ABR EDUCATION FOUNDATION,NOIDA vs. ADDL. CIT, GHAZIABAD

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ITA 4865/DEL/2013Status: DisposedITAT Delhi05 May 2017AY 2008-094 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that it was undisputed that an appeal (ITA No. 4550 of 2009) against the refusal to grant registration under Section 12AA was pending and had been remanded to the CIT for re-adjudication after providing the assessee an adequate opportunity to substantiate their claim. The Tribunal also noted that the matter was still pending with the CIT. In these circumstances, the Tribunal was of the opinion that the ends of justice would be adequately served by setting aside the matter to the file of the AO to dispose of afresh in light of the disposal of the assessee's application under Section 12AA of the Act by the CIT. The appeal was accordingly disposed of. The Tribunal did not expressly leave any issue undecided, but the operative direction was to remand the matter for fresh consideration.

What were the facts?

The assessee, ABR Education Foundation, running Hierank Business School, filed its return of income for Assessment Year 2008-09 declaring Nil income. The Assessing Officer (AO) determined a net taxable income of Rs. 40,10,568/-. The assessee appealed to the Commissioner of Income Tax (Appeals) [CIT(A)], who dismissed the appeal. The assessee is now before the Income Tax Appellate Tribunal (ITAT). The assessee society was registered under the Registrar of Societies UP on 11.08.2009. The AO's order was passed on 29.11.2010 under Section 143(3) of the Income Tax Act, 1961. The CIT(A)'s order was dated 10.05.2013.

What were the issues?

1. Whether the matter should be remanded to the Assessing Officer for fresh consideration in light of the pending appeal concerning the assessee's application for registration under Section 12AA of the Income Tax Act, 1961? (Question of mixed law and fact, turning on Section 12AA and procedural fairness). Assessee's Contention: The assessee argued that an appeal (ITA No. 4550 of 2009) against the refusal to grant registration under Section 12AA was pending before the CIT, and that matter had been remanded for fresh consideration. Therefore, it would be just and proper to remand the current matter to the AO to consider the assessee's claim afresh in light of the facts related to the Section 12AA registration application. Revenue's Contention: The Revenue contended that no documents had been produced in support of the assessee's claim, and therefore, remanding the matter would serve no useful purpose.

Which sections of the Income-tax Act were involved?

Section 12AA,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘A’ NEW DELHI

Before: SHRI G.D. AGRAWAL, HON’BLE & SHRI K.N. CHARY

Hearing: 02.05.2017Pronounced: 05.05.2017

ORDER PER K. NARSIMHA CHARY, J.M. This is an appeal by the assessee challenging the order dated 10.05.2013 in appeal no. 73/598/2010-11/NOIDA passed by the Ld. CIT (A)-Noida, U.P.

2.

Brief facts of the case are that the appellant-assessee is a Society registered under Registrar of Society UP on 11.08.2009 and running Hierank Business School, HBS and is running undergraduate course BBA, BCA and B. Sc (Biotech) under CCs University and filed its return of income on 31.03.2009 declaring Nil income and by way of order dated 29.11.2010 u/s 143 (3) of the Act the AO reached the net taxable income of the Society at 1

Rs. 40,10,568/-. Appeal preferred by the assessee was dismissed by the Ld. CIT (A) by way of impugned order. Hence, the assessee is before us in this appeal.

3.

At the outset, it is submitted by the Ld. AR that against the order of the Ld. Commissioner of Income Tax refusing to grant registration of the assessee u/s 12AA of the Act, an appeal in of 2009 was preferred and the matter was remanded to the file of the CIT for considering the same afresh, and the same is pending as such it would be just and proper to remand this matter also to the file of the AO to consider the claim of the assessee afresh in the light of the facts involved in the application for registration of the assessee u/s 12AA of the Act. Per contra, Ld. DR submits that no documents are produced so far in support of the claim of the assessee as such no useful purpose may be served by remanding the matter.

4.

On a consideration of the matter before us, we find that absolutely there is no dispute in the submission of the Ld. AR that against the refusal of grant registration u/s 12AA of the Act an appeal was preferred in of 2009, said appeal was disposed of remanding the matter for re-adjudication after giving the assessee adequate opportunity to substantiate their claim. It

is also not in dispute that the matter is still pending with the Ld.CIT. In these circumstances, we are of the opinion that the ends of justice would be served adequately by setting aside this matter to the file of the AO to dispose of afresh in the light of the disposal of the application of the assessee u/s 12AA of the Act by the Ld. CIT. With this view of the matter, we disposed of this appeal accordingly.

5.

In the result, the appeal of the assessee is allowed for statistical purpose.

Order pronounced in the open court on 05th May, 2017

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