ITO, Bhubaneswar V. College of Management & Information Science, Bhubaneswar

ITA 471/CTK/2012

• Counselvise Citation: 47122114 RSA 2012
• Duration Of Justice: 2 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-12-2012
• Appeal Filed By: Department
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 03-10-2012
• Court: TRIBUNAL
• Department Lawyers: HAVING BEEN AGGRIEVED
• Keywords: Charitable institution

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK ( ) BEFORE . . , , HONBLE SHRI K.K.GUPTA, ACCOUNTANT MEMBER. /AND . . . , H ONBLE SHRI K.S.S.PRASAD RAO, JUDICIAL MEMBER / I.T.A.NO. 471/CTK/2012 AND C.O.NO.38/CTK/2012 (FILED BY THE ASSESSEE) / ASSESSMENT YEAR 20089 - 10 INCOME - TAX OFFICER, WARD 1(2), BHUBANESWAR. - - - VERSUS - COLLEGE OF MANAGEM ENT & INFORMATION SCIENCE, 328, CUTTACK ROAD, BHUBANESWAR 751 006 PAN: AAAAC 2062 K. ( /APPELLANT ) ( / RESPONDENT ) / FOR THE APPELLANT : / SHRI S.K.AGARWALLA, AR / FOR THE RESPONDENT: / S MT. PAR AMITA TRIPATHY, CIT - DR / DATE OF HEARING: 23.11.2012 / DATE OF PRONOUNCEMENT: 14.12.2012 / ORDER . . . , SHRI K.S.S.PRASAD RAO, JUDICIAL MEMBER . THIS APPEAL IS FILED BY THE REVENUE HAVING BEEN AGGRIEVED BY THE ORDER OF THE LEARNED COMMISSIONER OF INCOME - TAX (APPEALS) DT.17.07.2012 FOR THE ASSESSMENT YEAR 2008 - 09 IN THE CASE OF THE ASSESSEE. THE ASSESSEE HAS FILED CROSS OBJECTION SUPPORTING THE IMPUGNED ORDER OF THE LEARNED CIT(A). 2. THE REVENUE HAS RAISED THE FOLLOWING ISSUES. 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) IS NOT JUSTIFIED IN LAW AS WEL L AS FACTS IN ALLOWING EXEMPTION U/S.11 TO THE ASSESSEE WHEN IT WAS NOT REGISTERED U/S.I2AA BY THE CIT AT THE TIME OF ASSE SSMENT. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) IS NOT JUSTIFIED IN LAW AS WELL AS FACTS IN AL LOWING EXEMPTION U/S.11 TO THE ASSESSEE WITHOUT GIVING A FINDING THAT THE ASSESSEE FULFILLED ALL THE CONDITIONS TO CLAIM EXEMPTION U/ S. 11, APART FROM REGISTRATION U/S. 11 (U/S.12A) . I.T.A.NO. 471/CTK/2012 2 3. BOTH THE PARTIES WERE HEARD REGARDING THE ISSUE RAISED BY THE REVENUE AND THEIR LEGAL IMPLICATIONS. 4. ON CAREFUL CONSIDERATION OF THE MATERIAL MADE AVAILABLE TO THE TRIBUNAL, THE UNDISPU TED FACTS RELA TING TO THE ISSUES ARE THAT THE ASSESSEE IS A SOCIETY WITH THE OBJECTIVE IN PROMOTING ALL MEANS OF EDUCATIONAL RESEARCH AND TRAINING IN URBAN & RURAL AREAS, ESPECIALLY ON MANAGEMENT OF INFORMATION SCIENCE. FOR THE ASSESSMENT YEAR UNDER CONSIDERATION THE AS SESSEE FILED RETURN SHOWING LOSS OF RS.4,71,38,466 WITH THE CLAIM OF REFUND OF RS.19,392 CLAIMING SURPLUS INCOME AS EXEMPT , WHICH WAS PROCESSED U/S.143(1) AND REFUND WAS ALLOWED. SUBSEQUENTLY THE CASE WAS SELECTED FOR SCRUTINY AND DURING THE COURSE OF SCRU TINY ASSESSMENT THE ASSESSING OFFICER OBSERVED THAT THE ASSESSEE HAS SHOWN EXCESS OF INCOME OVER EXPENDITURE AT RS.38.98,866.75 OUT OF WHICH A SUM OF RS.5,10,37,332.50 HAS BEEN CLAIMED AS FUNDS UTILIZED FOR CHARITABLE PURPOSE AND LOSS HAS BEEN SHOWN AT RS. 4,71,38,465.75. ON THE FINDING THAT THE ASSESSEE SOCIETY IS NOT REGISTERED U/S.12AA, THE ASSESSING OFFICER BROUGHT TO TAX THE SURPLUS INCOME OF RS.38,98,867 HOLDING THE SAME AS INCOME FROM BUSINESS & PROFESSION. 