TMI Blog2012 (7) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... ce and in the attainment of its objectives with no material on record to show that that the assessee Samiti has been established or carried out activities for personal or private gains - contention of the DR that the assessee Samiti has deposited 1% fund to the State Government out of 2% charges made by the traders is not acceptable as the fund transferred to the State Government are always utilized for welfare of person of the State which amounts to charitable purpose - in favour of assessee. - ITA No.158/Agr/2011 - - - Dated:- 31-5-2012 - SHRI BHAVNESH SAINI, SHRI A.L. GEHLOT, JJ. Appellant by : Shri Waseem Arshad, Sr. D.R. Respondent by : Shri Gaurav Goyal, C.A. ORDER PER A.L. GEHLOT, ACCOUNTANT MEMBER: Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A is available with the assessee. The CIT also pointed out that the issue does not appear to have examined by the Assessing Officer though books of account and vouchers have been produced by the assessee. The Assessing Officer furnished remand report on 1st October, 2010 after several reminders given by the CIT. The CIT also called for the comments from the assessee on the remand report. In the remand report, the Assessing Officer has reiterated the submissions which were stated in the assessment order. It was also stated in the remand report that the provisions of section 11 are not applicable in the case of the assessee as the same applies to income from property held under trust and hence the assessee is not entitled for exemption under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... undue harassment to assessee and chaos in administration of tax laws. 4.1 The decision of jurisdictional MP High Court and that too in case of the appellant itself is certainly binding upon the AO. It is also to be noted that Hon ble Supreme Court vide order dated 10/07/.2009 has dismissed SLP of the department filed against the order of the High Court. Thus the matter regarding registration u/s 12A in case of Mandi Samiti has attained finality meaning thereby that they are entitled to claim exemption u/s 11 if it fulfills the prescribed conditions along with grant of registration u/s 12A. 4.2 In case of the appellant AO has not brought any material on record nor made any adverse comments even in his remand report t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Further, once an institution has been granted registration u/s 12A of IT Act, the AO is prima-facie bound by such registration unless specifically cancelled or withdrawn by the prescribed authority. The same view has been held by Hon ble Supreme Court in the case of Addl. CIT vs. Surat City Jimkhana (2008) 300 ITR 214 and MP Madhyam vs. CIT (2000) 256 ITR 277 (MP). It is also seen that on the basis of similar facts, the appellant has been allowed exemption u/s 11 for the A.Y. 2005-06 vide order dated 28/12/2007 passed u/s 143(3). 6. In view of facts above, the appellant is found entitled for exemption u/s 11. Accordingly, addition of Rs.1,03,94,390/- made by the AO as per the assessment order is, hereby, deleted. 3. The Ld. Depar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... material on record nor made any adverse comments in the remand report to show that the assessee has violated any condition laid down under section 11 of the Act. The CIT(A) after detailed discussions made in paragraph no.4.2 of her order found that the assessee has applied more than prescribed percentage of its income for furtherance and in the attainment of its objectives. It has also been held by the CIT that there is no material on record nor the same was found to show that that the assessee Samiti has been established or carried out activities for personal or private gains. The Assessing Officer is not right in disallowing exemption claimed as per the revised return filed by the assessee during the course of assessment proceedings itse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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