MAHASRAJA AGRASEN SEWA SADAN,AGRA V. I.T.O., (EXEMPTION), AGRA

CO 4/AGR/2017

AI Insights

The case involves M/s. Maharaja Agarsen Sewa Sadan, a trust engaged in providing relief to the poor, education, and medical services, which also runs banquet halls. The trust was assessed by the Income Tax Officer as an Association of Persons (AOP) and was denied exemption under section 11 of the Income Tax Act for the assessment years 2011-12 and 2012-13. The trust appealed, and the CIT(Appeals) reduced the taxable income but did not fully address the exemption issue. The Tribunal, after recalling the cross-objections due to a previous oversight, found that the trust's activities and the nature of its operations had not changed, thus justifying the exemption under section 11.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 829663 (ITAT-AGRA)
• Duration Of Justice: 8 year(s) 8 month(s) 12 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 15-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Agra
• Assessment Year: misc
• Appeal Filed On: 03-05-2017
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHAILENDER SRIVASTAVA
• Assessee Lawyers: DEEPENDRA MOHAN
• Section: 143(3); 11; 12A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER AND SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER C.O. No. 04/Agr/2017 & 01/Agr/2018 (in ITA No.266/Agr/2016 & 34/Agr/2017) Assessment Years: 2011-12 & 2012-13 M/s. Maharaja Agarsen Sewa Sadan, Mughal Road, Kamla Nagar, Agra. Vs. Income-tax Officer(Exemption) Agra. PAN : AAATM6506F (Appellant) (Respondent) Assessee by Sh. Deependra Mohan, CA Department by Sh. Shailender Srivastava, Sr. DR Date of hearing 17.12.2025 Date of pronouncement 15.01.2026 ORDER PER : S. RIFAUR RAHMAN, ACCOUNTANT MEMBER: Assessee has filed these cross-objections in Revenue’s appeals No. 266/Agr/2016 and 34/Agr/2017 challenging the impugned orders of CIT(Appeals)-2, Agra dated 29.03.2016 and 30.09.2016 for the assessment years 2011-12 and 2012-13 respectively. 2. Since common issue is involved in both these cross objections, the same were heard together and are being disposed of by this consolidated order for the sake of convenience and brevity. We take up C.O. No. 04/Agr/2017 for A.Y. 2011-12 first as a lead case. Printed from counselvise.com C.O. No.04/Agr/2017 & 01/Agr/2018 2 | P a g e 3. Brief facts of the case are, the assessee is a trust registered u/s. 12A/12AA of the Act since 12.02.1986. The assessee has regularly filed return of its income for each assessment year. The assessee is a trust to provide relief to poor, education, medical relief in addition to advancement of any other general public utility including running of Shav Vahan (Mortuary Vehicle), contribution in rebuilding and renovation of Postmortem Grah of S.N. Medical College etc. The assessee also runs banquet halls to provide benefit to the general public collecting nominal maintenance charges. 4. At the time of assessment proceedings, the Assessing Officer has invoked section 2(15) of the Act and accordingly completed the assessment order u/s. 143(3) of the Act and treated the income earned by the assessee in the nature of trade, commerce or business. Accordingly, he disallowed Rs.42,00,888/- and assessed total income of the assessee at Rs.73,35,495/-. 5. In appeal preferred by the assessee before learned CIT(Appeals), the first appellate authority has given relief of Rs.41,83,878/-. The net assessable income determined after first appeal was Rs. 31,51,617/-. 6. Aggrieved, Revenue filed appeal before the ITAT and assessee also filed cross-objection against the above said order. The coordinate Bench, while deciding the appeal of the Revenue, found that tax demand Printed from counselvise.com C.O. No.04/Agr/2017 & 01/Agr/2018 3 | P a g e is below the monetary limit prescribed by CBDT. Accordingly they dismissed the appeal preferred by Revenue along with cross objection filed by the assessee. At that point of time, the Bench has not dealt with the issues raised by the assessee in cross objection. Subsequently, assessee filed miscellaneous applications No. 2 & 3/Agr/2021 against the decision of coordinate Bench dated 28.08.2018. After considering the submissions, relevant miscellaneous applications were allowed, vide order dated 26.09.2025 and cross objections filed by assessee were recalled. 7. Now, the relevant cross-objection was called for hearing. Learned AR of the assessee brought to our notice relevant facts on record and submitted that the income of the assessee was determined by the Assessing Officer treating the assessee as an AOP and subsequently, the registration u/s. 12A was restored in assessment year 2010-11 and also assessment year 2017-18. Since the revenue has accepted the nature of activities of the assessee in assessment year 2010-11 and 2017-18 and also there is no change in the activities carried on by the assessee in the impugned assessment year, i.e., 2011-12 and the coordinate Bench also decided the issue without going on the relevant ground raised by the assessee in the cross-objection, we observe that the original claim of assessee on the issue of exemption u/s. 11 was not Printed from counselvise.com C.O. No.04/Agr/2017 & 01/Agr/2018 4 | P a g e addressed by the ld. CIT(Appeals) and due to subsequent development, the relevant exemption u/s. 11 was allowed to the assessee in the previous and subsequent assessment years. Therefore, the claim of the assessee is justified. The treatment of assessee as AOP is not justified considering the subsequent development to restore the registration u/s. 12A of the Act. Therefore, we are inclined to allow the claim of the assessee u/s. 11 of the Act based on the consistency as well as the nature of activities of the assessee remained same during the previous year as well as in subsequent years. Therefore, we direct the Assessing Officer to allow exemption claimed by the assessee u/s. 11 of the Act. In the result, the cross-objection filed by the assessee is allowed. 8. Since the facts are exactly similar in Cross-objection No. 1/Agr/2018, our findings in C.O. No. 04/Agr/2017 shall apply mutatis mutandis. Hence, the C.O. No. 01/Agr/2018 is also allowed. 9. In the result, both the cross objections filed by assessee are allowed. Order pronounced in the open court on 15.01.2026. Sd/- Sd/- (SUNIL KUMAR SINGH) (S. RIFAUR RAHMAN) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 15.01.2026 *aks/- Printed from counselvise.com C.O. No.04/Agr/2017 & 01/Agr/2018 5 | P a g e Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, Agra Printed from counselvise.com "