DNYAN VIDYAN SHIKSHAN KRIDA VA BAHUUDESHIYA SANSTHA, Buldhana V. THE CIT- I, Nagpur

ITA 354/NAG/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 3159 (ITAT-NAGPUR)
• Duration Of Justice: 1 year(s) 6 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-01-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 07-07-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 12AA

Judgement Text

1 ITA NO. 354/NAG/2014 IN THE INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENCH, NAGPUR. BEFORE SHRI MUKUL K. SHRAWAT, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER. I.T.A. NO. 354/NAG/2014 DNYAN VIDYAN SHIKSHAN KRIDA VA COMMISSIONER OF INCOME - TAX - I, BAHUUDESHIYA SANSTHA, VS. NAGPUR. MEHKAR, DIST. BULDHANA. PAN AAAAD 9666N. (APPELLANT) (RESPONDENT) APPELLANT BY : NON E. RESPONDENT : SMT. SUMAN MALIK. DATE OF HEARING : 18 - 11 - 2015. DATE OF PRONOUNCEMENT : 15 TH JANUARY, 2016. O R D E R PER MUKUL K. SHRAWAT, J.M. THIS IS AN APPEAL FILED BY THE ASSESSEE ARISING FROM THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX - I, NAGPUR PASSED U/S 12AA DATED 3 RD JUNE, 2014 . AGGRIEVED BY THE SAID ORDER, THE APPELLANT HAS RAISED THE FOLLOWING GROUNDS : 1. THE ORDER OF THE CIT IS ILLEGAL AND NOT IN ACCORDANCE WITH LAW. 2. THE CIT ERRED IN HOLDING THAT THE INSTITUTION WAS FOR PURPOSE OF MAKING PROFIT. 3. THE CIT FAILED TO EXAMINE THAT THE INCOME OF THE TRUST WAS APPLIED FOR THE PURPOSE OF OBJECT OF THE TRUST AS THERE WAS NO SURPLUS PROFIT ., 4. THE CIT ERRED IN REJECTING APPLICATION FILED U/S 12AA WITHOUT ANY VALID REASON. 2. IN THIS CASE IN THE PAST NOTICES WERE ISSUED BUT NO ONE HAS ATTENDED ON THE DATE OF HEARING. IN THOSE CIRCUMSTANCES IT WAS DIRECTED TO THE REVENUE DEPARTMENT TO SERVE THE NOTICE. THE REVENUE DEPARTMENT HAS SERVED THE NOTICE 2 ITA NO. 354/NAG/2014 AS PER THE REPORT ON RECORD. TH E ITO, WARD - 1, KHAMGAON HAS INFORMED THAT THE NOTICE OF THE TRIBUNAL DATED 24 - 09 - 2015 FIXING THE DATE OF HEARING ON 18 - 11 - 2015 WAS SERVED ON THE ASSESSEE ON 28 - 10 - 2015. EVEN ON THE SAID DATE OF HEARING NO ONE HAS APPEARED. IN SUCH CIRCUMSTANCES WE HAVE DEC IDED TO PROCEED EXPARTE QUA THE ASSESSEE AFTER HEARING THE LEARNED D.R. WHO HAS SUPPORTED THE ORDER OF LEARNED COMMISSIONER. 3. THIS ASSESSEE HAS FILED AN APPLICATION TO OBTAIN A REGISTRATION AS PRESCRIBED U/S 12AA OF I.T. ACT. DURING THE PROCEEDINGS LEARN ED COMMISSIONER HAS FOUND THAT THE SOCIETY IS RUNNING A SCHOOL FROM CLASS 1 ST TO CLASS 5 TH AND CHARGING FEES AS WELL. LEARNED COMMISSIONER HAS REJECTED THE REGISTRATION IN THE FOLLOWING MANNER : ORDER UNDER - SECTION 12AA(1)(B ) (II ) OF'THE INCOM E TAX ACT,T96 1 DNYAN VIDNYAN SHIKSHAN KRIDA VA BAHUUDHESHIYA SANSTHA, GAJANAN NAGAR, BULDHANA HAS FILED AN APPLICATION IN FORM NO. LOA OF THE INCOME - TAX RULES, 1962 ON 18 - 12 - 2013. A FIXATION LETTER DATED 26 - 03 - 2014 WAS SENT TO ASSESSEE SANSTHA ASKING THEM TO PRODUCE BOOKS OF ALE OF CURRENT YEAR AND LAST 3 ASSESSMENT YEARS, ALL OTHER DOCUMENTS, FIXING THE CASE FOR HEARING ON 29 - 04 - 2014. SHRI V.B. KALE, PRESIDENT AND OR.G.V. BAJAD , SECRETARY OF THE SANSTHA ATTENDED AND PRODUCED ORIGINAL CERTIFICATE OF REGISTRA TION ETC, FOR VERIFICATION. FURTHER, FIXATION LETTER WAS ISSUED ON 22 - 05 - 2014 FIXING THE CASE FOR HEARING ON 03 - 06 - 2014ASKING THEM TO PRODUCE BOOKS OF ACCOUNT, BILLS AND VOUCHERS AND DETAILED REPORT ON THE CHARITABLE ACTIVITIES. 2. SHRI V.B. KALE, PRESIDENT AND OR. G.V. BAJAD, SECRETARY OF THE SOCIETY ATTENDED ON 03 - 06 - 2014, AND WHEN ASKED, THEY STATED THAT THE SOCIETY RUNS A SCHOOL FROM 1 ST TO S' CLASS CHARGING - ~FEES~FROM~RS5,OOO / - TO RS12,OOOI - PER ANNUM. NO STUDENT WA - S ADMITTED ON C ONCESSION OR FREE OF FEES. EVERY YEAR SURPLUS IS BEING GENERATED. 3. IN VIEW OF THE FACTS STATED ABOVE, THE APPLICATION FILED ON 18 - 12 - 2013 SEEKING REGISTRATION UNDER SECTION 12AA IS HEREBY REJECTED. 4 IN A SITUATION WHEN THE ASSESSEE HAS FAILED TO ESTABLISH THE OBJECT FOR WHICH THE INSTITUTION WAS CREATED AND THAT WHEN THE LEARNED COMMISSIONER HAS HELD THAT THE SOCIETY IN QUESTION IS A PROFIT EARNING BODY, HENCE IN THE ABSENCE OF ANY CONTRARY MATERIAL, WE HEREBY AFFIRM THE VIEW OF THE LEAR NED COMMISSIONER. THUS NO INTERFERENCE IS CALLED FOR. GROUNDS ARE DISMISSED. 3 ITA NO. 354/NAG/2014 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS HEREBY DISMISSED. ORDER PRODUCED IN THE OPEN COURT ON THIS 15 TH DAY OF JANUARY, 2016. SD/ - SD/ - (SHAMIM YAHYA) (MUKUL K. SHRAWAT) ACCOUNTANT MEMBER JUDICIAL MEMBER NAGPUR, DATED: 15 TH JANUARY, 2016. COPY FORWARDED TO : 1. DNYAN VIDYAN SHIKSHAN KRIDA VA BAHUUDESHIYA SANSTHA,, D.P. ROAD, GAJANAN NAGAR, . MEHKAR, DIST. BULDHANA - 410329. 2. A.C.I.T., CIRCLE - 1, NAGPUR. 3. COMMISSIONER OF INCOME - TAX - ,NAGPU R. 4. CIT(APPEALS) - I, NAGPUR. 5. D.R., ITAT, NAGPUR. 6. GUARD FILE TRUE COPY BY ORDER ASSISTANT REGISTRAR, ITAT, NAGPUR WAKODE.