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Income Tax Appellate Tribunal - Lucknow

Kanpur Development Authority, Kanpur vs Astt. Commissioner Of Income Tax-1, ... on 9 February, 2018

            IN THE INCOME TAX APPELLATE TRIBUNAL
                 LUCKNOW BENCH"B", LUCKNOW

          BEFORE SHRI. T.S. KAPOOR, ACCOUNTANT MEMBER
      AND SHRI PARTHA SARATHI CHAUDHURY,JUDICIAL MEMBER

                       M.A. No.87 & 88/LKW/2016
              [Arising out of ITA No.332 & 333/LKW/2013]
                  Assessment Year:2008-09 & 2009-10

Kanpur Development Authority         v.     ACIT-1
Motijheel                                   Kanpur
Kanpur
TAN/PAN:AAALK0324M
(Applicant)                                 (Respondent)

     Applicant by:             Shri Rakesh Garg, Advocate
     Respondent by:            Shri Amit Nigam, D.R.
     Date of hearing:          02 02 2018
     Date of pronouncement:    09 02 2018


                               ORDER

PER T.S.KAPOOR, A.M:

These Miscellaneous Applications preferred by the assessee arise out of the order of the Tribunal dated 11/8/2016 in ITA Nos.332 & 333/LKW/2013.

2. The ld. A.R. of the assessee submitted that in para 7 of its order, the Tribunal has reproduced ground No.3 of the appeal of the assessee for assessment year 2008-09 in ITA No.332/LKW/2013, which reads as under:-

"3. That the learned CIT(A) erred in observing that assessee is not entitled to claim exemption u/s 11 of I.T. Act when registration u/s 12AA of the Act was granted by the CIT(A)-I, Kanpur on 31/03/2006."

M.A. No.87 & 88/LKW/2016Page 2 of 3

3. The Tribunal while deciding the said issue in para 10 has observed as under:-

"10. Respectfully following the said decision of the Tribunal, we hold that the registration u/s 12AA of the Act granted by learned CIT does not grant the assessee a license to claim exemption u/s 11 of the Act. Once the assessee is hit by first proviso to section 2(15) of the Act in view of applicability of section 13(8), the assessee is not entitled to claim exemption u/s 11 of the Act. We, therefore confirm the order of CIT(A) on this issue. Thus, ground No. 3 stands dismissed".

4. Accordingly, the Tribunal has dismissed this ground of appeal. In connection with the same, it is submitted that the Tribunal has held that once assessee is hit by the first proviso to section 2(15) of the Act in view of applicability of section 13(8), the assessee is not entitled to claim exemption under section 11 of the Act. The first proviso to section 2(15) was inserted w.e.f. 1/4/2009 and hence was not applicable for assessment year 2008-09. Thus, for assessment year 2008-09, the law as applicable was to be applied and not the law read with the proviso. Section 13(8) also speaks of the first proviso. Incidentally, the first proviso has also come into existence w.e.f. 1/4/2009. In view of these facts, it was submitted that the finding of the Tribunal in para 10 of its order is contrary to the provisions of the Act and needs to be rectified.

5. The assessee further states that in ITA No.332 & 333/LKW/2013 a compilation of case laws was furnished, the details of which are appearing in the Miscellaneous Application and none of the case laws have been discussed in the appellate order. Therefore, there is a mistake apparent on record, which needs rectification. He, therefore, prayed that in the interest of justice, the order of the Tribunal may be recalled and decided afresh.

M.A. No.87 & 88/LKW/2016Page 3 of 3

6. We have perused the Miscellaneous Application and the order of the Tribunal and on perusal of the same, we find that there is a mistake apparent on record which needs rectification. We, therefore, recall our order dated 11/8/2016 and direct the Registry to fix the appeals for hearing in due course.

7. In the result, both the Miscellaneous Applications of the assessee are allowed.

Order pronounced in the open Court on 09/02/2018.

             Sd/-                                   Sd/-
  [PARTHA SARATHI CHAUDHURY]                    [T.S. KAPOOR]
        JUDICIAL MEMBER                      ACCOUNTANT MEMBER


DATED: 9TH February, 2018
JJ:0502


Copy forwarded to:
       1.   Appellant
       2.   Respondent
       3.   CIT(A)
       4.   CIT
       5.   DR