Anaesthesia Society, SRIGANGANAGAR V. CIT, BIKANER

ITA 477/JODH/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5265 (ITAT-JODHPUR)
• Duration Of Justice: 1 year(s) 5 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-03-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 10-03-2016
• Assessment Year: misc
• Appeal Filed On: 19-09-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELALTE TRIBUNAL JODHPUR BENCH, JODHPUR BEFORE: SHRI N. S. SAINI, ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, JUDICIAL MEMBER I.T.A.NO.477/JODH/2014 A Y: N. A. ANAESTHESIA SOCIETY, 1-C-3, JAWAHAR NAGAR, SRI GANGANAGAR PAN : AADAA4272A VS. THE COMMISSIONER OF INCOME TAX, BIKANER, RAJASTHAN APPELLANT RESPONDENT APPELLANT BY SHRI SURESH OJHA, AR RESPONDENT B8Y SHRI S. K.MADHUK CIT DR DATE OF HEARING: 10.03.2016 DATE OF PRONOUNCEMENT: 10.03.16 O R D E R PER: GEORGE MATHAN, J.M. : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF THE LEARNED CIT, BIKANER DATED 28-07-2014 REFUSING GRANT OF REG ISTRATION U/S 12AA OF THE IT ACT. 2. SHRI SURESH OJHA, ADVOCATE REPRESENTED ON BEHALF OF THE ASSESSEE AND SHRI S. K. MADHUK, CIT DR REPRESENTED ON BEHALF OF THE REVENUE. 2 ITA NO.477/JODH/2014 3. IT WAS SUBMITTED BY THE LEARNED AR THAT THE ANES THESIA SOCIETY WAS CREATED BY A DEED DATED 20-02-2014. THE SAID SOCIET Y HAD FILED AN APPLICATION FOR REGISTRATION U/S 12AA OF THE ACT BE FORE THE LEARNED CIT ON 22-05-2014. THE LEARNED CIT HAD CALLED FOR REPORT F ROM THE A O AND THE LEARNED CIT HAS RECOGNIZED THAT THE JOINT COMMISSIO NER OF INCOME TAX HAS IN CONFORMITY WITH THE REMAND REPORT OF THE A O REC OMMENDED FOR APPROVAL OF REGISTRATION OF THE SOCIETY U/S 12AA OF THE ACT. IT WAS A SUBMISSION THAT HOWEVER, THE LEARNED CIT HAD REFUSED TO GRANT THE A SSESSEE REGISTRATION U/S 12A OF THE ACT ON THE GROUND THAT THE MAIN OBJECTS OF THE SOCIETY ARE RELATED TO IMPROVEMENT IN THE SUBJECTS AND TECHNIQUES RELAT ED TO ANESTHESIA SCIENCE RESEARCH AND TO PROMOTE THE MEDICAL SCIENCE AND THA T THE LEARNED CIT WAS OF THE VIEW THAT THE SOCIETY WAS NOT FOR THE BENEFI T OF GENERAL PUBLIC BUT WAS LIMITED TO THE INTEREST OF ABOUT 20 DOCTORS. IT WAS SUBMITTED THAT THE OBJECTS OF THE SOCIETY WAS CLEARLY CHARITABLE NATURE AND THE E DUCATION OF ANESTHESIA MEDICAL SCIENCE WAS ONE OF THE MAIN OBJECT OF THE A SSESSEE SOCIETY. IT WAS A SUBMISSION THAT THE LEARNED CIT HAD REJECTED THE AS SESSEES CLAIM OF REGISTRATION ON THE GROUND THAT THERE WAS NO GENERA L PUBLIC UTILITY. IT WAS A SUBMISSION THAT THE LEARNED CIT HAD FAILED TO CONSI DER THE FACT THAT EDUCATION WAS A CHARITABLE ACTIVITY AND THE ASSESSEE WAS ENTI TLED FOR REGISTRATION U/S 12AA OF THE ACT. IT WAS A FURTHER SUBMISSION THAT T HE ASSESSEE HAD REFERRED TO A DECISION OF THE HON'BLE RAJASTHAN HIGH COURT I N THE CASE OF JODHPUR CHARTERED ACCOUNTANTS SOCIETY. THE LEARNED CIT HAS NOT SPECIFICALLY 3 ITA NO.477/JODH/2014 DISTINGUISHED THE SAID CASE AND HAS WITHOUT GIVING ANY VALID REASON REJECTED THE PRAYER FOR REGISTRATION U/S 12AA OF THE ACT. IT WAS A SUBMISSION THAT THE ASSESSEE MAY BE GRANTED REGISTRATION U/S 12AA OF TH E ACT. 4. IN REPLY THE LEARNED CIT DR SUBMITTED THAT THE S OCIETY DOES NOT EXIST FOR DOING ANY CHARITABLE ACTIVITIES WHICH ARE OF AN Y GENERAL PUBLIC UTILITY. IT WAS A SUBMISSION THAT ISSUE OF EDUCATION IS NOW BEI NG RAISED BY THE LEARNED AR. IT WAS A FURTHER SUBMISSION THAT THE ISSUE MAY RESTORED TO THE LEARNED CIT FOR RE-ADJUDICATION AS TO WHETHER THE ASSESSEE SOCIETY IS ACTUALLY CONDUCTING EDUCATION WHICH CAN BE CLAIMED TO BE A C HARITABLE ACTIVITY AS PER THE PROVISIONS OF SECTION 2(15) OF THE ACT. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. ON PER USAL OF THE ORDER OF LEARNED CIT SHOWS THAT HE HAS NOT GIVEN ANY DISCUSS ION IN RESPECT OF THE DECISION OF THE HON'BLE JURISDICTIONAL HIGH COURT ( SUPRA) IN THE CASE OF JODHPUR CHARTERED ACCOUNTANTS SOCIETY AS ALSO IN TH E DECISION OF THE HON'BLE SUPREME COURT IN THE CASE OF AHMEDABAD RANA COST AS SOCIATION. FURTHER, IT IS NOTICED THAT THE LEARNED CIT HAS HELD THAT THE A SSESSEE SOCIETY IS NOT HAVING ANY GENERAL PUBLIC UTILITY SERVICES. HE HAS NOT CONSIDERED THE CLAIM OF THE ASSESSEE THAT ITS ACTIVITY INCLUDE EDUCATION WH ICH IS CONSIDERED AS A CHARITABLE ACTIVITY U/S 2 (15) OF THE ACT. THIS BEI NG SO, THE ISSUE IN APPEAL IS RESTORED TO THE LEARNED CIT FOR RE-ADJUDICATION AFT ER GRANTING THE ASSESSEE ADEQUATE OPPORTUNITY TO SUBSTANTIATE HIS CASE. 4 ITA NO.477/JODH/2014 6. IN THE RESULT, BOTH THE APPEAL OF THE ASSESSEE I S ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 10.03.2016. SD/- SD/- (N. S. SAINI) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER JODHPUR, DATED: 10 TH MARCH, 2016 LAKSHMIKANTA LAKSHMIKANTA LAKSHMIKANTA LAKSHMIKANTA DEKA/ DEKA/ DEKA/ DEKA/- -- - COPY OF THE ORDER FORWARDED TO: 1 . THE APPELLANT 2. THE RESPONDENT 3. CIT CONCERNED 4. CIT (A) CONCERNED 5. DR, ITAT, JODHPUR 6. GUARD FILE BY ORDER, SR. PRIVATE SECRETARY DATE INITIAL ORIGINAL DICTATION PAD & DRAFT ARE ENCLOSED IN THE FILE 1. DRAFT DICTATED ON 10.03.16 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 11.03.16 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 11.03.16 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 11.03. 16 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 11.03.16 SR.PS 6. DATE OF PRONOUNCEMENT NA SR.PS 7. FILE SENT TO THE BENCH CLERK SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER