ADIT, Hyderabad v. AP Industrial Infrastructure Corpn Ltd, Hyderabad

ITA 1472/HYD/2010 | 2003-2004
Pronouncement Date: 22-11-2011 | Result: Dismissed

Appeal Details

RSA Number 147222514 RSA 2010
Bench Hyderabad
Appeal Number ITA 1472/HYD/2010
Duration Of Justice 11 month(s) 26 day(s)
Appellant ADIT, Hyderabad
Respondent AP Industrial Infrastructure Corpn Ltd, Hyderabad
Appeal Type Income Tax Appeal
Pronouncement Date 22-11-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 22-11-2011
Assessment Year 2003-2004
Appeal Filed On 26-11-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B' HYDERABAD BEFORE SHRI CHANDRA POOJARI ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHAVAN JUDICIAL MEMBER I .T.A. NO. 1471/HYD/2010 : ASSESSMENT YEAR : 2007-08 I .T.A. NO. 1472/HYD/2010 : ASSESSMENT YEAR : 2003-04 ADIT(E)-III HYDERABAD VS. A.P. INDUSTRIAL INFRASTRUCTURE CORPORATION LTD. HYDERABAD GIR NO. A-268 APPELLANT RESPONDENT APPELLANT BY: SMT. K. MYTHILI RANI RESPONDENT BY: SHRI B. SATYANARAYANA MURTHY DATE OF HEARING: 22.11.2011 DATE OF PRONOUNCEMENT: 22.11.2011 O R D E R PER CHANDRA POOJARI AM: THESE TWO APPEALS BY THE REVENUE ARE DIRECTED AGAIN ST THE DIFFERENT ORDERS OF THE CIT(A)-IV HYDERABAD DATED 15.09.2010 FOR THE ASSESSMENT YEARS 2007-08 AND 2003-04. SINCE COMMON GROUNDS ARE INVO LVED IN BOTH THESE APPEALS THE SAME WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. THE REVENUE RAISED THE FOLLOWING COMMON GROUNDS IN THESE APPEALS: 1. THE CIT(A) FAILED TO APPRECIATE THAT ASSESSEE IS NOT A CHARITABLE INSTITUTION WITHIN THE MEANING OF SEC. 2(15) OF THE I.T. ACT. IT IS DOING BUSINESS OF DEVELOPMENT OF INDUSTRIAL ESTATES CREATING INFRASTRUCTURE AND EITHER SELL THEM OR LEASE OUT TO ENTREPRENEURS FOR CONSIDERATION. 2. THE CIT(A) FAILED TO APPRECIATE THAT THE ASSESSE E HAS VIOLATED THE PROVISIONS OF SEC. 13 OF THE I.T. ACT AS UNDER: (I) THE ASSESSEE HAS INVESTED OR CONTINUES TO HAVE INVESTED CERTAIN PART OF ITS INCOME OR THE FUNDS IN OTHER COMPANIES WHICH ARE NOT STATUTORY COMPANIES OR GOVT . COMPANIES AS DEFINED U/S. 617 OF THE COMPANIES ACT. (II) IN THE MEMORANDUM OF ARTICLES OF ASSOCIATION THERE IS A CLAUSE TO THE EFFECT THAT THE DIVIDENDS BE DECLARED AS PER THE BOARD'S RESOLUTION. I.T.A. NOS. 1471 & 1472/HYD/2010 A.P. INDUSTRIAL INFRASTRUCTURE CORPN. LTD. ============================== 2 3. AFTER HEARING BOTH THE PARTIES WE ARE OF THE OP INION THAT SIMILAR ISSUE WAS CONSIDERED BY THIS TRIBUNAL IN ASSESSEES OWN CASE FOR A.Y. 2005-06 IN I.T.A. NO. 1457/HYD/2008 VIDE ORDER DATE D 18.12.2008 AND FOR THE A.Y. 2006-07 IN I.T.A. NO. 850/HYD/2009 VIDE OR DER DATED 9 TH JULY 2010 AND THE TRIBUNAL HELD THAT THE ASSESSEE IS ENTITLED TO EXEMPTION U/S. 11 OF THE ACT AND DECIDED THE ISSUE IN FAVOUR OF THE ASSE SSEE. . 4. IN VIEW OF THE ABOVE PRECEDENTS WE ARE INCLINED TO FOLLOW THE SAME RATIO LAID DOWN BY THE ABOVE ORDERS OF THE TRIBUNAL . ACCORDINGLY THE GROUNDS RAISED BY THE REVENUE ARE DISMISSED. 5. IN THE RESULT BOTH THE APPEALS OF THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 22 ND NOVEMBER 2011. SD/ - (ASHA VIJAYARAGHAVAN) JUDICIAL MEMBER SD/ - (CHANDRA POOJARI) ACCOUNTANT MEMBER HYDERABAD DATED THE 22 ND NOVEMBER 2011 COPY FORWARDED TO: 1. THE ASST. DIRECTOR OF INCOME-TAX (EXEMPTIONS)-II I ROOM NO. 308 3 RD FLOOR AAYAKAR BHAVAN BASHEERBAGH HYDERABAD-500 004. 2. A.P. INDUSTRIAL INFRASTRUCTURE CORPORATION LTD. 5-9-58/13 FATEH MAIDAN ROAD PARISHRAM BHAVAN BASHEERBAGH HYDERAB AD. 3. THE CIT(A)-IV HYDERABAD. 4. THE DIT(E) HYDERABAD. 5. THE DR B BENCH ITAT HYDERABAD TPRAO