Scient Educational Society, Hyderabad V. Asst.DIT(Exemptions)1, Hyderabad

ITA 210/HYD/2013

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 4797 (ITAT-HYDERABAD)
• Duration Of Justice: 6 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-08-2013
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 20-02-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SUBHASHREE ANANTHAKRISHNAN
• Assessee Lawyers: T CHAITANYA KUMAR
• Keywords: Additional evidence
• Section: 12A; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B ', HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND S HRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NO. 210 /HYD/1 3 : ASSESSMENT YEAR 200 9 - 1 0 SCIENT EDUCATIONAL SOCIETY, HYDERABAD (PAN AA DTS 0229 G ) V/S. ASSTT. DIRECTOR OF INCOME - TAX(EXEMPTION) I HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI T.CHAITANYA KUMAR RESPONDENT BY : SMT. SUBHASHREE ANANTHAKRISHNAN DR DATE OF HEARING 29.08.2013 DATE OF PRONOUNCEMENT 29.08.2013 O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: TH IS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE CIT(A) IV HYDERABAD DATED 27 . 12 .201 2 FOR THE ASSESSMENT YEAR 200 9 - 1 0. 2. EFFECTIVE GROUNDS OF THE ASSESSEE IN THIS APPEAL READ AS FOLLOWS - 1) THE ORDER OF THE CIT(A) IS ERRONEOUS BOTH ON FACTS AND IN LAW. 2) THE COMMISSIONER OF INCOME - TAX(APPEALS) ERRED IN HOL D IN G THAT THE ACTION OF THE ASSESSING OFFICER IN DENYING THE EXEMPTION U/S. 11 OF THE I.T. ACT. THOUGH T H E APPELLANT SOCIETY WAS REGISTERED U/S. 12A OF THE INCOM E TAX ACT. 3) COMMISSIONER OF INCOME - TAX(APPEALS) ER R ED IN CONFIRMING TH E AC T ION OF THE ASSESSING OFFICER IN HOL D IN G THAT THE AMOUNT O F RS.35,00,000 HAD VIOLATED U/S. 13(2) R.W.S. 13(3) OF THE INCOM E TA X ACT. 4) THE ACTION OF THE COMMISSIONER OF INCOME - TAX(APPEALS) IS NO T CORRECT IN SO FAR HIS OBSERVATION, THAT THE TRANSACTION IS AS RESULTED IN BENEF IT TO THE DETRIMENT OF THE SOCIETY. 5) COMMISSIONER OF INCOME - TAX(APPEALS) ALSO OUGHT TO HAVE SEEN THE ENTRIES IN THE BOOKS OF THE APPELLANT. ITA NO. 210 / HYD/201 3 SCIENT EDUCATIONAL SOCIETY, HYDERABAD 2 6) THE LEARNED COMMISSIONER OF INCOME - TAX(APPEALS) AND THE ASSESSING OFFICER OUGHT TO HAVE CONSIDERED THE FACT T HAT THE APP E LLANT HAS REPAID THE UNSECURED LOANS TO CONCERNED PERSONS ON THE DI R ECTION S OF THE LOAN CREDITORS. 7) COMMISSIONER OF INCOME - TAX(APPEALS) ERRED IN CONFIRMING THE A C T ION OF THE ASSESSING OFFICER IN CHARGING THE INTEREST U/S. 234C RS.5,56,970. 8) .. THUS THE EFFECTIVE GRIEVANCE OF THE ASSESSEE IN THIS APPEAL RELATES TO DENIAL OF EXEMPTION UNDER S.11 OF THE ACT TO THE ASSESSEE SOCIETY. 3. WE HEARD BOTH SIDES AND PERUSED THE ORDERS OF THE LOWER AUTHORITIES. DURING THE COURSE OF HEARING, THE LEARNED COUNSEL FOR THE ASSESSEE HAS FILED BEFORE US ADDITIONAL EVIDENCE IN THE FORM OF COPIES OF THE LEDGER EXTRACTS OF UNSECURED LOAN CREDITORS ACCOUNT AND PRAYED THAT THE SAME HAVE A BEARING ON THE ULTIMATE DECISION ON THE ISSUE IN DISPUTE, AND AS S UCH THE SAME MAY BE ADMITTED. THE LEARNED DEPARTMENTAL REPRESENTATIVE HAS OPPOSED THE PRAYER OF THE ASSESSEE FOR ADMISSION OF THE SAID ADDITIONAL EVIDENCE. ON CAREFUL CONSIDERATION OF THE MATTER, WE FIND MERIT IN THE PRAYER OF THE ASSESSEE FOR ADMISSION O F THE ADDITIONAL EVIDENCE IN QUESTION, SINCE DETAILS CONTAINED IN THE SAID ADDITIONAL EVIDENCE HAS A BEARING ON THE ULTIMATE DECISION ON THE POINT AT ISSUE, AND IT IS ONLY ON ACCOUNT OF ABSENCE OF SUCH DETAILS THAT THE ASSESSEE HAS BEEN DENIED THE EXEMPTIO N UNDER S.11 OF THE ACT. IN THIS VIEW OF THE MATTER, WE ADMIT THE ADDITIONAL EVIDENCE ADDUCED BY THE ASSESSEE FOR THE FIRST TIME BEFORE US, AND SINCE THE SAME WAS NOT BEFORE THE ASSESSING OFFICER FOR VERIFICATION DURING ASSESSMENT PROCEEDINGS, IN THE INTE RESTS OF JUSTICE, WE SET ASIDE THE IMPUGNED ORDER OF THE CIT(A) AND RESTORE THE MATTER TO THE FILE OF THE ASSESSING OFFICER, FOR REDECIDING THE ISSUE OF EXEMPTION UNDER S.11 OF THE ACT TO THE ASSESSEE, AFTER CONSIDERING THE FRESH EVIDENCE ADDUCED BEFORE US , IN ACCORDANCE WITH LAW AND AFTER GIVING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. ASSESSEE IS ALSO AT LIBERTY TO FURNISH ANY FURTHER EVIDENCE TO SUBSTANTIATE ITS CLAIM FOR EXEMPTION UNDER ITA NO. 210 / HYD/201 3 SCIENT EDUCATIONAL SOCIETY, HYDERABAD 3 S.11 OF THE ACT, AND THE ASSESSING OFFICER SHALL PASS A PPROPRIATE ORDERS IN ACCORDANCE WITH LAW ON CONSIDERATION OF TOTALITY OF EVIDENCE BROUGHT ON RECORD. WE DIRECT ACCORDINGLY. 4. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 29.8.2013 SD/ - SD/ - ( SAKTIJIT DEY ) (CHANDRA POOJARI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED/ - 29 TH AUGUST, 2013 COPY FORWARDED TO: 1 SCIENT EDUCATIONAL SOCIETY, C/O. SHRI T.CHAITANYA KUMAR, ADVOCATE, FLAT NO.409, METRO RESIDENCY, RAJBHAVAN RAOD, SOMAJIGUDA, HYDERABAD 2 ASSTT. DIRECTOR OF INCOME - TAX(EXEMPTION) I, HYDERABAD 3 COMMISSIONER OF INCOME - TAX(APPEALS) IV, HYDERABAD 4 COMMISSIONER OF INCOME - TAX III, HYDERABAD 5 DEPARTMENTAL REPRESENTATIVE ITAT, HYDERABAD B.V.S