District Health & Family Welfare Society, Belgaum V. ACIT Circle-2 Belgaum, Belgaum

ITA 126/PAN/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 93490 (ITAT-PANAJI)
• Duration Of Justice: 1 year(s) 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-06-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 08-06-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 07-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BANGARI
• Assessee Lawyers: T V SUDARSHAN
• Section: 12A; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH, PANAJI BEFORE SHRI GEORGE MATHAN , HONBLE JUDICIAL MEMBER AND SHRI N.K. BILLAIYA , HONBLE ACCOUNTANT MEMBER ITA NO. 1 2 6 /PNJ/2014 (ASST. YEAR : 200 9 - 1 0 ) THE DISTRICT HEALTH & FAMILY WELFARE SOCIETY, PROJECT MANAGEMENT OFFICE, DPM UNIT VACCINE INSTITUTE, 2 ND GATE, TILAKWADI, BELGAUM. VS. A CIT, CIRCLE - 2, BELGAUM . PAN NO. AA AA D 5826 A (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI T.V. SUDARSHAN - CA DEPARTMENT BY : SHRI M.R. BANGARI - D.R. DATE OF HEARING : 08 / 0 6 /2015 . DATE OF PRONOUNCEMENT : 08 / 0 6 /201 5 . O R D E R PER N.K. BILLAIYA THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF L D. CIT (A), BELGAUM , DATED 16 /0 1 /201 4 FOR THE A.Y. 2009 - 10 . 2. THE SUM AND SUBSTANCE OF THE GRIEVANCE OF THE ASSESSEE IS THAT THE LD. CIT(A) FAILED TO HO LD THE ASSESSEE ELIGIBLE U/S. 10(23C)(IIIAC) OF THE ACT. 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT THE ASSESSEE IS A D ISTRICT L EVEL S OCIETY , WHICH COMES UNDER THE AUSPICES OF DEPARTMENT OF 2 ITA NO. 126 /PNJ/2014 HEALTH & FAMILY WELFARE , GOVT. OF KARNATAKA FORMED AS A SPECIAL PURPOSE VEHICLE SPECIFICALLY FOR THE PURPOSE OF IMPLEMENTATION OF THE GOVT. OF INDIA SPONSORED NATIONAL RURAL HEALTH MISSION PROGRAMME . RETURN FOR THE ASSESSMENT YEAR WAS F I L E D AT RS. 20,71,63,969/ - AND THE SAME WAS CLAIMED AS EXEMPT U/S. 11 OF THE ACT. IT WAS EXPLAINED THAT THE SOCIETY APPLIED FOR REGISTRATION U/S. 12A OF THE ACT. IT WAS BROUGHT TO THE NOTICE TH A T THE ASSESSEE HAS CLAIMED U/S. 10 (23C) OF THE ACT. ACCORDINGLY, IT WAS PLEADED THAT THE RETURN OF INCOME SHOULD BE ACCEPTED. THE CLAIM OF THE ASSESSEE WAS DENIED BY THE ASSESSING OFFICER , WHO WAS OF THE FIRM BELIEF THAT THE ASSESSEE NEITHER SUBSTANTI ATED NOR BROUGHT ON RECORD ANY MATERIAL TO INDICATE THAT THE ASSESSEE IS ELIGIBLE FOR ANY OF THE CLAUSES MENTIONED IN SEC. 10(23C) OF THE ACT. THE ASSESSING OFFICER FURTHER OBSERVED THAT THE APPLICATION OF THE ASSESSEE MADE U/S. 12 AA OF THE ACT HAS BEEN REJEC TED BY THE COMMISSIONER OF INCOME - TAX , BELGAUM VIDE HIS ORDER DATED 28/09/2011. THUS, THE ASSESSEE IS NOT ENTITLED FOR EXEMPTION U/S. 11 OF THE ACT. THE ASSESSING OFFICER CONCLUDED BY TREATING THE INTEREST INCOME EARNED FROM BANK DEPOSITS AT RS. 24,24,072 / - AS INCOME OF THE ASSESSEE UNDER THE HEAD INCOME FROM OTHER SOURCES. AGGRIEVED BY THIS, THE ASSESSEE CARRIED THE MATTER BEFORE THE LD. CIT(A), BUT WITHOUT ANY SUCCESS. 3 ITA NO. 126 /PNJ/2014 4 . BEFORE US, COUNSEL FOR THE ASSESSEE DREW OU R ATTENTION TO THE DECISION OF ITAT, B A NGALORE BENCH IN THE CASE OF RAICHUR DISTRICT HEALTH & FAMILY WELFARE SOCIETY IN I.T.A. NOS. 1244 & 1245/BANG/ 2012 . IT IS THE SAY OF THE COUNSEL THAT ON IDENTICAL FACTS, THE TRIBUNAL HAS HELD THAT THE SOCIETY HAS BEEN RECOGNIZED AS A GOVERNMENT ESTABLISHED /SPONSORED ENTITY ELIGIBLE FOR EXEMPTION U/S. 10(23C) (IIIAC) OF THE ACT. 5 . I N T HE CASE IN HAND, THERE IS NO DISPUTE THAT THE ASSESSEE IS A WHOLLY/SUBSTANTIALLY FUNDED BY THE GOVERNMENT OF INDIA/STATE GOVT. OF KARNATAKA . THIS BEING THE FACT OF THE MATTER , THE ASSESSEE IS ENTITLED FOR EXEMPTION U/S. 10(23C)(IIIAC) OF THE ACT. AS NO DISTINGUISHING FACTS/DECISION S HA VE BEEN BROUGHT ON RECORD BY THE REVENUE, RESPECTFULLY FOLLOWING THE DECISION OF THE C OORDINATE B E NCH IN THE CASE OF RAICHUR DISTRICT HEALTH & FAMILY WELFARE SOCIETY (SUPRA) , WE DIRECT THE ASSESSING OFFICER TO ALLOW THE ASSESSEE EXEMPTION U/S. 10(23C)(IIIAC) OF THE ACT. 6 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED. ( ORDER PRONOUNCED IN THE OPEN COURT ON 08 TH JUNE , 201 5 ). S D / - S D / - ( GEORGE MATHAN ) ( N.K. BILLA I YA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 0 9 T H JUNE , 201 5 . 4 ITA NO. 126 /PNJ/2014 VR/ - COPY TO: 1 . THE APPELLANT 2 . THE RESPONDENT 3 . THE LD. CIT 4 . THE CIT(A) 5 . THE D.R 6 . GUARD FILE. BY ORDER ASSISTANT REGISTRAR I.T.A.T., PANAJI 5 ITA NO. 126 /PNJ/2014 DATE INITIAL ORIGINAL DICTATION PAD I S ENCLOSED IN THE FILE 1. DRAFT DICTATED ON 08 .06.2015 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 09 .06.2015 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 09/06/2015 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 09/06/2015 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 0 9 /06/2015 SR.PS 6. DATE OF PRONOUNCEMENT 09 /06/2015 SR.PS 7. FILE SENT TO THE BENCH CLERK 09 /06/2015 SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER