Sree Krishna Acadamy, Visakhapatnam V. THE DCIT, CIRCLE - 5(1), Visakhapatnam

ITA 253/VIZ/2014

• Counselvise Citation: 25325314 RSA 2014
• Duration Of Justice: 1 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-07-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2003-2004
• Appeal Filed On: 20-05-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: D MANOJ KUMAR
• Keywords: Reopening of assessment; Reason to believe
• Section: 147; 148; 2

Judgement Text

ITA NOS.253 TO 256/VIZAG/2014 SREE KRISHNA ACADEMY, VSKP IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NO S . 253 TO 256 /VIZAG/ 2014 ASSESSMENT YEARS : 2003-04 TO 2006-07 RESPECTIVELY SREE KRISHNA ACADEMY VISAKHAPATNAM VS. DCIT CIRCLE-5(1) VISAKHAPATNAM (APPELLANT) (RESPONDENT) PAN NO.AAAJS 2526H ASSESSEE BY: SHRI C. SUBRAHMANYAM, CA REVENUE BY: SHRI D. MANOJ KUMAR, ADDL. CIT DATE OF HEARING : 09.07.2014 DATE OF PRONOUNCEMENT : 09.07.2014 ORDER PER BENCH:- THESE APPEALS OF THE ASSESSEE ARE DIRECTED AGAINST A COMMON ORDER DATED 14.3.2014 PASSED BY THE CIT(A) VISAKHAPATNAM RELATING TO THE ASSESSMENT YEARS 2003-04 TO 2006-07. SINCE FACTS A RE IDENTICAL AND ISSUE IS COMMON, ALL THESE APPEALS ARE CLUBBED TOGETHER AND DISPOSED OF IN THIS CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE. 2. AS FACTS ARE COMMON IN ALL THESE APPEALS FOR THE SAKE OF BREVITY, WE WILL DEAL WITH THE FACTS OF ITA NO.253/VIZAG/2014. 3. BRIEFLY THE FACTS ARE, THE ASSESSEE A SOCIETY IS RUNNING EDUCATIONAL INSTITUTIONS UNDER THE NAME OF SRI KRISHNA ACADEMY. FOR THE IMPUGNED ASSESSMENT YEAR, THE ASSESSEE FILED ITS RETURN OF I NCOME ON 26.12.2003 DISCLOSING TOTAL INCOME OF RS.5,79,918/-. THE RETU RN WAS PROCESSED U/S 143(1) OF THE ACT BY ACCEPTING THE INCOME RETURNED. SUBSEQUENTLY, IT CAME TO THE NOTICE OF THE ASSESSING OFFICER THAT THOUGH THE ASSESSEE HAD APPLIED FOR EXEMPTION U/S 10(23C) OF THE ACT FOR THE ASSESSMENT YEARS 2003-04 TO 2006- 07 BUT THE SAME WAS GRANTED VIDE ORDER DATED 20.12. 2007 FOR THE ASSESSMENT YEAR 2007-08 AND ONWARDS. SINCE ASSESSE E HAD CLAIMED ITA NOS.253 TO 256/VIZAG/2014 SREE KRISHNA ACADEMY, VSKP 2 EXEMPTION U/S 10(23C) OF THE ACT FOR THE ASSESSMENT YEARS 2003-04 TO 2006- 07, THE ASSESSING OFFICER HAD REASON TO BELIEVE THA T THERE IS ESCAPEMENT/ UNDER ASSESSMENT OF INCOME. ACCORDINGLY, HE RE-OPE NED THE ASSESSMENT BY ISSUING NOTICE U/S 148 OF THE ACT AND ULTIMATELY CO MPLETED THE SAME BY TREATING THE ASSESSEE AS A AOP AND NOT ALLOWING EXE MPTION U/S 10(23C) OF THE ACT. 4. BEING AGGRIEVED OF THE ASSESSMENT SO MADE, THE A SSESSEE PREFERRED APPEAL BEFORE THE CIT(A). THE CIT(A) UPHELD THE AS SESSMENT MADE BY HOLDING AS UNDER: I HAVE CONSIDERED THE SUBMISSIONS. IT IS SEEN FROM THE ACKNOWLEDGEMENT OF RETURNS FILED FOR THESE YEARS TH AT THE ASSESSEE HAS CLAIMED EXEMPTION U/S 10(23C) WHILE FILING THE RETURN OF INCOME. THE ASSESSEE HAD MADE SUCH CLAIM EVEN WITH OUT HAVING ANY APPROVAL, AND THUS THERE WAS NO BASIS FOR MAKIN G SUCH CLAIM IN THE RETURNS OF INCOME. IN THE ORDER PASSED BY THE CCIT IN F.NO.CC/VSP/TECH./10(23C)/9/06-07 DATED 20.2.2007, IT IS CLEAR THAT THE EXEMPTION WAS GRANTED FROM A.Y. 2007-08 ON WARDS. THEREFORE THE AO IS JUSTIFIED IN ISSUING NOTICE U/S 148 OF THE I.T. ACT, 1961 AS THE CLAIM WAS MADE WITHOUT HAVING THE REQUI SITE APPROVAL. IN THESE FACTUAL SCENARIO, I DO NOT FIND MERIT IN A NY OF THE GROUNDS RAISED. ACCORDINGLY THESE GROUNDS ARE DISMISSED. 5. THE LD. A.R. SUBMITTED BEFORE US THAT THOUGH THE ASSESSEE HAD APPLIED FOR EXEMPTION U/S 10(23C) OF THE ACT BEFORE THE PRE SCRIBED AUTHORITY FOR THE ASSESSMENT YEAR 2003-04 TO 2006-07 BUT TILL DATE AS SESSEES APPLICATION HAS NOT BEEN DISPOSED OFF. IN THE AFORESAID CIRCUMSTAN CES, IT CANNOT BE PRESUMED THAT THE APPLICATION FOR EXEMPTION HAS BEE N REJECTED BY THE PRESCRIBED AUTHORITY, RESULTING IN ESCAPEMENT OF AS SESSMENT OF INCOME SO AS TO RE-OPEN THE ASSESSMENT U/S 147 OF THE ACT. 6. THE LD. D.R. ON THE OTHER HAND SUBMITTED THAT IN ABSENCE OF ANY ORDER GRANTING EXEMPTION TO THE ASSESSEE U/S 10(23C) OF T HE ACT FOR THE ASSESSMENT YEARS 2003-04 TO 2006-07 THE REOPENING OF ASSESSMENT AND DENIAL OF EXEMPTION U/S 10(23C) OF THE ACT IS JUSTI FIED. 7. WE HAVE CONSIDERED THE SUBMISSIONS OF THE PARTIE S AND PERUSED THE MATERIALS ON RECORD AS WELL AS ORDERS OF THE REVENU E AUTHORITIES. ITA NOS.253 TO 256/VIZAG/2014 SREE KRISHNA ACADEMY, VSKP 3 UNDISPUTEDLY FOR THE ASSESSMENT YEAR UNDER CONSIDER ATION, THERE IS NO ORDER FROM THE PRESCRIBED AUTHORITY GRANTING EXEMPTION TO THE ASSESSEE U/S 10(23C) OF THE ACT. THEREFORE, IN ABSENCE OF AN OR DER EXEMPTING THE ASSESSEE U/S 10(23C) OF THE ACT WHEN THE ASSESSEE H AS CLAIMED THE SAID EXEMPTION, THERE IS ESCAPEMENT/UNDER ASSESSMENT OF INCOME. IN THESE CIRCUMSTANCES, REOPENING OF ASSESSMENT U/S 147 OF T HE ACT IS VALID. SO FAR AS THE CONTENTION OF THE LD. A.R. THAT THE ASSESSEES APPLICATION IS NOT REJECTED AND STILL PENDING BEFORE THE PRESCRIBED AUTHORITY, THE SAME IN OUR VIEW HAS NO RELEVANCE TO THE PRESENT PROCEEDING. THE ASSESSING OFFICER HAS TO COMPLETE THE ASSESSMENT AS PER THE STATUTORY PROVISIONS AND KEEPING IN VIEW THE LIMITATION PROVIDED UNDER THE STATUTE. HE CANNOT W AIT FOR AN INDEFINITE PERIOD FOR THE ASSESSEE TO OBTAIN THE APPROVAL/EXEMPTION F ROM THE PRESCRIBED AUTHORITY. IN THE AFORESAID CIRCUMSTANCES, WE DO N OT FIND ANY MERIT IN THE CONTENTION OF THE LD. A.R. ACCORDINGLY, WE UPHOLD THE ORDER OF THE CIT(A). SINCE FACTS ARE IDENTICAL IN OTHER APPEALS FOLLOWIN G OUR DECISION IN ITA NO.253/VIZAG/2014, THESE APPEALS ARE ALSO DISMISSED . 8. IN THE RESULT, APPEALS OF THE ASSESSEE ARE DISMISSED. PRONOUNCED IN THE OPEN COURT ON 9 TH JULY14 SD/- SD/- (J. SUDHAKAR REDDY) (SAKTIJIT DEY) ACCOUNTANT MEMBER JUDICIAL MEMBER VG/SPS VISAKHAPATNAM, DATED 9 TH JULY, 2014 ITA NOS.253 TO 256/VIZAG/2014 SREE KRISHNA ACADEMY, VSKP 4 COPY TO 1 M/S. SREE KRISHNA ACADEMY, 27-1-235/1, SRINAGAR, MANGO GROVES, GAJUWAKA, VISAKHAPATNAM 2 DCIT CIRCLE-5(1), VISAKHAPATNAM 3 THE CIT, VISAKHAPATNAM 4 THE CIT(A), VISAKHAPATNAM 5 THE DR, ITAT, VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM