M/s. Punjab Institute of Medical Sciences , Jalandhar V. Deputy commissioner of income tax , Jalandhar

SA 16/ASR/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 6237 (ITAT-AMRITSAR)
• Duration Of Justice: 5 month(s) 15 day(s)
• Appeal Type: Income Tax (Transfer Pricing) Appeal
• Pronouncement Date: 29-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 14-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DEVENDER SINGH
• Assessee Lawyers: PADAM BAHL; VIPUL ARORA CAS
• Keywords: Application of stay; Retrospective amendment
• Section: 12AA; 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR BEFORE SH. SANJAY ARORA, ACCOUNTANT MEMBER A ND SH. N.K.CHOUDHRY, JUDICIAL MEMBER STAY APPLICATION NOS.16 TO 19 / ASR / 2018 (ARISING OUT OF I.T.A NO.303 TO 30 6/ASR/2017) ASSESSM ENT YEARS: 2007-08 TO 2010-11 PUNJAB INSTITUTE OF MEDICAL SCIENCE, GARHA ROAD, JALANDHAR [PAN:AAABP0193P] VS. ASST. CIT, CIRCLE-3, JALANDHAR (APPLICANT) (RESPONDENT) APPELLANT BY: SH. PADAM BAHL & SH. VIPUL ARORA (CAS.) RESPONDENT BY: SH. DEVENDER SINGH (CIT-D.R .) DATE OF HEARING: 07.12.2018 DATE OF PRONOUNCEMENT: 10.12.2018 ORDER PER SANJAY ARORA, A.M THIS IS THE SET OF FOUR STAY PETITIONS BY THE ASSES SEE IN RESPECT OF ITS APPEALS DISPUTING ITS ASSESSMENTS UNDER SECTION 14 3(3) R/W SEC. 147 OF THE INCOME TAX ACT, 1961 (THE ACT HEREINAFTER) FOR ASSESSMEN T YEARS (AYS.) 2007-08 TO 2010-11, UNDER APPEAL BEFORE THE TRIBUNAL. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE-S OCIETY, FORMED IN THE YEAR 1994, STANDS GRANTED REGISTRATION U/S. 12AA OF THE ACT IN THE YEAR 2001, EFFECTIVE FROM THE DATE OF ITS INCORPORATION. IT IS PROMOTED BY THE PUNJAB GOVERNMENT, WITH THE VARIOUS SENIOR OFFICERS BEING ITS EX-OFFICIO MEMBERS, SET UP WITH THE VIEW ESTABLISH AN INSTITUTION ON THE MODEL OF ALL INDIA INSTITURE OF MEDICAL SCIENCES S.A. NOS.16 TO 19(ASR)/2018 (ASST. YEARS:2007-08 TO 2010-11) (ARISING OUT OF ITA NOS.303 TO 306/ASR/2017) PUN. INST. M ED. SCIENCE, JAL VS. ASST. CIT 2 (AIIMS), NEW DELHI. IT WAS ACCORDINGLY GRANTED AN I NITIAL GRANT OF RS.28 CR. BY THE PUNJAB GOVT. AND THE CENTRAL GOVT. FOR SETTING UP A HOSPITAL IN THE YEAR 2001, CONSTRUCTION OF WHICH IS STATED TO HAVE COMMENCED I N THE SAME YEAR ITSELF. THE SAID CONSTRUCTION IS STATED TO HAVE BEEN COMPLETED IN 20 09 BY RAISING FUNDS THROUGH PUDA. THE SAID HOSPITAL WAS, HOWEVER, SUBSEQUENTLY TRANSFERRED TO ANOTHER CHARITABLE SOCIETY WHICH, IT IS INFORMED, IS RUNNIN G THE SAME TO DATE. THE FUNDS RECEIVED ON THE SAID TRANSFER, AS STATED, HAVE BEEN APPLIED FOR THE OBJECTS OF THE SOCIETY, FUNDING VARIOUS MEDICAL