DEPUTY COMMISSIONER OF INCOME TAX (EXEMPTION),CIRCLE, JAIPUR vs. CENTRE FOR DEVELOPMENT COMMUNICATION TRUST, JAIPUR

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ITA 753/JPR/2018Status: DisposedITAT Jaipur28 September 2018AY 2014-154 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that since the assessee's registration under Section 12AA was restored by the ITAT and upheld by the High Court, the denial of exemption under Sections 11 and 12 by the AO was unsustainable.

What were the facts?

The Revenue appealed against the CIT(A)'s order allowing exemption under Section 11 to the assessee. The AO had denied the exemption, citing withdrawal of registration under Section 12AA. However, the ITAT had previously quashed the withdrawal of registration, and the High Court had dismissed the Revenue's appeal against that order.

What were the issues?

Whether the assessee is eligible for exemption under Section 11 when its registration under Section 12AA was restored after being initially withdrawn, and whether its activities fall within the definition of charitable purposes under Section 2(15).

Which sections of the Income-tax Act were involved?

Section 11,Section 12,Section 12AA,Section 2(15)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JAIPUR BENCHES, JAIPUR

Before: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM vk;dj vihy la-@ITA No. 753/JP/2018

PER VIJAY PAL RAO, JM :

This appeal by the revenue is directed against the order dated 1st March,

2018 of ld. CIT (A)-3, Jaipur for the assessment year 2014-15. The revenue has

raised the following grounds :-

“ 1. In the facts and the circumstances of the case and in law the ld. CIT (Appeals) has erred in allowing exemption u/s 11 of the IT Act, 1961 to the assessee without appreciating the fact that AO has given detailed reasons in the assessment order to establish that activities of the assessee are not charitable in view of amended provisions of section 2(15) of the I.T. Act, 1961.

2.

In the facts and the circumstances of the case and in law the ld. CIT (Appeals) has erred in not appreciating the fact that assessee is not entitled for benefit of exemption u/s 11 even it was registered u/s 12AA by the CIT in pursuance of order of Hon’ble ITAT as the assessee is hit by the provisions to section 2(15) of the Act.

2 ITA No. 753/JP/2018 Centre for Development communication Trust, Jaipur.

3.

In the facts and the circumstances of the case and in law the ld. CIT (Appeals) has erred in not appreciating the fact that assessee is engaged in rendering contractual services for consideration in removing solid waste which cannot be held as activity as “preservation of environment”.

4.

Any other question in law as deemed fit in the facts and circumstances of the case may also be framed before the Hon’ble Tribunal in the interest of justice.

2.

We have heard the ld. D/R as well as the ld. A/R and considered the relevant

material on record. The AO has denied the benefit of sections 11 and 12 of the IT

Act to the assessee on the ground that the registration granted under section 12AA

of the Act was withdrawn by the ld. CIT (Exemptions). The assessee challenged the

said action of the AO before the ld. CIT (A) and submitted that the

cancellation/withdrawal of registration has been quashed by this Tribunal vide order

dated 22.08.2013 in ITA No. 163/JP/2012, therefore, the assessee is eligible for

exemption under sections 11 and 12 of the Act. The ld. CIT (A) allowed the claim of

the assessee in view of the fact that the registration under section 12AA has been

restored by this Tribunal. The revenue has not disputed the fact that the

cancellation of registration granted to the assessee under section 12AA was restored

by this Tribunal and, therefore, though the revenue has not accepted the said order,

however, so long the said order of the Tribunal is in existence, the benefit of

exemption under sections 11 and 12 of the Act cannot be denied to the assessee.

We further note that the appeal filed by the revenue against the order of this

Tribunal in respect of cancellation of registration under section 12AA has been

dismissed by the Hon’ble Jurisdictional High Court. A copy of the said judgment in DB IT Appeal No. 30/2014 dated 29th April, 2016 has been filed by the assessee.

3 ITA No. 753/JP/2018 Centre for Development communication Trust, Jaipur.

Accordingly, in view of the fact that the registration under section 12AA was already

restored and consequently the assessee is eligible for deduction under sections 11

and 12 of the Act, the denial of the benefit by the AO will not sustain. Hence we do

not find any error or illegality in the impugned order of the ld. CIT (A) in granting

the benefit of exemption under sections 11 and 12 of the Act.

3.

In the result, appeal of the revenue is dismissed.

Order is pronounced in the open court on 28/09/2018.

Sd/- Sd/- (foØe flag ;kno) (fot; iky jkWo ½ (VIKRAM SINGH YADAV ) (VIJAY PAL RAO) U;kf;d lnL;@Judicial Member ys[kk lnL;@Accountant Member

Jaipur Dated:- 28/09/2018. Das/

आदेश की प्रतिलिपि अग्रेषित@ब्वचल वf जीम वतकमत वितूंतकमक जवरू

1.

The Appellant- The DCIT (Exemptions), Circle, Jaipur. 2. The Respondent – Centre for Development communication Trust, Jaipur. 3. The CIT(A). 4. The CIT, 5. The DR, ITAT, Jaipur 6. Guard File (ITA No. 753/JP/2018) vkns'kkuqlkj@ By order,

सहायक पंजीकार@ Aेेपेजंदज. त्महपेजतंत

4 ITA No. 753/JP/2018 Centre for Development communication Trust, Jaipur.

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