5. AGGRIEVED, THE ASSESSEE PREFERRED APPEAL BEFORE THE FIRST APPELLATE AUTHORITY, WHO DIRECTED THE ASSESSING OFFICER TO ASSESS THE ASSESSEE AT NIL ON THE FINDING THAT IN THE MEANTIME THE ASSESSEE WAS GRANTED REGISTRATION U/S.12AA BY THE CIT, BHUBANESWAR ON 06.07.2012 VIDE F.NO.ITO/T EC H./12AA - 60/02 - 03/2012 - 13 W.E.F. 1.4.2002 AND NO VIOLATIONS HAVE BEEN NOTED BY THE ASSESSING OFFICER AND AS SUCH THE SURPLUS OF INCOME OVER EXPENDITURE IS EXEMPT. AGAINST THIS ORDER, THE REVENUE IS IN APPEAL BEFORE THE TRIBUNAL. 6. HAVING HEARD BOTH THE PARTIES AND PERUS ING THE IMPUGNED ORDERS OF THE AUTHORITIES BELOW, WE FIND THAT, THE ASSESSING OFFICER ON EXAMINING THE I.T.A.NO. 471/CTK/2012 3 DETAILS FURNISHED BY THE ASSESSEE CAME TO THE CONCLUSION THAT THE ASSESSEE IS NOT ENTITLED TO CLAIM EXEMPT THE SURPLUS OF INCOME OVER EXPENDITURE BECAUSE OF WANT OF REGISTRATION U/S.12A. THE SAID ASSESSMENT ORDER WAS PASSED ON 14.11.2011 WHEN THE REGISTRATION U/S.12A WAS NOT THERE . UNDISUTEDLY THE SAID REGISTRATION WAS GRANTED ON 6.7.2012 BY THE CIT W.E.F. 1.4.2002, WHICH ENTITLES THE ASSESSEE TO CLAIM EX EMPTION IN QUESTION DURING THE ASSESSMENT YEAR UNDER CONSIDERATION. BASED ON THESE FACTS AND ALSO THE FACT THAT THE ASSESSING OFFICER HAS NOT STATED ANY VIOLATION IN THE ASSESSMENT ORDER THOUGH HE STATED IN THE ASSESSMENT ORDER TO HAVE EXAMINED THE DETAILS OF BOOKS OF ACCOUNTS PRODUCED BY THE ASSESSEE BEFORE HIM, WE ARE OF THE CONSIDERED VIEW THAT THE CONCLUSION DRAWN AND DIRECTION GIVEN TO THE ASSESSING OFFICER TO ASSESS THE TOTAL INCOME OF THE ASSESSEE AT NIL IS JUSTIFIED AND IT NEEDS NO INTERFERENCE . ACC ORDINGLY WE UPHELD THE SAID ORDER OF THE LEARNED CIT(A) AND DISMISS THE APPEAL OF THE REVENUE. 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. THE CROSS OBJECTION FILED BY THE ASSESSEE SUPPORTING THE IMPUGNED ORDER OF THE LEARNED CIT(A) IS DISPOS ED OF ACCORDINGLY. S D/ - S D/ - ( . . ) , , (K.K.GUPTA), ACCOUNTANT MEMBER. ( . . . ) , (K.S.S.PRASAD RAO), JUDICIAL MEMBER ( ) DATE: 14.12.2012 ( ), (H.K.PADHEE), SENIOR.PRIVATE SECRETARY. I.T.A.NO. 471/CTK/2012 4 - COPY OF THE ORDER FORWARDED TO: 1 . / THE APPELLANT : INCOME - TAX OFFICER, WARD 1(2), BHUBANESWAR. 2 / THE RESPONDENT: COLLEGE OF MANAGEMENT & INFORMATION SCIENCE, 328, CUTTACK ROAD, BHUBAN ESWAR 751 006 3 . / THE CIT, 4 . ( )/ THE CIT(A), 5 . / DR, CUTTACK BENCH 6 . GUARD FILE . / TRUE COPY, / BY ORDER, APPENDIX XVII SEAL TO BE AFFIXED ON THE ORDER SHEET BY THE SR. P.S./P.S. AFTER DICTATION IS GIVEN 1. DATE OF DICTATION 06.12.2012 . 2. DATE ON WHICH THE TYPED DR AFT IS PLACED BEFORE THE DICTATING MEMBER 07.12.2012 OTHER MEMBER . 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT. ... 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S./P.S . 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 14.12.2012 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK .. 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER ................ 9. DATE OF DESPATCH OF THE ORDER ..