DCIT, New Delhi V. M/s. Accurate Education & Research Society, Ghaziabad

ITA 2539/DEL/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 6743 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 9 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-02-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 16-12-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 30-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K JAIN
• Assessee Lawyers: AMIT GOEL
• Keywords: Tax effect
• Section: 80G; 12AA; 12; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : A NEW DELHI BEFORE SHRI J.SUDHAKAR REDDY, AM AND SHRI A.T. VARKEY, J.M. ITA NO: 2538 AND 2539 /DEL/201 3 AY : 20 0 8 - 09 AND 2009 - 10 DCIT, C.C. 22 VS. ACCURATE EDUCATION & RESEARCH SOCIETY NEW DELHI C 187, SURYA NAGAR GHAZIABAD PAN: AAAA 7866 M (APPELLANT) (RESPONDENT) APPELLANT BY : SH. SK JAIN, D.R. RESPONDENT BY : SH. AMIT GOEL , C.A. O R D E R PER J.SUDHAKAR REDDY, ACCOUNTANT MEMBER BOTH THESE APPEALS ARE FILED BY THE REVENUE DIRECTED AGAINST SEPARATE BUT IDENTICAL ORDER S OF THE LD.COMMISSIONER OF INCOME TAX (APPEALS) - III , NEW DELHI DATED 28.02.2013 PERTAINING TO THE ASSESSMENT YEAR (A.Y.) 200 8 - 09 AND 2009 - 10 . AS THE ISSUES ARE COMMON, FOR THE SAKE OF CONVENIENCE, WE HEARD THEM TOGETHER AND DISPOSE OF THE SAME BY WAY OF THIS COMMON ORDER. THE GROUNDS OF APPEAL READ AS FOLLOWS. 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE CIT(A) HAS ERRED IN DE LETING THE DISALLOWANCE OF CLAIM OF EXEMPTION U/S11 OF THE ACT. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE CIT(A) HAS ERRED IN DELETING THE DISALLOWANCE OF RS.16,54,000/ - MADE BY THE AO ON ACCOUNT OF SALARY PAID IN CONTRAVENTION OF S.13(1)(C )(II) OF THE ACT. ITA 2538 & 2539 /DEL/2012 A.Y. 2008 - 09 AND 2009 - 10 ACCURATE EDUCATION & RESEARCH SOCIETY, GHAZIABAD 2 3. THE ORDER OF CIT(A) IS ERRONEOUS AND IS NOT TENABLE ON FACTS AND IN LAW. 4. THE APPELLANT CRAVES LEAVE TO ADD, ALTER OR AMEND ANY/ALL OF THE GROUNDS OF APPEAL BEFORE OR DURING THE COURSE OF HEARING OF THE APPEAL. 2. FACTS IN BRIEF: - THE BRIEF FACTS OF THE CASE ARE AS UNDER. THE ASSESSEE IS A SOCIETY REGISTERED WITH REGISTRAR OF SOCIETIES, UP VIDE ORDER NO. 1558 DATED 04TH MARCH 2005. THE ASESSEE MADE AN APPLICATION FOR REGISTRATION U/S 12AA TO COMMISSIONER OF INCOME TAX ON 30.11.200 6. THERE WAS DELAY OF AROUND 8 MONTHS IN MAKING THE APPLICATION. THE COMMISSIONER OF INCOME TAX CONDONED THE DELAY AND GRANTED THE REGISTRATION U/S 12AA VIDE ORDER DATED 28.05.2007. SINCE THE