M.G.R. Educational Society, Hyd, Hyderabad V. ACIT,Central Circle-1, Hyderabad

ITA 1577/HYD/2011

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 2593 (ITAT-HYDERABAD)
• Duration Of Justice: 5 year(s) 8 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-05-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 12-01-2015
• Assessment Year: 2003-2004
• Appeal Filed On: 05-09-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMAN MALIK
• Assessee Lawyers: S RAMA RAO
• Section: 11

Judgement Text

ITA NOS 1577 AND 1578 OF 2011 MGR EDUCATION AL SOCIETY HYDERABAD PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA NOS.1577 AND 1578/HYD/2011 (ASSESSMENT YEARS: 2003-04 & 2004-05) M.G.R. EDUCATIONAL SOCIETY HYDERABAD PAN: AAATM 8546 M VS ASSTT. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 1 HYDERABAD FOR ASSESSEE : SHRI S. RAMA RAO FOR REVENUE : SMT. SUMAN MALIK, DR O R D E R PER SMT. P. MADHAVI DEVI, J.M. BOTH ARE ASSESSEES APPEALS FOR THE A.YS 2003-04 AN D 2004-05 RESPECTIVELY. THESE APPEALS WERE HEARD ALON G WITH ITA NOS. 1547/HYD/2011 AND OTHERS ON 3.4.2012 AND WERE DISPOSED OF VIDE ORDERS DATED 4.5.2012. SUBSEQUENTLY, VIDE M .A. NOS. 19 & 20/HYD/2013, THESE TWO APPEALS WERE RECALLED BY THE ORDER OF THE TRIBUNAL DATED 21.6.2013 TO DECIDE THE ISSUE WITH R ESPECT TO THE ALLOWABILITY OF CONTRIBUTIONS RECEIVED BY THE ASSES SEE U/S 11 OF THE ACT. ACCORDINGLY, THESE APPEALS CAME UP FOR HEA RING AFRESH. 2. AT THE TIME OF HEARING, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE CONTRIBUTIONS RECEIVED BY THE ASSESSEE ARE NOT FROM THE STUDENTS OR THE PARENTS O F THE STUDENTS, BUT ARE FROM PERSONS WHO HAVE NO CONNECTION WITH TH E ADMISSION DATE OF HEARING : 19.04.2017 DATE OF PRONOUNCEMENT : 05.05.2017 ITA NOS 1577 AND 1578 OF 2011 MGR EDUCATION AL SOCIETY HYDERABAD PAGE 2 OF 3 OF THE STUDENTS IN THE ASSESSEES EDUCATIONAL INSTI TUTION. HE SUBMITTED THAT THE ASSESSEE HAS RECEIVED THE CONTRI BUTIONS TOWARDS CORPUS OF THE TRUST AND ARE THEREFORE, ALLO WABLE U/S 11 OF THE ACT AND FURTHER THAT THESE CONTRIBUTIONS HAVE B EEN UTILIZED FOR THE PURPOSE FOR WHICH THEY WERE GIVEN. HE SUBMITTED THAT NONE OF THE AUTHORITIES BELOW HAVE REALLY VERIFIED THE ABOV E CONTENTION OF THE SAME. HE THEREFORE, PRAYED THAT THE ISSUE BE RE MITTED TO THE FILE OF THE AO FOR VERIFICATION AND ADJUDICATION IN ACCORDANCE WITH LAW. 3. THE LEARNED DR HOWEVER, SUBMITTED THAT THE ASSES SEE HAS RECEIVED CONTRIBUTIONS AND MOST OF THE CONTRIBU TIONS ARE IN THE NATURE OF CAPITATION FEE FOR ADMISSION OF THE S TUDENTS. THEREFORE, SHE OBJECTED TO THE REMAND OF THE ISSUE TO THE FILE OF THE AO. 4. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE M ATERIAL ON RECORD, WE FIND THAT IT IS THE CASE OF THE ASSES SEE THAT THE CONTRIBUTIONS ARE VOLUNTARY AND ARE FROM PERSONS WH O ARE NOT IN ANY WAY CONNECTED WITH THE ADMISSIONS OF THE STUDEN TS TO THE EDUCATIONAL INSTITUTIONS BEING RUN BY THE ASSESSEE. IT IS SUBMITTED THAT THE PERSONS WHO HAVE CONTRIBUTED ARE NEITHER S TUDENTS NOR PARENTS OF THE STUDENTS. HE HAS ALSO DRAWN OUR ATTE NTION TO PAGES 27 TO 54 OF THE PAPER BOOK WHICH IS THE LIST OF THE CONTRIBUTORS AND THE CERTIFICATES ARE GIVEN BY THE SECRETARY OF THE SOCIETY STATING THAT THE DONATIONS ARE COLLECTED NEITHER FR OM THE STUDENTS NOR FROM THE PARENTS PARTICULARLY SINCE THE ADMISSI ONS ARE COMMENCED ONLY IN SEPTEMBER, 2004, WHEREAS THE DONA TIONS ARE AS ON 31.03.2003 AND 31.03.2004 RESPECTIVELY. WE FI ND THAT THE ITA NOS 1577 AND 1578 OF 2011 MGR EDUCATION AL SOCIETY HYDERABAD PAGE 3 OF 3 ASSESSEES CONTENTION NEEDS VERIFICATION AND CONSID ERATION IN ACCORDANCE WITH LAW. IN VIEW OF THE SAME, WE DEEM I T FIT AND PROPER TO REMIT THE ISSUE OF TAXABILITY OF THESE CO NTRIBUTIONS DURING THE RELEVANT A.YS. NEEDLESS TO MENTION THAT T HE ASSESSEE SHALL BE GIVEN A FAIR OPPORTUNITY OF HEARING. 5. IN THE RESULT, ASSESSEES APPEALS ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 5 TH MAY, 2017. SD/- SD/- (B. RAMAKOTAIAH) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 5 TH MAY, 2017. VINODAN/SPS COPY TO: 1 SHRI S.RAMA RAO, ADVOCATE, FLAT NO.102, SHRIYA'S E LEGANCE, 3-6- 643, STREET NO.9, HIMAYATNAGAR, HYDERABAD 500029 2 ASSTT. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 1 HYDERABAD 3 CIT (A)-I HYDERABAD 4 CIT CENTRAL, HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER