2022 (5) TMI 1562 - AT - Income Tax

Benefit of exemption u/s. 11 - receipts in the nature of Membership Fees Program Fees Publication Revenue Certificate of Origin Other activities Activities and Prize Fund Entrance Fees Life Membership Fees and Use of facilities etc. - HELD THAT - It is found that the CIT(A) has followed his orders for earlier years in order to allow the benefit to the assessee. Earlier years orders passed by the ld. first appellate authority came up for consideration before the Tribunal. Vide order 2017 (9) TMI 1892 - ITAT PUNE Tribunal for the assessment years 2010-11 and 2011-12 has countenanced the action of the CIT(A) in restoring the benefit of exemption as claimed in the returns. Once again similar issue travelled to the Tribunal for the assessment years 2009-10 and 2012-13. Vide order . 2018 (7) TMI 2313 - ITAT PUNE Tribunal has re-affirmed such decision and dismissed the appeals filed by the Revenue. In view of the fact that the issue raised in this appeal is squarely covered in favour of the assessee by the orders passed in the assessee s own case for earlier years respectfully following the precedents we uphold the impugned order.

Summary

Issues:
1. Applicability of revised monetary limits for filing appeals by the Department in Income-tax Cases.
2. Benefit of exemption u/s. 11 of the Income-tax Act, 1961 for Chamber of Commerce, Industries & Agriculture.

Issue 1 - Applicability of revised monetary limits for filing appeals:
In the judgment, the ITAT Pune considered the applicability of revised monetary limits for filing appeals by the Department in Income-tax Cases. The CBDT had issued circulars revising the monetary limits for filing appeals, with the latest circular setting the limit at Rs. 50.00 lakh. The tax effect in the appeal for A.Y. 2013-14 was found to be less than the revised limit, leading the Tribunal to dismiss the appeal. The CBDT further clarified that the revised limits apply to all pending appeals. The Tribunal emphasized that if the tax effect exceeds the prescribed limit or falls under an exception, the Revenue can request the Tribunal to reconsider the order.

Issue 2 - Benefit of exemption u/s. 11 of the Income-tax Act, 1961:
Regarding the benefit of exemption u/s. 11 for a Chamber of Commerce, Industries & Agriculture for A.Y. 2014-15, the Revenue challenged the direction of the ld. CIT(A) allowing the exemption. The Assessing Officer had disallowed the exemption based on the nature of activities carried out by the assessee, which were deemed to be in the nature of Trade, Commerce, or Business. However, the ld. CIT(A) overturned the assessment order, citing consistency with his decisions for earlier years. The Tribunal noted that previous orders had favored the assessee, upholding the benefit of exemption. The Tribunal referenced specific cases for assessment years 2010-11, 2011-12, 2009-10, and 2012-13 where similar issues were decided in favor of the assessee. Relying on these precedents, the Tribunal upheld the impugned order, dismissing both appeals.

In conclusion, the ITAT Pune addressed the issues of revised monetary limits for filing appeals and the benefit of exemption u/s. 11 for a Chamber of Commerce, Industries & Agriculture. The Tribunal dismissed the appeal for A.Y. 2013-14 due to the tax effect being below the revised limit, while upholding the benefit of exemption for A.Y. 2014-15 based on precedents favoring the assessee. The judgment provided a detailed analysis of each issue, citing relevant circulars and past decisions to support the conclusions reached.