CIT vs. NAV MANAV SANSTHAN

IN THE HIGH COURT OF DELHI AT NEW DELHI . 07.12.2010 . Present: Ms. Rashmi Chopra, Adv. for the Revenue/appellant. . +ITA No.1922/2010 . This case pertains to the assessment year 2001-02. The assessee which is a charitable institution had claimed exemption under Section 11 of the Income Tax Act for this year also, as it had been enjoying this exemption for previous years. The Assessing Officer (AO), however, took the view that there were certain violations and irregularities committed by the assessee, which amounted to infringement of Section 13 of the Act and for this reason, he refused to grant exemption under Section 11 of the Act. The CIT(A) has reversed the order of the AO holding that the assessee was entitled to exemption under Section 11 of the Act. This order of the CIT (A) has been affirmed by the Income Tax Appellate Tribunal (hereinafter referred to as ?the ITAT?). Perusal of the order of the CIT(A) as well as ITAT would reveal that these authorities have relied upon their earlier orders in respect of the same assessee, which pertain to Assessment Year 2002-03. Valuation alleged in that assessment year was also identical. Against the order passed in respect of assessment year 2002-03, the Department had preferred appeal, viz., ITA 879 of . . 2010, which was dismissed by this Court vide orders dated 06.08.2010, thereby affirming the order of the ITAT. Following the aforesaid order, this appeal is also dismissed. We may, however, take note of one of the submissions made by the learned counsel for the appellant at this stage. It is argued that there was a search and seizure operation conducted at the premises of the respondent assessee. As a result thereof, block assessment proceedings were initiated under Section 158BC of the Act. Though those proceedings were also quashed by the ITAT, the Department has filed an appeal thereagainst, which is pending consideration and is coming up for hearing on 01.03.2011. In these circumstances, it is a submission that if the said appeal is ultimately allowed, it may have bearing on the instant appeal. In these circumstances, we give liberty to the appellant to move appropriate application for recall of this order. In case the Department succeeds in block assessment proceedings and the outcome of those proceedings has bearing on the present appeal. This appeal is disposed of in the aforesaid terms. . A.K. SIKRI, J. . INDERMEET KAUR, J. DECEMBER 07, 2010 pmc . . . #5