Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, HYDERABAD BENCHES
Before: SHRI D. MANMOHAN & SHRI B. RAMAKOTAIAH
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES CIRCUIT BENCH “A”, AT TIRUPATI
BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER I.T.A. No. 1250/HYD/2015 Assessment Year: 2012-13 M/s. Tirupati Urban Asst. Commissioner of Development Authority, Vs Income Tax, TIRUPATI Circle-2(1), [PAN: AAALT0794Q] TIRUPATI (Appellant) (Respondent) For Assessee : Shri C.P. Ramaswamy, AR For Revenue : Smt. Komali Krishna, DR Date of Hearing : 14-05-2018 Date of Pronouncement : 14-05-2018 O R D E R PER B. RAMAKOTAIAH, A.M. : This is an appeal by assessee against the order of the Commissioner of Income Tax (Appeals)-Tirupati, dated 08-09-2015 on the issue of exemption of its income. Assessee has raised the following grounds:
“2. The learned CIT(Appeals) erred in dismissing the appeal without considering the eligibility of the appellant to claim exemption in terms of sub-section (46) of section 10 of the Income-tax Act, 1961. He ought to have given an opportunity to the appellant to obtain necessary the Gazette Notification to be issued by the Government of India in terms of section 10(46) of the Income-tax Act, 1961.
I.T.A. No. 1250/Hyd/2015 :- 2 -:
The learned CIT(Appeals) failed to appreciate that the appellant being eligible to claim exemption in terms of section 10(46) did make the application u/s. 10(46) vide F.No. 2198/B1/2005 dt. 03 September 2013 and consequently erred in dismissing the appeal arbitrarily. 4. Without prejudice to ground Nos. 2 and 3, the learned CIT(Appeals) failed to appreciate that substantial question of law with regard to granting approval u/s. 12AA w.e.f. AY. 2003-04 has been admitted u/s. 260A by the Hon'ble High Court of Judicature of Andhra Pradesh in ITTA No. 568 of 2013 by order dated 22 November 2013 and consequently exemption u/s.11 cannot be summarily denied without waiting for the decision of the Hon'ble High Court”.
Ground Nos. 1, 5 & 6 are general in nature.
Briefly stated, Tirupati Urban Development Authority, herein after called as ‘assessee’ or TUDA is constituted by the Andhra Pradesh State Government with the object of promoting and securing the infrastructure development of all or any of the areas situated in the Tirupati Urban Development Authority. It filed its return of income for the AY. 2012-13 admitting total income at NIL, after claiming exemption u/s. 11 of the Act. The AO required assessee to produce certificate issued u/s. 12AA of the Act. In support of its claim, assessee stated that the CIT, Tirupati rejected its objections for registration u/s. 12AA, which was confirmed by the ITAT. Further intimated that the matter is pending before the Hon'ble High Court of Andhra Pradesh on an appeal by assessee. Assessee also further submitted that its application seeking exemption u/s. 10(46) before the CBDT is also pending. AO found that assessee has neither registered u/s. 12AA for claiming exemption u/s. 11 nor got any notification issued by the CBDT for claiming exemption u/s. 10(46). AO therefore completed the assessment assessing the incomes under various heads of the income and raising demand.
I.T.A. No. 1250/Hyd/2015 :- 3 -:
Since the facts are similar and assessee has neither registered u/s. 12AA nor got any exemption u/s. 10(46) by issuance of notification, the Ld.CIT(A) confirmed the order of AO, following the orders in earlier years.
Ld. Counsel submitted that the matter of registration is pending before the Hon'ble High Court and appeal filed by assessee is subjudice. It was further submitted that in the case of HUDA, the ITAT, Hyderabad subsequently reviewed the decision on the issue and granted registration u/s. 12AA to HUDA. The assessee is also constituted similarly to HUDA. It is submitted that the Tribunal can modify the order granting for registration. Without prejudice to the above, it was further submitted that HUDA has got notification issued by the CBDT u/s. 36(1)(xii) by the notification S.O. No. 3393 dt. 19-12-2008 and submitted that TUDA is also likely to get such a notification, if the CBDT accepts its petition. Ld. Counsel reiterated that HUDA and TUDA are being similarly based corporations constituted under the respective laws with similar object of promoting and securing the infrastructure development. It was submitted that the orders of the ITAT may be re-considered and assessee may be granted benefit.
Ld.DR, however, relied on the orders of the Ld.CIT(A).
We have considered the issue and perused the facts as placed on record. It is true that in this case, the CIT, Tirupati did not grant registration u/s. 12AA and that order was confirmed by the ITAT in its own case. The matter is presently pending adjudication by the Hon'ble High Court of Andhra Pradesh. Moreover, the issue
I.T.A. No. 1250/Hyd/2015 :- 4 -:
in appeal is not with reference to rejection of registration but assessment proceedings completed, consequent to not having a registration u/s. 12AA of the Act. Since the proceedings are entirely different, reviewing the decision of TUDA consequent to the decision in the case of HUDA does not arise in these proceedings.
6.1. Coming to granting of deduction u/s. 10(46) it is for the CBDT to consider and grant the benefit. It may be true that HUDA got similarly issued notification u/s. 36(1)(xii), but the benefit cannot be extended to TUDA, unless there is a separate notification issued in favour of assessee under the respective provisions. Since the matter is pending before the CBDT, AO is directed to grant the benefit as and when CBDT issues the notification conferring certain benefits under the provisions of the Act. AO, however, is directed to implement the order as and when the notification is issued. With these observations, grounds raised by assessee are rejected and appeal is dismissed.
In the result, appeal of assessee is dismissed.
Order pronounced in the open court on 14th May, 2018
Sd/- Sd/- (D. MANMOHAN) (B. RAMAKOTAIAH) VICE PRESIDENT ACCOUNTANT MEMBER Tirupati, Dated 14th May, 2018 TNMM
I.T.A. No. 1250/Hyd/2015 :- 5 -:
Copy to : 1. M/s. Tirupati Urban Development Authority, C/o. Dr. C.P. Ramaswami, Advocate, Flat No. 303, Gitanjali Apts., Plot No. 108, Srinagar Colony, Hyderabad. 2. Asst. Commissioner of Income Tax, Circle-2(1), Tirupati. 3. CIT(Appeals)-Tirupati. 4. Pr.CIT-Tirupati. 5. D.R. ITAT, Hyderabad. 6. Guard File.