Sports Authority of India,, New Delhi v. ITO(E), New Delhi

MA 152/DEL/2010 | 2003-2004
Pronouncement Date: 14-05-2010 | Result: Allowed

Appeal Details

RSA Number 15220124 RSA 2010
Assessee PAN AACTS4979C
Bench Delhi
Appeal Number MA 152/DEL/2010
Duration Of Justice 11 day(s)
Appellant Sports Authority of India,, New Delhi
Respondent ITO(E), New Delhi
Appeal Type Miscellaneous Application
Pronouncement Date 14-05-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted F
Tribunal Order Date 14-05-2010
Assessment Year 2003-2004
Appeal Filed On 03-05-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F NEW DELHI BEFORE SHRI R.P. TOLANI JUDICIAL MEMBER AND SHRI K .G. BANSAL ACCOUNTANT MEMBER M.A. NO.149 150 151 & 152/D/2010 (I.T.A. NOS.3145 3146 2223 & 2224/D/2009) ASSESSMENT YEARS: 2004-05 2005-06 2002-03 & 2003- 04 RESPECTIVELY. M/S SPORTS AUTHORITY OF INDIA VS. INCOME TAX OFF ICER (E) JAWAHAR LAL NEHRU STADIUM TRUST WARD-II LODHI ROAD NEW DELHI NEW DELHI (APPELLANT) (RESPONDENT) PAN NO.AACTS 4979C ASSESSEE BY : S/SHRI KAANAN KAPUR & Y.K . KAPUR ADVOCATE RESPONDENT BY : SHRI MANISH GUPTA SR. DR ORDER PER K.G. BANSAL: AM: THESE FOUR MISCELLANEOUS APPLICATIONS WERE ARGUED B Y THE LEARNED COUNSEL FOR THE ASSESSEE AND THE LEARNED DR IN A CONSOLIDATED MANNER AS COMMON ISSUES ARE INVOLVED. THEREFORE A CONSOLIDATED ORDER IS PASSED. M.A. NO.151/D/2010 ASSESSMENT YEAR 2002-03 2. IN THIS CASE THE TRIBUNAL HAD PASSED A CONSOLID ATED ORDER FOR ASSESSMENT YEARS 2002-03 AND 2003-04 ON 18.12.2 009 IN WHICH THE CROSS APPEALS WERE DISMISSED ON ACCOUNT O F THE ABSENCE OF APPROVAL FROM THE COD. THE ASSESSEE APP LIED FOR 2 RESTORATION OF ITS APPEAL BY FILING A MISCELLANEOUS APPLICATION U/S 254(2) ON 03.05.2010. THIS APPLICATION WAS ACCOMPA NIED BY AN AFFIDAVIT OF SHRI H.S. KINGRA EXECUTIVE DIRECTO R (FINANCE) DATED 02.04.2010 AND A COPY OF THE MINUTES OF THE M EETING HELD IN CABINET SECRETARIAT ON 08.12.2009. IN THE COURSE OF HEARING BEFORE US IT WAS SUBMITTED THAT THE COD HA S GRANTED THE PERMISSION TO THE ASSESSEE TO PROSECUTE THE APP EAL IN RESPECT OF ONE GROUND. ACCORDINGLY IT WAS ARGUED T HAT THE APPEAL OF THE ASSESSEE MAY BE RESTORED IN RESPECT O F THIS GROUND. IN REPLY THE LEARNED DR HAD NO OBJECTION TO THE RESTORATION OF THE APPEAL FOR DECIDING IT IN RESPEC T OF THE GROUND PERMITTED TO BE RAISED BY THE COD. HOWEVER HE COU LD NOT MAKE ANY SUBMISSION IN RESPECT OF THE APPEAL OF THE REVENUE FOR THIS YEAR. IN VIEW OF THE AFORESAID THE APPEA L OF THE ASSESSEE IS RESTORED FOR DECIDING THE FOLLOWING GRO UND ON MERIT:- THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LEARNED CIT(A) ERRED IN TREATING TH E GRANT- IN-AID AS TAXABLE INCOME AS GRANTS ARE NOT INCOMES FALLING WITHIN THE SCOPE OF SECTION 2(24). 3 M.A. NO.152/D/2010 ASSESSMENT YEAR : 2003-04 3. THE FACTS IN RESPECT OF THIS APPLICATION ARE IDE NTICAL WITH THE FACTS IN MA NO.151/D/2010. THE SUBMISSIONS OF BOTH THE PARTIES WERE ALSO THE SAME. THEREFORE FOLLOWING T HE AFORESAID ORDER THE ASSESSEE IS PERMITTED TO AGITATE THE FOL LOWING GROUND ON MERIT BEFORE THE TRIBUNAL:- THAT THE LEARNED CIT(A) ERRED IN TREATING THE GRAN T-IN-AID AS TAXABLE INCOME AS GRANTS ARE NOT INCOMES FALLIN G WITH THE SCOPE OF SECTION 2(24). MA NO.149/D/2010 ASSESSMENT YEAR 2004-05 4. IN THIS CASE THE TRIBUNAL HAD PASSED A CONSOLID ATED ORDER ON 08.09.2009 IN WHICH THE APPEALS WERE DISMISSED FOR NON- PROSECUTION. THE ASSESSEE FILED A MISCELLANEOUS AP PLICATION ON 03.05.2010 REQUESTING FOR RECALLING THE ORDER ON T HE GROUND THAT THE REPRESENTATIVES OF THE ASSESSEE COULD NOT ATTEND BEFORE THE TRIBUNAL AS THEY WERE HELD UP IN TRAFFIC CONGES TION. THIS APPLICATION WAS ACCOMPANIED BY THE AFFIDAVIT OF SHR I H.S. KINGRA EXECUTIVE DIRECTOR (FINANCE) DATED 02.02.20 10 AND THE MINUTES OF THE COD DATED 08.12.2009. BEFORE US IT WAS SUBMITTED THAT THE NON-APPEARANCE WAS ON ACCOUNT OF REASONS BEYOND THE CONTROL OF THE ASSESSEE. THEREFORE IT WAS ARGUED 4 THAT THE ORDER MAY BE RECALLED AND THE APPEAL MAY B E DECIDED ON MERITS ON THE GROUND APPROVED BY THE COD. THE L EARNED DR HAD NO OBJECTION TO RECALLING THE ORDER AND FOR DECIDING THE APPEAL ON THE BASIS OF THE GROUNDS APPROVED BY THE COD. IN VIEW THEREOF THE ORDER IS RECALLED. 4.1 THE ASSESSEE SHALL BE ALLOWED TO AGITATE THE GR OUNDS APPROVED BY THE COD WHICH ARE AS UNDER:- THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE CIT(A) ERRED IN:- I) ADDITION OF 40% OF AMOUNT ATTRIBUTE4D FOR THE PERSONAL BENEFIT OF THE OFFICE BEARS. II) ADDITION ON THE ACCUSATION THAT INTEREST ON DEP OSITS ACCRUED WAS NOT ACCOUNTED FOR IS BAD IN LAW. III) DISALLOWANCE OF EMPLOYEE FLAT MAINTENANCE EXPENSES. IV) DISALLOWANCE OF EXPENSES ON ACCOUNT OF NON- DEDUCTION OF TDS ON PAYMENT TO FOREIGN COACHES IS BAD IN LAW AS SECTION 40(A)(III) IS NOT APPLICABLE IN THIS CASE. V) ADDITION ON THE ACCUSATION THAT GRANT IN AID TO THAT EXTENT WAS NOT RECOGNIZED IN THE ACCOUNTS. VI) ADDITION ON ACCOUNT OF THE UNRECOGNIZED ACCRUED INTEREST AND UNRECOGNIZED GRANT. VII) TREATING THE GRANT IN AID AS TAXABLE INCOME A S GRANTS ARE NOT INCOMES FALLING WITH IN THE SCOPE OF SECTION 2(24). MA NO.150/D/2010 ASSESSMENT YEAR 2005-06 5. THE FACTS OF THIS CASE ARE IDENTICAL WITH THE FA CTS IN RESPECT OF MISCELLANEOUS APPLICATION NO.149/D/2010 (SUPRA). 5 THEREFORE FOLLOWING THAT ORDER THE ASSESSEE IS AL LOWED TO CONTEST THE APPEAL ON MERITS IN RESPECT OF THE FOLL OWING GROUND APPROVED BY THE COD:- THE APPELLANT IS FUNDED BY GOVERNMENT OF INDIA GRA NT WHICH IS NOT ANY INCOME AND HENCE NOT LIABLE FOR TA X. INCOME TAX ASSESSMENT AGAINST THE APPELLANT U/S 144 & 143(3) FOR ASSESSMENT YEAR 2005-06 WAS ARBITRARY HENCE BAD IN LAW. 6. IN RESULT ALL THE MISCELLANEOUS APPLICATIONS AR E ALLOWED AS INDICATED ABOVE. THE APPEALS SHALL BE HEARD ON 07. 06.2010 FOR WHICH NO SEPARATE NOTICE SHALL BE ISSUED. ORDER PRONOUNCED IN OPEN COURT ON 14.05.2010. SD/- SD/- ( R.P. TOLANI ) ( K.G. BANSAL ) JUDICIAL MEMBER ACCOUNTANT MEMBER DT. 14.05.2010. NS COPY FORWARDED TO:- 1. M/S SPORTS AUTHORITY OF INDIA JAWAHARLAL NEHRU STADIUM LODHI ROAD NEW DELHI. 2. INCOME TAX OFFICER (E) TRUST WARD-II NEW DELHI 3. THE CIT 4. THE CIT (A)- NEW DELHI. 5. THE DR ITAT LOKNAYAK BHAWAN KHAN MARKET NEW DELHI. TRUE COPY. BY ORDER (ITAT NEW DELHI).