THE VIJAYPUR PUBLIC CARRIER OPERATORS UNION,GUNA V. ACIT RANGE 3, GWALIOR

ITA 134/AGR/2016

AI Insights

The case involves The Vijaypur Public Carrier Operators Union, a charitable society, appealing against the denial of exemption under section 11 of the Income Tax Act, 1961, for the assessment years 2004-05 to 2006-07. The Assessing Officer had initially denied the exemption citing an ongoing appeal by the income tax department against a tribunal's decision that recognized the Assessee as a charitable trust eligible for exemption. The Commissioner of Income Tax (Appeals) upheld this decision. However, the Tribunal noted that the Assessee had subsequently been granted registration under section 12AA, which made it eligible to claim the exemption, and directed the Assessing Officer to verify compliance with the necessary conditions for the exemption.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 776687 (ITAT-AGRA)
• Duration Of Justice: 9 year(s) 2 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-09-2025
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2005-2006
• Appeal Filed On: 20-06-2016
• Laws Referred To: Income-tax Act, 1961
• Court: TRIBUNAL
• Department Lawyers: SUKESH KUMAR JAIN
• Assessee Lawyers: RAJENDRA SHARMA
• Keywords: Charitable institution; Benefit of exemption
• Section: 143(3); 11; 12AA; 12A

Judgement Text

"Page | 1 INCOME TAX APPELLATE TRIBUNAL AGRA BENCH “SMC”: AGRA BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER (Through virtual hearing) ITA Nos.133 to 135/AGR/2016 (Assessment Years: 2004-05 to 2006-07) The Vijaypur Public Carrier Operators Union, Vijaypur, Dist. Guna, MP Vs. ACIT, Range-3, Gwalior (Appellant) (Respondent) PAN: AAATT2905M Assessee by : Shri Rajendra Sharma, Adv Shri Manuj Sharma, Adv Revenue by: Shri Sukesh Kumar Jain, CIT DR Date of Hearing 18/08/2025 Date of pronouncement 17/09/2025 O R D E R 1. The appeal in ITA No. 133/AGR/2016 for AY 2004-05, arises out of the order of the ld. Commissioner of Income Tax (Appeals)-III, Kanpur [hereinafter referred to as ‘ld. CIT(A) in short] dated 16.03.2016 against the order of assessment passed u/s 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 10.10.2006 by the Assessing ACIT, Range-3, Gwalior (hereinafter referred to as ‘ld. AO’). Identical issues are involved in all these appeals and hence they are taken up together and disposed of by this common order for the sake of convenience. 2. Though the Assessee has raised several grounds of appeal, I find the only effective issue to be decided in this appeal is as to whether the Assessee Society would be eligible for claiming exemption under section 11 of the Act in the facts and circumstances of the instant case or not. Printed from counselvise.com ITA Nos.133 to 135/AGR/2016 The Vijaypur Public Carrier Operators Union Page | 2 3. I have heard the rival submissions and perused the materials available on record. The Assessee is a charitable society and had filed its return of income claiming exemption under section 11 of the Income Tax Act. The Learned AO passed the assessment order wherein the benefit of exemption under section 11 of the Act was denied by recording the reason that against the order passed by the Tribunal treating the Assessee as a charitable trust and thereby eligible for exemption under section 11 of the Act, the income tax department had preferred an appeal before the Hon’ble High Court and the order of the said High Court is pending. For this reason, the claim of exemption under section 11 of the Assessee trust was denied by the Learned AO. Against this assessment order, the Assessee preferred an appeal before the Learned CITA Kanpur Camp at Gwalior, who upheld the order of the Learned AO for the same reason. The Learned CITA also noted that Registration under section 12A of the Act was not granted by the Learned CIT(Exemptions) to the Assessee and accordingly, the approach of the Learned AO cannot be faulted with. Aggrieved, the Assessee preferred an appeal before the Tribunal. Later the Assessee was granted registration under section 12AA of the Act by the Learned CIT(Exemptions) with effect from 01-04-1990. Accordingly the Assessee became eligible to claim exemption under section 11 of the Act. Since the registration under section 12AA of the Act is in force and had not been withdrawn by the revenue, the Learned AO is directed to examine the fact whether the Assessee had duly complied with the other conditions stipulated in sections 11 to 13 of the Act so as to make it eligible to claim exemption under section 11 of the Act. For this limited purpose, I deem it fit and appropriate, in the interest of justice and fair play, to restore this appeal to the file of the Learned AO to consider the claim of exemption under section 11 of the Act in the abovementioned terms for the years under consideration. Accordingly, the grounds raised by the Assessee are allowed for statistical purposes. Printed from counselvise.com ITA Nos.133 to 135/AGR/2016 The Vijaypur Public Carrier Operators Union Page | 3 4. In the result, all the appeals of the Assessee are allowed for statistical purposes. Order pronounced in the open court on 17/09/2025. -Sd/- (M. BALAGANESH) ACCOUNTANT MEMBER Dated: 17/09/2025 A K Keot Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi Printed from counselvise.com "