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आदेश/Order
Per Sanjay Garg, Judicial Member:
The present appeal has been preferred by the assessee against the order dated 07.2.2013 of the Commissioner of Income Tax-II, Ludhiana.
The present matter has been restored back by the Hon'ble High Court vide order dated 22.10.2018 for deciding afresh in accordance with law.
The sole issue raised in this appeal is regarding cancellation of registration granted earlier to the assessee on the ground that the assessee’s activities are hit by first Proviso to section 2(15) of the Income- tax Act, 1961 (in short 'the Act').
Both the parties have fairly agreed that the issue is now covered by the decision of the Higher Courts including of the Hon'ble Jurisdictional
ITA No. 406/Chd/2013- M/s Khanna Improvement Trust, Khanna 2
High Court in the case of ‘CIT Vs. Moga Improvement Trust’, (2017)
390 ITR 547 and of the Hon'ble Bombay High Court in ‘DIT (Exemptions)
Vs. M/s Khar Ghykhana’, ITA No. 2349 of 2013 order dated 6.6.2016
wherein, it has been held that the development activity carried out by
improvement trust falls within the definition of objects of general public
utility, however, taking into consideration the subsequent amendments in
the relevant provisions of the Act, the allowability of quantum income
from the activity of the assessee is a question of assessment of income
which can be considered while framing assessment u/s 11 of the Act. So
far as the issue relating to registration of the assessee ‘improvement trust’
is concerned, the issue is now settled that the registration cannot be
cancelled on this account. We, therefore, set aside the order of the lower
authorities in cancelling the registration and order to restore registration to
the assessee ‘improvement trust’. However, our findings given above are
restricted to the restoration of registration of the assessee Trust u/s 12A of
the Income Tax Act. However, the assessment of income shall be subject
to application of the relevant statutory provisions/law. No other ground
has been raised or pressed by the counsel.
In the result, the appeal of the assessee is treated as allowed
Order dictated and pronounced in the Open Court immediately on
completion of hearing.
Sd/- Sd/- (अ�नपूणा� गु�ता / ANNAPURNA GUPTA) (संजय गग� / SANJAY GARG) लेखा सद�य/ Accountant Member �या�यक सद�य/ Judicial Member
Dated : 21.02.2019 “आर.के.”
ITA No. 406/Chd/2013- M/s Khanna Improvement Trust, Khanna 3
आदेश क� ��त�ल�प अ�े�षत/ Copy of the order forwarded to : 1. अपीलाथ�/ The Appellant 2. ��यथ�/ The Respondent 3. आयकर आयु�त/ CIT 4. आयकर आयु�त (अपील)/ The CIT(A) 5. �वभागीय ��त�न�ध, आयकर अपील�य आ�धकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड� फाईल/ Guard File
आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar