ITO, Kota V. HITKARI VIDHYALAYA SAHAKARI SHIKSHA SAMITI LTD., Kota

ITA 416/JPR/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5557 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 7 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 28-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: M IQBAL
• Keywords: Tax effect

Judgement Text

ITA NI. 416/JP/14 ITO, WARD2(2), KOTA VS. SHRI HITKARI VIDHYALAYA SAH AKAI SHIKSHA SAMITI LTD. KOTA 1 IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH VKJ-IH-RKSYKUH] U;KF;D LNL; ,OA JH FOE FLAG ;KN O] YS[KK LNL; DS LE{K BEFORE: SHRI R.P. TOLANI, JM & SHRI VIKRAM SINGH YA DAV, AM VK;DJ VIHY LA-@ ITA NO. 416/JP/14 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2009-10 LQUOKBZ DH RKJH[K DATE OF HEARING : 20.01.2016 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 21 /01/2016 VKNS'K@ ORDER FU/KKZFJRH DH VKSJ LS@ ASSESSEE BY : SHRI M. IQBAL ADVOCATE. JKTLO DH VKSJ LS@ REVENUE BY : SHRI RAJ MEHRA (JCIT) PER SHRI VIKRAM SINGH YADAV, AM THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A), KOTA DATED 20.03.2014 WHEREIN THE REVENUE HAS TAKEN THE FOLLOWING GROUND OF APPEAL: ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD . CIT(A), KOTA HAS ERRED IN: THE INCOME TAX OFFICER, WARD 2(2),( KOTA CUKE V/S. SHRI HITKARI VIDHYALAYA SAHAKARI SHIKSHA SAMITI LTD., SHIV DAS GHAT KI GALI, BHARAPARA, RAMPURA, KOTA LFKK;H YS[KK LA-@THVKJBZVKJ LA-@ PAN NO. AAAAH 2943Q ITA NI. 416/JP/14 ITO, WARD2(2), KOTA VS. SHRI HITKARI VIDHYALAYA SAH AKAI SHIKSHA SAMITI LTD. KOTA 2 (I) HOLDING THAT THE ASSESSEE IS ENTITLED FOR DEDUCTI ON U/S 80P(A)(I) OF THE I.T. ACT 1961 FOLLOWING THE DECISION OF HONBLE ITAT FOR EARLIER YEARS WITHOUT APPRECIATING THE FACTS THAT: (A) THE DECISION OF THE HONBLE ITAT FOR EARLIER YEARS HAS NOT BEEN ACCEPTED BY THE DEPARTMENT AND THE MATTER IS SUB-JU DICIAL BEFORE THE HONBLE RAJASTHAN HIGH COURT. (B) ALTHOUGH THE SOCIETY IS PROVIDING CREDIT FACILITI ES TO ITS MEMBERS, THE MAIN OBJECT OF THE SOCIETY IS THAT OF SPREADIN G EDUCATION AND MAJOR PART OF ITS INCOME COMES FROM EDUCATION AND I TS RELATED ACTIVITIES AND FURTHER THAT NO PERMISSION WAS TAKEN BY THE SOCIETY FROM THE RESERVE BANK OF INDIA ENABLING THE SOCIETY TO CLAIM SUCH DEDUCTION. (II) ALLOWING EXPENSES OF RS. 15,86,822/- TO THE ASSESSE E WITHOUT ANY FINDING AS TO HOW THESE EXPENSES CAN BE SAID TO HAV E BEEN INCURRED FOR THE PURPOSE OF EARNING INTEREST INCOME ON BANK DEPOSITS: 2. AT THE OUTSET, LD. AR SUBMITTED THAT THE SUBJEC T APPEAL OF REVENUE IS NOT MAINTAINABLE IN LIGHT OF CIRCULAR NO. 21 DATED 10.12.2015 ISSUED BY THE CBDT. 3. WE HAVE HEARD LD AR AND THE DR. FROM PERUSAL OF MATERIAL AVAILABLE ON RECORD IN RESPECT OF THE ABOVE APPEAL, IT IS OBSERV ED THAT THE DEMAND/ TAX EFFECT IN THIS REVENUE APPEAL IS NOT EXCEEDING RS. 10 LACS. UNDER THE POWERS VESTED BY SEC. 268A(1) OF THE I.T. ACT, CBDT HAS RECENTLY ISS UED CIRCULAR NO.21 OF 2015 DATED 10.12.2015(F.NO.279/MISC. 142/2007-ITJ(P T) INSTRUCTING THE AUTHORITIES BELOW THAT DEPARTMENTAL APPEAL SHOU LD NOT BE FILED BEFORE ITAT WHERE THE DEMAND/TAX EFFECT DOES NOT EX CEED RS.10 LACS. ITA NI. 416/JP/14 ITO, WARD2(2), KOTA VS. SHRI HITKARI VIDHYALAYA SAH AKAI SHIKSHA SAMITI LTD. KOTA 3 THE CIRCULAR SPECIFICALLY MENTIONS THAT IT WILL BE APPLICABLE TO ALL PENDING APPEALS ALSO. 3.1. SUBJECT TO SOME EXCEPTIONS, IT IS FURTHER DIR ECTED BY CBDT THAT ALL THE DEPARTMENTAL APPEALS PENDING BEFORE ITAT WHERE THE DEMAND/TAX EFFECT IS NOT EXCEEDING RS. 10 LACS SHOULD BE EITHER WITHDRAWN OR NOT PRESSED BY THE DEPARTMENTAL REPRESENTATIVES AT THE TIME OF HEARING . 3.2 THE REVENUE APPEAL IS NOT COVERED BY ANY EXCE PTIONS MENTIONED IN THE SAID CBDT CIRCULAR. SINCE THE TAX DEMAND IN DISPUTE IN T HE DEPARTMENTAL APPEAL DOES NOT EXCEED THE LIMIT OF RS. 10 LACS AS SET OUT BY C BDT, SUCH APPEALS ARE NOT MAINTAINABLE. ACCORDINGLY, THE LD. DR AGREE THAT T HIS APPEAL OF THE DEPARTMENT MAY BE TREATED AS NOT PRESSED/WITHDRAWN AND DISMISS ED IN VIEW OF THE CBDT CIRCULAR. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 21 /01 /2016. SD/- SD/- VKJ-IH-RKSYKUH FOE FLAG ;KNO (R.P.TOLANI) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER JAIPUR DATED:- 21 /01 /2016 ITA NI. 416/JP/14 ITO, WARD2(2), KOTA VS. SHRI HITKARI VIDHYALAYA SAH AKAI SHIKSHA SAMITI LTD. KOTA 4 PILLAI VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT THE ITO, WARD 2(2), KOTA 2. THE RESPONDENT SHRI HITKARI VIDHYALAYA SAHKAR I SHIKHA SAMITI LTD. KOTA 3. THE JCIT, RANGE-2, KOTA 4. THE CIT(A), KOTA 5. THE CIT, KOTA 6. THE DR, ITAT, JAIPUR 7. GUARD FILE (ITA NO.13/JP/15) VKNS'KKUQLKJ@ BY ORDER, ;2D IATHDKJ@ ASSISTANT. REGISTRAR