C.I.T.BIKANER vs. K.U.M.S.SADULSAHAR

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ITA/31/2013HC RajasthanRJHC01019834201321 January 2015Author: GOVIND MATHUR,JAISHREE THAKUR2 pages
AI SummaryDismissed

What did the High Court hold?

The Tribunal held that the remand made by the ITAT to the Commissioner of Income Tax (Appeals) for adjudicating the matter afresh by taking into consideration the provisions of Section 11(1)(a) of the Income Tax Act, 1961, was in accordance with law. The Tribunal found that the Commissioner (Appeals) had examined the exemption claim under Section 11(2) instead of Section 11(1)(a). Regarding the second issue, the Tribunal held that the finding on setting off excess expenditure from earlier years was based on a judgment of the High Court. The Tribunal noted that the assessee, Krishi Upaj Mandi Samiti, is a statutory creation and a charitable institution, and that exemption as allowed by the ITAT is available to the assessee subsequent to 2009. Consequently, the Tribunal found no just reason to interfere with the ITAT's order.

What were the facts?

The Revenue, Commissioner of Income Tax, Bikaner, filed an appeal challenging the judgment dated 23.11.2012 passed by the Income Tax Appellate Tribunal (ITAT), Jodhpur Bench. The appeal concerns the assessment year(s) not explicitly stated but implied to be prior to 2009. The ITAT had remanded the matter to the Commissioner of Income Tax (Appeals) to re-examine the assessee's claim for exemption under Section 11(1)(a) of the Income Tax Act, 1961. The ITAT also dealt with the issue of setting off excess expenditure from earlier years against the income of the current year. The assessee is Krishi Upaj Mandi Samiti, Sadulsahar, which is a statutory creation and considered a charitable institution.

What were the issues?

1. Whether the Income Tax Appellate Tribunal erred in remanding the matter to the Commissioner of Income Tax (Appeals) to examine the assessee's case in light of the exemption available under Section 11(1)(a) of the Income Tax Act, 1961, when the Commissioner (Appeals) had examined it under Section 11(2) of the Act? - Assessee's contention: Not recorded. - Revenue's contention: The ITAT erred in remanding the matter for examination under Section 11(1)(a). 2. Whether the Income Tax Appellate Tribunal erred in allowing the setting off of excess expenditure in income of earlier years? - Assessee's contention: Not recorded. - Revenue's contention: The ITAT erred in allowing the set-off of excess expenditure.

Which sections of the Income-tax Act were involved?

Section 11(1)(a),Section 11(2)

AI-generated summary — verify with the full judgment below

1 D.B. INCOME TAX APPEAL NO.31/2013 DATE OF ORDER :: 21.1.2015 HON'BLE MR. JUSTICE GOVIND MATHUR HON'BLE MISS JUSTICE JAISHREE THAKUR Mr. K.K. Bissa, for the appellant ... This appeal is preferred to question correctness of the judgment dated 23.11.2012 passed by learned Income Tax Appellate Tribunal, Jodhpur Bench, Jodhpur. The argument advanced by learned counsel for the appellant is two-fold :- (1) that the Income Tax Appellate Tribunal erred while remanding the matter to the Commissioner of Income Tax (Appeals) to examine case of assessee in light of exemption available as per Section 11(1)(a) of the Income Tax Act, 1961 and (2) that the Income Tax Appellate Tribunal erred while setting off excess expenditure in income of earlier years. We have examined the judgment impugned. So far as the first issue is concerned, it is relevant to note that the assessee claimed exemption under Section 11(1)(a) of the Income Tax Act, 1961 but the Commissioner of Income Tax (Appeals) examined the same in light of provisions of Section 11(2) of the Act of 1961. The Tribunal remanded the matter with a 2 direction to adjudicate the entire matter afresh by taking into consideration provisions of Section 11(1)(a) of the Act of 1961. In our considered opinion the remand made by the Tribunal is in accordance with law. The other issue with regard to setting off of excess expenditure in income of earlier years is concerned, we are of the opinion that the finding arrived is based upon the judgment of this Court. It is not in dispute that the Krishi Upaj Mandi Samiti, the assessee, is creation of a statute and from inception that is a charitable institution. It is also pertinent to notice that subsequent to the year 2009 the exemption as allowed by ITAT is available to the assessee. In view of it, we do not find any just reason to interfere in the instant matter being having no subsequent question of law involved. The appeal is dismissed accordingly. [JAISHREE THAKUR], J. [GOVIND MATHUR], J. Sanjay

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