Ideal Educational Society, Ghaziabad V. DCIT, Exemption Circle, Ghaziabad

ITA 212/DEL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 3958 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 1 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-03-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 11-01-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 201

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC, NEW DELHI BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER ITA NO. 212 /DEL/201 9 A.Y. : 2010-11 IDEAL EDUCATIONAL SOCIETY, GHAZIABAD D-522, SHASTRI NAGAR, GHAZIABAD 201 001 (PAN: AAAB10038E) VS. DCIT, EXEMPTION, CIRCLE, GHAZIABAD CGO COMPLEX-II, ROOM NO. 105, 1 ST FLOOR, KAMLA NEHRU NAGAR, GHAZIABAD (APPELLANT) (RESPONDENT) ASSESSEE BY : MS. RAGINI HANDA, CA DEPARTMENT BY : SH. PRADEEP SINGH GAUTAM, SR. DR. ORDER THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGA INST THE IMPUGNED ORDER DATED 24.10.2018 PASSED BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS), GHAZIABAD PERTAINING ASSESSMENT YEAR 2010-11. 2. FACTS NARRATED BY THE REVENUE AUTHORITIES ARE NO T DISPUTED BY BOTH THE PARTIES, HENCE, THE SAME ARE NOT REPEATED HERE FOR THE SAKE OF CONVENIENCE. 3. AT THE TIME OF HEARING, LD. AUTHORISED REPRESENT ATIVE OF THE ASSESSEE, MS. RAGINI HANDA, CA STATED THAT THE QUANTUM ON WH ICH THE PENALTY HAS BEEN IMPOSED HAS ALREADY BEEN DELETED BY THE ITAT, C B ENCH, NEW DELHI VIDE ITS ORDER DATED 12.06.2019 PASSED IN ITA NO. 3550/DEL/2 015 (AY 2010-11) IN ASSESSEES QUANTUM APPEAL. FOR THE SAKE OF CONVEN IENCE, SHE FILED THE COPY OF THE AFORESAID TRIBUNALS ORDER DATED 12.06.2019. THEREFORE, SHE REQUESTED THAT SINCE THE QUANTUM ADDITION HAS ALREADY BEEN DE LETED BY THE TRIBUNAL VIDE 2 ITS AFORESAID ORDER DATED 12.6.2019, THEREFORE, TH E PENALTY IN DISPUTE IS NOT SUSTAINABLE IN THE EYES OF LAW AND HENCE, THE SAME MAY BE DELETED ACCORDINGLY. 4. ON THE OTHER HAND, LD. DR HAS NOT RAISED ANY OB JECTION ON THE REQUEST OF THE LD. A.R. FOR THE ASSESSEE. 5. I HAVE HEARD BOTH THE PARTIES AND PERUSED THE OR DERS OF THE AUTHORITIES BELOW AND THE ORDER OF THE ITAT PASSED IN ASSESSEE S QUANTUM APPEAL, WHEREIN THE ITAT, C BENCH, NEW DELHI VIDE ITS ORDER DATED 12.06.2019 PASSED IN ITA NO. 3550/DEL/2015 (AY 2010-11) HAS ALREADY BEEN DEL ETED THE ADDITION IN DISPUTE BY HOLDING AS UNDER:- THE HONBLE HIGH COURT IN CASE OF MALLIKARJUN S CHOOL SOCIETY (SUPRA) HELD THAT AN EDUCATIONAL INSTITUTE WILL NOT CEASE TO BE ONE EXISTING SOLELY FOR EDUCATIONAL PUR POSES SINCE THE OBJECT IS NOT TO MAKE PROFIT. IN PRESENT CASE ALSO THE ASSESSEE SOCIETY WILL NOT CEASED TO EXIST AS ED UCATIONAL INSTITUTE BECAUSE IT IS PROVIDING HOSTEL FACILITY O R TRANSPORTATION FACILITY OR MESS FACILITY, AS IT IS AN INCIDENTAL TO THE EDUCATION PURPOSE OF THE ASSESSEE SOCIETY. T HEREFORE, IN VIEW OF THE HONBLE UTTRAKHAND HIGH COURT DECISI ON IN CASE OF MALLIKARJUN SCHOOL SOCIETY (SUPRA) AND ORDE RS OF THE CO-ORDINATE BENCH IN CASE OF DELHI PUBLIC SCHOOL GH AZIABAD, THE HOSTEL FACILITY PROVIDED BY ASSESSEE SOCIETY I S NOT IN THE NATURE OF BUSINESS AND IS INCIDENTAL TO THE ATTAINM ENT OF THE MAIN OBJECT OF THE PROVIDING EDUCATION TO STUDENTS. THEREFORE, PROVISIONS OF SECTION 11(4A) WILL NOT BE APPLICABLE 3 TO THE ASSESSEE. THUS, GROUNDS NOS. 2, 2.1 AND 2.2. ARE ALLOWED.. 5.1 AFTER PERUSING THE AFORESAID FINDING OF THE TRI BUNAL IN ASSESSEES APPEAL, WHEREIN QUANTUM ADDITION HAS ALREADY BEEN DELETED ON WHICH THE PENALTY HAS BEEN IMPOSED. HENCE, THE PENALTY IN DIS PUTE IS NOT SUSTAINABLE IN THE EYES OF LAW, THEREFORE, THE SAME IS DELETED. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED ON 02-03-2020. SD/- [H.S. SIDHU] JUDICIAL MEMBER DATE: 02/03/2020 SRB COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT ( A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR, ITAT, DELHI BENCHES