The ACIT, Circle-1(1),, Visakhapatnam v. M/s Visakhapatnam Dock Labour Board,, Visakhapatnam

ITA 485/VIZ/2006 | 1998-1999
Pronouncement Date: 05-01-2011 | Result: Dismissed

Appeal Details

RSA Number 48525314 RSA 2006
Assessee PAN AAAAV1409R
Bench Visakhapatnam
Appeal Number ITA 485/VIZ/2006
Duration Of Justice 4 year(s) 1 month(s) 1 day(s)
Appellant The ACIT, Circle-1(1),, Visakhapatnam
Respondent M/s Visakhapatnam Dock Labour Board,, Visakhapatnam
Appeal Type Income Tax Appeal
Pronouncement Date 05-01-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted DB
Tribunal Order Date 05-01-2011
Assessment Year 1998-1999
Appeal Filed On 04-12-2006
Judgment Text
ITA NOS.485 & 486 OF 2006 VISAKHAPATNAM DOCK LABOUR B OARD VISAKHAPATNAM U-S 11 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV JUDICIAL MEMBER AND SHRI BR BASKARAN ACCOUNTANT MEMBER ITA NO S . 485 & 486 /VIZAG/20 06 ASSESSMENT YEAR S : 1998 - 99 & 2003 - 04 A .C.I.T. CIRCLE - 1(1) VISAKHAPATNAM VS. VISAKHAPATNAM DOCK LABOUR BOARD VISAKHAPATNAM (APPELLANT) (RESPONDENT) PAN NO:AAAAV 1409 R APPELLANT BY: SHRI T.L. PETER DR RESPONDENT BY: SHRI C.V.S. MURTHY CA ORDER PER SHRI B. R. BASKARAN ACCOUNTANT MEMBER: BOTH THE APPEALS OF THE REVENUE ARE DIRECTED AGAIN ST THE ORDERS OF LEARNED CIT (A)-1 VISAKHAPATNAM AND THEY RELATE TO THE ASSESSMENT YEARS 1998-99 AND 2003-04. 2. IN THESE TWO APPEALS THE REVENUE IS CHALLENGING THE DECISION OF THE LEARNED CIT (A) IN DIRECTING THE ASSESSING OFFI CER TO ALLOW DEDUCTION OF PAYMENT MADE TOWARDS PENSION GRATUITY ETC. TO R ETIRED EMPLOYEES. 3. THE LEARNED AUTHORISED REPRESENTATIVE SUBMITTED THAT THE PRESENT APPEALS OF THE REVENUE DO NOT SURVIVE IN THE EYES O F LAW IN VIEW OF THE ORDER OF THIS TRIBUNAL PASSED ON 17-8-2010 IN THE H ANDS OF THE ASSESSEE AGAINST THE APPEALS FILED BY THE ASSESSEE FOR THE V ERY SAME TWO YEARS UNDER CONSIDERATION. THE LEARNED AUTHORISED REPRESE NTATIVE ALSO PLACED A COPY OF THE ORDER OF THE TRIBUNAL CITED ABOVE. TH E LEARNED ITA NOS.485 & 486 OF 2006 VISAKHAPATNAM DOCK LABOUR B OARD VISAKHAPATNAM U-S 11 PAGE 2 OF 3 DEPARTMENTAL REPRESENTATIVE ALSO AGREED WITH THE VI EWS OF THE LEARNED A.R. 4. WE HAVE GONE THROUGH THE SAID ORDER. WE STATE TH E FACTS RELATING TO THE CASE BRIEFLY. THE ASSESSEE FILED ITS RETURN OF INCOME CLAIMING EXEMPTION UNDER SECTION 11 OF THE ACT UNDER THE STA TUS ASSOCIATION OF PERSONS-TRUST. IT HAD BEEN GRANTED REGISTRATION U NDER SECTION 12A OF THE ACT BY THE LEARNED CIT ON 22.8.1988. HOWEVER THE ASSESSING OFFICER DENIED EXEMPTION CLAIMED BY THE ASSESSEE UN DER SECTION 11 OF THE ACT BY HOLDING THAT THE ACTIVITIES OF THE ASSES SEE ARE NOT CHARITABLE IN NATURE. ACCORDINGLY THE ASSESSING OFFICER COMPUTED THE TOTAL INCOME OF THE ASSESSEE IN ACCORDANCE WITH THE PROVISIONS OF T HE ACT WHICH ARE APPLICABLE TO NON-CHARITABLE ORGANIZATIONS. THE AS SESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LEARNED CIT(A) WHERE I T GOT PARTIAL RELIEF. AGGRIEVED BY THE ORDER OF LEARNED CIT(A) BOTH THE P ARTIES FILED APPEALS BEFORE THE TRIBUNAL. THE TRIBUNAL VIDE ITS ORDER DATED 17-8-2010 DISPOSED OF THE APPEALS FILED BY THE ASSESSEE WHERE IN IT WAS HELD THAT THE ACTIVITIES CARRIED ON BY THE ASSESSEE ARE CHARI TABLE IN NATURE AND THE ASSESSING OFFICER WAS DIRECTED TO GRANT EXEMPTION UNDER SECTION 11 TO THE ASSESSEE. THUS IN EFFECT THE ORDERS OF LEARNE D CIT(A) AGAINST WHICH THE REVENUE HAS PREFERRED THE PRESENT APPEALS HAVE BEEN SET ASIDE. HENCE THE LEARNED A.R HAS CONTENDED THAT THE PRESEN T APPEALS OF THE REVENUE HAVE BECOME INFRUCTUOUS. 5. LEARNED AUTHORISED REPRESENTATIVE ALSO PLACED A COPY OF CONSEQUENTIAL ORDER DATED 29-9-2010 PASSED IN THE H ANDS OF THE ASSESSEE FOR THE ASSESSMENT YEAR 2003-04 BY GIVING EFFECT TO THE ORDER OF THE TRIBUNAL CITED ABOVE; WHEREIN THE ASSESSING OFFICER HAS GRANTED EXEMPTION UNDER SECTION 11 OF THE ACT TO THE ENTIRE INCOME OF THE ITA NOS.485 & 486 OF 2006 VISAKHAPATNAM DOCK LABOUR B OARD VISAKHAPATNAM U-S 11 PAGE 3 OF 3 ASSESSEE. THE LEARNED AUTHORISED REPRESENTATIVE SUB MITTED THAT SIMILAR ORDER WOULD HAVE BEEN PASSED FOR THE ASSESSMENT YEA R 1998-99 ALSO. IN VIEW OF THE FOREGOING DISCUSSIONS WE AGREE WITH TH E CONTENTIONS OF THE LEARNED A.R THAT THE INSTANT APPEALS OF THE REVENUE HAVE BECOME INFRUCTUOUS. 7. ACCORDINGLY BOTH THE APPEALS OF THE REVENUE ARE DISMISSED. PRONOUNCED IN THE OPEN COURT ON 5 TH JANUARY 2011. SD/- SD/- (SUNIL KUMAR YADAV) (B R BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM DATE: 05-01- 2011 COPY TO 1 THE ACIT CIRCLE - 1 (1) VISAKHAPATNAM 2 M/S VISAKHAPATNAM DOCK LABOUR BOARD PORT AREA VIS AKHAPATNAM 3 4. THE CIT I VISAKHAPATNAM THE CIT(A)-I VISAKHAPATNAM 5 THE DR ITAT VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM