M/s Neeranjaneya Vidya Parishad, Visakhapatnam V. The Commissioner of Income Tax-II, Visakhapatnam

ITA 394/VIZ/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 7198 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 7 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-02-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 07-02-2011
• Assessment Year: misc
• Appeal Filed On: 25-06-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J SIRI KUMAR
• Section: 12AA; 11

Judgement Text

ITA NO 394 OF 2010 NEERANJANEYA VIDYA PARISHAD, VIS AKHAPATNAM PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER ITA NO.394/VIZAG/2010 ASSESSMENT YEAR: NA M/S NEERANJANEYA VIDYA PARISHAD, VISAKHAPATNAM VS. CIT-II, VISAKHAPATNAM (APPELLANT) PAN NO: AAAAN 4022 G (RESPONDENT) APPELLANT BY: SHRI G.V.N. HARI, CA RESPONDENT BY: SHRI J. SIRI KUMAR, DR ORDER PER SHRI B. R. BASKARAN, ACCOUNTANT MEMBER: THE APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 29.4.2010 PASSED BY LEARNED CIT-II, VISAKHAPATNAM RE JECTING THE APPLICATION FILED BY THE ASSESSEE SEEKING REGISTRAT ION UNDER SECTION 12AA OF THE INCOME TAX. 2. IT IS STATED BY LEARNED CIT THAT THE ASSESSEE HER EIN IS A SOCIETY REGISTERED UNDER SOCIETIES REGISTRATION ACT. IT FIL ED APPLICATION WITH THE LEARNED CIT IN FORM NO.10A SEEKING REGISTRATION UND ER SECTION 12AA OF THE ACT. THE LEARNED CIT REJECTED THE APPLICATION FOR THE FOLLOWING REASONS: A) ONE OF THE OBJECTS OF THE ASSESSEE SOCIETY IS CO NSTRUCTION OF TEMPLES AND IS IN RELIGIOUS NATURE. B) THE ASSESSEE SOCIETY HAS RECEIVED AMOUNTS FROM S TUDENTS IN THE GUISE OF VOLUNTARY CONTRIBUTIONS RANGING FROM RS.50 0/- TO RS.6000/-. SINCE THE ASSESSEE SOCIETY IS COLLECTING AMOUNTS OV ER AND ABOVE THE REGULAR FEE FROM THE STUDENTS, THE ACTIVITIES ARE A GAINST ITS AIMS AND OBJECTIVES MENTIONED IN THE MEMORANDUM OF ASSOCIATI ON. THE ASSESSEE IS AGGRIEVED BY THE ORDER OF LEARNED C IT AND HAS FILED THIS APPEAL BEFORE US. 3. WE HAVE HEARD THE RIVAL CONTENTIONS. ON A C AREFUL PERUSAL OF PROVISIONS OF SEC. 11 TO 13, WE NOTICE THAT THE REG ISTRATION UNDER SECTION ITA NO 394 OF 2010 NEERANJANEYA VIDYA PARISHAD, VIS AKHAPATNAM PAGE 2 OF 2 12AA OF THE ACT CAN BE GRANTED FOR TRUSTS HAVING RE LIGIOUS PURPOSES ALSO. HENCE WE DO NOT FIND MERIT ON THE FIRST POINT MENTI ONED ABOVE. WITH REGARD TO THE SECOND POINT, WE NOTICE THAT THE LEAR NED CIT HAS OBSERVED THAT THE COLLECTIONS BY WAY OF VOLUNTARY CONTRIBUTI ONS MADE BY THE ASSESSEE SOCIETY FROM ITS STUDENTS IS IN VIOLATION OF THE AI MS AND OBJECTIVES OF THE ASSESSEE SOCIETY, HOWEVER, THE LEARNED CIT DID NOT BRING OUT HOW THEY ARE VIOLATED BY THE SAID ACTIVITIES OF THE ASSESSEE SOC IETY. HENCE, IN OUR VIEW, BOTH THE REASONS CITED BY THE LEARNED CIT DID NOT W ARRANT REJECTION OF THE APPLICATION FILED BY THE ASSESSEE. ACCORDINGLY, WE SET ASIDE THE ORDER OF LEARNED CIT AND RESTORE THE MATTER BACK WITH A DIRE CTION TO PROCESS THE APPLICATION OF THE ASSESSEE IN ACCORDANCE WITH THE LAW AND IF HE IS SATISFIED WITH THE OBJECTS OF THE TRUST AND THE GENUINENESS O F ITS ACTIVITIES, THEN GRANT REGISTRATION. 4.. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TRE ATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 10 TH FEBRUARY, 2011. SD/- SD/- (SUNIL KUMAR YADAV) (B R BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM, DATE: 10-02-2011 COPY TO 1 M/S NEERANJANEYA VIDYA PARISHAD, MAIN ROAD, KANCH ARAPALEM, VISAKHAPATNAM 2 THE CIT-II VISAKHAPATNAM 3 THE DR, ITAT, VISAKHAPATNAM. 4 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM