Appeal details
Counselvise Citation
[2019] 118 COUNSELVISE.COM (IT) 5532 (ITAT-AHMEDABAD)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 year(s) 9 month(s) 4 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
30-01-2019
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
SMC
Assessment Year
2013-2014
Appeal Filed On
25-04-2017
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER & MS. MADHUMITA ROY, JUDICIAL MEMBER I.T.A. NO.997/AHD/2017 (ASSESSMENT YEAR : 2013-14) M/S. GUJARAT ENVIRONMENT SERVICE SOCIETY, 1 ST FLOOR, KAIRACAN OFFICE BUILDING, NEAR GANESH CROSSING, ANAND 388 001. VS. ACIT, PC, VADODARA. [PAN NO. AAATG 1361 J] ( APPELLANT ) .. ( RESPONDENT ) APPELLANT BY : SHRI SUNIL TALATI, A.R. RESPONDENT BY : MS. APOORVA BHARDWAJ, SR.D.R. DATE OF HEARING 06/12/2018 DATE OF PRONOUNCEMENT 30/01/2019 O R D E R PER MS. MADHUMITA ROY - JM: THE INSTANT APPEAL FILED BY THE ASSESSEE IS AGAINS T THE ORDER DATED 17.01.2017 PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS)- 4, VADODARA ARISING OUT OF THE ORDER DATED 04.01.2016 FOR THE ASSESSMENT YEAR 2013 -14 PASSED BY THE DCIT (EXEMPTION), CIRCLE-2, AHMEDABAD UNDER SECTION 143( 3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED AS TO THE ACT). 2. THE ASSESSEE HEREIN HAS QUESTIONED THE ORDER PAS SED BY THE LEARNED CIT(A)-4 IN CONFIRMING THE REJECTION AND DENIAL OF EXEMPTION CL AIMED U/S 11(1)(A) OF THE ACT AND ADDITION OF RS.44,07,704/- AS MADE BY THE AO TO THE TOTAL INCOME OF THE APPELLANT. FURTHER THAT CHARGING OF INTEREST U/S 234A, 234B & 234C OF THE ACT HAS ALSO BEEN CHARGED BY THE ASSESSEE. - 2 - ITA NO.997/AHD/2017 GUJARAT ENVIRONMENT SERVICE SOCIETY VS. ACIT ASST.YEAR 2013-14 3. THE BRIEF FACTS LEADING TO THE CASE IS THIS THAT THE ASSESSEE SOCIETY HAS FILED ITS RETURN OF INCOME ON 20.09.2013 DECLARING ITS INCOME AT RS. NIL AFTER CLAIMING EXEMPTION U/S 11 OF THE ACT OF RS. 5,74,24,368/-. THE ASSESSE E SOCIETY IS A CONTRACTOR AND ITS ACTIVITIES IS TO UNDERTAKE CLEAN THE ENVIRONMENT TO THE SOCIETY AS A WHOLE AND INCREASE THE FACILITIES TO HAVE BETTER ENVIRONMENT AS ENGAGED BY ITS MEMBER COMPANIES/CONCERNS IN THE NAME AND STYLE OF GUJARAT ENVIRONMENT SERVICE SOCIE TY. UNDER SCRUTINY A NOTICE U/S 143(2) OF THE ACT, 1961 DATED 25.09.2014 WAS ISSUED TO THE ASSESSEE FOLLOWED BY A FRESH NOTICE U/S 143(2) R.W.S. 129 OF THE ACT DATED 19.06 .2015 DUE TO CHANGE OF INCUMBENT. ULTIMATELY, THE CASE WAS FINALIZED BY THE ASSESSING OFFICER AND AN ADDITION OF RS.44,07,704/- WAS ADDED TO THE TOTAL INCOME OF THE ASSESSEE UPON DISALLOWANCE OF EXEMPTION U/S 11(1)(A) OF THE ACT AS CLAIMED BY THE ASSESSEE. WHILE DOING SO, THE LEARNED AO HOLD THAT THE ASSESSEES ACTIVITIES IS N O LONGER CHARITABLE IN VIEW OF THE DEFINITION OF SECTION 2(15) OF THE ACT AND THEREFOR E THE ASSESSEE IS NOT ELIGIBLE FOR EXEMPTION U/S 11 OF THE ACT. THE AMOUNT OF RS.44,07 ,704/- AS SHOWN INCOME OVER EXPENDITURE IN THE INCOME EXPENDITURE ACCOUNT HAS B EEN TREATED AS BUSINESS INCOME OF THE ASSESSEE. IN APPEAL, THE SAID ORDER WAS CONFIRMED B Y THE LEARNED CIT(A) ADOPTING THE VIEW TAKEN BY THE LEARNED ASSESSING OFFICER. HENCE, THE INSTANT APPEAL. 