M/s. Swamy Vevekananda Educational Society, Jaggampeta V. The CIT(Exemptions), Hyderabad

ITA 23/VIZ/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8796 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 year(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-01-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 23-01-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DEBA KUMAR SONAWAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , HONBLE ACCOUNTANT MEMBER ITA NO. 23 / VIZ /201 7 M/S. SRI SWAMY VIVEKANANDA EDUCATIONAL SOCIETY, D.NO. 6 - 40, KAKINADA ROAD, JAGGAMPETA, EAST GODAVARI DISTRICT. V S . CIT (EXEMPTIONS) HYDERABAD . PAN NO. AAHAS 2064 G (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI G.V.N. HARI ADV OCATE . DEPARTMENT BY : SHRI DEBA KUMAR SONAWAL CIT DR DATE OF HEARING : 10 / 01 /201 8 . DATE OF PRONOUNCEMENT : 25 / 01 /201 8 . O R D E R PER V. DURGA RAO, JUDICIAL MEMBER TH IS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME T AX (EXEMPTIONS ) , HYDERABAD , DATED 1 1 / 11 /201 6 . 2. FACTS OF THE CASE, IN BRIEF, ARE THAT ASSESSEE - M/S. SRI SWAMI VIVEKANANDA EDUCATIONAL SOCIETY FILED AN APPLICATION BEFORE THE LD.CIT(EXEMPTIONS) IN FORM NO. 56D , SEEKING EXEMPTION UNDER SECTION 10(23)(VI) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS 'ACT') FROM THE F.Y. 2015 - 16 ONWARDS . THE 2 ITA NO. 28/VIZ/2017 ( M/S. SRI SWAMY VIVEKANANDA EDUCATIONAL SOCIETY ) LD.CIT(EXEMPTIONS) HAS REJECTED THE APPLICATION FILED BY THE ASSESSEE ON THE GROUND THAT THE ASSESSEE SOCIETY IS NOT EXISTING SOLELY FOR EDUCATIONAL PURPOSE . TWO OBJECTS, O UT OF FIVE , ARE GENERAL IN NATURE, WHICH ARE REPRODUCED AS UNDER: - (I) TO DEVELOP SOCIAL CONTRACTS AND SPIRIT OF FELLOW FEELING AMONG ITS MEMBERS AND TO MAINTAIN A LIBRARY WITH GOOD BOOKS, PERIODICALS AND NEWSPAPERS. (II) TO DEVELOP THE SOCIAL AND CULTURAL ACTIVITIES FOR THE WELFARE OF THE SOCIETY. KEEPING IN VIEW OF THE ABOVE OBJECTS, THE LD. CIT(EXEMPTIONS) R EJECTED THE APPLICATION FILED BY THE ASSESSEE UNDER SECTION 10(23)(VI) OF THE A CT. 3 . THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 4 . LD . COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT INITIALLY THERE ARE FIVE OBJECT S , OUT OF WHICH , TWO ARE GENERAL IN NATURE . SUBSEQUENTLY, THE ASSESSEE FILED AN AMENDMENT APPLICATION BEFORE THE REGISTRAR OF SOCIETIES FOR DELETING TWO OBJECT S B Y LETTER DATED 07 /05/2015 . T HE SAME WAS INFORMED TO THE LD. CIT(EXEMPTIONS) VIDE LETTER DATED 09/11/2016 THROUGH POST. HOWEVER, LD. CIT (EXEMPTIONS) PASSED THE ORDER DATED 11/11/2016 AND BY THE TIME OF PASS ING OF ORDER , THE AMENDED LETTER WAS NOT BEFORE THE LD.CIT (EXEMPTIONS) . IT IS SUBMITTED THAT ALL THE OBJECTS OF THE ASSESSEE - 3 ITA NO. 28/VIZ/2017 ( M/S. SRI SWAMY VIVEKANANDA EDUCATIONAL SOCIETY ) SOCIETY ARE ONLY FOR THE PURPOSE OF EDUCATION AND THEREFORE , THE AMENDED OBJECTS MAY BE CONSIDERED AND DIRECTED T HE LD.CIT (EXEMPTIONS) TO PASS A AFRESH ORDER IN ACCORDANCE WITH LAW. 5. ON THE OTHER HAND , LD. DEPARTMENTAL REPRESENTATIVE STRONGLY SUPPORTED THE ORDER PASSED BY THE LD.CIT(EXEMPTIONS) AND SUBMITTED THAT THE ORDER OF LD.CIT(EXEMPTIONS) IS AS PER THE OBJECTS OF THE ASSESSEE - SOCIETY. 6 . WE HAVE HEARD BOTH THE PARTIES, PERUSED THE MATERIA L AVAILABLE ON RECORD AND THE ORDER OF THE LD.CIT(EXEMPTIONS) 7 . THE ASSESSEE - SRI SWAMI VIVEKANANDA EDUCATIONAL SOCIETY HAS FILED AN APPLICATION BEFORE THE LD.CIT (EXEMPTIONS) , SEEKING EXEMPTION UNDER SECTION 10(23)(VI) OF THE ACT IN FORM NO. 56D DATED 13/04/2016 ALONG WITH THE FOLLOWING OBJECTS: - (I) TO DEVELOP SOCIAL CONTACTS AND SPIRIT OF FELLOW FEELING AMONG ITS MEMBERS AND TO MAINTAIN A LIBRARY WITH GOOD BOOK S, PERIOD IC ALLY NEWSPAPERS. (II) TO STRIVE FOR THE ERADICATION OF ILLITERACY. (III) TO DEVELOP THE SOCIAL AND CULTURAL ACTIVITIES FOR THE WELFARE OF THE SOCIETY. (IV) TO PROMOTE RURAL AND ADULT EDUCATION. (V) TO ESTABLISH SCHOOLS, COLLEGES AND SIMILAR INS TITUTIONS IN A.P. 4 ITA NO. 28/VIZ/2017 ( M/S. SRI SWAMY VIVEKANANDA EDUCATIONAL SOCIETY ) 8. THE LD.CIT (EXEMPTIONS) HAS CONSIDERED THE OBJECTS OF THE ASSESSEE - SOCIETY AND NOTED THAT THERE ARE TWO OBJECTS , WHICH ARE NOT AT ALL RELATING TO THE EDUCATION , THOSE ARE (I) TO DEVELOP SOCIAL CONTRACTS AND SPIRIT OF FELLOW FEELING AMONG ITS MEMBERS AND TO MAINTAIN A LIBRARY WITH GOOD BO OKS, PERIODICALS AND NEWSPAPERS AND (II) TO DEVELOP THE SOCIAL AND CULTURAL ACTIVITIES FOR THE WELFARE OF THE SOCIETY , AND DENIED THE REGISTRATION CL A IM E D BY THE ASSESSEE. ON APPEAL BEFORE US, IT IS SUBMITTED THAT SUBSEQUENTLY THE ASSESSEE HAS AMENDED THE OBJECTS . T HE AMENDED OBJECTS ARE FILED BEFORE US AS FOLLOWS: - (1) TO STRIVE FOR THE ERADICATION OF ILLITERACY. (2) TO PROMOTE RURAL AND ADULT EDUCATION. (3) TO ESTABLISH SCHOOLS, COLLEGES AND SIMILAR INSTITUTIONS IN A.P. HE FURTHER SUBMITTED THAT THE SAME WERE FILED BEFORE THE LD.CIT(A), BUT LD. CIT(A) PASSED THE ORDER BEFORE REACHING THE AMENDED OBJECTS. IN VIEW OF THE ABOVE FACTS AND CIRCUMSTANCES OF THE CASE , WE ARE OF THE OPINION THAT THE LD.CIT (EXEMPTIONS) HAS NOT CONSIDERED THE AMENDED OBJECTS AND PASSED THE ORDER BASED ON THE ORIGINAL OBJECTS OF THE ASSESSEE - SOCIETY. THEREFORE, WE SET ASIDE THE ORDER PASSED BY THE LD. CIT(A) AND DIRECT HIM TO CONSIDER THE AMENDE D OBJECTS AND PASS ORDERS A F RESH IN 5 ITA NO. 28/VIZ/2017 ( M/S. SRI SWAMY VIVEKANANDA EDUCATIONAL SOCIETY ) ACCORDANCE WITH LAW . THUS, THIS GROUND OF APPEAL RAISED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. 9. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN OPEN COURT ON TH IS 2 5 T H DAY OF JAN . , 201 8 . S D / - S D / - ( D.S. SUNDER SINGH ) ( V. DURGA RAO ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 2 5 T H JANUARY , 201 8 . VR/ - COPY TO: 1. THE ASSESSEE - M/S. SRI SWAMY VIVEKANANDA EDUCATIONAL SOCIETY, D.NO. 6 - 40, KAKINADA ROAD, JAGGAMPETA, EAST GODAVARI DISTRICT. 2. THE REVENUE - CIT (EXEMPTIONS), HYDERABAD. 3. THE D.R . , VISAKHAPATNAM. 4. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SR. PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.