Dy. DIT(Exemption)-II, Hyderabad V. Ekasila Educational Society, Warangal

ITA 1243/HYD/2013

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 4810 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-12-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2005-2006
• Appeal Filed On: 02-09-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D SUDHAKAR RAO
• Assessee Lawyers: K V CHALAMAIAH

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B', HYDERABAD BEFORE THE HONBLE VICE PRESIDENT, SHRI D.MANMOHAN AND SHRI B.RAMAKOTAIAH, HONBLE ACCOUNTANT MEMBER ITA NO.1243/HYD/2013 : ASST. YEAR 2005 - 06 ITA NO.1247/HYD/2013 : ASST. YEAR 2010 - 11 DY. DIRECTOR OF INCOME - TAX(EXEMPTION) II, HYDERABAD. V/S. M/S. EKASILA EDUCATIONAL SOCIETY, HANAMKONDA, WARANGAL. ( PAN - AAAAE 1537 H) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI D.SUDHAKAR RAO CIT - DR RESPONDENT BY : SHRI K.V.CHALAMAIAH ******** ITA NO.124 4 /HYD/2013 : ASST. YEAR 2010 - 11 DY. DIRECTOR OF INCOME - TAX(EXEMPTION) II, HYDERABAD. V/S. M/S. LITTLE FLOWER EDUCATIONAL SOCIETY, AYYALPUR, NANDYAL MANDAL, KURNOOL. ( PAN - AAAAL 2561 Q) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI D.SUDHAKAR RAO CIT - DR RESPONDENT BY : SHRI P.VINOD ******** ITA NO.124 5 /HYD/2013 : ASST. YEAR 2010 - 11 DY. DIRECTOR OF INCOME - TAX(EXEMPTION) II, HYDERABAD. V/S. M/S. AKARSHA MANASA EDUCATIONAL SOCIETY, WARANGAL . ( PAN - AAATA 9848 C) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI D.SUDHAKAR RAO CIT - DR RESPONDENT BY : SHRI K.V.CHALAMAIAH AND ITA NO. 1243/HYD/201 3 & FOUR OTHERS EKASILA EDUCATIONAL SOCIETY, HANAMKONDA & THREE O THERS 2 ITA NO.1246/HYD/2013 : ASST. YEAR 2010 - 11 DY. DIRECTOR OF INCOME - TAX(EXEMPTION) II, HYDERABAD. V/S. M/S. CREATIVE EDUCATIONAL SOCIETY, KURNOOL. ( PAN - AAAAC 4101 F) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI D.SUDHAKAR RAO CIT - DR RESPONDENT BY : SHRI K.A. SAIPRASAD DATE OF HEARING 23 . 12 .2013 DATE OF PRONOUNCEMENT 23.12.2013 O R D E R PER D.MANMOHAN , VICE PRESIDENT : THE RE ARE F IVE APPEALS BY THE REVENUE IN THIS BUNCH, CONCERNING FOUR ASSESSEES . T HEY ARE DIRECTED AGAINST SIMILAR BUT SEPARATE ORDERS OF THE COMMISSIONER OF INCOME - TAX(APPEALS) IV, HYDERABAD, ALL DATED 6.6.2013. SINCE A COMMON ISSUE IS INVOLVED, THESE APPEALS ARE BEING DISPOSED OF TOGETHER, WITH THIS COMMON ORDER , FOR THE SAKE OF CONVENIENCE. 2. THE ONLY ISSUE INVOLV ED IN ALL THESE APPEALS IS WITH REGARD TO CLAIM S OF THE ASSESSEES FOR EXEMPTION OF THEIR INCOME UNDER S.11 OF THE ACT, NOTWITHSTANDING THE FACT THAT THE ASSESSEES HAVE NOT BEEN NOTIFIED UNDER S.10(23C) OF THE ACT, WHICH HAS BEEN DENIED BY THE ASSESSING OFF ICER, BUT ACCEPTED BY THE CIT(A), BY THE IMPUGNED ORDERS, SUBJECT TO FULFILLMENT OF CONDITIONS PRESCRIBED UNDER S.11 OF THE ACT. 3. WE HEARD BOTH SIDES AND PERUSED THE ORDERS OF THE REVENUE AUTHORITIES. ASSESSEES CLAIMS FOR EXEMPTION OF INCOME FROM TAX UNDER S.11 OF THE ACT HAVE BEEN REJECTED BY THE ASSESSING OFFICER ON THE GROUND THAT THEY ARE NOT ELIGIBLE FOR THE SAME, HAVING NOT BEEN NOTIFIED BY THE GOVERNMENT UNDER ITA NO. 1243/HYD/201 3 & FOUR OTHERS EKASILA EDUCATIONAL SOCIETY, HANAMKONDA & THREE O THERS 3 S.10(23C) OF THE ACT. IT WAS THE CASE OF THE ASSESSEES , BEFO R E THE CIT(A) , THAT PROVISIONS OF S.10(23C) AND S.11 OF THE INCOME - TAX ACT OPERATE IN DIFFERENT FIELDS, AND NOTWITHSTANDING THE FACT THAT AN ASSESSEE HAS NOT BEEN NOTIFIED UNDER S.10(23C) IT CAN STILL MAKE A CLAIM FOR EXEMPTION UNDER S.11 OF THE ACT, AND IN SUPPORT OF SUCH A CONTENTION, RELIANCE WAS PLACED ON A NUMBER OF DECISIONS. THE CIT(A), FOLLOWING THE CONSISTENT VIEW TAKEN BY THE TRIBUNAL IN SIMILAR MATTERS, ACCEPTED THE CONTENTION OF THE ASSESSEE, HOLDING THAT THE ASSESSEES ARE ENT ITLED FOR EXEMPTION UNDER S.11 OF THE ACT, SUBJECT TO FULFILLMENT OF CONDITIONS LAID DOWN FOR THAT PURPOSE, WHICH NEED TO BE VERIFIED BY THE ASSESSING OFFICER. 