M/s Orissa Olympic Association, Cuttack V. ACIT, Cuttack

ITSSA 26/CTK/2012

• Counselvise Citation: [2014] 122 COUNSELVISE.COM (IT) 0203 (ITAT-CUTTACK)
• Duration Of Justice: 2 year(s) 4 month(s) 19 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 04-07-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 02-05-2014
• Assessment Year: 2005-2006
• Appeal Filed On: 15-02-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P K DASH
• Assessee Lawyers: P K MISHRA; R P KAR D DAS
• Keywords: Depreciation; Charitable institution; Bad and doubtful debts
• Section: 12A; 32; 2; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH, CUTTACK BEFORE SHRI P.K. BANSAL, HONBLE ACCOUNTANT MEMBER AND SHRI D.T. GARASIA, HONBLE JUDICIAL MEMBER IT(SS)A NOS. 21 TO 27/CTK/2012 : ASST. YEAR S : 2000 - 01 TO 2006 - 07 ORISSA OLYMPIC ASSOCIATION, BARABATI STADIUM , CUTTACK (APPELLANT) PAN : AAAAO0318E VS. ASST. COMMISSIONER OF INCOME TAX, CIRCLE 2(1), ARUNODATA NAGAR, CUTTACK (RESPONDENT) IT(SS)A NOS. 33 & 34 /CTK/2012 ITA NO. 178/CTK/2012 : ASST. YEAR S : 200 4 - 0 5 & 2005 - 06 ASST. YEAR : 2006 - 07 ASST. COMMISSIONER OF INCOME TAX, CIRCLE 2(1), CUTTACK (APPELLANT) VS. ORISSA OLYMPIC ASSOCIATION, BARABATI STADIUM, CUTTACK (RESPONDENT) PAN : AAAAO0318E ASSESSEE BY : R.P. KAR, D. DAS & P.K. MISHRA REVENUE BY : P.K. DASH, DR DATE OF HEARING : 02/05/2014 DATE OF PRONOUNCEMENT : 04 /0 7 /2014 O R D E R PER P.K. BANSAL : 1. ALL THESE APPEALS HAVE BEEN FILED AGAINST THE RESPECTIVE ORDERS OF CIT(A) DT. 6.1.2012, 6.1.2012, 9.1.2012, 6.1.2012, 6.1.2012, 6.1.2012, 6.1.2012 (ASSESSEES APPEALS) AND 6.1.2012, 6.1.2012 AND 6.1.2012 (REVENUES APPEALS). 2. IN ALL THE APPEALS FILED BY THE ASSESSEE, THE GROUNDS TAKEN BY THE ASSESSEE INCLUDE THE GROUND RELATING TO THE CLAIM OF EXEMPTION U/S 11 IN ALL THE YEARS. THE CLAIM OF EXEMPTION U/S 11 WILL DEPEND ON THE REGISTRATION BEING GRANTED U/S 2 IT(SS)A NOS. 21 TO 27/CTK/2012(A.Y 2000 - 01 TO 2006 - 07) & IT(SS)A NOS. 33 & 34/CTK/2012(A.Y 200 4 - 05 & 2005 - 0 6 ) & ITA NO. 178/CTK/2012 (A.Y 2006 - 07) 12A OF THE INCOME TAX ACT. DURING THE COURSE OF THE HEARING, BOTH THE PARTIES AGREED THAT THE CIT DID NOT GRANT REGISTRATION TO THE ASSESSEE U/S 12A BUT REJECTED THE APPLICATION FOR GR ANT OF REGISTRATION U/S 12A W.E.F. 1.4.1997. THE ASSESSEE HAS COME IN APPEAL AGAINST THE REJECTION OF THE APPLICATION FOR REGISTRATION U/S 12A BEFORE THIS TRIBUNAL. THE CLAIM OF THE ASSESSEE IN RESPECT OF EXEMPTION U/S 11 WILL DEPEND ON WHETHER THIS TRIB UNAL ALLOWS THE APPEAL OF THE ASSESSEE FILED AGAINST THE REFUSAL OF REGISTRATION BY THE CIT U/S 12A. THE APPEAL FILED AGAINST THE ORDER PASSED U/S 12A HAS BEEN HEARD BY THE TRIBUNAL . T HEREFORE, IT WAS CONTENDED THAT THE ASSESSMENT ORDER SHOULD BE SET ASI DE AND RESTORED TO THE AO FOR PASSING FRESH ORDER IN CONSEQUENCE OF THE ORDER PASSED BY THE TRIBUNAL IN THE APPEAL FILED AGAINST THE ORDER OF CIT PASSED U/S 12A. 2 . 