2012 (12) TMI 1090 - AT - Income Tax

Summary

Issues involved:
The common issue in the appeals filed by Krishi Upaj Mandi Samiti's of Sriganganagar, Gajsinghpur, Padampur, and Raisinghnagar pertains to the claim of exemption u/s 11(1)(a) of the Income Tax Act.

Issue 1: Claim of exemption u/s 11(1)(a) of the Act

The appeal by Krishi Upaj Mandi Samiti [Grain], Sriganganagar, against the order of the ld. CIT(A) dated 30.6.2011 for A.Y. 2008-09 involved a claim of exemption u/s 11(1)(a) of the Act. The samiti's income was exempt u/s 10(20) until A.Y. 2002-03, but became taxable post an amendment by the Finance Act, 2002. The samiti, registered u/s 12A, filed its Return of Income for A.Y. 2008-09 on 22.9.2009 declaring NIL income, later revising it on 25.9.2009 as a Charitable Trust. Notably, an excess expenditure of &8377; 42,46,504/- was incurred out of surplus in the Public Deposit Account [P.D. A/c].

The issue in this appeal and others was found to be covered in favor of the appellants by a decision of the Bench dated 1.9.2009. The decision clarified that the power of the appellate authority, including the ld. CIT(A), to entertain a new claim for deduction is not limited by the powers of the assessing authority. The judgment emphasized that the ld. CIT(A) can entertain a claim for deduction made before him without the need for a revised return. The facts in other cases were similar, with the only difference being in the figures of receipts and expenditure.

The issues in all the appeals were found to be squarely covered by a Jodhpur Bench decision rendered in ITA No. 385/JU/2009. Consequently, all the appeals of the assessees were allowed, following the Tribunal order. The order was pronounced in the Court on 04th December 2012.