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Judgment
This assessee’s appeal for Assessment Year 2010-11 arises against the CIT(A), Muzaffarnagar’s order dated 09.01.2018 in case No. 1643-7909-1280-416, in proceedings u/s 271(1)(c) of the Income Tax Act, 1961 ( in sho rt “the Act”).
Heard both the p arties at length. Case file perused.
Coming to the so le substantive issue between the parties, it is noticed that the assessee/appellant is aggrieved against the learned lower authorities’ assessment and lower appellate findings hold ing it’s “santage” amo unt as chargeable to tax since representing a revenue item. There does not appear much a dispute be tween the parties that both the learned lower authorities have treated the assessee as an artificial juristic person than a local authority u/s 10(20) of the Act as well.
That being the case, learned counse l has filed copy of the assessment orde r dated 14.11.2019 for assessment year 2017-18 in it’s case whereas it has already been held assessable as “local author ity” which has gone un-rebutted from the Revenue side. I thus reverse both the lear ned lower authorities’ respective findings not treating it as a local authority but an artificial juristic person in very terms.
Next co mes the sole substantive issue herein regarding the assessee’s santage rece ipts/collections on various tenders floated in the open market. I hereby notice that this tribunal’s earlier co-ordinate bench order in ITA No. 1356/Del/2019 dated 03.05.2023 has already settled the issue that once it is a local authority and it’s rece ipts are not chargeable to tax, the impugned disallowance/addition has no legs to stand. Deleted according ly.
This assessee’s appeal is allowed.