COMMISSIONER OF INCOME TAX, JAIPUR vs. M/S KRISHI UPAJ MANDI SAMITI, SRI-BIJAYN

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ITA/55/2016HC RajasthanRJHC01036483201607 January 2019Bench: SANGEET LODHA,DINESH MEHTA2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal filed by the Revenue. The Court held that the Income Tax Appellate Tribunal was justified in allowing the appeal filed by the assessee. This decision was based on the reasoning provided in a detailed order for a connected appeal (DB Income Tax Appeal No.168/2018) which involved an identical question of law. Although the specific reasoning for the ITAT's original decision is not elaborated in this judgment, the High Court affirmed the ITAT's conclusion that the assessee's appeal was rightly allowed. The question of law formulated by the High Court was answered in favor of the assessee, confirming the Tribunal's justification in its decision. No issue was expressly left undecided.

What were the facts?

The Revenue, Commissioner of Income Tax (Exemptions), Jaipur, has appealed against an order of the Income Tax Appellate Tribunal (ITAT), Jodhpur Bench. The appeal concerns Assessment Year(s) not specified in the provided text. The ITAT had allowed an appeal filed by the assessee, M/s Krishi Upaj Mandi Samiti, Sri Bijaynagar. The Revenue's grievance is that the ITAT, in its impugned judgment, relied on previous decisions concerning similar entities (M/s. Krishi Upaj Mandi Samiti (Grain), Sriganganagar and M/s. Krishi Upaj Mandi Samiti, Gajsinghpur) without considering the assessee's alleged non-compliance with submitting Form No. 10, which is relevant for accumulation of income or exemption under Section 11(1)(a) of the Income Tax Act.

What were the issues?

1. Whether the Income Tax Appellate Tribunal, Jodhpur Bench, was justified in allowing the assessee's appeal by relying on previous judgments in the cases of M/s. Krishi Upaj Mandi Samiti (Grain), Sriganganagar and M/s. Krishi Upaj Mandi Samiti, Gajsinghpur, while disregarding the assessee's alleged non-compliance with the submission of Form No. 10 under Rule 17 of the Rules for accumulation of income or exemption under Section 11(1)(a) of the Income Tax Act? Assessee's Contention: The judgment does not record any specific contentions made by the assessee. The ITAT's decision, as per the High Court, was to allow the assessee's appeal. Revenue's Contention: The Revenue contended that the ITAT erred by not considering the assessee's non-compliance with the requirement of submitting Form No. 10, which is a prerequisite for claiming exemption under Section 11(1)(a) of the Income Tax Act. The Revenue argued that the ITAT's reliance on prior decisions was flawed due to this non-compliance.

Which sections of the Income-tax Act were involved?

Section 11(1)(a)

AI-generated summary — verify with the full judgment below

HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Income Tax Appeal No. 55/2016 Commissioner of Income Tax (Exemptions), Jaipur ----Appellant Versus M/s Krishi Upaj Mandi Samiti, Sri Bijaynagar ----Respondent For Appellant(s) : Mr. K.K. Bissa HON'BLE MR. JUSTICE SANGEET LODHA HON'BLE MR. JUSTICE DINESH MEHTA Judgment 07/01/2019 The present appeal has been admitted on 10.02.2017 and following question of law has been formulated :- “Whether the Income Tax Appellate Tribunal, Jodhpur Bench, Jodhpur under the impugned judgment, is justified while deciding the appeal in the light of judgment given in the case of M/s. Krishi Upaj Mandi Samiti (Grain), Sriganganagar and M/s. Krishi Upaj Mandi Samiti, Gajsinghpur in ITA Nos.124 & 125/Jodh/2014 date 07.08.2014, ignoring the fact that there was non- compliance on the part of the assessee regarding submission of Form No.10 under Rule 17 of the Rules for accumulation of income or exemption under Section 11(1) (a) of the Income Tax Act?” Today, we have dismissed connected appeal of the Department being DB Income Tax Appeal No.168/2018 involving identical question of law by a detailed order. In light of the reasoning given therein, the present appeal is dismissed.

(2 of 2) [ITA-55/2016] The question formulated aforesaid is answered in the manner that the Appellate Tribunal was justified in allowing the appeal filed by the assessee. . (DINESH MEHTA),J (SANGEET LODHA),J 26-ArunV/-

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