The ITO, Ward-2(1), Guntur V. M/s Veda Educational Development Association, Chilakaluripeta

ITA 119/VIZ/2010

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 50326 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 year(s) 4 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-07-2011
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 10-04-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 22-02-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: TH L PETER
• Assessee Lawyers: N O N E
• Keywords: Revenue expenditure
• Section: 12AA; 12

Judgement Text

ITA NO.119/VIZAG/2010 VEDA EDNL. DEVP. ASSN., GUNTU R PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER ITA NO.119/VIZAG/2010 ASSESSMENT YEAR: 2006-07 ITO, WARD-2(1) GUNTUR M/S. VEDA EDUCATIONAL DEVELOPMENT ASSOCIATION CHILAKALURIPET (APPELLANT) (RESPONDENT) PAN NO.AAATU 6004D APPELLANT BY: SHRI TH.L. PETER, CIT(DR) RESPONDENT BY: N O N E ORDER PER SHRI B. R. BASKARAN, ACCOUNTANT MEMBER: THE APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 12.11.2009 PASSED BY LEARNED CIT(A), GUNTUR AND IT RELATES TO THE ASSESSMENT YEAR 2006-07. NONE APPEARED ON BEHALF O F THE ASSESSEE, THOUGH THE APPEAL WAS POSTED SEVERAL TIMES. HENCE, WE PROCEED TO DISPOSE THE APPEAL EX-PARTE, QUA THE ASSESSEE. 2. THE REVENUE IS ASSAILING THE DECISION OF LEARNE D CIT(A) IN EXCLUDING THE FOREIGN CONTRIBUTIONS RECEIVED BY THE ASSESSEE FROM THE TOTAL INCOME OF THE ASSESSEE. 3. THE FACTS RELATING TO THE CASE ARE STATED IN BRIEF. THE ASSESSEE IS A SOCIETY AND IT WAS GRANTED REGISTRATION UNDER SECTI ON 12AA OF THE ACT WITH EFFECT FROM 01-4-2007. THUS, FOR THE YEAR UNDER CO NSIDERATION, THE ASSESSEE DID NOT HAVE REGISTRATION UNDER SECTION 12 AA OF THE ACT. THE ASSESSEE FILED ITS RETURN OF INCOME DECLARING NIL I NCOME. HOWEVER, THE ASSESSING OFFICER, IN THE ABSENCE OF REGISTRATION U NDER SECTION 12AA OF THE ACT, PROCEEDED TO COMPUTE THE INCOME OF THE ASSESSE E BY TAKING ALL THE RECEIPTS AND REVENUE EXPENDITURE AND ACCORDINGLY DE TERMINED THE TOTAL ITA NO.119/VIZAG/2010 VEDA EDNL. DEVP. ASSN., GUNTU R PAGE 2 OF 3 INCOME OF THE ASSESSEE AT RS.67,67,510/-. HOWEVER , THE LEARNED CIT(A), BY PLACING RELIANCE ON THE DECISION OF HYDERABAD BE NCH OF ITAT IN THE CASE OF NIRMAL AGRICULTURAL SOCIETY VS. ITO (2000) (67 T TJ (HYD) 127), HELD THAT THE FOREIGN CONTRIBUTIONS RECEIVED BY THE ASSESSEE ARE IN THE NATURE OF TIED UP GRANTS AND HENCE THEY ARE NOT LIABLE TO BE TAXED . ACCORDINGLY, THE LEARNED CIT DETERMINED THE TOTAL INCOME OF THE ASSE SSEE AT RS.1,98,990/- AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE US. 4. THE LEARNED D.R SUBMITTED THAT THE RELIANCE PLACED BY LEARNED CIT(A) IN THE CASE OF NIRMAL AGRICULTURAL SOCIETY, (SUPRA) IS NOT CORRECT AS THERE IS NO PARITY OF FACTS BETWEEN THAT CASE AND IN THE INS TANT CASE. HE SUBMITTED THAT THE ASSESSEE IN THE CASE OF NIRMAL AGRICULTURA L SOCIETY, (SUPRA) RECEIVED TIED UP GRANTS FOR CONSTRUCTION OF BUILDIN G WHICH WAS TO HE GIVEN FOR OTHERS, WHEREAS, IN THE INSTANT CASE THE ASSESS EE HAS RECEIVED FOREIGN CONTRIBUTIONS WHICH WERE TO BE UTILIZED FOR ITS OWN PURPOSE. ACCORDINGLY HE SUBMITTED THAT THE ORDER OF THE ASSESSING OFFICER S HOULD BE SUSTAINED. 5. WE HAVE HEARD THE LEARNED D.R AND ALSO PERUS ED THE RECORD. AS SUBMITTED BY LEARNED D.R, THE LEARNED CIT(A) HAS PL ACED RELIANCE ON THE DECISION OF NIRMAL AGRICULTURAL SOCIETY, (SUPRA). HOWEVER, ACCORDING TO LEARNED D.R, THE SAID DECISION IS NOT APPLICABLE TO THE FACTS OF THE INSTANT CASE. THE ASSESSEE HEREIN HAS NOT FILED EVIDENCE T O COUNTER THE CONTENTIONS OF LEARNED D.R. ACCORDINGLY, WE SET ASIDE THE ORDE R OF LEARNED CIT(A) AND RESTORE THAT OF THE ASSESSING OFFICER. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS ALLOWED. PRONOUNCED IN THE OPEN COURT ON 15.7.2011. SD/- SD/- (SUNIL KUMAR YADAV) (B R BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM, DATE: 15 TH JULY, 2011 ITA NO.119/VIZAG/2010 VEDA EDNL. DEVP. ASSN., GUNTU R PAGE 3 OF 3 COPY TO 1 ITO, WARD-2(1), GUNTUR 2 VEDA EDUCATIONAL DEVELOPMENT ASSOCIATION, SANDHYA ENCLAVE, NRT ROAD, CHILAKALURIPET, GUNTUR DISTRICT 3 4. THE CIT GUNTUR THE CIT(A), GUNTUR 5 THE DR, ITAT, VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM