ADIT(E)-1, Hyderabad V. National Institute of Tourism&Hospitality, Hyderabad

ITA 1203/HYD/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 9787 (ITAT-HYDERABAD)
• Duration Of Justice: 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-03-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 15-02-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 10-09-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K E SUNIL BABU

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B , HYDERABAD BEFORE SHRI G.C. GUPTA, VICE PRESIDENT AND SHRI AKBER BASHA, ACCOUNTANT MEMBER ITA NO.1203/HYD/2010 : ASSESSMENT YEAR 2007- 08 ASST. DIRECTOR OF INCOME TAX(EXEMPTION)-I, HYDERABAD VS NATIONAL INSTITUTE OF TOURISM & HOSPITALITY, HYDERABAD (PAN AAATN 4522 A) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K.E.SUNIL BABU RESPONDENT BY : NONE O R D E R PER G.C.GUPTA, VICE PRESIDENT: THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YEA R 2007-08 IS DIRECTED AGAINST THE ORDER OF THE COMMIS SIONER OF INCOME- TAX(APPEALS). 2. AT THE TIME OF HEARING, NONE APPEARED ON BEHALF OF THE ASSESSEE-RESPONDENT. ACCORDINGLY, THE APPEAL OF TH E REVENUE IS BEING DECIDED EX-PARTE -QUA THE ASSESSEE-RESPONDENT ON MERITS, AFTER HEARING THE LEARNED DEPARTMENTAL REPRESENTATIVE. 3. GROUNDS OF APPEAL OF THE REVENUE ARE AS UNDER- (I) THE ORDER OF THE CIT(A) IS NOT ACCEPTABLE AS IT IS ERRONEOUS ON FACTS AND IN LAW. (II) THE CIT(A) ERRED IN HOLDING THAT THE ASSESSEE IS ELIGIBLE FOR EXEMPTION U/S. 11 OF THE I.T. ACT AND THE EXEMP TION U/S. 11 CAN BE ALTERNATIVELY CLAIMED. ITA NO.1203/H/2010 NATIONAL INSTITUTE OF TOURISM & HOSPITALITY, HYD 2 (III) THE CIT(A) OUGHT TO HAVE CONFIRMED THE ASSESS MENT AS IT IS MANDATORY ON THE PART OF THE ASSESSEE TO OBTA IN NOTIFICATION U/S. 10(23C)(IV) OF THE I.T. ACT. (IV) THE DECISION OF THE ITAT IN ST. THERASAS SOCI ETY HAS NOT BEEN ACCEPTED BY THE DEPARTMENT AND APPEAL U/S. 260 A HAS BEEN PREFERRED BEFORE THE A.P. HIGH COURT. 3. THE LEARNED DEPARTMENTAL REPRESENTATIVE SUBMITT ED THAT THE DECISION OF THE TRIBUNAL IN ST. THERASAS SOCIE TYS CASE, RELIED UPON BY THE CIT(A), HAS NOT BEEN ACCEPTED BY THE DE PARTMENT AND AN APPEAL UNDER S.260A OF THE ACT HAS BEEN PREFERRE D BEFORE THE HON'BLE A.P. HIGH COURT. HE SUBMITTED THAT THE ASS ESSEE HAS NOT OBTAINED THE NOTIFICATION UNDER S.10(23C)(VI) OF TH E ACT AND THEREFORE, THE EXCESS OF INCOME OVER EXPENDITURE WA S RIGHTLY BROUGHT TO TAX BY THE ASSESSING OFFICER. HE RELIED ON THE ORDER OF THE DDIT(E). 4. WE HAVE CONSIDERED THE SUBMISSIONS OF THE LEAR NED DEPARTMENTAL REPRESENTATIVE AND HAVE PERUSED THE OR DERS OF THE DDIT AND THE CIT(A). WE FIND THAT THE ASSESSEE HA S BEEN GRANTED REGISTRATION UNDER S.12A OF THE ACT. THE CASE OF T HE ASSESSEE IS THAT EVEN IF IT HAS NOT RECEIVED OR APPLIED FOR NOTIFICA TION UNDER S.10(23C)(VI) OF THE ACT FOR THE RELEVANT YEAR, ITS INCOME WAS ELIGIBLE FOR EXEMPTION UNDER S.11 IN VIEW OF THE REGISTRATIO N UNDER S.12A GRANTED TO THE ASSESSEE. WE FIND THAT THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE WITH SERIES OF DECISIONS INCLUDING THE DECISION OF THE HYDERABAD BENCH OF THE TRIBUNAL IN THE CASES OF RAJ ASTHANI SIKSHA SAMITI (ITA NO.80 AND 81/HYD/2008) AND ST. THERASA S CONVENT SOCIETY, HYDERABAD (ITA NOS.844/HYD/2008) AND OTHER CASES CITED BY THE CIT(A) IN HIS APPELLATE ORDER. WE, BEING IN AGR EEMENT WITH THE DECISIONS OF THE VARIOUS COURTS AND COORDINATE BENC H OF THE TRIBUNAL, ITA NO.1203/H/2010 NATIONAL INSTITUTE OF TOURISM & HOSPITALITY, HYD 3 HOLD THAT THE ASSESSEE CAN MAKE AN ALTERNATIVE CLAI M UNDER S.11 OF THE ACT, AND DECIDE THE ISSUE IN FAVOUR OF THE ASSE SSEE, CONFIRMING THE ORDER OF THE CIT(A). GROUNDS OF APPEAL OF THE REVENUE ARE ACCORDINGLY REJECTED. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMIS SED. ORDER PRONOUNCED IN THE COURT ON 11.3.2011 SD/- SD/- (AKBER BASHA) ( G.C. G UPTA) A CCOUNTANT MEMBER V ICE PRESIDENT DATED THE 11 TH MARCH, 2011 COPY FORWARDED TO: 1. M/S. NATIONAL INSTITUTE OF TOURISM & HOSPITALITY, T ELECOM NAGAR, GACHIBOWLI, HYDERABAD 2. ASST. DIRECTOR OF INCOME TAX(EXEMPTION) I, HYDER ABAD 3. CIT (A) - IV , HYDERABAD. 4. COMMISSIONER OF INCOME - TAX III , HYDERABAD 5. THE D.R., ITAT, HYDERABAD. B.V.S