AGRICULTURAL MARKET COMMITTEE, ACHAMPET,MAHABOOBNAGAR vs. ASST. COMMISSIONER OF INCOME TAX, CIRCLE-5(1), HYDERABAD

PDF · subscribers
ITA 1634/HYD/2017Status: DisposedITAT Hyderabad07 November 2019AY 2004-053 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the assessment orders. It directed the Assessing Officer to await the decision of the Director of Income Tax (Exemptions) on the Section 12AA registration. If registration is granted, exemption under Section 11 shall be provided, subject to other conditions.

What were the facts?

The assessee was denied exemption under Section 11 of the Income Tax Act because it had not been granted registration under Section 12AA. The Assessing Officer noted a previous ITAT order but found it inapplicable to the current assessee. The assessee's counsel presented a prior ITAT decision directing reconsideration of the 12AA registration.

What were the issues?

The primary issue was the denial of exemption under Section 11 due to the lack of Section 12AA registration. The Tribunal considered whether to grant exemption pending the outcome of the Section 12AA registration application.

Which sections of the Income-tax Act were involved?

Section 11,Section 12AA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, HYDERABAD BENCHES “B” : HYDERABAD

Before: SMT. P. MADHAVI DEVI & SHRI A. MOHAN ALANKAMONY

PER Smt. P. MADHAVI DEVI, J.M. : Both are assessee’s appeals for the AYs.2003-04 & 2004- 05 respectively. These appeals are filed against the assessment orders passed by the Assessing Officer (AO), denying the assessee, the exemption u/s.11 of the Income Tax Act [Act] on the ground that assessee was not granted registration u/s.12AA of the Act.

2.

We have gone through the assessment order and find that the AO has taken note of the order of ITAT in ITA No.925/Hyd/2013, dt.23-09-2013, wherein the ITAT had directed granting of registration u/s.12AA of the Act to AMC Sultanabad, Karimnagar Dist., but held that - the same cannot be applied to the assessee before us.

:- 2 -: ITA Nos. 1633 & 1634/Hyd/2017

3.

Ld.Counsel for the assessee has placed before us the decision of ITAT in ITA No.214/Hyd/2008, dt.05-08-2008, wherein the Tribunal has directed the DIT(E) to re-consider the issue of granting of registration u/s.12AA of the Act in accordance with law on merits, after giving a reasonable opportunity of hearing to assessee. Ld.Counsel for the assessee further submitted that the consequential order has not been passed by the DIT(E) till date and therefore, AO has refused to grant exemption u/s.11 of the Act.

4.

Ld.DR was also heard.

5.

Taking the rival contentions into consideration, we are inclined to set aside the assessment orders and direct the AO to await the decision of DIT(E) on the issue of registration u/s.12AA of the Act and if the assessee is granted registration u/s.12AA of the Act, then the exemption u/s.11 of the Act shall be granted, subject to fulfilment of other conditions, such as application of income for the objects of the Trust etc.,

6.

In the result, appeals of the assessee for both the assessment years are treated as allowed for statistical purposes.

Order pronounced in the open court on 7th November, 2019

Sd/- Sd/- ( A. MOHAN ALANKAMONY ) ( P. MADHAVI DEVI ) ACCOUNTANT MEMBER JUDICIAL MEMBER Hyderabad, Dated: 07-11-2019 TNMM

:- 3 -: ITA Nos. 1633 & 1634/Hyd/2017

Copy to :

1.

Agricultural Market Committee, Achampet, Mahaboobnagar Dist.,

2.

Asst.Commissioner of Income Tax, Circle-5(1), Hyderabad.

3.

CIT(Appeals)-4, Hyderabad.

4.

The Pr.CIT-4, Hyderabad.

5.

D.R. ITAT, Hyderabad.

6.

Guard File.

More judgments on Section 11

All 7,190 judgments and leading authorities on Section 11 →

Recent GST High Court judgments

Search GST case law →