Shree Dance Academy, Bhubaneswar V. CIT(Exemption), Hyderabad

ITA 149/CTK/2019

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 1985 (ITAT-CUTTACK)
• Duration Of Justice: 3 year(s) 1 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-06-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Appeal Filed On: 22-05-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 80G

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BEFORE AND ARUN KHODPIA, ACCOUNTANT MEMBER Shree Dance Academ Basisth, 15/403, Debashr SBI Colony, Bhubaneswar. PAN/GIR No. (Appellant Per Bench These are appeal filed by the assessee the Act by the CIT (E), Hyderabad and ITA filed by the assessee the ld CIT (E), Hyder IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE S/SHRI GEORGE MATHAN, JUDICIAL AND ARUN KHODPIA, ACCOUNTANT MEMBER ITA Nos.149 &150 /CTK/20 Shree Dance Academy, At: th, 15/403, Debashram, SBI Colony, Bhubaneswar. Vs. CIT (Exemptions), Hyderabad No. (Appellant) .. ( Respondent Assessee by : Shri Bibekananda Baisakh Revenue by : Shri M.K.Gautam, CIT ( Date of Hearing : 29/6 Date of Pronouncement : 29/ O R D E R ese are appeals filed by the assessee. ITA No appeal filed by the assessee against refusal to grant recognition u/s.80G of the Act by the CIT (E), Hyderabad and ITA No.150/CTK/2019 is an appeal filed by the assessee against the refusal of grant of registration u/s.12A by the ld CIT (E), Hyderabad. Page1 | 5 IN THE INCOME TAX APPELLATE TRIBUNAL, JUDICIAL MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER /CTK/2019 CIT (Exemptions), Respondent) Bibekananda Baisakh, AR CIT (DR) 6/ 2022 /6/2022 No.149/CTK/2019 is an refusal to grant recognition u/s.80G of 150/CTK/2019 is an appeal refusal of grant of registration u/s.12A by ITA Nos.149 &150 /CTK/2019 Page2 | 5 2. Shri Bibekananda Baisakh, ld A.R. appeared on behalf of the assessee and Shri M.K.Gautam, ld CIT DR appeared on behalf of the revenue. 3. The appeals are delayed by 1 day. The assessee has filed condonation petition stating the reason in filing the appeals delay by 1 day. Since, there is only one day delay in filing the appeals and considering the reason stated in the petition, we condone the delay of 1 day and admit the appeals for adjudication on merits. 4. It was submitted by ld AR that the ld CIT (E), Hyderabad denied the assessee registration u/s.12A of the Act by order dated 30.11.2018 on the ground that the books of account had not been maintained and consequently there is violation of Rule 17A. It was the submission that the assessee has prepared its balance sheet and profit & loss account. It was the submission that the assessee should be granted registration u/s.12A and consequential recognition u/s. 80G of the Act. Ld A.R. has relied on the decision of Hon’ble Kolkata High Court in the case of Swar Sangam & Ors vs CCIT in W.P.No.246 of 2014 order dated 12.9.2014. 5. In reply, ld CIT DR submitted that there is no charitable activity being done by the assessee. The assessee was collecting fees from the dance students. There is no charity to any of the students. The students are also charged fees. The assessee is also derived income from the sale of ITA Nos.149 &150 /CTK/2019 Page3 | 5 books, CDs and Audio and Video which is nothing but business activity. It was the submission that charitable activity have not been even contemplated in the bye-laws and Memorandum of Association. The assessee is not entitled registration u/s.12A and consequential recognition u/s. 80G. 6. We have considered the rival submissions. We have also perused the Memorandum of Association, which is placed at page 21 of paper book. The aims and objects of the assessee is primarily a dance institution for imparting training to the students of dance, music and art of Indian Classic Dance. There is no object of the assessee, which talks of any charitable activity. Though the amendments have been done as shown at page 8 of PB what is mentioned in the said amendment is the amendment to Bye- laws but what is then amended is the clause 5 (b),(c) and (f) of the Memorandum of Association, which is the aims and objects. If at all, the charitable activity can be considered, it is only amendment done to clause 5(e), which is help to distress artists. However, there is no charity involved in regard to general public at large nor is the activity of the Association for the benefit of public at large nor is the provisions for the utilization of the funds for the benefit of public at large or to the deprived society. A perusal of the order of the ld CIT (E) shows that he has referred to Rule 17A and on the reasons of non-production of books of account taken as one of the reasons for rejection of registration u/s.12A. The assessee has not shown ITA Nos.149 &150 /CTK/2019 Page4 | 5 charitable activities in its Bye-laws or Memorandum of Association and to this extent the order of the ld CIT (E) denying the registration u/s.12A and consequential denial of recognition u/s.80G is liable to be upheld, and we do so. 7. We are not in agreement with the order of the ld CIT(E) in refusing grant of registration u/s.12A on the grounds of non-production of books of account under Rule 17A. The production of books of account is not a condition precedent for the purpose of registration u/s.12A nor the condition precedent under Rule 17A. In these circumstances, we uphold the order of the CIT(E) in refusing registration u/s.12A and recognition u/s. 80G on the ground that no charitable activity has been shown by the assessee in its Memorandum of Association or Bye-laws or in the amended Memorandum of Association/Bye-laws. 8. A perusal of judgement of Hon’ble Kolkata High Court in the case of Swar Sangam & Ors (supra) relied upon by ld AR shows that the issue was in regard to registration u/s.10(23C) of the Act. In that case, the Hon’ble High Court has categorically mentioned that the trust deed stipulated that the trust property and its income would be applied only towards public charity, which is not the fact in assessee’s case. Consequently, the decision relied upon by ld AR in the case of Swar Sangam & Ors (supra) would not apply to the facts in assessee’s case. ITA Nos.149 &150 /CTK/2019 Page5 | 5 9. In the result, both the appeals of the assessee stand dismissed. Order dictated and pronounced in the open court on 29/6/2022. (Arun Khodpia) (George Mathan) ACCOUNTANT MEMBER JUDICIAL MEMBER Cuttack; Dated 29/06/2022 B.K.Parida, SPS (OS) Copy of the Order forwarded to : By order Sr.Pvt.secretary ITAT, Cuttack 1. The Appellant : Shree Dance Academy, At: Basisth, 15/403, Debashram, SBI Colony, Bhubaneswar. 2. The Respondent. CIT (E), Hyderabad 3. The CIT(A)-, Bhubaneswar 4. DR, ITAT, Cuttack 5. Guard file. //True Copy//