COMMISSIONER OF INCOME TAX CONDONED THE DELAY IN MAKING OF APPLI CATION, THE REGISTRATION U/S 12AA BECAME EFFECTIVE FROM DATE OF CREATION OF SOCIETY I.E. 04.03.2005 (A.Y. 2005 - 06). THE FACT THAT REGISTRATION U/S 12AA GRANTED TO ASSESSEE IS EFFECTIVE FROM A.Y. 2005 - 06 HAS ALSO BEEN CONFIRMED BY THE ORDER OF THE ITAT (D ELHI) FOR THE A.Y. 2006 - 07. THE SAID REGISTRATION U/S 12AA GRANTED TO THE ASSESSEE IS CONTINUING AND HAS NOT BEEN WITHDRAWN. THE ASSESEE HAD MADE AN APPLICATION FOR REGISTRATION U/S 80G ON 29.08.2007 WHICH WAS DECLINED BY CIT. AGAINST THE ORDER OF THE CIT, THE ASSESSEE FILED APPEAL BEFORE THE ITAT, DELHI. THE DELHI BENCH OF ITAT, IN ITS ORDER DATED 20.04.2009 HELD THAT THE ASSESSEE IS ENGAGED IN CHARITABLE ACTIVITIES . ACCORDINGLY, THE ITAT RESTORED THE MATER BACK TO THE CIT FOR DECIDING THE ISSUE OF GRANT OF REGISTRATION U/S 80G OF THE ACT AFRESH. IN TERMS OF ITAT ORDER, THE CIT, AFTER DUE EXAMINATION AND VERIFICATION GRANTED RECOGNITION U/S 80G(5)(VI) BY HIS ORDER DATED 18.09.2009. THE A.Y. 2005 - 06 WAS THE FIRST YEAR IN WHICH THE A.O. DENIED EXEMPTION U/S 11 OF INCOME TAX. ACT, 1961. ON APPEAL, THE CIT(A) ALLOWED ASSESSEE'S CLAIM OF EXEMPTION U/S 11. AGAINST THE ORDER OF CIT(A), THE DEPARTMENT DID NOT FILE ANY APPEAL BEFORE IT AT. T HUS THE ORDER OF THE LD.CIT(A) BECOME FINAL. FOR A.Y. 2006 - 07, THE A.O. AGAIN DENIED EXEMPTION U/S 11. THE CIT(A) ALLOWED THE ASSESEE'S CLAIM OF EXEMPTION U/S 11. THE REVENUE FILED APPEAL ITA 2538 & 2539 /DEL/2012 A.Y. 2008 - 09 AND 2009 - 10 ACCURATE EDUCATION & RESEARCH SOCIETY, GHAZIABAD 3 BEFORE ITAT. THE DELHI BENCH OF ITAT VIDE, ITS ORDER DATED 22.01.2 013 DISMISSED THE REVENUE'S APPEAL AND UPHELD THE ASSESSEE'S CLAIM OF EXEMPTION U/S 11. FOR A.Y. 2007 - 08, THE A.O. AGAIN DENIED EXEMPTION U/S 11. THE CIT(A) ALLOWED ASSESSEE'S CLAIM. OF EXEMPTION U/S 11. THE REVENUE FILED APPEAL BEFORE ITA T. THE DELHI B ENCH OF ITAT VIDE, ITS ORDER DATED 29.08.2014 DISMISSED THE REVENUE'S APPEAL ON ACCOUNT OF LOW TAX EFFECT. IN THE ASSESSMENT ORDER OF A. Y. 2011 - 12 MADE U/S 143(3), THE A.O. RECORDED THAT AS PER THE INQUIRY CONDUCTED BY HIM THROUGH HIS INSPECTOR, SAL ARY PAID TO THE TRUSTEES AND THE IR RELATIVES , MATCHED WITH THE SERVICES PROVIDED BY THEM. NO DISALLOWANCE OF SALARY WAS MADE. IN THE ASSESSMENT ORDER FOR A.Y. 2012 - 13 MADE U/S 143(3), THE LD. ASSESSING OFFICER RECORDED THAT ACTIVITY OF EDUCATION AS BEIN G IMPARTED BY THE ASSESSEE , IS CHARITABLE WITHIN THE MEANING OF SECTION 2(15) OF THE INCOME TAX ACT, 1961. THE