M/s Shri Ram Institute for Informaton & Technology, Khanna V. ITO, W-IV, Khanna

ITA 289/CHANDI/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 1462 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-06-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 06-03-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Charitable institution
• Section: 12A; 12; 11

Judgement Text

ITA NO. 289-CHD-2018- M/S SHRI RAM INSTITUTE FOR INFOMRATION & TECHNOLOGY , KHANNA 2 2. THAT THE LD. CIT(A) WAS NOT JUSTIFIED TO ARBITRA RILY UPHOLD THE ACTION OF THE LD. ASSESSING OFFICER IN N OT ALLOWING EXEMPTION CLAIMED U/S 11 OF THE INCOME TAX ACT, 1961. 3. THAT THE LD. CIT(A) WAS NOT JUSTIFIED TO ARBITRA RILY UPHOLD THE ACTION OF THE LD. ASSESSING OFFICER IN N OT ALLOWING EXEMPTION U/S 10(23C)(IIIAD) OF THE INCOME TAX ACT, 1961. 3. GROUND NOS.1 & 2 : THE ASSESSEE THROUGH GROUND NOS. 1 & 2 OF THE APPEAL HAS AGITATED THE ACTION OF THE LOWER AU THORITIES IN DENYING THE EXEMPTION FROM TAXATION TO THE ASSESSEE UNDER THE PROVISIONS OF SECTION 11 OF THE INCOME TAX ACT, 1961 (IN SHORT 'T HE ACT'). 4. THE BRIEF FACTS RELATING TO THE ISSUE RAISED VID E GROUND NOS. 1 & 2 ARE THAT THE ASSESSEE SOCIETY IS REGISTERED AS A CH ARITABLE INSTITUTION UNDER SECTION 12 /12A OF THE INCOME TAX ACT. AS PER THE OBJECTS OF THE SOCIETY, THE ASSESSEE SOCIETY IS ENGAGED IN THE EDU CATIONAL ACTIVITY. THE ASSESSEE IS AUTHORIZED AS DISTANCE LEARNING CENTRE OF PUNJAB TECHNICAL UNIVERSITY AS WELL AS OF LOVELY PROFESSIONAL UNIVER SITY. AS PER THE SETTLEMENT WITH THE AFORESAID INSTITUTIONS, THE F EES ARE DEPOSITED BY THE STUDENTS IN THE NAME OF CONCERNED UNIVERSITY, HOWE VER, THE SAID UNIVERSITIES NAMELY PUNJAB TECHNICAL UNIVERSITY AN D LOVELY PROFESSIONAL UNIVERSITY REMIT SOME PART OF THE FEE TO THE ASSESSEE INSTITUTION FOR ITS SERVICES IN THE FIELD OF EDUCAT ION TO THE STUDENTS WHO ENROLL THEMSELVES IN THE DISTANCE EDUCATION LEARNIN G PROGRAMME OF THE ITA NO. 289-CHD-2018- M/S SHRI RAM INSTITUTE FOR INFOMRATION & TECHNOLOGY , KHANNA 4 6. CONSIDERING THE RIVAL SUBMISSIONS, I AM OF THE V IEW, THAT THE ACTION OF THE LOWER AUTHORITIES IN REJECTING THE CL AIM OF THE ASSESSEE OF DEDUCTION U/S 11 OF THE ACT MERELY ON THE ABOVE GRO UND THAT THE ASSESSEE IS AN AUTHORIZED LEARNING CENTRE OF OTHER UNIVERSIT IES IS NOT ENOUGH, WHEN IT IS ESTABLISHED ON THE FILE THAT THE ASSESS EE IS INVOLVED IN THE EDUCATIONAL ACTIVITY AND IS EVEN ENTITLED TO A NOMI NAL FEE FIXED AS REMUNERATION OF THE FEE RECEIVED BY THE CONCERNED U NIVERSITY. EVEN THE ASSESSEE HAS ALREADY BEEN REGISTERED AS CHARITABLE INSTITUTION U/S 12 / 12A OF THE INCOME TAX ACT AND THERE IS NO ALLE GATION THAT THE ASSESSEE IS NOT PURSING ITS OBJECTS. THE ASSESSING OFFICER, THEREFORE, IS DIRECTED TO ALLOW THE CLAIM OF THE ASSESSEE AS PER THE PROVISIONS OF SECTION 11 OF THE ACT SUBJECT TO THE COMPLIANCE OF OTHER LIMITATIONS / CONDITIONS AS UNDER THE RELEVANT PROVISIONS OF THE ACT. 7. GROUND NO.3 : THE ASSESSEE DURING THE COURSE OF HEARING DID NOT PRESS THIS GROUND AND, HENCE, THIS GROUND IS DISMIS SED AS NOT PRESSED. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATE D AS PARTLY ALLOWED. ORDER DICTATED AND PRONOUNCED IN THE OPEN COURT IM MEDIATELY ON COMPLETION OF HEARING. SD/- ( / SANJAY GARG) / JUDICIAL MEMBER DATED : 06. 06.2019 ..