2012-VIL-957-ITAT-JAI

Income Tax Appellate Tribunal JAIPUR

ITA No. 1062/JP/2011

Date: 15.03.2012

GLOBAL INSTITUTE OF TECHNOLOGY SOCIETY

Vs

INCOME-TAX OFFICER, WARD 4 (2) , JAIPUR

For the Appellant : Sanjay Jhanwar
For the Respondent : D. K. Meena

BENCH

Sanjay Arora (Accountant Member) And R. K. Gupta (Judicial Member)

JUDGMENT

R. K. Gupta (Judicial Member)

This is an appeal by assessee against the order of ld. CIT (A) relating to assessment year 2008-09.

2. Various grounds i.e. 10 in number have been taken by the assessee in its appeal. The ld. Counsel of the assessee stated that if Ground No. 8 is taken first and if the same is allowed, then other grounds will become academic in nature and, therefore, they can be dismissed as having become infructuous in nature for the year under consideration.

3. Ground No. 8 is against in not allowing the benefit of carry forward losses and unabsorbed depreciation under section 32(2) to the appellant society while not granting the benefit of exemption under section 11 of the Act.

4. Ground No. 9 is against charging of interest under section 234B which is consequential in nature. The AO will grant consequent relief, if any.

5. Now we will take up the ground Nos. 8 of the assessee.

6. The ld. Counsel of the assessee stated that in earlier year the assessee’s total income was of loss and, therefore, the assessee has not claimed any exemption under section 11 neither it was allowed. It was also submitted that assessee applied for exemption of its income under section 10(23C)(vi) of the Act. The ld. Chief Commissioner of Income-tax vide his order dated 22.3.2006 had rejected the application of the assessee and this fact has been mentioned in the order passed for the assessment year 2004-05, copy of which is placed at paper book pages 66-70. It was submitted that in earlier year’s assessment has been completed and department itself has allowed the loss to be carry forward. Attention of the Bench was drawn on various assessment orders placed in the paper book.

7. On the other hand, the ld. D/R stated that the issue may be decided on merit.

8. After considering the submissions and perusing the material on record, we find that assessee deserves to succeed in this ground. We have seem various assessment orders for earlier years, copies of which are placed on record and found that the respective assessing officers had allowed the net deficit to be carried forward in the respective assessment order. Therefore, there is no reason in not allowing the benefit of carry forward losses/deficit. Accordingly, we direct the AO to allow the benefit of quantified carry forward losses to the assessee against the income of the assessee.

9. For the sake of clarification, for the year under consideration there was a positive income and, therefore, assessee has filed its return showing the income of the year, exemption under section 11 of the Act has also been claimed. If the carry forward losses are allowed to be set off then the income will become of negative figure and, therefore, exemption under section 11 cannot be allowed. The ld. Counsel of the assessee has fairly agreed that if the ground no. 8 is allowed in its favour then other grounds will become academic in nature. Since we have allowed this ground in favour of the assessee, therefore, all other grounds having become academic in nature and has become infructuous, they are dismissed.

10. In the result, appeal of the assessee is allowed in part.

11. The order is pronounced in the open court on 15.3.2012.

 

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