ITO (EXEMPTION), JAIPUR vs. RAJASTHAN KHADYA PADARTH VYAPAR SANGH, JAIPUR

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ITA 360/JPR/2017Status: DisposedITAT Jaipur03 November 2017AY 2012-134 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that since the ITAT's order granting registration under Section 12AA was upheld by the High Court, the CIT(A)'s deletion of additions was correct. Therefore, the assessee was eligible for benefits under Section 11(1).

What were the facts?

The assessee, a trade association, was denied registration under Section 12AA. The Assessing Officer made additions to its income. The assessee appealed to the CIT(A), who deleted the additions after the ITAT granted registration.

What were the issues?

Whether the CIT(A) erred in deleting additions when the assessee's Section 12AA registration was challenged. The primary issue revolved around the validity of the assessee's registration and subsequent tax exemptions.

Which sections of the Income-tax Act were involved?

Section 12AA,Section 11(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JAIPUR BENCHES, JAIPUR

Before: SHRI VIJY PAL RAO, JM & SHRI BhAGCHAND, AM vk;dj vihy la-@ITA No. 360/JP/2017

For Appellant: Shri S.L. Poddar (Adv.) jktLo dh vksj ls@
Hearing: 17/10/2017Pronounced: 03/11/2017

आयकर अपीलीय अधिकरण] जयपुर न्यायपीठ] जयपुर IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR Jh fot; iky jko] U;kf;d lnL; ,oa Jh Hkkxpan] ys[kk lnL; ds le{k BEFORE: SHRI VIJY PAL RAO, JM & SHRI BhAGCHAND, AM vk;dj vihy la-@ITA No. 360/JP/2017 fu/kZkj.k o"kZ@Assessment Year : 2012-13 cuke The ITO(E), M/s Rajasthan Khadya Padarth Vyapar Sangh, B-20, 1st Floor Chandpole Vs. Ward-1, Jaipur. Bazaar, Jaipur. LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AAAAR0336D vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@ Assessee by : Shri S.L. Poddar (Adv.) jktLo dh vksj ls@ Revenue by : Shri R.A. Verma (Addl.CIT) lquokbZ dh rkjh[k@ Date of Hearing : 17/10/2017 mn?kks"k.kk dh rkjh[k@Date of Pronouncement: 03/11/2017 vkns'k@ ORDER

PER: VIJAY PAL RAO, J.M. This appeal by the Revenue is directed against the order of dated 09.02.2017 of CIT (A)-5, Jaipur for A.Y. 2012-13. The Revenue has raised the following grounds as under:- “1. On the facts and circumstances of the case and in law the CIT(A) has erred in deleting the disallowance of Rs. 29,72,642/- by holding that it is not the case of the AO that personal or non- genuine expenses have been debited in the form of Maha Sammelan expenses whereas the AO has disallowed these expenses on the ground of non-registration u/s 12AA and also on account of not for the benefit of public at large.

ITA No. 360/JP/2017 ITO vs. M/s Rajasthan Khadya Padarth Vyapar Sangh

2.

On the facts and circumstances of the case and in law the CIT(A) has erred in allowing the amount of Rs. 35,00,000/- set apart u/s 11(2), in spite of the fact the assessee registration granted u/s 12AA by Hon’ble ITAT, was challenged before the Hon’ble High Curt which is pending. 3. On the facts and circumstances of the case and in law the CIT(A) has erred in deleting Rs. 1,89,955/- being 15% of surplus as the order of ITAT in respect of granting registration u/s 12AA has been challenged before Hon’ble High Court.”

2.

The assessee is a trade association and filed an application for

registration u/s 12AA of the Act. The ld. CIT(Exemption), Jaipur vide its

order dated 18.03.2015 dismissed the application for registration u/s

12AA. Thereafter the Assessing Officer computed assessment u/s

143(3) whereby the assessee was denied the exemptions u/s 11(1) and

consequently the income of the assessee was determined at Rs.

64,45,893/-.The assessee challenged the action of the AO before the

CIT(A). The ld. CIT noted the fact that this Tribunal vide order dated

27.09.2016 granted registration to the assessee and consequently the

assessee was eligible for the benefit u/s 11(1) of the Act. Hence, the ld.

CIT(A) deleted the addition made by the AO. Aggrieved by the order of

the ld. CIT(A) the Revenue has filed this appeal.

3.

We have heard the ld. DR as well as ld. AR and considered the

relevant material on record. The Assessing Officer has made various

ITA No. 360/JP/2017 ITO vs. M/s Rajasthan Khadya Padarth Vyapar Sangh

additions and assessed receipt of the assessee to tax. In view of the

fact that the application for registration u/s 12AA was rejected by the

ld. CIT(E) and subsequently this Tribunal vide order dated 29.09.2016

in ITA No. 335 of 2015 set aside the order of the ld. CIT(Exemption)

and directed the ld. CIT(E) to grant registration to the assessee

association u/ 12AA of the Act. The Revenue challenged the said

decision of the Tribunal granting registration u/s 12AA to the assessee

before the Hon’ble Rajasthan High Court but could not succeed as the

Hon’ble High Court vide its order dated 10.07.2017 has dismissed the

appeal of the Revenue. Thus the decision of the Tribunal granting

registration u/s 12AA has been upheld by the Hon’ble jurisdictional High

Court. The Revenue has raised the grounds in the present appeal that

the decision of the Tribunal granting registration u/s 12AA has been

challenged before the Hon’ble High Court. In view of the fact that the

appeal of the Revenue has been dismissed by the Hon’ble Rajasthan

High Court there is no merit and substance in the present appeal of the

Revenue. Hence, we do not find any error or illegality in the impugned

order by the ld. CIT (Appeal) in granting the benefit u/s 11(1) of the

Act.

In the result, the appeal of the Revenue is dismissed. 3

ITA No. 360/JP/2017 ITO vs. M/s Rajasthan Khadya Padarth Vyapar Sangh Order pronounced in the open court on 03/11/2017 Sd/- Sd/- ¼Hkkxpan ½ ¼fot; iky jko½ (Bhagchand) (Vijay Pal Rao) ys[kk lnL;@Accountant Member U;kf;d lnL;@Judicial Member

Tk;iqj@Jaipur fnukad@Dated:- 03/11/2017. *Santosh. आदेश की प्रतिलिपि अग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू 1. vihykFkhZ@The Appellant- The ITO(E),Ward-1, Jaipur. 2. izR;FkhZ@ The Respondent- M/s Rajasthan Khadya Padarth Vyapar Sangh, B-20, 1st Floor Chandpole Bazaar, Jaipur. 3. vk;dj vk;qDr@ CIT 4. vk;dj vk;qDr@ CIT(A) 5. विभागीय प्रतिनिधि] आयकर अपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत. 6. xkMZ QkbZy@ Guard File {ITA No. 360/JP/2017} vkns'kkuqlkj@ By order,

सहायक पंजीकार@Aेेज. त्महपेजतंत

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