The Cotton Textiles Export Pormotion ... vs Assessee
- CitationI.T.A. No. 317/Mum/2013
Ratio decidendi
The rule this decision rests on
The exemption under sections 11 and 12 of the Income Tax Act cannot be denied on the ground that the assessee's registration under section 12A stands withdrawn where that withdrawal has been set aside and the registration restored by the Tribunal in the assessee's own earlier appeal, since the sole basis for the denial no longer subsists. Once the Tribunal has restored the registration under section 12A, the Assessing Officer is bound to allow the claimed exemption, and any finding of the First Appellate Authority that rested on the earlier withdrawal of that registration must be set aside.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
सव ौी जोगींि िसंह, याियक सदःय एवं नरे ि कुमार #ब$लै&या, लेखा सदःय के सम(
BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER AND
SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER
आयकर अपील सं./I.T.A. No. 317/Mum/2013 िनधा रण वष / Assessment Year :2009-10 (िनधा The Cotton Textiles Export बनाम/ बनाम The ITO (Exemption)1(1), Promotion Council, Mumbai Vs. Engineering Centre, Piramal Chambers, th 5 Floor, Lalbaug, Parel, 9, Mathew Road, Mumbai-400 012 Mumbai-400 004 ःथायी ले खा सं . /जीआइआर सं . /PAN/GIR No. : AAAAT 9241M (अपीलाथ, /Appellant) .. (ू.यथ, / Respondent) अपीलाथ, ओर से/ Appellant by: Shri J.D. Mistri Shri Niraj Sheth ू.यथ, क0 ओर से/Respondent by: Shri R.N. D'Souza
सुनवाई क0 तार2ख / Date of Hearing :28.01.2015 घोषणा क0 तार2ख /Date of Pronouncement :28.01.2015
आदे श / O R D E R
PER N.K. BILLAIYA, AM:
With this appeal the assessee has challenged the correctness of the order of the Ld. CIT(A)-1, Mumbai dt. 15.10.2012 pertaining to A.. 2009-
10.
2. The main grievance of the assessee is that the Ld. CIT(A) erred in confirming the action of the Assessing Officer of not granting the 2 ITA No. 317/M/2013
assessee exemption u/s.11 of the I.T. Act, 1961 and without prejudice to this ground, the assessee claims that the activities carried on by it do not fall within the definition of the term 'charitable purpose' u/s. 2(15) of the I.T Act, 1961.
3. At the outset, the Ld. Counsel for the assessee pointed out that the issue is now well settled in favour of the assessee and against the Revenue by the decision of the Tribunal in assessee's own case vide ITA No. 325/M/2012. The Ld. Counsel pointed out that against the withdrawal of certificate u/s. 12A of the Act, the assessee had preferred an appeal before the Tribunal. The Ld. Counsel further stated that since the certificate u/s. 12A was withdrawn by the DIT (Exemption), the Ld. CIT(A) was of the firm belief that the assessee do not qualify for any exemption u/s. 11 & 12 of the Act. It is the say of the Ld. Counsel that now the Tribunal has granted the registration u/s. 12A of the Act, there remains no reason why exemption u/s. 11 & 12 of the Act should not be allowed to the assessee.
4. The Ld. Departmental Representative fairly conceded to this.
5. We have carefully perused the assessment order and the order of the First Appellate authority. We find that the Tribunal in ITA No. 325/M/2012 has set aside the order of the DIT (Exemption) and restored the registration to the assessee granted u/s. 12A of the Act. Since the registration has been restored by the Tribunal, we do not find any reason why exemption should not be allowed to the assessee. We, set aside the findings of the Ld. CIT(A) and direct the AO to allow the exemption to the assessee.
3 ITA No. 317/M/2013 6. In the result, the appeal filed by the assessee is allowed.
Order pronounced in the open court at the time of hearing on 28th January, 2015.
Sd/- Sd/- (JOGINDER SINGH ) (N.K. BILLAIYA) याियक सदःय/JUDICIAL MEMBER लेखा सदःय / ACCOUNTANT MEMBER मुंबई Mumbai; 5दनांक Dated : व.िन.स./ RJ , Sr. PS
आदे श क0 ूितिल#प अमे#षत/Copy षत of the Order forwarded to : 1. अपीलाथ, / The Appellant 2. ू.यथ, / The Respondent. 3. आयकर आयु7(अपील) / The CIT(A)- 4. आयकर आयु7 / CIT
5. #वभागीय ूितिनिध, आयकर अपीलीय अिधकरण, मुंबई / DR, ITAT, Mumbai
6. गाड फाईल / Guard file.
आदे शानुसार/ ार BY ORDER, स.या#पत ूित //True Copy// उप/सहायक उप सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अिधकरण मुंबई / ITAT, Mumbai
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