ITO Vs Krishi Utpadan Mandi Samiti (ITAT Lucknow)
In the case of ITO vs. Krishi Utpadan Mandi Samiti (ITAT Lucknow), the Income Tax Appellate Tribunal (ITAT) addressed an appeal filed by the Revenue for the assessment year 2014-15. The Revenue challenged the Commissioner of Income Tax (Appeals) [CIT(A)]’s order, which had granted exemption to the taxpayer under Section 26AAB of the Income Tax Act, 1961. Notably, the taxpayer’s exemption claim had already been accepted by the Assessing Officer (AO) prior to this appeal, making the case redundant. The ITAT admitted the appeal but noted that it was filed beyond the prescribed time limit. However, given the taxpayer’s consent, the tribunal condoned the delay, allowing the case to proceed.
During the hearing, the taxpayer’s representative highlighted that the AO had issued an order dated May 22, 2023, fully allowing the exemption claim of Rs. 3.9 crore under Section 26AAB. This order had assessed the taxpayer’s total income as NIL. The Revenue’s representative acknowledged that there was no clear reason to question the AO’s verification process, especially given that the same exemption had been previously granted in a regular assessment for the year 2017-18. Since there were no discrepancies to justify a different approach for the year 2014-15, both parties agreed that the appeal was effectively pointless. The ITAT expressed concern over the lack of due diligence from the Revenue in filing an unnecessary appeal, leading to its dismissal as infructuous.
