Sree Jain Swetamber Terapanthi Vidyalaya (Society), Kolkata V. CIT (Exemption), Kolkata , Kolkata

ITA 2198/KOL/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 6664 (ITAT-KOLKATA)
• Duration Of Justice: 8 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-06-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 16-10-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MD USMAN
• Assessee Lawyers: ANANYA RATH
• Section: 10; 11

Judgement Text

ITA NO.2198/KOL/2017 SREE JAIN SWETAMBER TERAPANTHI VIDYALAYA (SOCIETY)A.Y.2012-13 1 IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH B KOL KATA [BEFORE HONBLE SHRI S.S.GODARA, JM & SHRI M.BALA GANESH, AM ] ITA.NO.2198/KOL//2017 ASSESSMENT YEAR : 2012-13 SREE JAIN SWETAMBER TERAPANTHI VS C.I.T.(EXEMPTIO N) VIDYALAYA (SOCIETY) KOLKATA KOLKATA (PAN: AAFTS 2205 J) (APPELLANT) (RESPONDENT) FOR THE APPELLANT: SHRI ANANYA RATH, ADVOCATE FOR THE RESPONDENT: MD. USMAN, CIT(DR) DATE OF HEARING : 26.06.2018. DATE OF PRONOUNCEMENT : 29.06.2018. ORDER PER S.S.GODARA, JM THIS ASSESSEES APPEAL FOR A.Y.2012-13 FALLS INTO QUESTION THE CIT(EXEMPTION),KOLKATAS ORDER DATED 28.08.2017 DEC LINING ITS APPROVAL SOUGHT U/S 10(23C)(VI) OF THE INCOME TAX ACT, 1961 (IN SHORT T HE ACT ) APPLIED IN FORM 56D ON 05.08.2016. 2. WE HAVE HEARD BOTH THE PARTIES. CASE FILE PERUSE D. IT EMERGES AT THE OUTSET THAT THE CIT(EXEMPTION) HAS REJECTED THE RELEVANT APPROV AL TO THE ASSESSEE WHILE FOLLOWING THE DETAIL DISCUSSION : ACCORDING TO THE PROVISION TO THE PROVISIONS OF SE CTION 10(23C) (VI) OF THE INCOME TAX ACT, 1961 THE PRIMARY CONDITIONS FOR GET TING APPROVAL OF AN INSTITUTION UNDER THE PROVISO IS (I) THE INSTITUTION IS EXISTING SOLELY FOR EDUCATIO NAL PURPOSES AND (II) NOT FOR THE PURPOSE OF PROFIT DURING THE COURSE OF PROCEEDINGS U/S. 10(23C)(VI) O F THE INCOME TAX ACT. 1961, THE FACT WAS COMMUNICATED TO THE SOCIETY. IN REPLY, THE PRESIDENT OF THE SOCIETY STATED THAT 'THE MAIN OBJECT OF THE SOCIETY IS TO R UN, ADMINISTER AND MANAGE THE AFFAIRS OF THE SAID SCHOOL INCLUDING OTHER SCHOOLS AND/ OR EDUCATIONAL INSTITUTIONS, PRESENTLY WE ARE RUNNING THE UNDERNOTED SCHOOLS, BO TH SCHOOLS ARE MANAGED BY SEPARATE BODY, NAMELY:- ITA NO.2198/KOL/2017 SREE JAIN SWETAMBER TERAPANTHI VIDYALAYA (SOCIETY)A.Y.2012-13 2 I) SHREE JAIN SWETAMBER TERAPANTHL VIDYALAYA (BOY'S ) (II)SHREE JAIN SWETAMBER TERAPANTHI VIDYALAYA (GIRL 'S) IN OUR ABOVE SAID EDUCATIONAL INSTITUTIONS. EVERYON E IS ALLOWED TO BE ADMITTED IN OUR SCHOOLS IRRESPECTIVE OF CAST, CREED & RELIGION. ' HOWEVER, THE OBJECTS OF THE SOCIETY DO NOT SUPPORT THE CONTENTION OF THE PRESIDENT. A SOCIETY IS RUN