HIS ORDER BEFORE THE ITAT, JABALPUR BENCH IN ITA NO. 147/JAB/2009 AND THE APPE AL OF THE ASSESSEE WAS ALLOWED VIDE ORDER DATED 28.08.2009 AND THE LD. CIT HAS BEEN DIRECTED TO GRANT REGISTRATION TO THE ASSESSEE W.E.F. 01.04.2005. COP Y OF THE ORDER IS PLACED ON RECORD. THE LD. COUNSEL FOR THE ASSESSEE, THEREFOR E, SUBMITTED THAT SINCE REGISTRATION U/S. 12A IS EFFECTIVE IN FAVOUR OF THE ASSESSEE FOR THE ASSESSMENT YEAR UNDER APPEAL, THEREFORE, BENEFIT OF SECTION 11 SHAL L HAVE TO BE GRANTED TO THE ASSESSEE. WE AGREE WITH THE LD. COUNSEL FOR THE ASS ESSEE THAT WHEN REGISTRATION U/S. 12A/12AA IS EFFECTIVE IN FAVOUR OF THE ASSESSEE FOR THE ASSESSMENT YEAR UNDER APPEAL, THE INCOME OF THE ASSESSEE SHALL HAVE TO BE COMPUTED WITH THE AID OF SECTION 11 OF THE IT ACT. THE AO SHALL HAVE TO RE-C OMPUTE THE INCOME OF THE ASSESSEE IN ACCORDANCE WITH THE PROVISIONS OF SECTI ON 12A AND 11 OF THE IT ACT. THE AUTHORITIES BELOW WERE, THEREFORE, NOT JUSTIFIE D IN NOT ENTERTAINING THE CLAIM OF ITA NO. 90/JAB./2012 3 ASSESSEE OF EXEMPT INCOME. WE, ACCORDINGLY, SET ASI DE THE ORDERS OF THE AUTHORITIES BELOW AND RESTORE THE MATTER IN ISSUE TO THE FILE O F AO WITH DIRECTION TO RE-COMPUTE THE INCOME OF THE ASSESSEE IN ACCORDANCE WITH LAW W ITH THE AID OF SECTION 11 AND 12A OF THE IT ACT. THE AO SHALL GIVE REASONABLE SUF FICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (T.S. KAPOOR) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER *AKS/- COPY OF THE ORDER FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A), CONCERNED BY ORDER 4. CIT, CONCERNED 5. DR, ITAT, JABALPUR 6. GUARD FILE SR. PRIVATE SECRETARY ITAT, CAMP AT JABALPUR