ITO (Exemptions) Ward 2, CHENNAI V. All India Chess Federation, CHENNAI

MA 146/CHNY/2018

• Counselvise Citation: [2018] 122 COUNSELVISE.COM (IT) 4224 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 13 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 05-10-2018
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 22-06-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: I DINESH MR A SATYASEELAN
• Keywords: Benefit of exemption
• Section: 145

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : CHENNAI , , BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER & SHRI S.JAYARAMAN, ACCOUNTANT MEMBER M.P. NO.146/CHNY./2018 ( I.T.A.NO. 1783/CHNY./2017 ASSESSMENT YEAR : 2012-13 ) THE INCOME TAX OFFICER- (EXEMPTIONS), WARD-2, CHENNAI-600 034 VS. M/S.ALL INDIA CHESS- FEDERATION, HALL NO.70, JAWAHARLAL NEHRU STADIUM, SYDENHAMS ROAD, PERIAMET, CHENNAI-600 003. [PAN: AAAAA 2155 P] ( / APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR.B.SAGADEVAN,JCIT,D.R /RESPONDENT BY : MR.I.DINESH FOR MR.A.SATYASEELAN, ADV. ! / DATE OF HEARING : 05 - 1 0 - 201 8 '#$% ! / DATE OF PRONOUNCEMENT : 05 - 1 0 - 201 8 ! / O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER MP NO.146/CHNY/2018 IS A MISCELLANEOUS PETITION FIL ED BY THE REVENUE AGAINST THE ORDER OF THE TRIBUNAL IN ITA NOS.1783 TO 1785/CHNY/2017 DATED 13.02.2018. MP NO146/CHNY/2018. :- 2 -: 2. MR.B.SAGADEVAN REPRESENTED ON BEHALF OF THE REVENUE, AND MR.I.DINESH REPRESENTED ON BEHALF OF THE ASSESSEE. 3. IT WAS SUBMITTED BY LD.D.R THAT THE TRIBUNAL IN REVENUES APPEALS IN ITA NO.1783/MDS/2017 FOR ASSESSMENT YEAR 2012-13, DISPOSED OFF VIDE ORDER DATED 13.02.2012 HAD NOT ADJUDICATED THE GROUND NO.4 & 4.1 OF THE REVENUES APPEAL, WHICH READS AS FOLLOWS:- 4. THE LD.CIT(A) HAS FAILED TO OBSERVE THAT THE A SSESSEE IS FOLLOWING HYBRID METHOD OF ACCOUNTING WHICH ADMITS INCOME ON RECEIPT BASIS AND EXPENDITURE ON ACCRUAL BASIS. 4.1 THE LD.CIT(A) HAS FAILED TO APPRECIATE THAT A S PER THE PROVISIONS OF THE SECTION 145 OF THE INCOME TAX ACT, THE ASSESSEE CAN EITHER FOLLOW CASH SYSTEM OR MERCANTIL E SYSTEM OF ACCOUNTING. THUS, THE LD.D.R PRAYED THAT THE MISTAKE APPARENT FROM RECORD MAY BE RECTIFIED. 4. IN REPLY, LD.A.R VEHEMENTLY SUPPORTED THE ORDER OF TRIBUNAL REFERRED TO SUPRA. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. A PERUSA L OF THE ORDER OF TRIBUNAL IN ITA NOS.1783 TO 1785/CHNY./201 7 FOR ASSESSMENT MP NO146/CHNY/2018. :- 3 -: YEARS 2010-11 TO 2012-13 DATED 13.02.2017 CLEARLY S HOWS THAT THE TRIBUNAL HAS FOLLOWED THE DECISION OF CO-ORDINATE B ENCH IN ASSESSEE'S OWN CASE IN ITA NO.184/MDS./2013 DATED 09.05.2014 F OR ASSESSMENT YEAR 2009-10 WHEREIN THE TRIBUNAL HAS GRANTED THE A SSESSEE THE BENEFIT OF SEC.2(15) OF THE ACT. ADMITTEDLY, THE ASSESSEE HAS BEEN HELD TO BE ENGAGED IN EDUCATION ACTIVITY AND CONSEQ UENTLY, PROVISO TO SECTION 2(15) OF THE ACT WOULD NOT APPLY. THUS, THE ASSESSEE HAVING BEEN HELD AS A TRUST AND ENTITLED TO BENEFIT OF EXEMPTION U/S.11 OF THE ACT, OBVIOUSLY THE ADJUDICATION OF GR OUNDS NOS.4 & 4.1 OF THE REVENUES APPEAL FOR ASSESSMENT YEAR 201 2-13 WOULD BE IMMATERIAL IN SO FAR AS ONCE THE ASSESSEE HAS BEEN HELD AS A TRUST AND THE PROVISO TO SEC.2(15) OF THE ACT DOES NOT AP PLY AND THE ASSESSEE HAS THE BENEFIT OF EXEMPTION U/S.11 OF THE ACT, THE METHOD OF ACCOUNTING TO BE APPLIED CAN ONLY BE CASH SYSTEM OF ACCOUNTING. THIS BEING SO, THE ORDER OF TRIBUNAL S TANDS MODIFIED WITH THE FOLLOWING FINDINGS: IN RESPECT OF GROUNDS NOS.4 & 4.1 OF THE REVENUES APPEAL, AS THE ASSESSEE HAS BEEN HELD TO BE ELIGIBL E FOR THE BENEFIT OF SEC.2(15) OF THE ACT, AND AS IT HAS BEEN HELD THAT PROVISO TO SEC.2(15) OF THE ACT DOES NOT APPLY TO THE ASSESSEE, THE METHOD OF ACCOUNTING TO BE APPLIED IN ASSESSEES CASE WOULD BE CASH METHOD OF ACCOUNTING. MP NO146/CHNY/2018. :- 4 -: 6. IN THE RESULT, THE MISCELLANEOUS PETITION FILED BY THE REVENUE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT AFTER CONCLUSION OF HEARING ON 05 TH OCTOBER, 2018, AT CHENNAI. SD/ - SD/ - ( ) (S. JAYARAMAN) ' # /ACCOUNTANT MEMBER ( ) (GEORGE MATHAN) $ # / JUDICIAL MEMBER & / CHENNAI ' / DATED: 05 TH OCTOBER, 2018. K S SUNDARAM ( ) *+ , +$ / COPY TO: 1 . / APPELLANT 4. ( ( - / CIT 2. / RESPONDENT 5. +./ 01 / DR 3. ( ( - () / CIT(A) 6. /45 6 / GF