New Era Education Society, V. DDIT (E) Investigation Circle,

ITA 1870/DEL/2008

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 3956 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 11 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-05-2010
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 11-05-2010
• Assessment Year: 2004-2005
• Appeal Filed On: 14-05-2008
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: H K LAL
• Keywords: Benefit of exemption
• Section: 12A; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH F NEW DELHI) BEFORE SHRI C.L. SETHI, JUDICIAL MEMBER AND SHRI K. G. BANSAL, ACCOUNTANT MEMBER ITA. NO.1870/D/2008 ASSESSMENT YEAR : 2004-05 NEW ERA EDUCATION SOCIETY VS. DY. DIRECTOR OF IN COME-TAX PLOT NO.17, MAYAPURI, (E) INVESTIGATION CIRCLE, NEW DELHI NEW DELHI PAN NO.AAATN 0733B (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SANJAY SOOD, CA RESPONDENT BY : SHRI H.K. LAL, SR. DR ORDER PER K.G. BANSAL: AM: THIS APPEAL OF THE ASSESSEE EMANATES FROM THE ORDER OF CIT(A)-XXI, NEW DELHI, PASSED ON 04.03.2008 IN I.T. APPEAL NO.57/07-08, PERTAINING TO ASSESSMENT YEAR 2004-05 . THE ASSESSEE HAS TAKEN UP 7 GROUNDS IN THE APPEAL. HOW EVER, DURING THE COURSE OF HEARING BEFORE US, THE LEARNED COUNSEL FOR THE ASSESSEE PRESSED ONLY GROUND NO.2, WHICH IS THA T ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LEA RNED CIT(A) ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFF ICER IN NOT ALLOWING EXEMPTION U/S 10(23C). 2. THE FACTS OF THE CASE ARE THAT THE ASSESSEE FILE D THE RETURN OF INCOME ON 01.11.2004 DECLARING NIL INCOME . THE 2 ASSESSING OFFICER COMPLETED THE ASSESSMENT ON 21.12 .2006 DETERMINING THE TOTAL INCOME OF THE ASSESSEE AT RS. 10,23,410/-. WHILE DOING SO, HE GRANTED DEDUCTION U/S 11 AS THE ASSESSEE WAS AN INSTITUTION REGISTERED U/S 12A OF THE ACT. THE ASSESSEE FILED APPEAL BEFORE THE CIT(A) AGAINST THIS ORDER. THE MAIN GROUND TAKEN BEFORE HIM WAS THAT ON THE FACTS AND I N THE CIRCUMSTANCES OF THE CASE, THE ASSESSING OFFICER ER RED IN NOT ALLOWING EXEMPTION U/S 10(23C). IN THE STATEMENT O F FACTS IT WAS MENTIONED THAT THE SOCIETY IS REGISTERED UNDER THE SOCIETIES REGISTRATION ACT, 1860, AND ALSO U/S 12A OF THE INCOME-TAX ACT. THE RETURN OF INCOME WAS FILED AFT ER CONSIDERING EXEMPTION U/S 10(23C) THE NOTIFICATION IN RESPECT OF WHICH WAS PENDING WITH THE DEPARTMENT. THE LEARNED CIT(A) CONSIDERED THE FACTS OF THE CASE AND SUBMISSIONS MA DE BEFORE HIM. IT WAS MENTIONED THAT THE ASSESSEE FAILED TO SUBMIT ANY AUTHENTIC CERTIFICATE GRANTING APPROVAL TO IT U/S 1 0(23C). THEREFORE, THE ORDER OF THE ASSESSING OFFICER WAS U PHELD IN THIS BEHALF. 2.1 BEFORE US, IT HAS BEEN SUBMITTED THAT THE ASSES SEE HAD APPLIED FOR APPROVAL U/S 10(23C). THE ASSESSEE HAD DOWN LOADED THE FATE OF ITS APPLICATION FROM THE WEBSITE INCOMETAXINDIA.GOV.IN, WHICH SHOWS THAT IT HAS BEEN APPROVED UNDER THE AFORESAID PROVISION. A COPY OF THE PRINT OUT FROM THE AFORESAID WEBSITE HAS BEEN PLACED AT PAGE 6 OF THE PAPER BOOK. A COPY OF ORDER OF THE DIRECTOR GENERAL OF INCOME-T AX (EXEMPTIONS) DATED 19.03.2010 HAS ALSO BEEN PLACED BEFORE 3 US, WHICH GRANTS APPROVAL TO THE ASSESSEE FOR ASSES SMENT YEAR 2009-2010 AND ONWARDS. IT HAS BEEN SUBMITTED THAT THE ASSESSEE HAS FILED A REMINDER DATED 03.02.2010 BEFO RE DIRECTOR OF INCOME-TAX (EXEMPTIONS), REQUESTING HIM TO FURNI SH A HARD COPY OF THE NOTIFICATION FOR THIS YEAR. IT HAS BEE N ARGUED THAT IN VIEW OF SUBSEQUENT APPROVAL AND THE INFORMATION DOW N LOADED FROM THE WEBSITE INCOMETAXINDIA.GOV.IN, IT CAN BE C ONCLUDED THAT THE ASSESSEE HAS BEEN APPROVED U/S 10(23C) FOR THIS YEAR ALSO. 2.2 IN REPLY, THE LEARNED DR SUBMITTED THAT THE ASS ESSEE HAS NOT BEEN ABLE TO PRODUCE THE NOTIFICATION GRANTING IT APPROVAL U/S 10(23C). THEREFORE, THE LOWER AUTHORITIES WERE RIG HT IN NOT GRANTING THE BENEFIT OF EXEMPTION UNDER THE AFORESA ID PROVISIONS. 2.3 WE HAVE CONSIDERED THE FACTS OF THE CASE AND SUBMISSIONS MADE BEFORE HIM. WE FIND THAT WHILE TH E ASSESSEE HAS FILED A COPY OF NOTIFICATION DATED 19.03.2010 F OR ASSESSMENT YEAR 2009-10 AND ONWARDS, NO SUCH NOTIFICATION HAS BEEN FILED BEFORE LOWER AUTHORITIES OR BEFORE US. IN SO FAR A S COMPUTATION OF INCOME UNDER SECTIONS 11 TO 13 IS CONCERNED, THE LEARNED COUNSEL HAS NO OBJECTION. HOWEVER, HIS CASE IS THA T ASSESSEE OUGHT TO HAVE BEEN ALLOWED THE BENEFIT OF THE PROVI SIONS CONTAINED IN SECTION 10(23C). IN ABSENCE OF SPECIF IC NOTIFICATION OR ORDER UNDER THIS PROVISION, THE BENEFIT CANNOT B E ALLOWED TO THE ASSESSEE AT PRESENT. HOWEVER, AS AND WHEN SUCH A 4 NOTIFICATION IS MADE AND COPY THEREOF IS PRODUCED B EFORE THE ASSESSING OFFICER, HE SHALL REVISE THE COMPUTATION OF TOTAL INCOME BY TAKING INTO ACCOUNT SUCH NOTIFICATION. 3. THE RESULT IS THAT SUBJECT TO THE REMARKS MADE I N THE ORDER, THE APPEAL IS DISMISSED. 4. THIS ORDER WAS PRONOUNCED IN OPEN COURT ON 11.05 .2010 SOON AFTER THE CONCLUSION OF THE HEARING. SD/- SD/- ( C.L. SETHI ) ( K.G. BANSA L ) JUDICIAL MEMBER ACCOUNTANT ME MBER DT.11.05.2010. NS COPY FORWARDED TO:- 1. NEW ERA EDUCATION SOCIETY, PLOT NO.17, MAYAPURI ROAD, NEW DELHI. 2. DDIT(E) INVESTIGATION CIRCLE, NEW DELHI 3. THE CIT 4. THE CIT (A), NEW DELHI. 5. THE DR, ITAT, LOKNAYAK BHAWAN, KHAN MARKET, NEW DELHI. TRUE COPY BY ORDER (ITAT, NEW DELHI).