Income Tax Appellate Tribunal - Mumbai
Confederation Of Real Estate ... vs Acit (Exem)-1(1), Mumbai on 22 November, 2019
IN THE INCOME TAX APPELLATE TRIBUNAL
MUMBAI BENCH "C", MUMBAI
BEFORE SHRI SHAMIM YAHYA, HON'BLE ACCOUNTANT MEMBER &
SHRI C.N. PRASAD, HON'BLE JUDICIAL MEMBER
S.A.NO.436/MUM/2019
[ARISING OUT OF ITA NO.6896/MUM/2019 (A.Y:2016-17)]
Confederation of Real Estate Developers v. Asst. CIT (Exemptions)
Association of India Circle - 1(1)
5th Floor, PHD House Mumbai
4/2 Siri Institutional Area, August Kranti Marg
New Delhi - 110016
PAN: AABCC4354M
(Appellant) (Respondent)
Assessee by : Shri Jitendra Jain &
Shri Sachin Romany
Revenue by : Shri Satya Pinisetty
Date of Hearing : 22.11.2019
Date of Pronouncement : 22.11.2019
ORDER
PER C.N. PRASAD (JM)
1. Through this Stay Application assessee is seeking stay of outstanding demand of ₹.1,75,94,493/- for the A.Y. 2016-17.
2. Ld. Counsel for the assessee submitted that assessee is a section 25 company formed with the following objects: - 2
S.A.NO.436/MUM/2019 Confederation of Real Estate Developers Association of India
(a). Advocacy on issues related to Central Government and Policies for Real Estate.
(b). Providing a platform for learning and discourse on Real Estate.
(c). Enhancing image and reputation of Real Estate developers through Skill Development, Solid Waste Management, Consumer Grievance Redressal, Promotion of environmentally sustainable development, etc.,
(d). Promotion of fraternity among real estate developers by increasing the size and reach of Application as an association.
3. Ld. Counsel for the assessee submits that Assessing Officer has denied the exemption u/s. 11 of the Act by relying on the proviso to section 2(15) of the Act which states that if the receipts from activities in the nature of trade etc., exceeds the prescribed limit then it ceases to be a charitable purpose. It is submitted that Assessing Officer raised demand of ₹.2.19 Crores consisting of Tax of ₹.1.69 Crores and interest of ₹.0.49 Crores and the assessee has paid ₹.0.44 Crores while the appeal was pending before the Ld.CIT(A). It is submitted that the balance outstanding is ₹.1.75 Crores.
4. The Ld. Counsel for the assessee further submitted that the Assessing Officer himself has admitted that the assessee is a mutual organization, however, he has taxed the total receipts of the assessee during the year. Ld. Counsel for the assessee submitted that without admitting and for the sake of argument that even if the Assessing Officer's 3 S.A.NO.436/MUM/2019 Confederation of Real Estate Developers Association of India stand that the assessee is a mutual concern is accepted the tax liability works out to ₹.0.64 Crores as against which assessee has already paid ₹.0.44 Crores. It is further submitted that an amount of ₹.0.69 Crores is due as refund for the A.Ys. 2010-11 to 2013-14 and therefore, the Revenue is more than 100% protected.
5. Ld. Counsel for the assessee submitted that the claim for exemption has been allowed post insertion of proviso to section 2(15) for the A.Y. 2010-11 to A.Y. 2013-14 and the assessment orders passed u/s.143(3) of the Act are annexed from Page Nos. 10 to 26 of the stay petition. It is also submitted that the issue in appeal is more or less settled by series of judgments by various Hon'ble High Courts and the Mumbai Tribunal. Thus, it is submitted that the assessee has a prima facie case in its favour and balance of convenience lies in its favour therefore requested for absolute stay of outstanding demand.
6. On the other hand, Ld. DR has opposed for granting stay of outstanding demand.
7. On hearing both the sides, the Bench on pointing out to the Ld.Counsel for the assessee that an early hearing will be granted, it is accepted for granting early hearing. It is further submitted that the appeal 4 S.A.NO.436/MUM/2019 Confederation of Real Estate Developers Association of India for the A.Y. 2014-15 on identical issue is scheduled for hearing on 09.01.2020 in the very same Bench. Taking the totality of facts into consideration, we grant early hearing to the assessee by taking the appeal out of turn. The Registry is directed to post the appeal for early hearing on 09.01.2020 along with the appeal for the A.Y.2014-15. Since the date of posting of appeal has been intimated in the open court we waive service of notice to parties.
8. Stay Petition is disposed off in the terms specified above.
Order pronounced in the open court on the 22nd November, 2019 Sd/- Sd/-
(SHAMIM YAHYA) (C.N. PRASAD)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Mumbai / Dated 22/11/2019
Giridhar, Sr.PS
Copy of the Order forwarded to:
1. The Appellant
2. The Respondent.
3. The CIT(A), Mumbai.
4. CIT
5. DR, ITAT, Mumbai
6. Guard file.
//True Copy//
BY ORDER,
(Asstt. Registrar)
ITAT, Mum