AMERICAN SCHOOL OF BOMBAY EDUCATION TRUST, V. DDIT (E) RG II(2), MUMBAI

CO 157/MUM/2008

• Counselvise Citation: [2012] 122 COUNSELVISE.COM (IT) 7049 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 5 month(s) 20 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 29-02-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Next Hearing Date: 06-02-2012
• Assessment Year: 2002-2003
• Appeal Filed On: 09-09-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: GOLI SRINIWAS RAO

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL H BENCH: MUMBAI BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER AND SHRI R.S. PADVEKAR, JUDICIAL MEMBER ITA NO.2586/MUM/2008 (ASSESSMENT YEAR: 2002-03) ITA NO.2587/MUM/2008 (ASSESSMENT YEAR: 2003-04) DDIT(E)-II(2), 5TH FLOOR, PIRAMAL CHAMBERS, LALBAUG, MUMBAI -400 012 ...... APPELLANT VS AMERICAN SCHOOL OF BOMBAY EDUCATION TRUST, SF-2, G-BLOCK, BANDRA KURLA COMPLEX ROAD, BANDRA (EAST), MUMBAI ..... RESPONDENT ITA NO.2699/MUM/2008 (ASSESSMENT YEAR: 2002-03) ITA NO.2700/MUM/2008 (ASSESSMENT YEAR: 2003-04) AMERICAN SCHOOL OF BOMBAY EDUCATION TRUST, SF-2, G-BLOCK, BANDRA KURLA COMPLEX ROAD, BANDRA (EAST), MUMBAI ...... APPELLANT VS ADIT(E)-II(2), K.G. MITTAL ARUVEDIC HOSPITAL BUILDING, CHARNI ROAD, MUMBAI -400 051 .... RESPONDENT PAN: AAATT 9038 K C.O. NO.157/M/2008 ARISING OUT OF ITA NO.2586/MUM/2008, A.Y. 2002-03 C.O. NO.158/M/2008 ARISING OUT OF ITA NO.2587/MUM/2008, A.Y. 2003-04 AMERICAN SCHOOL OF BOMBAY EDUCATION TRUST, SF-2, G-BLOCK, BANDRA KURLA COMPLEX ROAD, BANDRA (EAST), MUMBAI ...... CROSS OBJECTOR ASSESSEE VS DDIT(E)-II(2), 5TH FLOOR, PIRAMAL CHAMBERS, LALBAUG, MUMBAI -400 012 ..... REVENUE ITA 2586 & 2587/M/2008 ITA 2699 & 2700/M/2008 CO 157 AND 158/M/2008 AMERICAN SCHOOL OF BOMBAY EDUCATION TRUST 2 PAN: AAATT 9038 K CROSS OBJECTOR ASSESSEE BY: SHRI GOLI SRINIWAS RAO RESPONDENT REVENUE BY: SHRI DIVESH CHAWLA DATE OF HEARING: 06.02.2012 DATE OF PRONOUNCEMENT: 29 .02.2012 O R D E R PER R.S. PADVEKAR, JM : IN THIS BATCH OF FOUR APPEALS, TWO APPEALS ARE FILE D BY THE ASSESSEE AND TWO CROSS APPEALS ARE FILED BY THE REV ENUE FOR THE A.Y. 2002-03 AND 2003-04. THE ASSESSEE HAS ALSO FILED T WO CROSS OBJECTIONS FOR THE SAME ASSESSMENT YEARS. THE ASSES SEE AS WELL AS REVENUE HAVE CHALLENGED THE IMPUGNED ORDERS OF THE LD. CIT (A) -30, MUMBAI DATED 21.01.2008. THE ASSESSEE AS WELL AS R EVENUE HAS TAKEN MULTIPLE GROUNDS, BUT THE CORE GROUND WHICH G OES TO THE ROOTS OF THE MATTER IS RAISED BY THE ASSESSEE BEING GROUN D NO.1 I.E. IN RESPECT OF DENIAL OF EXEMPTION TO ITS INCOME U/S.10 (23C)(VI) OF THE ACT. THE RELEVANT GROUND READS AS UNDER, WHICH IS COMMON IN BOTH THE ASSESSMENT YEARS 1. LD. CIT(A) ERRED IN UPHOLDING THE ACTION OF THE ASSESSING OFFICER (AO) REJECTING THE CLAIM OF THE APPELLANT UNDER SECTION 10(23C)(VI) OF THE ACT ON THE GROUNDS OF NO N- COMPLIANCE OF CERTAIN CONDITIONS. 2. THE FACTS WHICH REVEAL FROM THE RECORDS ARE THAT THE ASSESSEE TRUST IS CONSTITUTED VIDE TRUST DEED DATED 10TH MAY , 1990, AND IT IS REGISTERED UNDER INDIAN TRUSTS ACT, 1882. THE ASSE SSEE CLAIMED THAT ITS SOLE OBJECT IS TO CARRY OUT EDUCATIONAL ACTIVI TIES IN INDIA AND SAME ARE PURELY CHARITABLE IN NATURE AND NO PROFIT IS M ADE OUT. THE ASSESSEE HAD MADE AN APPLICATION TO THE CENTRAL BOA RD OF DIRECT TAXES (IN SHORT CBDT) FOR GRANTING THE EXEMPTION U/S.10(2 3C)(VI) OF THE ACT FOR THE A.YS. 1999-2000 TO 20001-02. HOWEVER, THE APPLICATION FILED BY THE ASSESSEE WAS REJECTED BY THE CBDT DECLINING TO GIVE EXEMPTION AS REQUESTED BY THE ASSESSEE TRUST. THE ASSESSEE A GAIN FILED THE ITA 2586 & 2587/M/2008 ITA 2699 & 2700/M/2008 CO 157 AND 158/M/2008 AMERICAN SCHOOL OF BOMBAY EDUCATION TRUST 3 REVIEW APPLICATION TO THE CBDT AGAINST ORDER REJECT ING REQUEST OF THE ASSESSEE TO GRANT EXEMPTION U/S.10(23C)(VI) OF THE ACT WHICH WAS AGAIN REJECTED BY THE CBDT ON THE REASON THAT HE DI D NOT HAVE POWERS TO REVIEW ITS OWN DECISIONS. IN THE MEAN TIME, THE A.O. COMPLETED THE ASSESSEES ASSESSMENT FOR THE A.Y. 1999-2000 TO 200 1-02 AND DECLINED TO GIVE BENEFIT OF SEC.10(23C)(VI) AS THE ASSESSEES APPLICATION WAS REJECTED BY THE CBIT. THE MATTERS OF THE ASSES SMENTS FOR THE A.Y. 1999-2000 TO 2001-02 WERE CARRIED BEFORE THE ITAT, MUMBAI BY THE BY THE ASSESSEE AS WELL AS REVENUE CHALLENGING THE ORDERS OF THE LD. CIT (A) IN WHICH PART RELIEF WAS GIVEN TO THE ASSES SEE, BUT EXEMPTION TO INCOME U/S.10(23C)(VI) WAS DENIED. THE ASSESSEE A LSO FILED A WRIT PETITION BEFORE THE HONBLE DELHI HIGH COURT CHALLE NGING THE ORDER OF THE CBDT DECLINING TO GRANT EXEMPTION U/S.10(23C)(V I) OF THE ACT. THE HONBLE DELHI HIGH COURT DISPOSED OFF THE WRIT PETI TION FILED BY THE ASSESSEE VIDE ORDER DATED 20.01.2011 AND REMITTED T HE MATTER TO THE CBDT FOR RECONSIDERATION. THE ASSESSEE HAS MADE TH E APPLICATION BEFORE THE CBDT IN PURSUANCE OF THE ORDER OF THE HI GH COURT OF DELHI WHICH IS PENDING DISPOSAL. 