M/s Swarna Bharathi Educational Society's, Hyderabad V. THE CIT, VIJAYAWADA, Vijayawada

ITA 429/VIZ/2012

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 0993 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 3 year(s) 7 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 01-02-2016
• Assessment Year: misc
• Appeal Filed On: 26-11-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P HARIPRASADA RAODR
• Assessee Lawyers: A V RAGHURAMAR
• Section: 12AA; 2; 11

Judgement Text

ITA NO.429/VIZAG/2012 SWARNA BHARATHI EDUCATIONAL SOCIETY, KHAMMAM 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . , $ BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI G. MANJUNATHA, ACCOUNTANT MEMBER ./I.T.A.NO.429/VIZAG/2012 ( / ASSESSMENT YEAR: NA) SWARNA BHARATHI EDUCATIONAL SOCIETY KHAMMAM VS. CIT, VIJAYAWADA [PAN: AACTS 7014A ] ( % / APPELLANT) ( &'% / RESPONDENT) / APPELLANT BY : SHRI A.V. RAGHURAM,AR / RESPONDENT BY : SHRI P. HARIPRASADA RAO,DR / DATE OF HEARING : 13.07.2016 / DATE OF PRONOUNCEMENT : 22.07.2016 / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF CIT, VIJAYAWADA DATED 26.9.2012. 2. FACTS ARE IN BRIEF THAT THE ASSESSEE SWARNA BHA RATHI EDUCATIONAL SOCIETY FILED AN APPLICATION IN FORM NO.10A ON 16. 3.2012 FOR REGISTRATION ITA NO.429/VIZAG/2012 SWARNA BHARATHI EDUCATIONAL SOCIETY, KHAMMAM 2 U/S 12AA OF THE INCOME TAX ACT, 1961 (HEREINAFTER C ALLED AS 'THE ACT') ALONG WITH ALL THE DETAILS. 3. THE LD. COMMISSIONER AFTER EXAMINING THE DETAILS FILED BY THE ASSESSEE, HE HAS OBSERVED THAT THE ASSESSEE SOCIETY RECEIVED REIMBURSEMENT OF THE SCHOLARSHIPS MORE THAN THE STR ENGTH OF THE STUDENTS. FURTHER, THE SOCIETY HAS COLLECTED THE F EE FROM B.ED. TRAINEES MORE THAN THE PRESCRIBED FEE BY THE GOVERNMENT. TH E SOCIETY IS CHARGING FEE OVER AND ABOVE THE FEE PRESCRIBED BY T HE GOVERNMENT. 4. HE ALSO OBSERVED THAT THE ASSESSEE SOCIETY IS NO T NOTIFIED U/S 10(23C) OF THE ACT, THEREFORE, NOT ELIGIBLE FOR EXE MPTION U/S 11 OF THE ACT AND DENIED THE REGISTRATION CLAIMED BY THE ASSE SSEE U/S 12AA OF THE ACT. 5. ON BEING AGGRIEVED, ASSESSEE CARRIED MATTER IN A PPEAL BEFORE THE TRIBUNAL. 6. THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED T HAT THE ASSESSEE HAS NOT COLLECTED ANY FEE MORE THAN AS PRESCRIBED B Y THE GOVERNMENT. THE ASSESSEE ALSO NOT RECEIVED ANY SCHOLARSHIPS IN THE FORM OF REIMBURSEMENTS MORE THAN WHAT IT IS ENTITLED AND AL LEGED THAT ALL THE ALLEGATIONS MADE BY THE LD. COMMISSIONER ARE BASELE SS. HE ALSO ITA NO.429/VIZAG/2012 SWARNA BHARATHI EDUCATIONAL SOCIETY, KHAMMAM 3 SUBMITTED THAT SEEKING A REGISTRATION U/S 12AA OF T HE ACT IS DIFFERENT FROM NOTIFICATION U/S 10(23C) OF THE ACT. 7. ON THE OTHER HAND, THE LD. D.R. HAS SUPPORTED TH E ORDER PASSED BY THE LD. COMMISSIONER. 