AGRICULTURAL MARKET COMMITTEE,DENDULURU vs. ITO, WARD-2, ELURU

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ITA 446/VIZ/2017Status: DisposedITAT Visakhapatnam28 November 2018AY 2007-20084 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(A) should have granted more time to the assessee to file a rectified Form No. 10. The matter was set aside and remitted back to the CIT(A) for adjudication after considering the revised form.

What were the facts?

The assessee, an Agricultural Market Committee registered under section 12A, filed a return of income with NIL income. The Assessing Officer noted an excess income of Rs. 15,28,174/- and denied exemption under section 11 due to defects in Form No. 10.

What were the issues?

Whether the CIT(A) erred in confirming the denial of exemption under Section 11 without granting sufficient opportunity to rectify defects in Form No. 10.

Which sections of the Income-tax Act were involved?

Section 11,Section 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM

Before: SHRI V. DURGA RAO, HON’BLE & SHRI D.S. SUNDER SINGH, HON’BLE

For Appellant: Shri G.V.N. Hari – Advocate
Hearing: 22/11/2018

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO, HON’BLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH, HON’BLE ACCOUNTANT MEMBER ITA No. 446/VIZ/2017 (Asst. Year : 2007-08) Agricultural Market Committee, vs. ITO, Ward-2, Denduluru, W.G. District. Eluru. PAN No. AACTA 0409 P (Appellant) (Respondent)

Assessee by : Shri G.V.N. Hari – Advocate. Department By : Mrs. Suman Malik – Sr.DR

Date of hearing : 22/11/2018. Date of pronouncement : 28/11/2018. O R D E R PER V. DURGA RAO, JUDICIAL MEMBER

This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), Vijayawada, dated 28/02/2017 for the Assessment Year 2007-08. 2. Facts of the case, in brief, are that assessee is a statutory body constituted under Andhra Pradesh (Agricultural Produce and Livestock) Markets Act, 1966. The assessee filed its return of income by admitting NIL income. During the course of assessment proceedings, the Assessing Officer has noticed that

2 ITA No.446/VIZ/2017 (Agricultural Market Committee)

there was an excess income of Rs. 15,28,174/- over the expenditure. Form No. 10 filed along with the return of income did not contain details, like 1) quantum of income being accumulated or set apart, 2) the period for which the income was being accumulated or set apart and 3) the purposes of accumulation of income. Further, column No. 6 of the Form No. 10, it could be noted that the surplus amount was kept in Treasury. The assessee has not given proper reply, therefore, the Assessing Officer denied exemption claimed under section 11 of the Act and added the entire excess income over expenditure i.e. Rs.15,28,174/- to the total income of the assessee. 3. On appeal before the ld. CIT(A), the assessee filed a detailed submission and requested time to file rectified/revised Form No.10 on 30/01/2017. The ld. CIT(A) confirmed the order of the Assessing Officer on the ground that the assessee failed to file the revised Form No. 10 rectifying the defects pointed out by the Assessing Officer during the course of appellate proceedings till date and the period of investment had already lapsed. 4. Before us, ld. counsel for the assessee has submitted that on 30/01/2017, assessee has requested the ld. CIT(A) for sufficient time to file the rectified Form No. 10, but without considering, ld.CIT(A) confirmed the order of the Assessing Officer.

3 ITA No.446/VIZ/2017 (Agricultural Market Committee)

5.

On the other hand, ld. Departmental Representative strongly supported the orders of the authorities below. 6. The assessee is a statutory body constituted under Andhra Pradesh Markets Act, 1966 and also registered under section 12A of the Act. The assessee has excess income of Rs. 15,28,174/- over the expenditure and filed Form No. 10 before the Assessing Officer. The form filed by the assessee did not contain full details and also some defects, therefore, the Assessing Officer denied exemption claimed by the assessee under section 11 of the Act and the entire excess income over the expenditure is added to the total income of the assessee. The assessee filed an appeal before the ld. CIT(A), and on 30/01/2017, a detailed reply was filed and requested the ld. CIT(A) to grant some more time to furnish rectified/revised Form No. 10. This is recorded by the ld. CIT(A) in his order, however, the ld. CIT(A) without giving further opportunity, confirmed the order of the Assessing Officer. By considering the entire facts and circumstances of the case, we are of the opinion that the ld. CIT(A) ought to have given some more time to furnish rectified/revised Form No. 10. Therefore, we set aside the order passed by the ld. CIT(A) and remit the matter back to the ld. CIT(A) to adjudicate the issue after considering the rectified/revised Form No. 10 in accordance with law. It is also

4 ITA No.446/VIZ/2017 (Agricultural Market Committee)

directed the assessee to file the rectified/revised Form No. 10 on the date given by the ld. CIT(A) without fail. In view of the above, this appeal filed by the assessee is allowed for statistical purposes. 7. In the result, appeal filed by the assessee is allowed for statistical purposes. Order Pronounced in open Court on this 28th day of Nov., 2018.

Sd/- sd/- (D.S. SUNDER SINGH) (V. DURGA RAO) Accountant Member Judicial Member Dated : 28th November, 2018. vr/- Copy to: 1. The Assessee – Agricultural Market Committee, Denduluru, W.G. District. 2. The Revenue - ITO, Ward-2, Eluru. 3. The Pr.CIT, Rajahmundry. 4. The CIT(A), Vijayawada. 5. The D.R., Visakhapatnam. 6. Guard file. By order

(VUKKEM RAMBABU) Sr. Private Secretary, ITAT, Visakhapatnam.

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