LD. A.O. HAS RECORDED THAT THE ASSESSEE IS CARRYING ON ITS ACTIVITIES AS PER PROVISIONS OF SECTION 11 AND 12 OF INCOME TAX ACT, 1961. NO DISALL OWANCE ON ACCOUNT OF SALARY WAS MADE. IN THE ASSESSMENT ORDER FOR A.Y. 2013 - 14 MADE U/S 143(3), THE . ASSESSING OFFICER HAS RECORDED THAT ACTIVITY OF EDUCATION AS BEING IMPARTED BY THE ASSESSEE IS CHARITABLE WITHIN THE MEANING OF SECTION 2(15) OF THE INC OME TAX ACT, 1961. THE A.O. HAS ALSO RECORDED THAT THE ASSESSEE IS CARRYING ON ITS ACTIVITIES AS PER PROVISIONS OF SECTION 11 AND 12 OF INCOME TAX ACT, 1961. NO DISALLOWANCE ON ACCOUNT OF SALARY WAS MADE . THUS THE ISSUES BEFORE US IN THESE TWO YEARS ARE RESOLVED IN FAVOUR OF THE ASSESSEE BOTH IN THE PREVIOUS AS WELL AS SUBSEQUENT ASSESSMENT YEARS. 3. WE HAVE HEARD SHRI AMIT GOEL, THE LD.COUNSEL FOR THE ASSESSEE AND SHRI SK JAIN, LD.D.R. ON BEHALF OF THE REVENUE. 4. THE LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE S CASE IS COVERED VIDE AN EARLIER ORDER OF THE ITAT DELHI A BENCH DATED 22.1.2013 IN THE ASSESSE S OWN CASE. ITA 2538 & 2539 /DEL/2012 A.Y. 2008 - 09 AND 2009 - 10 ACCURATE EDUCATION & RESEARCH SOCIETY, GHAZIABAD 4 5. LD.D.R. ON THE OTHER HAND OPPOSED THE CONTENTIONS OF THE ASSESSEE. 6. ON A CAREFUL CONSIDERATION OF THE FACTS AND CIRCUMSTANCES OF THE CASE, PERUSAL OF MATERIAL ON RECORD, ORDERS OF LOWER AUTHORITIES, CASE LAWS CITED, WE H OLD AS FOLLOWS. 7. WE FIND THAT THE ASSESSEE S CASE IS COVERED BY THE ORDER OF DELHI A BENCH OF ITAT DT. 22.1.2013 FOR THE A.Y. 2006 - 07 . THE ITAT HAS HELD THAT THE ASSESSEE IS ENTITLED TO EXEMPTION U/S 11 OF THE ACT. THE ORDER OF THE LD.CIT(A) DT. 26.2.2013 FOR A.Y. 2007 - 08 THAT THE ASSESSEE HAS NOT VIOLATED S.13(1)(C ) R.W.S.13(3) OF THE ACT HAS ATTAINED FINALITY. THE A.O. HAS NOT INVOKED PROVISI ONS OF S.13(1)(C ) FOR THE A.Y. 2011 - 12, 2012 - 13 AND 2013 - 14. NO DISALLOWANCE OF SALARY WAS MADE , ON THE SAME FACTS . R ESPECTFULLY FOLLOWING THE ORDER OF THE COORDINATE BENCH OF THE ITAT, WE DISMISS THESE GROUNDS OF THE REVENUE BY UPHOLDING THE ORDER OF THE LD.CIT(A). 8. IN THE RESULT BOTH THE APPEAL S OF THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 23 RD FEBRUARY, 2016 . SD/ - SD/ - ( A.T. VARKEY ) (J.SUDHAKAR REDDY) JUDICIAL MEMBER ACCOUNTANT MEMBE R DATED: THE 23 RD FEBRUARY, 2016 *MANGA ITA 2538 & 2539 /DEL/2012 A.Y. 2008 - 09 AND 2009 - 10 ACCURATE EDUCATION & RESEARCH SOCIETY, GHAZIABAD 5 COPY OF THE ORDER FORWARDED TO: 1. APPELLANT; 2.RESPONDENT; 3.CIT; 4.CIT(A); 5.DR; 6.GUARD FILE BY ORDER ASST. REGISTRAR