M/si Sri Siddartha Educational Sociaty, Visakhapatnam V. THE CIT, RANGE - II, Yakalamuru, Krishna Distt.

ITA 427/VIZ/2012

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 6565 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 4 year(s) 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-01-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 02-12-2015
• Assessment Year: misc
• Appeal Filed On: 23-11-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R GOVINDHA RAJAN
• Assessee Lawyers: C V S MURTHY
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER & SHRI G. MANJUNATHA, HONBLE ACCOUNTANT MEMBER ITA NO. 427 / VIZ /201 2 M/S. SRI SIDDARTHA EDUCATION A L SOCIETY, D.NO. 38 - 35 - 7, RAM P RATAP NAGAR, MARRIPALEM, VISAKHAPATNAM . V . CIT - II, VISAKHAPATNAM PAN NO. AAEAS 1362 C (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI C.V.S. MURTHY FC A . DEPARTMENT BY : SHRI R. GOVINDHA RAJAN - DR DATE OF HEARING : 0 5 / 1 2 /201 6 . DATE OF PRONOUNCEMENT : 25 / 01 /201 7 . O R D E R PER V. DURGA RAO, JUDICIAL MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX - II , VISAKHAPATNAM , DATED 26 /0 9 /201 2 . 2. THE ASSESSEE SOCIETY NAMELY M/S. SRI SIDDARTHA EDUCATIONAL SOCIETY APPLIED FOR REGISTRATION UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961 ON 26/03/2012 WITH THE FOLLOWING OBJECTS: - A) TO WORK FOR THE SPREADING, ADVANCEMENT AND PROPAGATION OF EDUC A TION AND LEARNING BY ESTABLISHMENT OF ANY EDUCATIONAL INSTITUTION AS DECIDED BY THE EXECUTIVE COMMITTEE. B) TO ESTABLISH, MAINTAIN LIBRARY OR LIBRARIES FOR THE BENEFIT OF THE STUDENT COMMUNITY. 2 ITA NO. 427/VIZ/2012 C) TO TRAIN ST UDENTS TO ATTAIN SUCH PROFICIENCY IN THEIR RESPECTIVE FIELDS OF STUDY AND EQUIP THEM WITH SUCH SKILLS AS WOULD ENABLE THEM TO HELP THEMSELVES AND CONTRIBUTE TO THE NATIONAL ECONOMY AS SUCH . D) THE DOING OF ALL SUCH OTHER THINGS AS ARE INCIDENTAL AND CONDUC IV E TO THE ATTAINMENT OF THE ABOVE OBJECTS. 3 . THE COMMISSIONER OF INCOME TAX VIDE ORDER DATED 26/09/2012 , REJECTED THE REGISTRATION SOUGHT BY THE ASSESSEE BY OBSERVING THAT ALL THE COMMITTEE MEMBERS ARE FAMILY MEMBERS , THE ASSESSEE - SOCIETY PAID HUGE RENT TO THE COMMITTEE MEMBERS, NO RENTAL AGREEMENT S WERE FILED FOR PAYMENT OF THE RENT. HE WAS OF THE OPINION THAT ASSESSEE IS RUNNING INSTITUTION IN A COMMERCIAL LINE. 4 . ON BEING AGGRIEVED, THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE TRIBUNAL. NONE APPEARED FOR THE ASSESSEE, ONLY WRITTEN SUBMISSIONS ARE FILED IN A VERY CRYPTIC MANNER. 5. WE HAVE HEARD DEPARTMENTAL REPRESENTATIVE, PERUSED THE MATERIAL AVAILABLE ON RECORD . THE ASSESSEE SOCIETY FILED AN APPLICATION IN FORM NO. 10A FOR REGISTRATION UNDER SECTION 12A MAINLY TO CARRY OUT THE ESTABLISHMENT OF EDUCATIONAL INSTITUTION. THE OBJECTS OF THE SOCIETY IS ALSO INDICATES TH A T THE ASSESSEE SOCIETY IS EXISTED TO ESTABLISH AND RUN EDUCATIONAL INSTITUTION AS WELL AS LIBRAR Y. THE MAIN OBJECTION RAISED BY THE COMMISSIONER OF INCOME TAX FOR REFUSAL OF REGISTRATION UNDER SECTION 12A IS THAT ALL THE COMMITTEE MEMBERS ARE FAMILY MEMBERS AND HUGE FUNDS HAVE BEEN TRANSFERRED FROM SOCIETY TO EXECUTIVE COMMITT E E 3 ITA NO. 427/VIZ/2012 MEMBERS IN THE NAME OF RENT AND NO DETAILS ABOUT THE RENTAL AGREEMENTS WERE FILED BEFORE HIM. WE FIND THAT THIS IS THE MAIN OBJECTION RAISED BY THE COMMISSIONER OF INCOME TAX FOR REJECTION OF 12A APPLICATION. SO FAR AS THE ABOVE OBJECTION IS CONCERNED, THE ASSESSEE IN HIS WRITTEN R EPLY NOT SUBMITTED ANYTHING. AFTER CAREFUL CONSIDERATION OF THE ORDER OF THE COMMISSIONER OF INCOME TAX, WE ARE OF THE OPINION THAT ONE MORE OPPORTUNITY SHOULD BE GIVEN TO THE ASSESSEE TO SUBMIT THE DETAILS AS REQUIRED BY THE COMMISSIONER OF INCOME TAX. THEREFORE, WE SET ASIDE THE ORDER PASSED BY THE COMMISSIONER OF INCOME TAX AND DIRECT THE ASSESSEE TO FILE ALL THE DETAILS IN RESPECT OF RENT PAID TO THE SOCIETY MEMBERS AND ALSO RENTAL AGREEMENTS AND THE COMMISSIONER OF INCOME TAX IS DIRECTED TO CONSIDER THE CASE OF THE ASSESSEE AFRESH AND PASS NECESSARY ORDERS IN ACCORDANCE WITH LAW. THUS, THIS GROUND OF APPEAL RAISED BY ASSESSEE IS ALLOW ED FOR STATISTICAL PURPOSE. 6 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON TH IS 2 5 T H DAY OF JANUARY , 201 7 . S D / - S D / - ( G. MANJUNATHA ) ( V. DURGA RAO ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 2 5 T H JANUARY , 201 7 . VR/ - 4 ITA NO. 427/VIZ/2012 COPY TO: 1 . THE ASSESSEE - M/S. SRI SIDDARTHA EDUCATIONAL SOCIETY, D.NO. 38 - 35 - 7, RAM PRATAP NAGAR, MARRIPALEM, VISAKHAPATNAM. 2 . THE REVENUE - CIT - II, VISAKHAPATNAM. 3 . THE D.R . 4 . GUARD FILE. BY ORDER ASSISTANT REGISTRAR I.T.A.T., VISAKHAPATNAM