ITO, EXEMPTION, Madurai V. C.R.Anand Educational Trust, Madurai

MA 163/CHNY/2022

AI Insights

The case involves a Miscellaneous Application filed by the Revenue against the order of the Income Tax Appellate Tribunal, Chennai, concerning the C.R.Anand Educational Trust for the Assessment Year 2009-10. The Revenue contended that the Tribunal erred in not considering certain judicial precedents favoring the Revenue while granting relief to the assessee in the original ITA. The Tribunal dismissed the Miscellaneous Application, stating that the Revenue's cited precedents were not brought to the Bench's attention during the original proceedings, and thus, there was no mistake apparent on record.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 130030 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 25 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 23-03-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 23-03-2023
• Assessment Year: 2009-2010
• Appeal Filed On: 28-07-2022
• Other Referred Cases: St. Joseph Convent School vs. ACIT, Commissioner of Income Tax (Exemption), Lucknow Vs. Shiv Kumar Sumitra Devi Smarak Shishan Sansthan, Commissioner of Customs (Import) Vs. Dilip Kumar & Co., M/s. Soundaram Chokkanathan and Charitable Trust
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution
• Section: 113

Judgement Text

Miscellaneous Application No.163/Chny/2022 (in ITA No.2802/Chny/2019) िनधा रण वष /Assessment Year: 2009-10 The Income Tax Officer, Exemption, Madurai. v. C.R.Anand Educational Trust, No.34, Ganeshapuram, K.Pudur, Madurai-625 007. [PAN: AABTC 1675 J] (अपीलाथ /Appellant) ( यथ /Respondent) Department by : Mr.P.Sajit Kumar, JCIT Assessee by : Mr.R.Sreekanth, Adv. सुनवाई क तारीख/Date of Hearing : 24.03.2023 घोषणा क तारीख /Date of Pronouncement : 24.03.2023 आदेश / O R D E R PER MANJUNATHA.G, ACCOUNTANT MEMBER: The Revenue has filed present Miscellaneous Application against the order of the Tribunal in ITA No.2802/Chny/2019 dated 22.02.2022 and relevant assessment year 2009-10. 2. The Revenue has narrated the facts of its case and mistakes stated to be apparent on record from the order of the Tribunal dated 22.02.2022 and relevant contents of Miscellaneous Application filed by the Revenue for the AY 2009-10 in ITA No.2802/Chny/2019 are reproduced as under: The Hon'ble Income Tax Appellate Tribunal, 'D' Bench, Chennai has passed at order in the case of M/s. C.R. Anand Educational Trust (PAN : AABTC1675J) on 22.02.2022 in ITA No. 2802/Chny/2019 for the Assessment Year 2009-10 in which Hon'ble ITAT granted relief to आयकर अपीलीय अिधकरण, ’डी’ यायपीठ, चे ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI ी वी. दुगा राव, माननीय ाियक सद एवं ी मंजूनाथा.जी, माननीय लेखा सद के सम BEFORE SHRI V. DURGA RAO, HON’BLE JUDICIAL MEMBER AND SHRI MANJUNATHA.G, HON’BLE ACCOUNTANT MEMBER MA No.163/Chny/2022 (in ITA No.2802/Chny/2019) :: 2 :: the assessee, by relying on the decision of the Hon'ble ITAT, Amritsar Bench, dated 21.02.2017 in the case of St. Joseph Convent School vs. ACIT (M.A. Nos. 1,2 & 3/ASR/2017), by stating that the subsequent grant of registration u/s.12AA of the Income Tax Act, 1961, will operate retrospectively. However, subsequent to that decision of Hon'ble ITAT, Amritsar Bench, dated 21.02.2017, Hon'ble High Court of Allahabad, in the case of Commissioner of Income Tax (Exemption), Lucknow Vs. Shiv Kumar Sumitra Devi Smarak Shishan Sansthan (2020) 113 taxmann.com 334 (Allahabad), reversed the said decision 06-08-2019 and ruled in favour of Revenue. This also has been upheld by the Hon'ble Supreme Court on 08-04-2022 reported in (2022) 138 Taxmann.com 197 (SC). Therefore, Appellant of this Miscellaneous Petition most respectfully submits that: (i) the Hon'ble ITAT ought to have taken into account the recent decisions of the higher judicial forums i.e, Hon'ble Allahabad High Court in the case of Shiv Kumar Sumitra Devi Smarak Shishan Sansthan (supra) which was confirmed by Hon'ble SC in 2022 instead of relying on the decision of Hon'ble ITAT, Amritsar Bench, dated 21.02.2017 passed in the case of St. Joseph Convent School (supra). (ii) The Hon'ble ITAT ignored the phrase 'pending before the Assessing Officer' as envisaged in the proviso to section 12A(2) of the Income Tax Act and as deliberated by the Hon'ble High Court of Allahabad in the case of In the case of Commissioner of Income Tax (Exemption), Lucknow Vs. Shiv Kumar Sumitra Devi Smarak Shishan Sansthan (2020) 113 taxmann.com 334 (Allahabad) and that 'assessment proceedings' does not include 'appellate proceedings'. It is respectfully submitted that SLP filed by the assessee in the above cited case, has been dismissed by the Hon'ble Supreme Court vide Order in SLP Appeal (C) No. 28523 of 2019 dt. 08.04.2022. (iii) The Hon'ble ITAT ought to have considered that when there is ambiguity in exemption notification which is subject to strict interpretation, the benefit of such ambiguity cannot be claimed by the subject/assessee and it must be interpreted in favour of the revenue, as has been observed by the Hon'ble Supreme court in the case of Commissioner of Customs (Import) Vs. Dilip Kumar & Co. (2018) 9 SCC 1. (iv) It is respectfully submitted that the above decisions have been applied by the Hon'ble jurisdictional High Court in the case of M/s. Soundaram Chokkanathan and Charitable Trust in TCA No. 1015/2019 dt. 09.12.2020, and the decision has been rendered in favour of Revenue. For these and other grounds that may be adduced at the time of the hearing, it is prayed that the order of the Hon'ble ITAT may be revised taking into the decisions cited supra and the order of the Assessing Officer for the A.Y.2009-10 restored. The case laws cited supra are submitted in a separate paper book enclosed to this Miscellaneous Petition for kind consideration of Hon'ble ITAT. 3. We have heard both the parties and considered relevant contents of Miscellaneous Application filed by the Revenue and we find that the Revenue has failed to make out a case of mistakes apparent on record from the order of the Tribunal dated 22.02.2022 in ITA No.2802/Chny/2019, but what was sought through present Miscellaneous Application is reviewing the decision rendered by the Tribunal in the given facts and circumstances MA No.163/Chny/2022 (in ITA No.2802/Chny/2019) :: 3 :: of the case. We further noted that the Tribunal has decided the appeal on the basis of arguments advanced by both the parties in light of certain judicial precedents on the issue of registration of Trust u/s.12A of the Income Tax Act, 1961 (in short “the Act"). It is the arguments of the Revenue by way of present Miscellaneous Application that the Tribunal should have considered certain judicial precedents while deciding the issue which are in favour of the Revenue, but fact remains that decisions which are relied upon by the Revenue now by way of present Miscellaneous Application was not brought to the notice of the Bench either by the assessee or by the Ld.DR present for the Revenue. In absence of such judgments, the Bench has decided the issue on the basis of materials available on record, including the decisions relied upon by the Counsel for the assessee and given its findings on the issue. Therefore, from the above, it is very clear that the decision rendered by the Tribunal on the basis of certain judicial precedents, is on the basis of arguments advanced by the Counsel for both the sides. Thus, we are of the considered view that there is no merit in the arguments of the Revenue that there is an error in the order of the Tribunal in not considering certain judicial precedents, because the decisions rendered by the Tribunal is on the basis of material available on record and that point of time, the decision now brought on record before the Tribunal was not referred to by the Counsel appearing for the Revenue. Therefore, it cannot be said that there is an error in the order of the Tribunal MA No.163/Chny/2022 (in ITA No.2802/Chny/2019) :: 4 :: which can be rectified u/s.254(2) of the Act, and thus, we reject the Miscellaneous Application filed by the Revenue. 4. In the result, the Miscellaneous Application filed by the Revenue is dismissed. Order pronounced on the 24 th day of March, 2023, in Chennai. Sd/- (वी. दुगा राव) (V. DURGA RAO) याियक सद य/JUDICIAL MEMBER Sd/- (मंजूनाथा.जी) (MANJUNATHA.G) लेखा सद य/ACCOUNTANT MEMBER चे ई/Chennai, दनांक/Dated: 24 th March, 2023. TLN आदेश क ितिलिप अ ेिषत/Copy to: 1. अपीलाथ /Appellant 4. आयकर आयु /CIT 2. यथ /Respondent 5. िवभागीय ितिनिध/DR 3. आयकर आयु (अपील)/CIT(A) 6. गाड! फाईल/GF