TMI Blog2021 (7) TMI 761X X X X Extracts X X X X X X X X Extracts X X X X ..... r of the CIT (A) allowing the claim of exemption u/s 11 of the Act. Appeals of the Department stand dismissed. - ITA No.4616/Del/2017, ITA No.4617/Del/2017 - - - Dated:- 30-6-2021 - Shri N.K. Billaiya, Accountant Member And Shri Sudhanshu Srivastava, Judicial Member For the Appellant : Ms. Kirti Sankratyaan, Sr. DR For the Respondent : Sh. Mahesh B. Chibber, Adv. ORDER PER SUDHANSHU SRIVASTAVA, JM: The present appeals are filed by the Department against orders dated 26/04/2017 passed by the Ld. Commissioner of Income Tax (Appeals), Dehradun {CIT (A)} for Assessment Years (AY) 2007-08 and 2008-09. Since common issue is involved in both these appeals, they are being decided together for the sake of convenience. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,74,82,663/- being amount transferred to Infrastructure Development Fund was reiterated. 2.2 The assessee, aggrieved by the order u/s 143(3)/254 preferred an appeal before the Ld. CIT (A) and the same was partly allowed wherein the claim of exemption u/s 11 was allowed and the action of assessing officer in treating ₹ 4,74,82,663/- as income was upheld. The assessing officer is in appeal before us against the order of the Ld. CIT (A). 2.3 The Revenue has raised identical grounds in both the years under appeal and the same are reproduced as under: Grounds of appeal in ITA No.4616/Del/2017: 1. The Ld. CIT (A) has erred in law the facts in allowing the amount transferred directly to the balance sheet ₹ 4,74,82,663/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e decision of the ITAT passed in assessee s own case restoring the registration u/s 12AA of the Act. It was highlighted that ITAT, vide order dated 25/07/2014, held that objects of the assessee authority are charitable in terms of section 2(15) of the Act and directed the Ld. CIT (Exemption) to grant registration u/s 12A of the Income Tax Act, 1961 with effect from 01/04/2002. The order of the ITAT has subsequently been upheld by the Hon ble Allahabad High Court vide order dated 18/07/2017 in Income Tax Appeal No. 90 of 2015. The copies of the said orders were placed on record. It was, accordingly, submitted that the Ld. CIT (A) has rightly allowed the claim of exemption u/s 11 of the Act. 3.3 The Ld. DR, on the other hand, supported the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t within the meaning of section 2(15) and the proviso to section 2(15) is not applicable because assessee-Authority is not carrying out activity with any profit motive but the predominant object is welfare of people at large. .. 11. Respectfully following the above decision of Hon ble Allahabad High Court we condone the delay and direct the ld. Commissioner to grant registration w.e.f. 1-4-2002. 3.6 In accordance with the direction of this Tribunal, the Ld. CIT (Exemption) granted certificate of registration u/s 12AA of the Act vide order dated 20/09/2016. 3.7 Eventually, the appeal of the revenue against the above order of the ITAT was dismissed by the Hon ble Allahabad High Court vide order dated 18/07/2017 in Income Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... officer has not brought on record any new or distinguishing feature to counter the facts which were there before ITAT at the time of deciding the appeal against cancellation of registration u/s 12AA of the Act. Undisputedly, it is not a case where there is any change in object of the assessee authority or any allegation that assessee was engaged in any activity beyond its objects and as such there is compelling reason for us to deviate from finding given by Coordinate Bench. We also take note that CIT(A), while deciding this issue in favour of assessee, has placed reliance on various decisions rendered by Coordinate benches of ITAT and Hon ble High Courts in other cases of statutory authorities formed with similar objects which in our view ..... X X X X Extracts X X X X X X X X Extracts X X X X
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