3. WHEN THE APPEALS FOR THE A.YS. 1999-2000 TO 2000 1-02 CAME- UP BEFORE ITAT, MUMBAI, ALL THE MATTERS WERE RESTOR ED TO THE A.O. WITH A DIRECTION TO DECIDE THE SAME AFTER DISPOSAL OF TH E ASSESSEES APPLICATION PENDING BEFORE THE CBDT SEEKING EXEMPTI ON U/S.10(23C)(VI) OF THE ACT. SO FAR AS A.YS. 2002-0 3 & 2003-04 ARE CONCERNED, THE ASSESSEE HAS FILED AN APPLICATION FO R GETTING EXEMPTION BEFORE THE CHIEF COMMISSIONER OF INCOME-TAX (IN SHO RT CCIT) AND APPLICATION WAS REJECTED AS LD. CCIT DECLINED TO GR ANT EXEMPTION TO INCOME FROM TAX U/S.10(23C)(VI) OF THE INCOME-TAX ACT TO THE ASSESSEE TRUST. THE ASSESSEE FILED THE WRIT PETITION BEFORE THE HONBLE HIGH COURT OF BOMBAY, WHICH HAS BEEN ADMITTED ON 25.01.2 010 AND NOW THE SAME IS PENDING DISPOSAL. AS THE CORE ISSUE OF GRANTING TOTAL EXEMPTION TO INCOME IS PENDING BEFORE THE CBDT AS W ELL AS WRIT PETITION IS ALSO PENDING BEFORE THE HONBLE HIGH CO URT OF BOMBAY, WE CONSIDER IT FIT TO RESTORE ALL THE APPEALS AS WELL AS CROSS OBJECTIONS TO ITA 2586 & 2587/M/2008 ITA 2699 & 2700/M/2008 CO 157 AND 158/M/2008 AMERICAN SCHOOL OF BOMBAY EDUCATION TRUST 4 THE FILE OF THE A.O. TO DECIDE THE SAME AFTER THE D ECISION OF THE WRIT PETITION PENDING BEFORE THE HONBLE HIGH COURT OF B OMBAY WHICH IS CONCERNED WITH THE IMPUGNED ASSESSMENT YEARS BEFORE US. WE, THEREFORE, SET ASIDE THE ORDERS OF THE LD. CIT (A) IN BOTH THE ASSESSMENT YEARS AND RESTORE THE MATTERS TO THE FIL E OF THE A.O. WITH THE DIRECTION TO DECIDE THE SAME AFTER THE DECISION OF THE HONBLE HIGH COURT OF BOMBAY ON THE WRIT PETITION FILED BY THE A SSESSEE, CHALLENGING THE ORDERS OF THE LD. CCIT. THE ASSESS EE IS ALSO DIRECTED TO FILE THE COPY OF THE DECISIONS/JUDGMENT OF THE H ONBLE HIGH COURT AFTER THE WRIT PETITION IS DECIDED AT THE EARLIEST BEFORE THE A.O. 4. IN THE RESULT, ALL THE APPEALS AS WELL AS CROSS OBJECTIONS ARE ALLOWED FOR THE STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON THIS DAY OF 2 9TH FEBRUARY, 2012. SD/- ( J. SUDHAKAR REDDY ) ACCOUTANT MEMBER SD/- ( R.S. PADVEKAR ) JUDICIAL MEMBER MUMBAI, DATE: 29TH FEBRUARY, 2012 COPY TO:- 1) THE APPELLANT. 2) THE RESPONDENT. 3) THE CIT (A)-30, MUMBAI. 4) THE DIT (EXEMPTION), CIT ..CONCERNED.., MUMBAI. 5) THE D.R. H BENCH, MUMBAI. BY ORDER / / TRUE COPY / / ASSTT. REGISTRAR I.T.A.T., MUMBAI *CHAVAN