1 WE HAVE HEARD THE RIVAL SUBMISSIONS AND WE NOTED THAT WE HAVE ALREADY HEARD THE APPEAL OF THE ASSESSEE AGAINST THE ORDER OF CIT PASSED U/S 12A REFUSING REGISTRATION TO THE ASSESSEE. SINCE WE HAVE ALREADY DISPOSED OFF THE APPEAL OF THE ASSESSEE AGAINST THE REJECTION OF THE REGISTRATION BY CIT U/S 12A VIDE OUR ORDER OF EVEN DATE AND RESTORED THE ISSUE OF REGISTRATION BEFORE CIT, THIS ORDER WILL, IN OUR OPINION, HAVE A BEARING ON THE OUTCOME OF THE APPEALS. WE, THEREFORE, IN THE INTEREST OF JUSTICE AND FAIR PLAY TO BOTH THE PARTIES SET ASIDE THE ASSESSMENT IN EACH OF THE ASSESSMENT YEAR AND DIRECT THE AO TO PASS FRESH ASSESSMENT DE NOVO AFTER GETTING THE ORDER OF CIT IN RESPECT OF REGISTRATION TO BE GRANTED TO THE ASSESSEE U/S 12A IN CONSEQUENCE OF OUR ORDER OF EVEN DATE IN THE APPEAL OF THE ASSESSEE BEING ITA NO. 334/CTK/2011 . THE AO IS FURTHER DIRECTED TO GIVE PROPER AND SUFFICIENT OPPORTUNITY TO THE ASSESSEE. NEEDLESS TO DIRECT THAT THE ASSESSEE SHOULD ALSO SUBMIT THE NECESSARY EVIDENCES ON WHICH HE MAY R ELY TO PROVE HIS CLAIM IN RESPECT OF EACH OF THE ISSUES TAKEN BEFORE US AS MAY BE REQUIRED BY THE AO. 3 IT(SS)A NOS. 21 TO 27/CTK/2012(A.Y 2000 - 01 TO 2006 - 07) & IT(SS)A NOS. 33 & 34/CTK/2012(A.Y 200 4 - 05 & 2005 - 0 6 ) & ITA NO. 178/CTK/2012 (A.Y 2006 - 07) 2 . 2 IN THE RESULT, ALL THE APPEALS FILED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 3 . SO FAR AS THE APPEALS FILED BY THE REVENUE IN A.YS 2 004 - 05, 2005 - 06 AND 2006 - 07 ARE CONCERNED, WE NOTED THAT THE ONLY COMMON ISSUE RELATES TO THE CLAIM OF DEPRECIATION AS WELL AS BAD DEBTS WRITTEN OFF. SINCE WE HAVE SET ASIDE THE ASSESSMENT TO BE MADE DE NOVO AFTER GETTING THE FRESH ORDER OF CIT IN CONSEQU ENCE OF OUR ORDER IN ITA NO. 334/CTK/2011 OF EVEN DATE, WE RESTORE THE ISSUES TAKEN BY THE REVENUE BEFORE THE AO AND DIRECT THE AO TO RE - DECIDE THE ISSUES AFRESH IN ACCORDANCE WITH LAW. 3.1 REGISTRATION U/S 12A WILL HAVE A BEARING ON THE COMPUTATION OF THE INCOME. WE MAY MENTION HERE THAT WHILE COMPUTING THE INCOME IN RESPECT OF AN INSTITUTION WHICH IS REGISTERED U/S 12A, ALL THE DEDUCTIONS IN RESPECT OF THE EXPENDITURE ARE TO BE ALLOWED AND AFTER COMPUTING THE INCOME U/S 11, APPLICATION OF THE INCOME F OR CHARITABLE PURPOSE HAS TO BE ALLOWED. DEPRECIATION IS AN ALLOWANCE ALLOWABLE U/S 32 AND THEREFORE UNTIL AND UNLESS IT IS HELD THAT THE CASE FALLS U/S 38, NO PART OF THE DEPRECIATION ON AD HOC BASIS CAN BE DISALLOWED. THE DEBT WHICH HAS BEEN WRITTEN OF F IN THE BOOKS OF ACCOUNTS BY THE ASSESSEE HAS ALSO TO BE ALLOWED IN VIEW OF THE SPECIFIC PROVISION OF SEC. 36(1)(VI) IN THE YEAR IN WHICH THE DEBT HAS BEEN WRITTEN OFF. THE ASSESSEE NEED NOT PROVE THAT THE DEBT HAS BECOME BAD DURING THE IMPUGNED ASSESSME NT YEAR. WE, THEREFORE, DIRECT THE AO TO CONSIDER OUR AFORESAID OBSERVATION WHILE RE - ADJUDICATING THESE TWO ISSUES. 3 . 2 IN THE RESULT, THE APPEALS FILED BY THE REVENUE IN EACH OF THE ASSESSMENT YEARS ARE ALSO STATISTICALLY ALLOWED. 4 IT(SS)A NOS. 21 TO 27/CTK/2012(A.Y 2000 - 01 TO 2006 - 07) & IT(SS)A NOS. 33 & 34/CTK/2012(A.Y 200 4 - 05 & 2005 - 0 6 ) & ITA NO. 178/CTK/2012 (A.Y 2006 - 07) 4 . IN THE RESULT, ALL THE APPEALS FILED BY THE ASSESSEE AS WELL AS THE REVENUE ARE STATISTICALLY ALLOWED. 5 . ORDER PRONOUNCED IN PURSUANCE OF RULE 34(4) OF ITAT RULES, 1963 BY PUTTING ON NOTICE BOARD OF THE BENCH AT CUTTACK ON 0 4 / 07 /201 4 . S D / - (D.T.GARASIA) JUDICIAL MEMBE R S D / - (P.K. BANSAL) ACCOUNTANT MEMBER PLACE : PANAJI DATED : 0 4 / 07 /201 4 *SSL* COPY TO : (1) APPELLANT (2) RESPONDENT (3) CIT(A) CONCERNED (4) CIT CONCERNED (5) D.R (6) GUARD FILE TRUE COPY, BY ORDER