Tetrachedran Educational Society, Hyderabad V. DIT, Hyderabad

ITA 1043/HYD/2009

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 9836 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 3 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-02-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 31-01-2011
• Assessment Year: misc
• Appeal Filed On: 15-10-2009
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: K V N CHARYA
• Assessee Lawyers: SHRIV SIVAKUMAR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI G.C.GUPTA, VICE PRESIDENT AND SHRI AKBER BASHA, ACCOUNTANT MEMBER ITA NO.1043/HYD/09 M/S. TETRAHEDRAN EDUCATIONAL SOCIETY, HYDERABAD ( PAN AAAAT2742 B) V/S. DIRECTOR OF INCOME TAX (EXEMPTION), HYDERABAD. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRIV.SIVAKUMAR RESPONDENT BY : SHRI K.V.N.CHARYA O R D E R PER G.C.GUPTA, VICE PRESIDENT: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDE R OF THE DIRECTOR OF INCOME TAX(EXEMPTION) REFUSING REGISTRATIO N UNDER S.12A OF THE INCOME TAX ACT, 1961. 2. MODIFIED GROUNDS OF APPEAL OF THE ASSESSEE CENTRE AR OUND THE ONLY ISSUE OF VALIDITY OF THE ORDER PASSED BY THE DIRE CTOR OF INCOME TAX(EXEMPTION) REFUSING REGISTRATION TO THE ASSESSEE UNDE R S.12A OF THE ACT. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT T HE ONLY REASON ADVANCED BY THE DIRECTOR OF INCOME TAX(EXEMPTION ) FOR REFUSING REGISTRATION UNDER S.12A TO THE ASSESSEE WAS THAT THE ASSESSE E WAS RUNNING A COACHING INSTITUTE, WHICH COULD NOT BE SAID TO BE NORMA L SCBOOLING AND CONSEQUENTLY IS NOT AN ACTIVITY OF IMPARTING OF EDUCAT ION AND IS THEREFORE, HIT BY PROVISO TO S.2(15) OF THE ACT. THE LEARNED COUN SEL FOR THE ASSESSEE ITA NO.1043./HYD/09 M/S. TETRAHEDRAN EDUCATIONAL SOCIETY, HYD 2 SUBMITTED THAT THIS OBSERVATION OF THE DIRECTOR OF INCOM E TAX(EXEMPTION) IS CONTRARY TO FACT AS THE ASSESSEE WAS NOT RUNNING A COACHING INSTITUTE AT ANY POINT OF TIME AND THE PROVISO TO S.2(15) OF THE ACT D OES NOT APPLY TO THE CASE OF THE ASSESSEE. HE SUBMITTED THAT THE ASSESSEE HAS NECESSARY E VIDENCE IN THIS REGARD, WHICH COULD NOT BE FILED BEFORE THE DIRE CTOR OF INCOME TAX(EXEMPTION) IN FULL AND ACCORDINGLY, IN THE INTER ESTS OF JUSTICE, ONE MORE OPPORTUNITY MAY BE GIVEN TO THE ASSESSEE TO PROVE THAT IT IS NOT HIT BY THE PROVISO TO S.2(15) OF THE ACT. 4. THE LEARNED DEPARTMENTAL REPRESENTATIVE HAS OPPOSE D THE SUBMISSIONS OF THE LEARNED COUNSEL FOR THE ASSESSEE . HE SUBMI TTED THAT NO EVIDENCE SHOWING THAT THE ASSESSEE WAS NOT RUNNING A COACHIN G INSTITUTE WAS FILED BY THE ASSESSEE BEFORE THE DIRECTOR OF INCOME TAX(E XEMPTION). HE SUBMITTED THAT IN CASE THE MATTER IS RESTORED TO THE FI LE OF THE DIRECTOR OF INCOME TAX(EXEMPTION), A DIRECTION MAY BE GIVEN TO DE CIDE THE ISSUE AFRESH IN THE LIGHT OF THE PROVISO TO S.2(15) OF THE ACT. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. IN THE F ACTS OF THE CASE, WE ARE OF THE CONSIDERED VIEW THAT IT SHALL BE IN THE INTERESTS OF JUSTICE TO PROVIDE THE ASSESSEE ONE MORE OPPORTUNITY TO PROVE I TS CASE THAT IT WAS NOT RUNNING ANY COACHING INSTITUTE AND THE PROVISIONS OF S.2(15) READ WITH ITS PROVISO WAS NOT APPLICABLE TO THE FACTS OF ITS CASE. ACCORDI NGLY, THE ORDER OF THE DIRECTOR OF INCOME TAX(EXEMPTION) IS SET ASIDE AND T HE MATTER IS RESTORED TO HIS FILE WITH A DIRECTION TO PASS A DE NOVO ORDER IN ACCORDANCE WITH LAW AFTER ALLOWING REASONABLE OPPORTUNITY OF HE ARING TO THE ASSESSEE. ASSESSEE SHALL BE AT LIBERTY TO FILE EVIDENCE IN SUPPORT O F ITS CASE AND THE DIRECTOR OF INCOME TAX(EXEMPTION) SHALL DECIDE THE ISSU E IN THE LIGHT OF THE PROVISIONS OF S.2(15) READ WITH ITS PROVISO. WE DIRECT ACCORDINGLY. ITA NO.1043./HYD/09 M/S. TETRAHEDRAN EDUCATIONAL SOCIETY, HYD 3 6, IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FO R STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 11.2.2011 SD/- SD/- (AKBER BASHA) (G.C.GUPTA) ACCOUNTANT MEMBER VICE PRESIDENT DT/- 11TH FEBRUARY, 2011 COPY FORWARDED TO: 1. M/S. TETRAHEDRAN EDUCATIONAL SOCIETY, 59-14/D, SAI FABAD, OPP. SECRETARIAT, HYDERABAD 2. DIRECTOR OF INCOME TAX(EXEMPTION), HYDERABAD 3. DY. DIRECTOR OF INCOME TAX(EXEMPTION) HYDERABAD 4. THE DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. 5. B.V.S