Income Tax Officer-4(2), Lucknow V. M/s Mamta Modern School Samiti, Lucknow

ITA 187/LKW/2014

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 83358 (ITAT-LUCKNOW)
• Duration Of Justice: 6 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-10-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 10-09-2014
• Assessment Year: 2010-2011
• Appeal Filed On: 23-03-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P K DEY
• Assessee Lawyers: YOGESH AGARWAL
• Keywords: Competent authority; Benefit of exemption
• Section: 12A; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B , LUCKNOW BEFORE SHRI S UNIL KUMAR YADAV , JUDICIAL MEMBER AND SHRI. A. K. GARODIA , ACCOUNTANT MEMBER ITA NO. 187/LKW/2014 ASSESSMENT YEAR: 2010 - 2011 INCOME TAX OFFICER 4(2) LUCKNOW V. M / S MAMTA MODERN SCHOOL SAMITI C - 227, RAJAJIPURAM , LUCKNOW PAN: AABTM0209L (APP ELL ANT) (RESPONDENT) APP ELL ANT BY: SHRI. P. K. DEY, D.R. RESPONDENT BY: SHRI. YOGESH AGARWAL, ADVOCATE DATE OF HEARING: 10 09 2014 DATE OF PRONOUNCEMENT: 14 10 2014 O R D E R PER SUNIL KUMAR YADAV: THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST THE ORDER OF THE LD. CIT(A) ON THE FOLLOWING GROUNDS: - 1 . THE COMMISSIONER OF INCOME - TAX (APPEALS) - II, LUCKNOW HAS ERRED IN LAW AND ON THE FACTS OF THE CASE IN DELETING THE ADDITION MAD E BY THE ASSESSING OFFICER ON THE GROUND THAT NO EXEMPTION UNDER SECTION 10(23C) (IIIAD) WAS CLAIMED BY THE ASSESSEE IN ITS INCOME TAX RETURN AS THE RELEVANT COLUM N S WERE EITHER LEFT BLANK OR CROSSED . 2 . THE COMMISSIONER OF INCOME - TAX (APPEALS) - II, LUCKNOW H AS ERRED IN LAW AND ON THE FACTS OF THE CASE THAT THE SOCIETY WAS FORMED ON 7.6.1984 AND IS NOT REGISTERED UNDER SECTION 12A OF THE INCOME TAX ACT, 1961. PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 2 - : 2 . DURING THE COURSE OF HEARING OF THE APPEAL, THE LD. D.R. HAS INVITED OUR ATTENTION THAT THE ASSESSEE HAS NOT BEEN GRANTED REGISTRATION UNDER SECTION 12A OF THE INCOME - TAX ACT, 1961 (HEREINAFTER CALLED IN SHORT THE ACT'), THEREFORE, THE ASSESSING OFFICER HAS RIGHTLY DENIED THE BENEFIT OF EXEMPTION UNDER SECTION 11 OF THE ACT. 3 . WITH REGARD TO OTHER GROUND R ELATING TO EXEMPTION ALLOWED UNDER SECTION 10(23 C )(IIIAD) OF THE ACT, THE LD. D.R. HAS SUBMITTED THAT SINCE APPROVAL WAS NOT GRANTED BY THE COMPETENT AUTHORITY, THE BENEFIT OF EXEMPTION UNDER SECTION 10(23 C )(IIIAD) OF THE ACT CANNOT BE ALLOWED. THEREFORE, THE ORDER OF THE LD. CIT(A) MAY KINDLY BE REVERSED. 4 . THE LD. COUNSEL FOR THE ASSESSEE, ON THE OTHER HAND, HAS INVITED OUR ATTENTION TO THE FACT THAT UNDISPUTEDLY REGISTRATION UNDER SECTION 12A OF THE ACT WAS NOT GRANTED TO THE ASSESSEE, BUT THE ASSESSEE H AS CLAIMED EXEMPTION UNDER SECTION 10(23C)(IIIAD) OF THE ACT, AS THE ASSESSEE IS AN EDUCATIONAL INSTITUTION AND ITS RECEIPTS WAS ONLY RS.12,59,006/ - . HE HAS ALSO INVITED OUR ATTENTION TO THE PROVISIONS OF SECTION 10(23C)(IIIAD) OF THE ACT WITH THE SUBMISS ION THAT IF THE RECEIPTS OF THE ASSESSEE IS LESS THAN RS.1 CRORE, THE ASSESSEE IS NOT REQUIRED TO OBTAIN APPROVAL FROM THE COMPETENT AUTHORITY FOR CLAIMING EXEMPTION UNDER SECTION 10(23C)(IIIAD) OF THE ACT. 2 . HAVING GIVEN A THOUGHTFUL CONSIDERATION TO THE RI VAL SUBMISSIONS AND FROM A CAREFUL PERUSAL OF THE ORDERS OF THE AUTHORITIES BELOW, WE FIND THAT THE ASSESSEE HAS NOT BEEN ALLOWED THE BENEFIT OF EXEMPTION UNDER SECTION 11 OF THE ACT FOR THE REASON THAT REGISTRATION UNDER SECTION 12A OF THE ACT WAS NOT GRA NTED TO IT. THE LD. CIT(A) HAS ALLOWED THE BENEFIT OF EXEMPTION UNDER SECTION 10(23C)(IIIAD) OF THE ACT FOR THE REASON THAT RECEIPTS OF THE ASSESSEE WAS ONLY RS.12,59,006 / - AND ASSESSEE WAS NOT REQUIRED TO OBTAIN APPROVAL FROM THE COMPETENT AUTHORITY. FO R THE SAKE OF REFERENCE, WE EXTRACT THE PROVISIONS OF SECTION 10(23C)(IIIAD) OF THE ACT AS UNDER: - PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 3 - : 10. INCOMES NOT INCLUDED IN TOTAL INCOME. -- IN COMPUTING THE TOTAL INCOME OF A PREVIOUS YEAR OF ANY PERSON, ANY INCOME FALLING WITHIN ANY OF THE FOLLOWING C LAUSES SHALL NOT BE INCLUDED (23C) ANY INCOME RECEIVED BY ANY PERSON ON BEHALF OF -- (I) THE PRIME MINISTER'S NATIONAL RELIEF FUND; OR (II) THE PRIME MINISTER'S FUND (PROMOTION OF FOLK ART); OR (III) THE PRIME MINISTER'S AID TO STUDENTS FUND; OR (IIIA) THE NATIONAL FOUNDATION FOR COMMUNAL HARMONY; OR (IIIAB) ANY UNIVERSITY OR OTHER EDUCATIONAL INSTITUTION EXISTING SOLELY FOR EDUCATIONAL PURPOSES AND NOT FOR PURPOSES OF PROFIT, AND WHICH IS WHOLLY OR SUBSTANTIALLY FINANCED BY THE GOVERNMENT ; OR (IIIAC) ANY HOSPITAL OR OTHER INSTITUTION FOR THE RECEPTION AND TREATMENT OF PERSONS SUFFERING FROM ILLNESS OR MENTAL DEFECTIVENESS OR FOR THE RECEPTION AND TREATMENT OF PERSONS DURING CONVALESCENCE OR OF PERSONS REQUIRING MEDICAL ATTENTION OR REHABILITATION, EXIS TING SOLELY FOR PHILANTHROPIC PURPOSES AND NOT FOR PURPOSES OF PROFIT, AND WHICH IS WHOLLY OR SUBSTANTIALLY FINANCED BY THE GOVERNMENT ; OR (IIIAD) ANY UNIVERSITY OR OTHER EDUCATIONAL INSTITUTION EXISTING SOLELY FOR EDUCATIONAL PURPOSES AND NOT FOR PURPOS ES OF PROFIT IF THE AGGREGATE ANNUAL RECEIPTS OF SUCH UNIVERSITY OR EDUCATIONAL INSTITUTION DO NOT EXCEED THE AMOUNT OF ANNUAL RECEIPTS AS MAY BE PRESCRIBED . 3 . ON A CAREFUL PERUSAL OF THE AFORESAID PROVISION, THE ASSESSEE IS NOT REQUIRED TO OBTAIN APPROVAL IF THE RECEIPT IS LESS THAN RS.1 CRORE. IN THE INSTANT CASE, THE RECEIPT OF THE ASSESSEE WAS ONLY RS.12,59,006/ - , THEREFORE, THE ASSESSEE WAS NOT REQUIRED TO OBTAIN APPROVAL FROM THE COMPETENT AUTHORITY TO CLAIM EXEMPTION UNDER SECTION 10(23C)(IIIAD) OF THE PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 4 - : ACT. IN THE LIGHT OF THESE FACTS, WE FIND NO INFIRMITY IN THE ORDER OF THE LD. CIT(A). WE ACCORDINGLY CONFIRM THE SAME. 4 . IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENT I ONED ON THE CAPTION PAGE. SD/ - SD/ - [ A. K. GARODIA ] [ S UNIL KUMAR Y ADAV ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 14 TH OCTOBER , 2014 JJ: 1009 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT 5 . DR ASSISTANT REGISTRAR PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ )