COMMISSIONER OF INCOME TAX CHANDIGARH vs. VISHVAS

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ITA/153/2015HC Punjab & HaryanaPHHC01109779201513 July 2015Author: MR. JUSTICE M.M. AGGARWAL,MR. JUSTICE A.B. CHAUDHARI1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the order regarding the grant of registration under Section 12AA of the Income Tax Act, 1961, had attained finality. This was because the revenue's previous appeal against the ITAT's order in ITA No. 856/Chd/2012 (which directed the grant of registration under Section 12AA and remitted the matter for examination under Section 80G) had been dismissed by the High Court on 13.05.2014. Since the foundational order for registration under Section 12AA was now final, the present appeal against the subsequent ITAT order was rendered unsustainable. The High Court therefore dismissed the appeal. The ratio decidendi is that an appeal against an ITAT order cannot proceed if the underlying order, which forms the basis of the ITAT's decision, has already attained finality through a prior judicial pronouncement.

What were the facts?

This appeal by the Commissioner of Income Tax (Exemptions), Chandigarh (the revenue) is against an order of the Income Tax Appellate Tribunal (ITAT) dated 09.06.2014. The ITAT had previously, in ITA No. 856/Chd/2012, accepted the assessee's contention and directed the revenue to allow registration under Section 12AA of the Income Tax Act, 1961. The ITAT also set aside the Commissioner's order and remitted the matter back to the Commissioner to examine if the assessee fulfilled the conditions for exemption under Section 80G, and if so, to grant it. The revenue had filed an appeal (ITA-322-2013) against the ITAT's order in ITA No. 856/Chd/2012, which was dismissed by the High Court on 13.05.2014. Consequently, the order regarding grant of registration under Section 12AA had attained finality.

What were the issues?

1. Whether the High Court should entertain an appeal against an ITAT order when the underlying order regarding registration under Section 12AA has attained finality due to dismissal of a previous appeal by the High Court. Assessee's contentions: The assessee's contention, implicitly accepted by the ITAT and the High Court, was that once the registration under Section 12AA was granted, the exemption under Section 80G should also be considered, and the matter should be examined on its merits by the Commissioner. The assessee relied on the ITAT's order in ITA No. 856/Chd/2012. Revenue's contentions: The revenue, by filing the present appeal, was challenging the ITAT's order. However, the judgment does not explicitly record the revenue's specific arguments in this appeal, other than their challenge to the ITAT's decision to allow registration under Section 12AA and direct examination for Section 80G. The revenue had previously appealed against the ITAT's order in ITA No. 856/Chd/2012, which was dismissed by the High Court.

Which sections of the Income-tax Act were involved?

Section 12AA,Section 80G

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

ITA-153-2015 (O&M) Date of decision:- 13.07.2015

The Commissioner of Income Tax (Exemptions), Chandigarh ...Appellant Versus

Vishvas ...Respondent

CORAM: HON'BLE MR. JUSTICE S.J. VAZIFDAR, ACTING CHIEF JUSTICE

HON’BLE MR. JUSTICE G.S. SANDHAWALIA

Present: Ms. Urvashi Dhugga, Advocate,

for the appellant. * * * * S.J. VAZIFDAR, A.C.J. (ORAL)

This is an appeal against the order of the Income Tax Appellate Tribunal dated 09.06.2014. 2. It was found that the Tribunal in the assessee's case in ITA No. 856/Chd/2012 accepted the contention of the assessee and directed the revenue to allow the registration under Section 12AA of the Income Tax Act, 1961 (in short the Act) and that, therefore, there was no justification to deny the exemption under Section 80G of the Act. The Tribunal set aside the order of the Commissioner and remitted the matter to his file to examine whether the assessee fulfills the condition prescribed by Section 80G and, if so, to grant the same.

3.

Against the order of the Tribunal in ITA No. 856/Chd/2012, the department/appellant had filed ITA-322-2013 which was dismissed by an order of this Court dated 13.05.2014. 3. The order regarding grant of registration under Section 12AA of the Act, therefore, has attained finality.

4.

The appeal is, therefore dismissed.

(S.J. VAZIFDAR) ACTING CHIEF JUSTICE

(G.S. SANDHAWALIA)

JUDGE 13.07.2015 Amodh AMODH SHARMA 2015.07.13 17:24 I attest to the accuracy and authenticity of this document chandigarh

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