TMI Blog2018 (1) TMI 1331X X X X Extracts X X X X X X X X Extracts X X X X ..... s cancellation of registration by the CIT u/s 12AA(3) of the Act and not the denial of exemption, as is prevailing in the extant case. Admittedly, the assessee’s registration has not been canceled by the Commissioner. A mere dismissal of SLP without giving any reasons, cannot be equated with exposition of law by the Hon’ble Supreme Court so as to indicate the imprimatur on the reasoning and/or the ratio decidendi of the High Court in the judgment. There is no merger of the judgment of the Hon’ble High Court. The decision taken by the Hon'ble jurisdictional High Court in several cases including that of the assessee itself holds the field and, accordingly, the benefit of exemption u/s 11 of the Act cannot be denied. - Decided in favour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... judicial pronouncements including certain judgments of the Hon'ble jurisdictional High Court, as is evident from para 6.1 of the assessment order. The Assessing Officer took note of an order passed by the Amritsar Bench of the Tribunal in the case of Jammu Development Authority in which, the order u/s 12AA(3) of the CIT cancelling registration to the Jammu Development Authority, was approved and such order was upheld by the Hon'ble Jammu Kashmir High Court. The Assessing Officer further observed that SLP against the said judgment came to be dismissed by the Hon'ble Supreme Court. In view of the fact that there were two sets of decisions one in which the issue was decided in favour of the assessee and the other, being, the di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e regular assessment for the assessment years 2010-11 and 2011-12 was not taken up and the claim for exemption u/s 11 of the Act got automatically allowed. We have gone through the lead order passed by the Tribunal for the assessment year 2009-10, whose copy is available on page 75 of the paper book. In this order, the Tribunal considered the effect of proviso to section 2(15) and, thereafter, held that the activities of the assessee of construction and sale of plots were incidental to the main object of town planning and, hence, exemption u/s 11 was to be granted. The said order of the Tribunal was challenged by the Department before the Hon'ble Allahabad High Court. Vide its judgment dated 03.05.2017, a copy of which is available on p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... settled legal position that a summary dismissal of SLP cannot be construed as a declaration of law by the Hon'ble Supreme Court under Article 141 of the Constitution. A mere dismissal of SLP without giving any reasons, cannot be equated with exposition of law by the Hon ble Supreme Court so as to indicate the imprimatur on the reasoning and/or the ratio decidendi of the High Court in the judgment. In such circumstances, there is no merger of the judgment of the Hon ble High Court. The Hon'ble Apex Court in Hemalatha Gargya vs. CIT (2003) 259 ITR 1 (SC), has held that dismissal of SLP in limine: could not operate as a confirmation of the reasoning in the decision sought to be appealed against .. . Similar view has been taken by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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