Beldih Church School Jamshedpur Society, Jamshedpur V. ITO, Exemption Ward, Jamshedpur

ITA 305/RAN/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 3860 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 1 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-11-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Appeal Filed On: 26-09-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: INDERJEET SINGH
• Keywords: Charitable institution; Set aside
• Section: 271(1)(c); 143(3); 12A; 12AA; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI BENCH, RANCHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER AND MS. MADHUMITA ROY, JUDICIAL MEMBER I.T.A. NO. 305/RAN/2018 ASSESSMENT YEAR: 2012-13 BELDIH CHURCH SCHOOL.....................APPELLANT JAMSHEDPUR SOCIETY, BELDIH TRIANGLE, BISTUPUR, JAMSHEDPUR 831001. [PAN: AAATC 1999 A] ITO, WARD (EXEMPTION), JAMSHEDPUR.........................................................................RESPONDENT JAMSHEDPUR. APPEARANCES BY: SHRI AKSHAY RINGASIA, CA APPEARING ON BEHALF OF THE ASSESSEE. SHRI INDERJEET SINGH, CIT(DR) APPEARING ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : NOVEMBER 08, 2019 DATE OF PRONOUNCING THE ORDER : NOVEMBER 08, 2019 ORDER PER PRADIP KUMAR KEDIA, AM THE CAPTIONED APPEAL HAS BEEN FILED BY THE ASSESSEE CONCERNING THE ASSESSMENT YEAR 2012-13 AGAINST THE ORDER OF THE LD. CIT(A), JAMSHEDPUR DATED 18.10.2016 ARISING IN THE MATTER OF ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER (AO) U/S 143(3) OF THE I.T. ACT, 1961 (THE ACT) ON THE FOLLOWING GROUNDS: I. THE LEARNED CIT(A) WAS NOT JUSTIFIED IN HOLDING THAT THE ASSESSEE WAS NOT ELIGIBLE FOR DEDUCTION EITHER U/S 11 OR U/S 10(23)(VI) OF THE ACT. II. THE LEARNED CIT(A) WAS NOT CORRECT WHILE OF HOLDING THE ADDITION OF RS. 68,17,26.75/- BY REJECTING THE CLAIM OF ASSESSEE THAT IT FULFILLED ALL THE CRITERIA TO ENABLE IT AVAIL THE DEDUCTION. III. THE LEARNED CIT(A) FURTHER ERRED IN REJECTING THE CLAIM OF THE ASSESSEE ON TECHNICAL GROUND WHEREIN THE ASSESSEE HAS CLAIMED THAT IT WAS UNDER BONAFIDE BELIEVE THAT ITS APPLICATION FOR CERTIFICATE U/S 10(23)(C)(VI) HAS POSITIVELY BEEN CONSIDERED BY THE DEPARTMENT. IV. THE LEARNED CIT(A) WAS FURTHER NOT JUSTIFIED IN REJECTION THE CLAIM OF THE ASSESSEE IN VIEW OF CLARIFICATION / AMENDMENT BROUGHT BY THE FINANCE ACT 2014 KEEPING IN VIEW THE FACT THAT THE LEARNED CIT(A) IS VESTED WITH THE POWER OF ASSESSMENT. V. THE LEARNED CIT(A) WAS NOT CORRECT IN NOT DIRECTING TO AO TO DROP THE PENALTY PROCEEDING U/S 271(1)(C) OF THE ACT SINCE NEITHER THERE WAS ANY 2 I.T.A. NO. 305/RAN/2018 ASSESSMENT YEAR: 2012-13 BELDIH CHURCH SCHOOLL CONCEALMENT OF INCOME NOR THERE WAS ANY INACCURATE PARTICULARS OF INCOME WAS FURNISHED BY ASSESSEE. VI. IN THE SIMILAR CIRCUMSTANCES OF ASSESSMENT YEAR 2011-12, THE HONBLE ITAT IN ASSESSEE OWN CASE WAS PLEASED TO SET ASIDE THE MATTER TO THE HONBLE CIT(A) AND LEARNED AO TO DECIDE THE ISSUE REGARDING CLAIM OF THE EXEMPTION BY THE ASSESSEE UNDER SECTION 12A AND 10(23)(C)(VI) RESPECTIVELY. COPY OF SUCH ORDER IS ATTACHED FOR YOUR KIND CONSIDERATION DATED 16.05.2018. VII. SINCE THE ISSUE INVOLVED IN THE PRESENT CASE UNDER APPEAL IS SAME AND IDENTICAL AS INVOLVED IN AY 2011-12. THE PRESENT APPEAL MAY ALSO KINDLY BE SET ASIDE TO THE CIT(A) AND AO RESPECTIVELY. 2. WHEN THE MATTER WAS CALLED FOR HEARING, THE LD. AR FOR THE ASSESSEE SUBMITTED THAT ASSESSEE IS A CHARITABLE TRUST RUNNING FOR EDUCATIONAL PURPOSES IN THE NAME AND STYLE OF M/S. BELDIH CHURCH SCHOOL, JAMSHEDPUR. THE ASSESSEE FILED ITS RETURN OF INCOME FOR A.Y. 2012-13 DECLARING TOTAL INCOME AT NIL. IN THE COURSE OF THIS SCRUTINY ASSESSMENT, THE ASSESSING OFFICER DENIED THE BENEFIT ON DEDUCTION U/S 11 CLAIMED ON THE GROUND THAT THE ASSESSEE IS NOT REGISTERED EITHER U/S 12AA OR U/S 10(23)(C)(VI) OF THE ACT. IN THIS CONTEXT, THE LD. AR FOR THE ASSESSEE SUBMITTED THAT THE CO-ORDINATE BENCH OF THIS TRIBUNAL HAS ADJUDICATED THE ISSUE IN FAVOUR OF THE ASSESSEE AND REMITTED THE MATTER BACK TO THE FILE OF THE AO IN A.Y. 2011-12 IN ITA NO. 103/RAN/2016 DATED 17.05.2018. THE LD. AR ACCORDINGLY SOUGHT SIMILAR RELIEF. 3. THE LD. DR RELIED UPON THE ORDER OF THE LOWER AUTHORITIES. WE HAVE HEARD THE RIVAL SUBMISSIONS. AS WE STRAIGHTAWAY NOTICE THE OBSERVATIONS MADE BY THE CO-ORDINATE BENCH OF ITAT IN A.Y. 2011-12 IN ITA NO. 103/RAN/2016 AS UNDER: HEARD RIVAL SUBMISSIONS AND PERUSED THE RECORD INCLUDING THE DETAILS AS AVAILABLE IN THE PAPER BOOK FILED BY THE LD. AR OF ASSESSEE BEFORE US. ON 3 I.T.A. NO. 305/RAN/2018 ASSESSMENT YEAR: 2012-13 BELDIH CHURCH SCHOOLL PERUSAL OF PAGE 23 OF THE PAPER BOOK, WE FIND THAT THE ASSESSEE SCHOOL HAS BEEN GRANTED REGISTRATION U/S 12AA OF THE ACT BY AN ORDER DATED 29.01.2016 BY COMMISSIONER OF INCOME TAX (EXEMPTIONS), PATNA W.E.F. 15.07.2015 AND IMPUGNED ORDER OF THE CIT(A), WHICH IS UNDER CHALLENGE BEFORE WAS ON 22.01.2016. ADMITTEDLY, THERE WAS NO REGISTRATION FOR THE ASSESSEE AS ON THE DATE OF PASSING THE IMPUGNED ORDER. THE EFFECT OF REGISTRATION U/S 12AA OF THE ACT WAS GIVEN FROM 15.07.2015. THE ASSESSMENT ORDER AS WELL AS IMPUGNED ORDER OF CIT(A) CONFIRMING THE DISALLOWANCES MADE BY THE AO IS TO BE RE-CONSIDERED IN TERMS OF THE REGISTRATION U/S 12AA BY THE CIT-E. THEREFORE, TAKING INTO CONSIDERATION THE FACTS AND CIRCUMSTANCES OF THE CASE, SUBMISSIONS OF THE LD. AR AND THE ISSUE INVOLVED IN THE APPEAL, WE DEEM IT FIT AND PROPER TO REMAND THE MATTER TO THE FILE OF CIT(A) FOR HIS CONSIDERATION IN TERMS OF REGISTRATION GRANTED BY THE CIT-E AS PLACED AT PAGE 33 OF THE PAPER BOOK AND DIRECTED THE AO TO PURSUE THE APPROVAL AS REQUIRED U/S 10(23)(C)(VI) OF THE ACT. GROUNDS OF APPEAL RAISED BY THE ASSESSEE IN THE APPEAL ARE ALLOWED FOR STATISTICAL PURPOSE. THE APPEAL OF ASSESSEE IN ITA NO. 103/RAN/2016 FOR A.Y. 2011-12 IS ALLOWED FOR STATISTICAL PURPOSE. 4. IN PARITY WITH THE VIEW ALREADY TAKEN BY THE CO-ORDINATE BENCH, THE ISSUE IS REMITTED BACK TO THE FILE OF THE AO FOR FRESH ADJUDICATION IN ACCORDANCE WITH LAW IN THE LIGHT OF OBSERVATIONS AND DIRECTIONS IN THE A.Y. 2011-12 (SUPRA). 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 08 NOVEMBER, 2018. SD/- SD/- ( MADHUMITA ROY) (PRADIP KUMAR KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 08/11/2019 BISWAJIT, SR. PS COPY OF ORDER FORWARDED TO: 1. BELDIH CHURCH SCHOOL. 4 I.T.A. NO. 305/RAN/2018 ASSESSMENT YEAR: 2012-13 BELDIH CHURCH SCHOOLL 2. ITO, EXEMPTION (WARD), JAMSHEDPUR. 3. THE CIT(A) 4. THE CIT 5. DR TRUE COPY, BY ORDER, SR. P.S. / H.O.O. ITAT, RANCHI