Income Tax Appellate Tribunal - Chandigarh
The Tribune Trust, Chandigarh vs The Commissioner Of Tncome ... on 13 November, 2017
1
IN THE INCOME TAX APPELLATE TRIBUNAL
CHANDIGARH BENCHES 'B', CHANDIGARH
BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER &
Dr. B.R.R. KUMAR, ACCOUNTANT MEMBER
ITA Nos. 660 & 661/Chd/2017
Assessment Years: 2010-11 & 2011-12
The Tribune Trust, Vs. The CIT (Exemptions),
Sector 29-C, Chandigarh
Chandigarh
PAN No. AAATT2141D
(Appellant) (Respondent)
Appellant By : Sh. Tej Mohan Singh
Respondent By : Sh. Ravi Sarangal
Date of hearing : 24.08.2017
Date of Pronouncement : 13.11.2017
ORDER
Per Sanjay Garg, Judicial Member:
The present appeals have been preferred by the assessee against the separate orders of the Commissioner of Income Tax (Exemptions), [hereinafter referred to as CIT(E)], Chandigarh dated 30.03.2017 passed u/s 263(1) of the Income-tax Act, 1961 (in short 'the Act') agitating the assumption of revision jurisdiction by the Ld. CIT(E).
2. Since the issue involved in both the appeals is identical, these have been heard together and are being disposed of by this common order. For the sake of convenience, the facts are taken from ITA No. 660/Chd/2017. 2
3. The brief facts of the case are that the assessee is a trust and involved into printing and distribution of newspapers in the name of Tribune. The assessee Trust has been notified by Central Board of Direct Taxes for exemption u/s 10(23C)(iv) vide notification No. 60/2007 in file No. 197/67/2006-ITA-l dated 28.02.2007 and was availing the benefits of exemptions since 1984-85. The said notification emanated from a decision of the Privy Council in the case of the assessee holding the assessee to be eligible for the tag as a trust pursuing advancement of any other object of general public utility. Assessee had filed income tax return for assessment year 2010-11 in ITR-7 on 11.10.2010 and claimed Net loss of Rs. 8,73,15.662/- in the said return. While framing the assessment order for A.Y. 2010-11, the then Assessing Officer accepted the returned loss of Rs. 8,73,15.662/- vide order dated 29.11.2012.
The Ld. CIT(E), however, observed that the Assessing officer had decided the matter accepting the assessee's contention without going deep into the issues involved and examining the veracity of the facts. Pursuant to the amendment in the Act in 2009, (w,e,f. 01.04.2009 relevant to Asstt.Year 2009-10 onwards), particularly in reference to the trusts claiming to pursue 'advancement of any other object of general public utility', it was incumbent upon the assessing officer to examine whether the assessee still qualified for being labeled as an entity pursuing 'charitable purposes' and to that extent for exemption under sections 10(23C)(iv), 11 and 12 of the I.T. Act, 1961. The case required in depth scrutiny and inquiries which were not brought out from the records of the assessment proceedings. He, therefore, exercising his revision jurisdiction u/s 263 of 3 the Act, issued show cause notice to the assessee trust on 30.1.2015. The assessee went to Hon'ble Punjab & Haryana High Court in CWP No. 2902. The High Court had stayed the show cause proceedings vide order dated 20.02.2015. Subsequently, the Hon'ble Court has decided the case in favour of revenue in ITA No. 62, dated 23.12.2016 for assessment year 2009-10 in case of assessee. The Hon'ble Court has held that assessee is engaged into printing and distribution of newspapers and earning huge profits from the advertisement income and is hit by the proviso of section 2(15) of I.T. Act. Exemption is not allowable in the case even since it doesn't qualif y for being pursuing 'charitable purpose' even though it ma y be pursuing 'advancement of any other object of general public utility' because of its activities being held to be in the nature of trade, business or commerce. In sync with its own findings in the case relevant to assessment year 2009-10, the Hon'ble High Court subsequently vacated the stay under CWP No. 2902, dated-24.01.2017 for A.Y. 2010-. Following up on this vacation of stay orders, the Ld. CIT (E) issued another show cause notice to the assessee on 9.3.2017 and after detailed discussion of the matter and relying upon the decision of the Hon'ble Punjab & Haryana High Court in the case of ITA No. 62 dated 23.12.2016 held that the assessee trust was not entitled to exemption as its activates did not get covered under the lable of charitable purposes. He, therefore, held the order of the Assessing officer was erroneous and prejudicial to the interest of Revenue and accordingly set aside the same and restored the matter to the file of the Assessing officer for assessment afresh.
4. We have heard the Ld. Representatives of both the parties. Though, the Ld. AR of the assessee has contended that the assumption of 4 jurisdiction by the Ld. CIT(E) was wrong and illegal, however, we are convinced with the arguments of the Ld. DR that the CIT(A) has rightly exercised his jurisdiction u/s 263 in this case. The Ld. CIT(A) has relied upon the various case laws and also the decision of the Hon'ble Jurisdictional High Court in the own case of the assessee wherein the Hon'ble High Court has held that the activities of the assessee trust cannot be said to be for charitable purposes, as per the provisions of section 2(15) of the Act, the same being hit by the proviso to section 2(15) of the Act. He has further held that the jurisdiction u/s 263 of the Act can be exercised where it is found that the assessment order was passed on wrong assumption of facts or incorrect application of law or without due application of mind making the order erroneous so far as prejudicial to the interest of the Revenue. We, therefore, do not find any merit in this appeal and the same is accordingly dismissed.
5. Since the facts and issue involved in both the appeals are identical, both the appeals of the assessee are hereby dismissed.
Order pronounced in the Open Court on 13.11.2017
Sd/- Sd/-
(Dr. B.R.R. KUMAR) (SANJAY GARG)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Dated : 13 t h Nov., 2017
Rkk
Copy to:
1. The Appellant
2. The Respondent
3. The CIT
4. The CIT(A)
5. The DR
5