8. WE HAVE HEARD BOTH THE PARTIES, PERUSED THE MATER IALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHOR ITIES BELOW. THE ASSESSEE IS AN EDUCATIONAL SOCIETY RUNNING VARIOUS EDUCATIONAL INSTITUTIONS. THE SOCIETY HAS FILED AN APPLICATION IN FORM NO.10A ON 16.3.2012 REQUESTING FOR REGISTRATION U/S 12AA OF T HE ACT. THE LD. COMMISSIONER REJECTED THE REGISTRATION MAINLY ON TH E GROUND THAT THE GOVERNMENT HAS REIMBURSED THE SCHOLARSHIPS MORE THA N THE STRENGTH OF THE STUDENTS. THE LD. COMMISSIONER HAS NOT GIVEN A S TO WHAT IS THE STRENGTH AND WHAT IS THE AMOUNT THAT WAS REIMBURSED BY THE GOVERNMENT. THE LD. COMMISSIONER ALLEGED THAT THE ASSESSEE SOCIETY HAS RECEIVED FEE FROM B.ED. TRAINEES MORE THAN THE FEES PRESCRIBED BY THE GOVERNMENT. HE HAS NOT EXAMINED PROPERLY AS TO WHAT IS THE FEE PRESCRIBED BY THE GOVERNMENT AND WHAT WAS THE FEE C OLLECTED BY THE ASSESSEE. HE ALSO ALLEGED THAT THE ASSESSEE SOCIET Y IS COLLECTING FEE OVER AND ABOVE THE FEE PRESCRIBED BY THE GOVERNMENT. IT IS ALSO NOT EXAMINED BY THE LD. COMMISSIONER PROPERLY. ITA NO.429/VIZAG/2012 SWARNA BHARATHI EDUCATIONAL SOCIETY, KHAMMAM 4 9. THAT APART, THE COMMISSIONER HAS OBSERVED THAT T O GRANT AN EXEMPTION IN RESPECT OF EDUCATIONAL INSTITUTIONS, T HE INSTITUTION HAS TO BE NOTIFIED U/S 10(23C) OF THE ACT. THAT AS PER THE I NCOME TAX ACT, IT IS NOT A CONDITION PRECEDENT TO EXAMINE THE INCOME OF THE ASSESSEE HAVING REGISTRATION U/S 12AA OF THE ACT SHALL NOTIFY U/S 1 0(23C) OF THE ACT. UNDER THE INCOME TAX ACT, BOTH THE SECTIONS 12AA AS WELL AS 10 (23C) OF THE ACT WERE INCORPORATED TO DEAL WITH DIFFERENT SITUATIONS AND DIFFERENCE PURPOSES. IN VIEW OF THE ABOVE, WE SET ASIDE THE ORDER PASSED BY THE COMMISSIONER AND WE REMIT THE MATTER BACK TO THE LD. COMMISSIONER TO DECIDE THE CASE OF THE ASSESSEE FOR REGISTRATION U/S 12AA OF THE ACT DE-NOVO IN ACCORDANCE WITH LAW. 10. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 22 ND JUL16. SD/- SD/- ( . ) ( . ) (G. MANJUNATHA) (V. DURGA RAO) /ACCOUNTANT MEMBER /JUDICIAL MEMBER ! /VISAKHAPATNAM: % /DATED : 22.07.2016 VG/SPS ITA NO.429/VIZAG/2012 SWARNA BHARATHI EDUCATIONAL SOCIETY, KHAMMAM 5 '! (! /COPY OF THE ORDER FORWARDED TO:- 1. / THE APPELLANT SWARNA BHARATHI EDUCATIONAL SOCI ETY, C/O K. VASANTHA KUMAR AND A.V. RAGHU RAM, ADVOCATES, 610, 6 TH FLOOR, BABBU KHAN ESTATES, BASHEER BAGH, HYDERABAD. 2. / THE RESPONDENT THE CIT, VIJAYAWADA 3. ) ( ) / THE CIT(A), VIJAYAWADA 4. ! , , , , ! / DR, ITAT, VISAKHAPATNAM 5 . / GUARD FILE / BY ORDER // TRUE COPY // /0 , (SR.PRIVATE SECRETARY) , , ! / ITAT, VISAKHAPATNAM