Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (1) TMI 720 - AT - Income TaxExemption u/s 11 - charitable activity u/s 2(15) - withdrawal/cancellation of registration granted under section 12A - assessee an Association of Persons (AOP), claims to be a ‘Charitable Institution’ as it is engaged in the promotion of equestrian sports viz. providing instructional course, lecture and demonstration, training, schooling and care, maintenance of horses & horsemanship and offered kind of equestrian sports and knowledge of horse and to give all facilities for practice thereof - CIT-A held that since assessee’s registration granted under section 12A of the Act has been withdrawn, it will not be eligible to claim exemption under section 11 - HELD THAT:- Reasoning on the basis of which DIT (Exemp.) withdrew/cancelled assessee’s registration under section 12A were adopted by the AO while rejecting assessee’s claim of exemption u/s 11 in the impugned assessment year. However, the Tribunal while deciding the issue has categorically held that nothing has been brought on record to show or to prove that the activities carried out by the assessee are in violation of its objects. Be that as it may, as observed earlier, the only reasoning on the basis of which learned Commissioner (Appeals) has upheld the disallowance of assessee’s claim of exemption under section 11 of the Act is due to withdrawal/cancellation of assessee’s registration under section 12A of the Act. However, after restoration of the registration granted under section 12A of the Act by virtue of the order passed by the Tribunal, as referred to above, the reasoning of learned Commissioner (Appeals) in rejecting assessee’s claim of exemption under section 11 of the Act cannot be upheld. It is relevant to observe, in case of another assessee, viz. Cotton Textile Promotion Council, learned Commissioner (Appeals) had upheld rejection of claim of exemption under section 11 of the Act on identical reasoning for the very same assessment year. However, while deciding the appeal of the assessee in [2015 (1) TMI 1437 - ITAT MUMBAI] the Tribunal having taken note of the fact that the registration granted under section 12A of the Act has been restored by the Tribunal, allowed assessee’s claim of exemption under section 11 of the Act by setting aside the order of learned Commissioner (Appeals). Against the order of the Tribunal, though, the Revenue went in appeal before the Hon'ble Jurisdictional High Court in1767919, the Hon'ble Jurisdictional High Court upheld the decision of the Tribunal. Facts in the present case are identical as the only reasoning on the basis of which learned Commissioner (Appeals) has upheld the rejection of exemption under section 11 of the Act is due to cancellation of assessee’s registration under section 12A of the Act. Once the cancellation of registration has been set aside and registration granted under section 12A of the Act has been restored by the Tribunal, learned Commissioner (Appeals)’s decision for disallowance of exemption under section 11 of the Act becomes redundant, hence, has to be set aside. Accordingly, we set aside the impugned order of learned Commissioner (Appeals) and allow assessee’s claim of exemption under section 11 Characterization of rental income - “Income From House Property” or “Income From Business” - HELD THAT:- Rental income has to be treated as income from house property as the assessee has rented out his premises without carrying on any business activity itself.
|