M/s Sri Vinayaka Educational & Charitable Trust, Bobbili V. The Commissioner of Income Tax -1, Visakhapatnam

ITA 495/VIZ/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 0859 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-04-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 24-03-2010
• Assessment Year: misc
• Appeal Filed On: 28-10-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G S S GOPINATH
• Keywords: Charitable institution
• Section: 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER ITA NO.495/VIZAG/2009 ASSESSMENT YEAR : NA M/S. SRI VINAYAKA EDUCATIONAL & CHARITABLE TRUST, BOBBILI CIT-1, VISAKHAPATNAM (APPELLANT) VS. (RESPONDENT) PAN NO.AAHTS 9431J APPELLANT BY: SHRI G.V.N. HARI, CA RESPONDENT BY: SHRI G.S.S. GOPINATH, DR ORDER PER SHRI S.K. YADAV, JUDICIAL MEMBER:- THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT DENYING REGISTRATION U/S 12A OF THE I.T. ACT. 2. DURING THE COURSE OF HEARING OF THE APPEAL, THE LD. COUNSEL FOR THE ASSESSEE HAS INVITED OUR ATTENTION TO THE ORDER OF THE CIT DENYING THE REGISTRATION U/S 12A OF THE ACT WITH THE SUBMISSION S THAT HE HAS DRAWN INFERENCE THAT THE ASSESSEE TRUST IS FOR SETTING UP OF TECHNICAL INSTITUTE WITH PROFIT MOTIVES, WITHOUT BRINGING OUT ANY EVIDENCE O N RECORD ON THE BASIS OF WHICH IT CAN BE PRESUMED THAT THE ASSESSEES OBJECT IS OF PROFIT EARNING. HE HAS SIMPLY REPRODUCED THE OBJECTS OF THE TRUST AND DENIED THE REGISTRATION. HE HOWEVER PRAYED THAT MATTER MAY BE SENT BACK TO T HE CIT FOR RE- ADJUDICATION OF THE CLAIM OF THE ASSESSEES BY PASSI NG A SPEAKING ORDER. 3. THE LD. D.R. SIMPLY PLACED A RELIANCE ON THE ORD ER OF THE CIT. 4. HAVING HEARD THE RIVAL SUBMISSIONS AND FROM PERU SAL OF THE ORDER OF THE CIT, WE FIND THAT HE HAS NOT GIVEN A VALID REAS ONING ON THE BASIS OF WHICH HE HAS DENIED THE REGISTRATION U/S 12A. HE HAS SIM PLY PRESUMED THAT THE ASSESSEE IS FOR SETTING UP TECHNICAL INSTITUTES APP ARENTLY WITH THE PROFIT 2 MOTIVE. ACCORDING TO US THE EXEMPTION SHOULD NOT B E DENIED ON THE BASIS OF PRESUMPTIONS. IF THE CIT IS OF THE VIEW THAT THE AS SESSEE IS ENGAGED IN COMMERCIAL ACTIVITIES, HE SHOULD BRING OUT SOME EVI DENCE ON RECORD IN SUPPORT OF THE PRESUMPTION. WE THEREFORE SET ASIDE THE ORD ER OF CIT AND RESTORE THE MATTER TO HIS FILE WITH THE DIRECTIONS TO RE-ADJUDI CATE THE ISSUE AFRESH BY PASSING A SPEAKING AND DETAILED ORDER. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLO WED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 13.4.2010 SD/- SD/- (BR BASKARAN) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER VG/SPS VISAKHAPATNAM, DATED 13 TH APRIL, 2010 COPY TO 1 M/S. SRI VINAYAKA EDUCATIONAL & CHARITABLE TRUST, 44-196, MAHARAJUPETA, COLLEGE ROAD, BIBBILI, VIJAYANAGARAM DIST. 2 CIT-1, VISAKHAPATNAM 3 THE CIT(A), VISAKHAPATNAM 4 THE DR, ITAT, VISAKHAPATNAM. 5 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM