H.P.State Environment Protection & ... vs Department Of Income Tax

The D.C.I.T., Vs. H.P.State Environment Protection Circle Shimla. & Pollution Control Board, New Shimla. PAN: AAALH0191B (Appellant) (Respondent)

Appellant by : Smt.Jyoti Kumari, CIT DR Respondent by : Shri Rajinder Prasad

Date of hearing : 09.04.2015 Date of Pronouncement : 10.04.2015

PER BHAVNESH SAINI, J.M. :

This appeal filed by the assessee is directed

against the order of learned Commissioner of Income

Tax(Appeals), Shimla dated 4.9.2014 for assessment year

2010-11, challenging the order of the learned CIT

(Appeals) in allowing registration under section 12A of

the Income Tax Act inspite of the fact that the receipts

of the assessee are in contravention to the amended

provisions of section 2(15) of the Income Tax Act. 2

2. Briefly, the facts of the case are that the assessee

challenged the order of the Assessing Officer before the

learned CIT (Appeals) in ignoring the order of the I.T.A.T.,

Chandigarh Bench dated 28.8.2009 in ITA No.74/Chd/2009

wherein the registration of the assessee under section 12AA

of the Act was restored and, therefore, the assessee was

entitled for all benefits available under sections 11 and 12

of the Act. It was further stated that the Assessing Officer

has denied the benefits merely on the ground that the above

decision of the Tribunal has been challenged in the Hon'ble

H.P. High Court, which is pending for adjudication. The

Assessing Officer, therefore, added the entire surplus to the

declared income of the assessee and framed the assessment

accordingly. The assessee was constituted for a period of

three years and renewed from time to time by the State

Government under the Water (Prevention & Control of

Pollution) Act with the main object of performing the

delegated power and function to provide for the prevention

and control of water pollution and the maintaining or

restoring of wholesomeness of water. The assessee filed

return of income and claimed refund. The assessee was

granted registration under section 12A of the Act which was

subsequently withdrawn. The withdrawal order was

challenged by the assessee before the I.T.A.T. Chandigarh

Bench, who vide order dated 28.8.2009 in ITA

No.74/Chd/2009 allowed the appeal of the assessee. The 3

assessee was informed that the said order is sub-judice as

the department has filed an appeal before the Hon'ble H.P.

High Court, which is pending for adjudication. The

Assessing Officer required the assessee to show cause as to

why its entire income be not taxed as per the normal

provisions of the Income Tax Act. The assessee submitted

that the issue of cancellation of registration as well as on

merits, addition on account of accumulation, etc. has been

decided in their favour by the I.T.A.T., Chandigarh Bench as

well as by the learned CIT (Appeals) for assessment year

2009-10. The order of the learned CIT (Appeals) has been

challenged by the Assessing Officer before the Tribunal,

which is pending. The Assessing Officer, however, in the

assessment order held that the assessee was not carrying

out the activities for which registration under section 12AA

had been granted. The excess of income over expenditure

was considered as income and addition was accordingly

made.

3. The assessee submitted before the learned CIT

(Appeals) that the I.T.A.T., Chandigarh Bench has already

decided the appeal of the assessee in ITA No.74/Chd/2009

wherein registration has been restored. Therefore, the

assessee is entitled for deduction under sections 11 and 12

of the Act. The submissions on merits were also made.

The learned CIT (Appeals) following the order of the Tribunal

in ITA No.74/Chd/2009 decided the issue in favour of the 4

assessee and held that the assessee would be treated as

registered under section 12AA of the Act.

4. After hearing the rival submissions we do not find

any merit in the appeal of the Revenue. The Revenue has

raised only ground that the learned CIT (Appeals) has

allowed registration under section 12AA of the Act. This

issue has already been considered in detail by I.T.A.T.,

Chandigarh Bench in the case of the assessee in ITA

No.74/Chd/2009, against which the appeal of the Revenue

is pending before the Hon'ble High Court. Similarly, the

I.T.A.T., Chandigarh Bench in ITA No.835/Chd/2012 for

assessment year 2009-10 vide order dated 16.4.2013

dismissed the departmental appeal by following the same

order of the Tribunal in ITA No.74/Chd/2009. Therefore,

there is no infirmity in the order of the learned CIT

(Appeals) in following the order of the Tribunal through

which the assessee was conferred the registration under

section 12AA of the Act and consequentially the assessee

would be entitled for deduction under sections 11 and 12 of

the Act. Merely because the departmental appeal is

pending in Hon'ble High Court against the order of the

Tribunal, is no ground to take different view at the stage.

We do not find any infirmity in the order of the learned CIT 5

(Appeals). The departmental appeal has no merit and is

dismissed.

5. In the result, the appeal of the Revenue is

dismissed.

Order pronounced in the open court on this 10th day

of April, 2015.

Sd/- Sd/- (T.R.SOOD) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER

Dated : 10 t h April, 2015

*Rati*

Copy to: The Appellant/The Respondent/The CIT(A)/The CIT/The DR.

Assistant Registrar, ITAT, Chandigarh