INSTITUTIONS IN TH E STATE OF PUNJAB. THE REGISTRATION U/S. 12AA WAS WITHDRAWN BY THE REVENUE ON 24.10.2013 WITH RETROSPECTIVE EFFECT, THOUGH WAS RESTORED BY THE TR IBUNAL VIDE ITS ORDER DATED 24.08.2015. THE ASSESSMENTS FOR THE RELEVANT YEARS WERE REOPENED IN CONSEQUENCE, DENYING THE CLAIM/S FOR EXEMPTION U/S. 11, RAISING A TOTAL DEMAND FOR RS.72.48 CR. THE ASSESSMENT FOR A.Y. 2006-07, MADE SIMILARLY, ST ANDS SINCE CONFIRMED BY THE TRIBUNAL AND THE ASSESSEE IS IN APPEAL BEFORE THE H ONBLE PUNJAB & HARYANA HIGH COURT. THE SAME FORMS THE BASIS OF THE CONFIRMATION OF THE IMPUGNED ASSESSMENTS. OF THE TOTAL DEMAND RAISED, RS.60.48 CR., WORKING T O 83% IN OF THE TOTAL DEMAND, STANDS PAID. IT IS UNDER THESE CIRCUMSTANCES PRAYED THAT THE BALANCE DEMAND FOR RS.1200 LACS BE STAYED TILL THE DISPOSAL OF THE APP EAL BY THE TRIBUNAL, WHICH IS FIXED FOR HEARING ON FEBRUARY 5, 2019. 3. THE LD. CIT-DR WOULD OBJECT, STAYING THAT THE AS SESSMENT IN THE INSTANT CASE STANDS COVERED AGAINST THE ASSESSEE BY THE ORDER OF THE TRIBUNAL. FURTHER, NO FINANCIAL STRINGENCY HAS BEEN SHOWN, SO THAT THE AS SESSEES CLAIM OF FACING DIFFICULTY IN REMITTING THE BALANCE DEMAND IS NO MO RE THAN A BALD ASSERTION. IN ANY CASE, NO DEMAND HAS BEEN PAID FOR A.Y.2009-10, FOR WHICH A DEMAND FOR RS.795 LACS IS RAISED. S.A. NOS.16 TO 19(ASR)/2018 (ASST. YEARS:2007-08 TO 2010-11) (ARISING OUT OF ITA NOS.303 TO 306/ASR/2017) PUN. INST. M ED. SCIENCE, JAL VS. ASST. CIT 3 4. WE HAVE HEARD THE PARTIES AND GIVEN OUR CAREFUL CONSIDERATION TO THE MATTER. THE ASSESSEE IS ALLOWED STAY OF THE OUTSTANDING DEM AND SUBJECT TO THE FOLLOWING: (A) PAYMENT OF DEMAND OF RS.80 LACS FOR A.Y.2009-10 BY JANUARY 7, 2019; (B) EARLY HEARING OF THE ASSESSEES APPEALS FOR THE CAPTIONED YEARS. AS, HOWEVER, THE DATE OF HEARING IS ALREADY FIXED F OR FEBRUARY 5, 2019 , WE DO NOT CONSIDER IT NECESSARY TO PREPONE THE SAME. THE STAY IS FOR A PERIOD OF SIX MONTHS OR THE DISPOSAL OF THE APPEALS BY THE TRIBUNAL, WHICHE VER IS EARLIER. NEEDLESS TO ADD, SEEKING A DATE, EXCEPT FOR A JUSTIFIABLE CAUSE, SHA LL OPERATE TO VACATE THE STAY. WE DECIDE ACCORDINGLY. 5. IN THE RESULT, THE ASSESSEES STAY PETITIONS ARE ALLOWED ON THE AFORESAID TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 10 .12.2018 SD/- SD/- (N.K.CHOUDHRY) ( SANJAY ARORA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 10.12.2018 /PK/ PS. COPY OF THE ORDER FORWARDED TO: (1) M/S PUNJAB INSTITUTE OF MEDICAL SCIENCE, GA RHA ROAD, JALANDHAR (2) THE DY. CIT (E), JALANDHAR (3) THE CIT(APPEALS)-2, JALANDHAR (4) THE CIT CONCERNED. (5) THE SR. DR, I.T.A.T. TRUE COPY BY ORDER