4. THE LEARNED REPRESENTATIVE OF THE ASSESSEE CONTE NDED BEFORE US THAT THE ASSESSEE HAS BEEN ALLOWED EXEMPTION UNDER SECTION 11(1)(A) F OR THE LAST MANY YEARS AND THE AO HAS NOT BROUGHT OUT ANY DIFFERENCE BETWEEN THE ACTI VITIES OF THE ASSESSEE IN THE YEARS PRECEDING THE CURRENT ASSESSMENT YEAR AND IN THE CU RRENT ASSESSMENT YEAR. HE HAS RELIED UPON THE ORDER PASSED BY THE CIT(A) IN ASSESSEES O WN CASE FOR THE A.Y. 2010-11 AND A.Y. 2011-12 WHEREBY AND WHEREUNDER THE CONCERNED A O WAS DIRECTED TO GRANT EXEMPTION UNDER SECTION 11(1)(A) TO THE ASSESSEE AS CLAIMED BY IT. 5. APART FROM THAT, IT WAS FURTHER CONTENDED THAT T HE ASSESSEES CASE IS ALSO COVERED BY THE ORDER PASSED BY THE CO-ORDINATE BENCH DATED 15.05.2018 FOR A.Y. 2012-13 IN ITS - 3 - ITA NO.997/AHD/2017 GUJARAT ENVIRONMENT SERVICE SOCIETY VS. ACIT ASST.YEAR 2013-14 FAVOUR. COPY OF THE SAID JUDGMENT HAS ALSO BEEN HAN DED OVER BY THE ASSESSEE TO US. THE LEARNED DR MADE NO RIVAL SUBMISSION TO THAT EFFECT. 6. WE HAVE HEARD THE LEARNED REPRESENTATIVE OF THE RESPECTIVE PARTIES, PERUSED THE RELEVANT MATERIALS AVAILABLE ON RECORD. WE ALSO PER USED THE ORDER PASSED BY THE CO- ORDINATE BENCH FOR A.Y. 2012-13 IN ASSESSEES OWN C ASE. OPERATIVE PORTION WHEREOF IS AS FOLLOWS: 5. WE HAVE PERUSED THE SAID ORDER; THE OPERATIVE P ORTION THEREOF READS AS FOLLOWS: 8. AS DISCUSSED ABOVE, OBJECTS OF THE ASSESSEE HAS BEEN REPRODUCED BY THE LD CIT(A) IN THE FINDING EXTRACTED (SUPRA). MAI N OBJECT OF THE ASSESSEE WAS FOR PROVIDING CLEAN ENVIRONMENT TO THE SOCIETY, MAINTENANCE OF GARDEN, PLANTATION, HORTICULTURE ETC. THESE OBJECTS AND ACT IVITES OF THE ASSESSEE WERE IN THE NATURE OF CHARITABLE PURPOSE, AND AS SUCH AC CEPTED BY THE REVENUE IN THE PAST. EXEMPTION UNDER SECTION 11(1)(A) OF THE A CT HAS BEEN GRANTED TO THE ASSESSEE IN THE PAST, AND THERE IS NO CHANGE IN THE FACTS AND CIRCUMSTANCES. REGISTRATION GRANTED UNDER SECTION 1 2A HAS NOT BEEN CANCELLED. THE ACTIVITY OF THE ASSESSEE DOES NOT FA LL IN THE EXPRESSION ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY. IT IS SPECIFICALLY FALL WITHIN THE AMBIT OF PRESENTATION OF ENVIRONMENT. THE LD CIT(A) HAS CONSIDERED BOTH THESE ASPECTS AND ACCEPT ED EXPLANATION OF THE ASSESSEE THAT IT IS MEANT FOR PRESERVATION OF ENVIR ONMENT AS WELL AS ITS OBJECTS ARE OF CHARITABLE NATURE. THE LD CIT(A) HAS PUT RELIANCE UPON THE JUDGMENT OF THE HONBLE GUJARAT HIGH COURT IN THE C ASE OF AHMEDABAD MANAGEMENT SYSTEM, 47 TAXMANN.COM 162 (GUJ.). AFTER CONSIDERING WELL REASONED ORDER OF THE LD CIT(A) I DO NOT FIND ANY R EASON TO INTERFERE IN IT. IT IS UPHELD. BOTH THE APPEALS ARE DISMISSED. 5.1 WE FIND THAT THE ISSUE IS IDENTICAL IN NATURE AND ALREADY COVERED BY THE ASSESSEES OWN CASE FOR THE A.Y. 2010-11 AND A.Y. 2 011-12 BY THE DECISION OF THE CO-ORDINATE BENCH OF THIS LEARNED TRIBUNAL AND, THE REFORE, CONSIDERING THIS PARTICULAR ASPECT OF THE MATTER, WE FIND NO REASON TO INTERFERE WITH THE ORDER PASSED BY THE LEARNED CIT(A) AND WE THUS DISMISS TH E APPEAL PREFERRED BY THE REVENUE. - 4 - ITA NO.997/AHD/2017 GUJARAT ENVIRONMENT SERVICE SOCIETY VS. ACIT ASST.YEAR 2013-14 ADMITTEDLY, THIS IS A COVERED MATTER IN FAVOUR OF T HE ASSESSEE. RELYING ON THE SAME WE HEREBY ALLOW THE APPEAL PREFERRED BY THE ASSESSEE B Y DELETING THE ADDITION OF RS.44,07,704/- HOLDING THESE ASSESSEES ACTIVITIES FOR PRESERVATION OF ENVIRONMENT AND ALSO ITS OBJECTS ARE OF CHARGEABLE IN NATURE. 7. THE GROUND RELATING TO INTEREST U/S 234A/B/C OF THE ACT IS CONSEQUENTIAL ONE. SINCE THE ORDER OF ADDITION HAS BEEN DELETED, THE G ROUND OF CHARGING OF INTEREST BECOMES INFRUCTUOUS. 8. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED. THIS ORDER PRONOUNCED IN OPEN COURT ON 30/01/2019 SD/- SD/- ( WASEEM AHMED ) ( MS. MADHUMITA ROY ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 30/01/2019 PRITI YADAV, SR.PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. () / THE CIT(A)-4, VADODARA. 5. , ! ' , #$%% / DR, ITAT, AHMEDABAD 6. &' () / GUARD FILE. / BY ORDER, //TRUE COPY// / ( DY./ASSTT.REGISTRAR) !, #$ / ITAT, AHMEDABAD
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