ADIT, Hyderabad V. St. Louis Educational Trust, Secunderabad

ITA 1418/HYD/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 9877 (ITAT-HYDERABAD)
• Duration Of Justice: 2 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-01-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2005-2006
• Appeal Filed On: 12-11-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K V N CHARYA
• Assessee Lawyers: K C DEVADAS
• Section: 12; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI AKBER BASHA, ACCOUNTANT MEMBER I.T.A. NO. 1418/HYD/2010 (ASSESSMENT YEAR 2005-06) ADIT(E)-III, HYDERABAD VS. ST. LOUIS EDUCATION SOCIETY SECUNDERABAD PAN: AACTS1898Q APPELLANT RESPONDENT APPELLANT BY: SHRI K.V.N. CHARYA RESPONDENT BY: SHRI K.C. DEVADAS O R D E R PER NRS GANESAN, JM: THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-IV, HYDERABAD DATED 27.8.2010 AND PER TAINS TO ASSESSMENT YEAR 2007-08. 2. WE HEARD SHRI K.V.N. CHARYA, THE LEARNED DR, AND SHRI K.C. DEVADAS, THE LEARNED REPRESENTATIVE FOR THE AS SESSEE. THE ONLY ISSUE ARISES FOR CONSIDERATION IS WHETHER THE ASSESSEE IS ENTITLED FOR EXEMPTION U/S. 11 OF THE INCOME-TAX AC T, 1961 WHEN THE INCOME OF THE ASSESSEE EXCEEDED THE PRESCRIBED LIMIT U/S. 10(23C) OF THE ACT. THE CIT(A) BY FOLLOWING THE JU DGEMENT OF THE JURISDICTIONAL HIGH COURT IN A.P. RIDING CLUB ( 168 ITR 393) FOUND THAT THE ASSESSEE IS ENTITLED FOR EXEMPTION U /S. 11 OF THE ACT PROVIDED THE ASSESSEE HAS NOT CHARGED ANY AMOUN T FROM THE STUDENTS FOR ADMISSION OVER AND ABOVE THE PRESC RIBED FEES. IN VIEW OF THE JUDGEMENT OF THE JURISDICTIONAL HIGH COURT, THE I.T.A. NO. 1418/HYD/2010 ST. LOUIS EDUCATION SOCIETY ===================== 2 ASSESSEE MAY CLAIM EXEMPTION EITHER U/S. 11 OR U/S. 10(23C) OF THE ACT AT ITS DISCRETION. HOWEVER, AS OBSERVED BY THE CIT(A), IN CASE THE ASSESSEE COLLECTS/CHARGES ANY AMOUNT, BY W HATEVER NAME CALLED, FOR ADMISSION OF THE STUDENTS OVER AND ABOVE THE FEES PRESCRIBED FOR ADMISSION HAS TO BE TREATED AS CAPITATION FEE. IN SUCH A CASE THE ASSESSEE IS NOT ENTITLED F OR EXEMPTION EITHER U/S. 11 OR U/S. 10(23C) OF THE ACT. SINCE T HE ASSESSEE CLAIMED EXEMPTION U/S. 11 OF THE ACT, THE ASSESSING OFFICER MAY EXAMINE WHETHER THE ASSESSEE IS COLLECTING ANY AMOU NT OVER AND ABOVE THE FEES PRESCRIBED FOR ADMISSION OF STUD ENTS AND ALSO EXAMINE THE VIOLATION OF SECTIONS 11, 12 AND 1 3 OF THE ACT. IF THE ASSESSEE VIOLATES ANY OF THE PROVISIONS OF T HE ACT AS PROVIDED IN SECTIONS 11, 12 AND 13 OF THE ACT, THE ASSESSEE MAY NOT BE ENTITLED FOR EXEMPTION. SINCE THE CIT(A) DI RECTED THE ASSESSING OFFICER TO EXAMINE THE FACTUAL SITUATION, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LOWER AUTHOR ITY. ACCORDINGLY THE SAME IS CONFIRMED. 3. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 28TH JANUARY, 2011. SD/- (AKBER BASHA) ACCOUNTANT MEMBER SD/- (N.R.S. GANESAN) JUDICIAL MEMBER HYDERABAD, DATED 28TH JANUARY, 2011 TPRAO I.T.A. NO. 1418/HYD/2010 ST. LOUIS EDUCATION SOCIETY ===================== 3 COPY FORWARDED TO: 1. THE ASST. DIRECTOR OF INCOME-TAX (E)-III, A.P. O LYMPIC BHAVAN, L.B. STADIUM, BASHEERBAGH, HYDERABAD-4. 2. ST. LOUIS EDUCATIONAL SOCIETY, 222B, WEST MARRED PALLY, SECUNDERABAD. 4. THE CIT(A)-IV, HYDERABAD 5 THE DIT(E), HYDERABAD 6. THE DR A BENCH, ITAT, HYDERABAD