4. THE DISPUTE BEFORE US IN THESE APPEALS IS NOT WITH REGARD TO THE VERIFICATION ASPECT OF THE FULFILLMENT OR OTHERWISE OF THE CONDITIONS LAID DOWN FOR ALLOWABILITY OF EXEMPTION UNDER S.11 OF THE ACT, BUT WITH REGARD TO THE FINDING OF THE CIT(A) THAT THE PROVISIONS OF S.11 AND S.10(23C) OPERATE IN DIFFERENT FIELD, AND NOTWITHSTANDING THE FACT TH AT AN ASSESSEE IS NOT NOTIFIED UNDER S.10(23C) OF THE ACT, IT CAN STILL MAKE A CLAIM FOR EXEMPTION UNDER S.11 OF THE ACT TO WHICH IT MAY BECOME ENTITLED IF CONDITIONS LAID DOWN BY THE STATUTE OF THAT PURPOSE ARE SATISFIED. 5. THE FINDING OF THE CI T(A) THAT THE PROVISIONS OF S.11 AND 10(23C) OPERATE IN DIFFERENT FIELDS IS BASED ON CONSISTENT VIEW TAKEN BY THE COORDINATE BENCHES OF THE TRIBUNAL IN SIMILAR MATTERS, AS IN - (A) VASAVI ACADEMY E DUCAT I ON (I T A NO.1133/HYD/2006 DATE D 15.4.20 0 9 (B) JAMIA N IZAMIA(ITA NO.763/HYD/2007 DATED 30.6.2008) (C) INTERNATIONAL E DUCATIONAL ACADEMY (ITA N O.494/HYD/2007) (D) SRI VENKATA SAI EDUCA T IONAL SOCIETY (ITA NO.1440/HYD/2011, DATED 9.4.2012 6. AT THE TIME OF HEARING, LEARNED COUNSEL FOR ONE OF THE ASSESSEE S, SHRI K.A.SAI PRASAD, HAS SUBMITTED THAT THE ISSUE REL A TING TO ELIGIBILITY OF AN EDUCATIONAL INSTITUTION FOR EXEMPTION UNDER S.11 OF TH E AC T, NOTWITHSTANDING THE FACT THAT IT HAS NOT OBTAINED EXEMPTION UND E R S.10(23C) OF THE ACT FROM THE ITA NO. 1243/HYD/201 3 & FOUR OTHERS EKASILA EDUCATIONAL SOCIETY, HANAMKONDA & THREE O THERS 4 PR E SCRIBED AUTHO RITY , IS COVERED IN FAVOUR OF TH E ASSESSEE BY THE DECISION OF THE ALLAHABAD HIGH COU R T IN THE CA S E OF CIT V/S. INDIAN I NST IT UTE OF ENGINEERING SOCIETY(2013) 38 TAAXMANN.COM 227(ALLAHABAD) . HE ALSO FURNISH ED A COPY OF THE SAID DECISION BEFORE US. 7. AS AGAINST TH E ABOVE POSITION, THE LEARNED DEPARTMENTAL REPRESENTATIVE COULD NEITHER CONTROV E RT THE FINDINGS OF THE CIT(A) NOR BRING TO OUR NOTICE ANY DECISION TO THE CONTRARY. I N THE CIRCUMSTANCES, WE FIND NO INFIRMITY IN THE IMP U GN E D ORDERS OF TH E CIT( A), WHICH ARE ACCORDINGLY CONFIRMED AND THE GROUNDS OF THE R E VENUE IN THESE APPEALS ARE REJ E C T ED. 8. IN THE RESULT, ALL THE F IVE APPEALS OF THE REVENUE ARE DISMISSED ORDER PRONOUNCED IN THE COURT AT THE CONCLUSION OF HEARING ON 23 . 12 .2013 SD/ - SD/ - ( B.RAMAKOTAIAH ) ( D.MANMOHAN ) ACCOUNTANT MEMBER VICE PRESIDENT DT/ - 2 3 RD DECEMBER 2013 COPY FORWARDED TO: 1. 2. 3. 4. M/S. EKASILA EDUCATIONAL SOCIETY, 1 - 7 - 1002, HUNTER ROAD, HANAMKONDA, WARANGAL. M/S. LITTLE FLOWER EDUCATIONAL SOCIETY, AYYALPUR NANDYAL MANDAL, KURNOOL DIST. M/S. AKARSHA MANASA EDUCATIONAL SOCIETY, 11 - 23 - 2090/1, GANESH NAGAR, WRANGAL M/S. CREATIVE EDUCATIONAL SOCIETY,40 - 447/16, 1 ST FLOOR, OPP STBC COLLEGE, KURNOOL. 5 . DY. DIRECTOR OF INCOME - TAX(EXEMPTION) II , HYDERABAD 6 . 7 . COMMISSIONER OF INCOME - TAX(APPEALS) I V , HYDERABAD COMMISSIONER OF INCOME - TAX I II HYDERABAD 8 . DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S