ACCORDING TO ITS OBJECTS. WITHOUT BEING SUSPICIOUS ABOUT THE GENUINENESS OF THE DECLARATION OF THE PRESIDENT, IT IS WELL SETTLED THAT THE CONDITIONS FOR APPROVAL OF EXEMPTIONS U/S. 11 OR 10 ARE GUIDED BY THE OBJECTS OF THE INSTITUTION. THE INSTITUTION MAY PERFORM ACTIVI TY ACCORDING TO ONE OR MORE CLAUSES- OF ITS DECLARED OBJECTIVES AND ALSO IT HAS THE RIGHT TO ADOPT THE OTHER ACTIVITIES DURING THE COURSE OF ITS RUNNING AT ANY TIME AS SUITABLE. HENCE, THE SOLE PURPOSE OR EDUCATION IS NOT APPLICABLE IN THE INSTA NT CASE. MOREOVER. THE PRESIDENT IS SILENT ABOUT THE CLAUSE FOR INVESTMENT BY THE SOCIETY AS IS NOT ACCORDING TO THE CONDITIONS LAID DOWN IN SECTIONS 1 1 TO 13 OF THE INCOME TAX ACT, 1961. THE MATTER HAS BEEN DISCUSSED AND THE LD. A/R REQUESTED FOR ADJOURNMENT SO THAT PROPOSED AMENDMENTS ARE DONE AS REQUIRED. I T HAS BEEN SUBMITTED VIDE LETTER DATED 25.08.2017 THAT THE TRUST MADE NECESSA RY AMENDMENTS AND FILED FORM IV BEFORE THE REGISTER OF SOCIETIES. THE LD. A /R. PROPOSED TO APPEAR ON 28.08.2017 ALONG WITH THE RELEVANT PAPERS AND DOCUM ENTS. HOWEVER, NO SUCH AMENDMENT DULY REGISTERED WITH REGISTRAR OF SOCIETI ES HAS BEEN SUBMITTED TILL DATE. IN VIEW OF ABOVE, THE APPLICATION FOR APPROVAL U/S. 10(23C)(VI) OF THE INCOME TAX ACT, 1961 FILED. BY THE TRUST IS REJECTED. 3. LEARNED COUNSEL APPEARING AT ASSESSEES BEHEST U NDERTAKES THAT IT SHALL FILE ALL THE RELEVANT DETAILS IN CASE ONE MORE INNING IS GRA NTED IN THE RELEVANT PROCEEDINGS BEFORE CIT(EXEMPTION). SHE HIGHLIGHTS THE FACT THAT THE ASSESSEE HAD BEEN APPEARING ON ALL OCCASIONS EXCEPT THE LAST ONE BECAUSE OF COM MUNICATION GAP. LEARNED DEPARTMENTAL REPRESENTATIVE FAILS TO DISPUTE THE FA CT THAT THE ASSESSEE HAD PLACED ON RECORD ALL THE RELEVANT DETAILS EXCEPT THE ONES SOU GHT AT THE FAG END OF THE LOWER PROCEEDINGS. WE THEREFORE RESTORE THE INSTANT APPRO VAL ISSUE U/S 10(23C) (VI) OF THE ACT BACK TO THE CIT(EXEMPTION) FOR ADJUDICATION AS PER LAW AFTER AFFORDING ADEQUATE OPPORTUNITY OF HEARING. ITA NO.2198/KOL/2017 SREE JAIN SWETAMBER TERAPANTHI VIDYALAYA (SOCIETY)A.Y.2012-13 3 4. THIS ASSESSEES APPEAL IS ALLOWED FOR STATISTICA L PURPOSES. OR DER PRONOUNCED IN THE COURT ON 29.06.2018. SD/- SD/- [M.BALAGANESH] [ S.S.GODARA ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 29.06.2018. [RG SR.PS] COPY OF THE ORDER FORWARDED TO: 1.SREE JAIN SWETAMBER TERAPANTHI VIDYALAYA (SOCIETY ), 3, SAHID NITYANANDA SAHA SARANI, (PORTUGESE CHRCH STREET), KOLKATA-700001. 2 C.I.T.(EXEMPTION) KOLKATA. 3. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER, SENIOR PRIVATE SECRETARY HEAD OF OFFICE/D.D.O, ITAT KOLKATA BENCHES