DDIT, Hyderabad V. Andhra Mahila Sabha, Hyderabad

ITA 245/HYD/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 3379 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-04-2011
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 24-01-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 17-02-2010
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: K E SUNIL BABU
• Assessee Lawyers: M V ANIL KUMAR
• Keywords: Tax effect
• Section: 260A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B , HYDERABAD BEFORE SHRI G.C. GUPTA, VICE PRESIDENT AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ITA NO.245/HYD/2010 : ASSESSMENT YEAR 2006-0 7 DY. DIRECTOR OF INCOME - TAX(EXEMPTION) , HYDERABAD VS ANDHRA MAHILA SABHA, HYDERABAD (GIR NO.A 059) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K.E.SUNIL BABU RESPONDENT BY : SHRI M.V.ANIL KUMAR O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME-TAX(APPEALS)-IV, HYDE RABAD DATED 29.12.2009 FOR THE ASSESSMENT YEAR 2006-07. 2. GROUNDS OF THE REVENUE IN THIS APPEAL READ AS FOLLOWS- (I) THE ORDER OF THE CIT(A) IS NOT ACCEPTABLE AS IT IS ERRONEOUS BOTH IN LAW AND ON FACTS. (II) THE CIT(A) OUGHT TO HAVE APPRECIATED THE FACT THAT OBTAINING APPROVAL U/S.10(23C)(VI) OF THE I.T. ACT OF THE PRESCRIBE AUTHORITY IS MANDATORY SINCE THE GROS S RECEIPTS OF THE SOCIETY HAVE EXCEEDED RS. ONE CRORE . (III) THE CIT(A) OUGHT TO HAVE APPRECIATED THE FACT THAT IT WAS SECTION 10(23C)(VI) THAT PROVIDED FOR EXEMPTION OF THE EDUCATIONAL INCOME OF THE TRUSTS, SOCIETIES ETC. AND NOT SECTION 11. (IV) THE DECISION OF ITAT IN RAJASTAN SIKSHA SAMITI HAS NOT BEEN ACCEPTED IN PRINCIPLE BUT THE APPEAL HAS N OT ITA NO.245/H/2010 ANDHRA MAHILA SABHA, HYDERABAD 2 BEEN PREFERRED BEFORE THE HIGH COURT U/S. 260A DUE TO THE FACT THAT THE TAX EFFECT IS BELOW THE MONETA RY LIMITS. (V) IN THE CASE OF ST. THERESAS SOCIETY, THE DECISION OF THE ITAT HAS NOT BEEN ACCEPTED AND APPEAL HAS BEEN FILED BEFORE THE HIGH COURT. 3. AT THE OUTSET, THE LEARNED COUNSEL FOR THE ASS ESSEE SUBMITTED THAT THE ISSUE INVOLVED IN THE ABOVE GROU NDS OF APPEAL HAS BEEN COVERED BY THE DECISION OF THE TRIBUNAL DATED 23.8.2010 IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2005-06 IN ITA NO1729/HYD/2008. A COPY OF THE SAID ORDER HAS ALSO BEEN FILED BEFORE US. THE LEARNED DEPARTMENTAL REPRESENTATIVE COULD NOT THE ABOVE POSITION, THOUGH HE PLACED RELIANCE ON THE OR DER OF THE REVENUE ASSESSING OFFICER, DENYING EXEMPTION TO THE ASSESSEE UNDER S.10(23C)(VI) OF THE ACT. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND THAT THE ISSUE INVOLVED IN THE ABOVE GROUNDS OF THE REVE NUE IS COVERED BY THE DECISION OF THIS TRIBUNAL IN ASSESSEES OWN CAS E FOR THE ASSESSMENT YEAR 2005-06. THE TRIBUNAL VIDE ITS ORD ER DATED 23.8.2010 IN ITA NO.1729/HYD/2008 FOR THAT YEAR, CO NSIDERING ALMOST IDENTICAL GROUNDS OF THE REVENUE, FOLLOWING THE EAR LIER DECISION OF THE TRIBUNAL IN THE CASE OF VASAVI ACADEMY OF EDUCATION , HYDERABAD IN ITA NO.1120/HYD/2009 DATED 29.1.2010, SET ASIDE THE ORDER OF THE CIT(A) AND RESTORED THE MATTER TO THE FILE OF THE A SSESSING OFFICER WITH CERTAIN DIRECTIONS, FOR FRESH CONSIDERATION OF THE ISSUE OF ALLOWABILITY OF EXEMPTION TO THE INCOME OF THE ASSESSEE. WE ACC ORDINGLY SET ASIDE THE IMPUGNED ORDER OF THE CIT(A) FOR THE YEAR UNDER APPEAL AS WELL AND RESTORE THE MATTER TO THE FILE OF THE ASSE SSING OFFICER WITH SIMILAR DIRECTIONS TO RECONSIDER THE ALLOWABILITY O F EXEMPTION TO THE ITA NO.245/H/2010 ANDHRA MAHILA SABHA, HYDERABAD 3 ASSESSEE IN RESPECT OF ITS INCOME, IN ACCORDANCE WI TH LAW AND AFTER GIVING REASONABLE OPPORTUNITY OF HEARING TO THE ASS ESSEE. 5. IN THE RESULT, APPEAL OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED AT THE CONCLUSION OF HEARING ON THE APPEAL ON 20.4.2011 SD/- SD/- (G.C. GUPTA) (CHANDRA POOJARI) V ICE PRESIDENT A CCOUNTANT MEMBER DATED THE 20TH APRIL,, 2011 COPY FORWARDED TO: 1. ANDHRA MAHILA SABHA, 2 - 1 - 577, AMS BUILDING, VIDYANAGAR, HYDERABAD 2. DY. DIRECTOR OF INCOME - TAX(EXEMPTION) I, , HYDERABAD 3. CIT (A) - I V , HYDERABAD. 4. COMMISSIONER OF INCOME - TAX I II , HYDERABAD 5. DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD B.V.S.