Tamilnadu Pollution Control Board, CHENNAI v. DCIT (Exemptions), CHENNAI

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : CHENNAI BEFORE SHRI GEORGE MATHAN JUDICIAL MEMBER & S HRI S.JAYARAMAN ACCOUNTANT MEMBER ./ I.T.A.NOS.738 739 740 741 & 742 /CHNY/2018 / ASSESSMENT YEARS : 2009-10 2010-11 2011-12 201 1-12 & 2012-13 TAMIL NADU POLLUTION CONTROL BOARD REP. BY ITS MEMBER SECRETARY 76 MOUNT SALAI GUNIDY CHENNAI 600 032. VS. THE DEPUTY COMMISSIONER OF INCOME TAX(EXEMPTIONS) CHENNAI 600 101. [PAN AAALT 0344 G ] ( / APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR.R.VIJAYARAGHAVAN ADVOCATE !' /RESPONDENT BY : MR.S.BHARATH C.I.T. D.R & / DATE OF HEARING : 11 - 11 - 201 9 & / DATE OF PRONOUNCEMENT : 11 - 11 - 201 9 / O R D E R PER GEORGE MATHAN JUDICIAL MEMBER THESE FIVE APPEALS ARE FILED BY THE ASSESSEE AGAI NST THE CONSOLIDATED ORDER OF THE COMMISSIONER OF INCOME-T AX (APPEALS)-17 CHENNAI IN ITA NO.94 95/16-17 167/15-16 & 96/16-1 7 DATED 27.12.2017 FOR THE ASSESSMENT YEARS 2009-10 TO 201 2-13. ITA NOS.738 TO 742/CHNY/2018 :- 2 -: 2. SHRI R.VIJAYARAGHAVAN REPRESENTED ON BEHALF OF THE ASSESSEE AND SHRI AR.V.SREENIVASAN REPRESENTED ON BEHALF OF THE REVENUE. 3. SINCE THE ISSUES RAISED IN ALL THESE APPEALS OF ASSESSEE ARE INTERCONNECTED THESE APPEALS ARE HEARD TOGETHER AN D DISPOSE OF BY THIS COMMON ORDER. 4. IT WAS SUBMITTED BY THE LD.AR THAT THE ASSESSEE IS A BOARD CONSTITUTED U/S.4 OF THE WATER (PREVENTION AND CONT ROL OF POLLUTION) ACT 1974. IT WAS A SUBMISSION THAT THE ASSESSEE IS A BOARD OF THE STATE GOVERNMENT WHICH COLLECTS FEES FROM THE VARI OUS INDUSTRIAL UNITS COMING UNDER THE PROVISIONS OF WATER (PREVENTION AN D CONTROL OF POLLUTION) ACT 1981. THE ASSESSEE ALSO RECEIVES GR ANTS FROM THE CENTRAL POLLUTION CONTROL BOARD FOR APPLICATION TOW ARDS SPECIFIC PURPOSE AS SET OUT BY THE BOARD. THE WHOLE INCOME OF ASSESS EE IS APPLIED TOWARDS THE OBJECT OF THE BOARD FOR PUBLIC UTILITY PURPOSES AND THE SURPLUS AMOUNTS ARE HELD IN THE FORM OF BANK DEPOSI T FOR FUTURE APPLICATION TOWARDS THE OBJECTS OF THE BOARD. IT WA S SUBMITTED THAT TILL 01.04.2003 THE INCOME OF ASSESSEE WAS TOTALLY EXEM PT U/S.10(20) OF THE INCOME TAX ACT 1961 (IN SHORT THE ACT). THE ASSESSEE HAD MADE AN APPLICATION DATED 23.08.2004 FOR GRANT OF EXEMPT ION U/S.10(23)(IV) OF THE ACT IN FORM 56 ALONG WITH COPIES OF THE AUDI TED ACCOUNTS FOR THE PRECEDING LAST THREE YEARS. IT WAS A SUBMISSION THA T THE ASSESSEE WAS TO GET THE REGISTRATION BUT NO NOTIFICATION U/S.10 (23)(IV) OF THE ACT WAS ITA NOS.738 TO 742/CHNY/2018 :- 3 -: ISSUED FOR GRANTING EXEMPTION UNDER THE ACT. CONSE QUENTLY THE ASSESSMENT ORDER PERTAINING TO RELEVANT ASSESSMENT YEARS WAS PASSED BY ISSUE OF NOTICE U/S.147 OF THE ACT AND THE RECEI PT OF THE ASSESSEE WAS TREATED AS TAXABLE. THE ASSESSEE HAD MADE AN AP PLICATION TO THE CBDT WHICH CAME TO BE DISPOSED OFF ON 10.03.2017 A ND SUBSEQUENTLY ON 27.12.2018 THE ASSESSEE HAD FILED A WRIT PETITI ON (W.P) NO.6281 OF 2019 BEFORE THE HONBLE JURISDICTIONAL HIGH COURT A ND THE SAME WAS PENDING FOR DISPOSAL. IT WAS A SUBMISSION THAT THE ISSUE OF GRANT OF EXEMPTION BY ISSUING OF NECESSARY NOTIFICATION GRAN TING THE ASSESSEE EXEMPTION U/S.10(23)(IV) OF THE ACT WAS PENDING BEF ORE THE HONBLE JURISDICTIONAL HIGH COURT. IT WAS A PRAYER THAT THE ASSESSEE HAD NO OBJECTION IF THE ISSUES IN THE APPEALS OF THE ASSE SSEE MAY BE RESTORED TO THE FILE OF ASSESSING OFFICER FOR RE-ADJUDICATIO N AFTER THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT IN W.P NO.628 1 OF 2019. 5. IN REPLY THE LD.DR SUBMITTED THAT HE HAD NO OB JECTION IF THE ISSUES IN THESE APPEALS WERE RESTORED TO THE FILE O F ASSESSING OFFICER FOR RE-ADJUDICATION AFTER THE DECISION OF THE HONB LE JURISDICTIONAL HIGH COURT IN RESPECT OF W.P NO.6281 OF 2019. 6. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. AS IT IS NOTICED THAT THE W.P NO.6281 OF 2019 WHEREIN THE ASSESSEE HAS SOUGHT EXEMPTION U/S. 10(23)(IV) OF THE ITA NOS.738 TO 742/CHNY/2018 :- 4 -: ACT IS STILL PENDING BEFORE THE HONBLE JURISDICTI ONAL HIGH COURT AND AS IT IS NOTICED THAT THE DECISION OF THE HONBLE JURI SDICTIONAL HIGH COURT IN W.P REFERRED TO SUPRA FILED BY THE ASSESSEE WOU LD HAVE DIRECT BEARING IN THE OUTCOME OF THE GRANT OF EXEMPTION IN THE ASSESSEES CASE IN THE INTEREST OF NATURAL JUSTICE THE ISSUE S IN THE APPEALS OF THE ASSESSEE ARE RESTORED TO THE FILE OF ASSESSING OFFI CER FOR RE-ADJUDICATION AFTER CONSIDERING THE DIRECTIONS IS SUED BY THE HONBLE JURISDICTIONAL HIGH COURT IN THE W.P FILED BY THE A SSESSEE 7. IN THE RESULT ALL THE FIVE APPEALS FILED BY TH E ASSESSEE FOR ASSESSMENT YEARS 2009-10 2010-11 2011-12 2011-12 & 2012-13 ARE PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT AFTER CONCLUSIO N OF HEARING ON 11 TH NOVEMBER 2019 AT CHENNAI. SD/- SD/- ( ) (S. JAYARAMAN) # /ACCOUNTANT MEMBER ( ) (GEORGE MATHAN) $ # / JUDICIAL MEMBER / CHENNAI * / DATED: 11 TH NOVEMBER 2019. K S SUNDARAM ! - .- / COPY TO: 1 . / APPELLANT 3. / () / CIT(A) 5. - !4 / DR 2. !' / RESPONDENT 4. / / CIT 6. / GF