DCIT, CHANDIGARH vs. M/S AMRITSAR IMPROVEMENT TRUST, AMRITSAR

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH ‘A’, CHANDIGARH BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS.ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA No.685/Chd/2017 (Assessment Year : 2012-13) The D.C.I.T., Vs. Amritsar Improvement Trust, Circe-1(Exemptions), C-Block, Ranjit Avenue, Chandigarh. Amritsar. PAN: AAJFA4492K (Appellant) (Respondent)

Appellant by : Shri Ram Mohan Singh,CIT DR Respondent by : S/Shri Salil Kapoor, Adv. & Sanat Kapoor, Adv. Date of hearing : 20.03.2018 Date of Pronouncement : 18.06.2018

ORDER Per Sanjay Garg, Judicial Member :

The present appeal has been preferred by the Revenue

against the order of Ld. Commissioner of Income Tax

(Appeals)-2, Amritsar (hereinafter referred to as ‘Ld.CIT

(Appeals)’] dated 19.1.2017, passed u/s 250(6 of the Income

Tax Act, 1961 (in short ‘the Act’) in Appeal No.82/2015-16

relating to assessment year 2012-13.

(Appeals) in allowing the claim of exemption to the assessee

trust under section 11 of the Act.

submitted that in this case, the Assessing Officer had made

the impugned addition while relying upon the decision of

2 ITA No.685/Chd/2017 AY: 2012-13

the Amritsar Bench of the Tribunal dated 15.1.2013 in the

own case of the assessee for assessment years 2006-07 and

2007-08, wherein it was held that the Amritsar

Improvement Trust did not qualify for exemption under

section 11 of the Act.

order of the Tribunal dated 15.1.2013 before the Hon'ble

Punjab & Haryana High Court. The Hon'ble High Court set

aside the order of the Tribunal and remanded the matter to

the file of the Tribunal vide order dated 6.8.2014.

Bench vide its order dated 10.9.2015 decided the issue in

favour of the assessee and held that the assessee was

entitled to the benefit of section 11 r.w.s. 2(15) of the Act

and the development activities of the assessee were held to

be falling under the purview and scope of object of general

public utility.

Tribunal dated 10.9.2015 in the own case of the assessee

for assessment year 2004-05 to 2007-08 held that the

assessee trust qualify for exemption u/s 11 of the Act and

that the activities of the trust of planned development of

cities and towns was an object of public utility covered u/s

2(15) of the Act. He, therefore, allowed the appeal of the

assessee.

3 ITA No.685/Chd/2017 AY: 2012-13

the Revenue has preferred the present appeal before this

Tribunal. The Ld. counsel for assessee at the outset has

invited our attention to the order of the Hon'ble

Jurisdictional Punjab & Haryana High Court dated

23.12.2016 passed in the own case of the assessee bearing

ITA No.76/2016 alongwith other appeals wherein the

Hon'ble High Court following its decision passed in ITA

No.147/2016 titled as CIT(E) Vs. Improvement Trust, Moga

has dismissed the appeals of the Revenue. It is pertinent to

notice here that in the case of Improvement Trust, Moga,

which was decided alongwith the case of Tribune Trust Vs.

CIT, reported in (2016) 76 Taxmann.com 363 (P&H), the

Hon'ble High Court has held that the assessee, namely

Moga Improvement Trust is undoubtedly an authority

constituted by or under a law, namely, the Punjab Town

Improvement Act, 1922. Further, it is engaged for the

purpose of dealing with and satisfying the need for housing

accommodation. It is also constituted for the purpose of

planning, development of improvement of cities, towns and

villages or both as is evident from sections 22 to 28 of the

Punjab Town Improvement Act, 1922. The Hon'ble High

Court considering the above activities of Moga Improvement

Trust held that the same would fall within the meaning of

advance of any other object of general public utility as

specified u/s 2(15) of the Act.

4 ITA No.685/Chd/2017 AY: 2012-13

As discussed above, following the said decision in the

case of Moga Improvement Trust dated 23.12.2016 (supra),

the appeal of the Revenue in the own case of the assessee,

therefore, was dismissed. The Ld.CIT(Appeals) has followed

the order of the Tribunal dated 10.9.2015 (supra), which

has been further upheld by the Hon'ble High Court. In view

of this, there is no merit in the appeal of the Revenue. The

same is accordingly, dismissed.

dismissed.

Order pronounced in the open court on 18.06.2018.

Sd/- Sd/-

(ANNAPURNA GUPTA) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated : 18th June, 2018 *Rati* Copy to: 1. The Appellant 2. The Respondent 3. The CIT(A) 4. The CIT 5. The DR Assistant Registrar, ITAT, Chandigarh