Mohan Educational Society, Kakinada V. The CIT, (Examptions), Hyderabad

ITA 502/VIZ/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 5161 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 year(s) 7 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2015-2016
• Appeal Filed On: 22-12-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: V. APPALA RAJU
• Section: 2; 201; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , HONBLE ACCOUNTANT MEMBER ITA NO. 502 / VIZ /201 6 (ASST. YEAR : 20 15 - 16 ) MOHAN EDUCATIONAL SOCIETY, D.NO. 10 - 475, EQASWAR NAGAR, NEAR APSP QUARTERS, KAKINADA . V S . CIT (EXEMPTIONS) , KAKINADA . PAN NO. AAAAM 4370 L (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI P. PRABHAKARA MURTHY ADV. DEPARTMENT BY : SHRI V. APPALA RAJU SR. DR DATE OF HEARING : 25 / 0 7 /201 8 . DATE OF PRONOUNCEMENT : 31 / 0 7 /201 8 . O R D E R PER V. DURGA RAO, JUDICIAL MEMBER TH IS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) , VISAKHAPATNAM , DATED 18 /0 8 /201 3 FOR THE ASSESSMENT YEARS 2006 - 07 TO 2009 - 10 . 2. FACTS OF THE CASE IN BRIEF ARE THAT ASSESSEE IS AN EDUCATIONAL SOCIETY REGISTERED UNDER THE SOCIETIES REGISTRATION ACT, 1980 AND IS CARRYING EDUCATIONAL ACTIVITIES. THE ASSESSEE HAS FILED AN APPLICATION FOR SEEKING GRANT OF EXEMPTION UNDER SECTION 2 ITA NO. 502 /VIZ/201 6 ( MOHAN EDUCATIONAL SOCIETY ) 10(23C)(VI) OF THE INCOME TAX ACT, 1961(FOR SHORT, THE ACT) WITH THE FOLLOWING OBJECTS: - (I) TO DEVELOP SOCIAL CONTENTS AND SPIRIT OF FELLOW FEELING AMOUNT I TS MEMBERS AND TO MAINTAIN A LIBRARY WITH GOOD BOOKS PERIODICALS AND NEWSPAPERS. (II) TO STRIVE FOR ERADICATION OF IL L ITERATURE . (III) TO DEVELOP THE SOCIAL AND CULTURAL ACTIVITIES FOR THE RUNNING OF THE SOCIETY. 3. THE COMMISSIONER BY CONSIDERING THE ABOVE OBJECTS HAS OBSERVED THAT THE ASSESSEE - SOCIETY NOT EXISTED SOLELY FOR EDUCATIONAL PURPOSES AND THEREFORE, NOT ENTITLED FOR GRANT OF EXEMPTION UNDER SECTION 10(23C)(VI) OF THE ACT AND DENIED REGISTRATION. 4. THE ASS ESSEE CARRIED THE MATTER IN APPEAL BEFORE THE TRIBUNAL 5. LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE ASSESSEE SOCIETY SOLELY EXISTED FOR THE PURPOSE OF IMPARTING EDUCATION TO THE RURAL PEOPLE AND WITHOUT PROFIT MOTIVE. THEREFORE, THE ASSESSEE IS ELIGIBLE FOR GRANT OF REGISTRATION UNDER SECTION 10(23C)(VI) OF THE ACT. SO FAR AS OBJECTS RAISED ARE CONCERNED, LD.COUNSEL FOR THE ASSESSEE BY POINTING OUT AT PAGE NO. 78 OF THE PAPER BOOK HAS SUBMITTED THAT THE ASSESSEE HAS FILED AN 3 ITA NO. 502 /VIZ/201 6 ( MOHAN EDUCATIONAL SOCIETY ) APPLICATION DATED 30/08/2016 WHEREIN HE STATED THAT THE SOCIETY IS READY TO AMEND AND THE RE DRAFT THE SAID OBJECTS WITH SOLE CLAUSE OF RUNNING EDUCATIONAL INSTITUTIONS ONLY AND SUBSEQUENTLY, AMENDED THE OBJECTS WHICH ARE BEFORE THE LD. COMMISSIONER UNDER CONSIDERATION AND REQUEST ED THAT TRIBUNAL MAY BE DIRECTED THE COMMISSIONER TO GRANT REGISTRATION UNDER SECTION 10(23C)(VI) OF THE ACT. 6. ON THE OTHER HAND, LD. DEPARTMENTAL REPRESENTATIVE STRONGLY SUPPORTED THE ORDER PASSED BY THE LD. COMMISSIONER . 7. THE ASSESSEE IS AN EDUCATIONAL INSTITUTION REGISTERED UNDER THE REGISTRATION OF S OCIETIES ACT. THE ASSESSEE HAS FILED AN APPLICATION BEFORE THE COMMISSIONER TO GRANT EXEMPTION UNDER SECTION 10(23C)(VI) OF THE ACT. TO GRANT REGISTRATION UNDER SECTION 10( 23C)(VI) OF THE ACT , THE ASSESSEE HAS TO CARRY SOLELY EDUCATIONAL ACTIVITIES AND NOTHING ELSE. THEREFORE, THE COMMISSIONER BY CONSIDERING THE OBJECTS WHICH ARE NOT SOLELY FOR EDUCATIONAL PURPOSE S , REJECTED FOR GRANT OF EXEMPTION. WE FIND NO INFIRMITY IN THE ORDER PASSED BY THE LD.COMMISSIONER. HOWEVER, THE ASSESSEE HAS FILED AN APPLICATION BEFORE THE COMMISSIONER AND ALSO SUBMITTED THAT HE IS READY TO AMEND THE OBJECTS AND ACCORDINGLY HE SUBMITTED THAT AN APPLICATION FOR AMENDMENT TO THE OBJECTS IS P ENDING BEFORE THE COMMISSIONER . IF 4 ITA NO. 502 /VIZ/201 6 ( MOHAN EDUCATIONAL SOCIETY ) THE ASSESSEE HAS ALREADY AMENDED THE OBJECTS WHICH IS PENDING BEFORE THE COMMISSIONER, THE SAME MAY BE CONSIDERED FOR EXAMINATION UNDER SECTION 10(23C)(VI) OF THE ACT IN ACCORDANCE WITH LAW. ORDERED ACCORDINGLY. 8. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS P A R T L Y ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN OPEN COURT ON TH IS 3 1 S T DAY OF JU LY , 201 8 . S D / - S D / - ( D.S. SUNDER SINGH ) ( V. DURGA RAO ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 3 1 S T JU LY , 201 8 . VR/ - COPY TO: 1. THE ASSESSEE MOHAN EDUCATIONAL SOCIETY, D.NO. 10 - 475, EQASWAR NAGAR, NEAR APSP QUARTERS, KAKINADA. 2. THE REVENUE CIT (EXEMPTIONS), KAKINADA. 3. THE D.R . , VISAKHAPATNAM. 4. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SR. PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.