Sri vishnu Cements Educational Society, Nalgonda V. Income Tax Officer (Exemptions)-2, Hyderabad

ITA 1930/Hyd/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 8227 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 7 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 09-07-2019
• Assessment Year: 2014-2015
• Appeal Filed On: 27-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V APARNA
• Assessee Lawyers: S RAMA RAO
• Section: 143(1); 154; 139

Judgement Text

IN T HE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B , HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO. 1930 /HYD/201 7 ASSESSMENT YEAR: 20 1 4 - 1 5 SRI VIS HNU CEMENTS EDUCATIONAL SOCIETY, NALGONDA PAN A AGAS4122C VS. INCOME - TAX OFFICER, (EXEMPTIONS) 2, HYDERABAD. ( APPELLANT ) (RESPONDENT) ASSESSEE BY : SHRI S. RAMA RAO REVENUE BY : S MT. V. APARNA DATE OF HEARING : 0 9 / 0 7 /201 9 DATE OF PRONOUNCEMENT : 17 / 0 7 / 201 9 O R D E R PER S . RIFAUR RAHMAN , A .M. : T H IS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF CIT(A) 9 , HYDERABAD, DATED 31 / 07 /201 7 , FOR AY 20 1 4 - 1 5 . 2. BRIEF FACTS OF THE CASE ARE, THE ASSESSEE IS A SOCIETY RUNNING AN EDUCATIONAL INSTITUTION UNDER THE NAME AND STYLE OF SRI VISHNU CEMENTS EDUCATIONAL SOCIETY AT NALGONDA. DURING THE AY 2014 - 15, ASSESSEE RECEIVED GROSS RECEIPTS OF RS. 41.14 LAKHS, WHICH CONSISTS OF FEES COLLECTED FROM THE STUDEN TS AND OTHER INCOME INCLUDING COST OF BOOKS SOLD. THE SOCIETY INCURRED EXPENDITURE TO THE EXTENT OF RS. 35.57 CRORES AND THE NET RESULT WAS EXCESS INCOME OVER EXPENDITURE OF RS. 5.67 LAKHS. ASSESSEE HAS FILED RETURN OF INCOME ELECTRONICALLY ON 23/03/2015 U /S 139 OF THE INCOME - TAX ACT, 1961 (IN SHORT THE ACT) AT THE TIME OF FILING OF RETURN OF INCOME IN F ORM ITR - 7, THE ENTRIES IN PART B - TI WERE NOT PROPERLY FILLED IN. THE ABOVE RETURN OF INCOME WAS PROCESSED BY CPC, BANGALORE ON 28/02/2016. THE CPC PROCESS ED THE RETURN OF INCOME AS PER THE RETURN FILED AND HAS NOT GRANTED ANY 2 ITA NO. 1930 /HYD/1 7 SRI VISHNU CEMENTS EDUCATIONAL SOCIETY, NALGONDA EXEMPTION U/S 10(23C)(IIIAD). SINCE THE ASSESSEE IS AN EDUCATIONAL INSTITUTION, THE GROSS RECEIPTS ARE LESS THAN RS. 1 CRORE. ASSESSEE ALSO FILED RECTIFICATION PETITION U/S 154 AND THE SAME WAS DISPOSED OF BY CPC. 3. AGGRIEVED WITH THE ABOVE ORDER, ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A) AND THE CIT(A) DISMISSED THE APPEAL FILED BY THE ASSESSEE. 4. AGGRIEVED BY THE ORDER OF CIT(A), THE ASSESSEE IS IN APPEAL BEFORE US RAISING THE FOLLOWING GROUNDS OF APPEAL: 1) THE ORDER OF THE LEARNED COMMISSIONER OF INCOME - TAX (APPEALS) IS ERRONEOUS BOTH ON FACTS AND IN LAW. 2) THE LEARNED COMMISSIONER OF INCOME - TAX (APPEALS) ERRED IN CONFIRMING THE INTIMATION U / S 143(1) OF THE I.T. ACT ISSUED BY THE CENTRALIZED PROCESSING CENTRE WITHOUT CONSIDERING THE DETAILS IN THE STATEMENT OF FACTS. 3) THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) OUGHT TO HAVE DECIDED GROUND NO.2 WHEREIN THE APPELLANT AGITATED THE INACTION OF THE ASSESSING OFFICER IN NOT RECTIFYING THE INTIMATION U / S 143(1) OF THE I.T. ACT BY PASSING ORDER U / S 154. 4) THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) OUGHT TO HAVE SEEN THAT WHEN THE APPELLANT IS ENTITLED FOR EXEMPTION U / S 10(23C)(IIIAD) OF THE I.T. ACT AND THAT THE ENTIRE RECEIPT IS EXEMPT FROM TAX WHEREAS THE CENTRALIZED PROCESSING CENTRE DID NOT ALLOW ANY EXEMPTION WITHOUT A SSIGNING ANY REASON. 5. BEFORE US, LD. AR OF THE ASSESSEE BROUGHT TO OUR NOTICE THE MISTAKE WHILE FILING THE RETURN OF INCOME, WHIC H IS PLACED IN PAPER BOOK. FURTHER, HE BROUGHT TO OUR NOTICE THE FINANCIAL RESULT AND AUDITORS REPORT, WHICH IS ALSO PLACED ON RECORD IN PAPER BOOK, AS PER WHICH, ASSESSEE HAS EARNED INCOME AND EXPENDITURE ONLY IN CARRYING OUT THE EDUCATIONAL ACTIVITIES. HE PRAYED THAT THE MATTER MAY BE REMITTED BACK TO AO TO VERIFY THE RECORD AND RECTIFY THE MISTAKE APPARENT ON RECORD. 3 ITA NO. 1930 /HYD/1 7 SRI VISHNU CEMENTS EDUCATIONAL SOCIETY, NALGONDA 6. WE HAVE ALSO HEARD THE LD. DR. 7. CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. FROM THE INFORMATION BROUGHT ON RECORD, IT IS CLEAR THAT ASSESSEE IS RUNNING AN EDUCATIONAL INSTITUTION AND CARRYING OUT EDUCATIONAL ACTIVITIES AND ALSO ASSESSEE MADE MISTAKE WHILE FI LLING THE RETURN OF INCOME, IN WHICH, ASSESSEE HAS NOT FILLED THE EXPENDITURE COLUMNS. THESE MISTAKES ARE APPARENT ON RECORD AND IN ORDER TO VERIFY AND RECTIFY THE MISTAKE APPARENT ON RECORD, WE DEEM IT FIT AND PROPER TO REMIT THE ISSUE BACK TO THE FILE OF AO TO VERIFY RECORDS AND EVALUATE ELIGIBILITY OF THE ASSESSEE TO CLAIM EXEMPTION U/S 10(23C)(IIIAD) A ND ACCORDINGLY, DISPOSE OF THE ASSESSMENT DE - NOVO. ACCORDINGLY, THE GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COUR T ON 17 TH JULY , 201 9 . SD/ - SD/ - ( P. MADHAVI DEVI ) (S . RIFAUR RAHMAN ) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED: 17 TH JULY , 201 9 KV C OPY TO: - 1) SHRI VISHNU CEMENTS EDUCATIONAL SOCIETY, D.NO. 5 - 123, SITAPURA, DONDAPADU VILLAGE, MELLACHERUVU MANDAL, NALGONDA DISTRICT . 2) ITO (EXEMPTIONS ) 2, AAYAKAR BHAVAN, BASHEERBAGH, HYDERABAD 3) CIT(A) 9, HYDERABAD. 4) CIT (EXEMPTIONS) , HYD. 5 ) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDERABAD. 6 ) GUARD FILE