Param Hans Uma Bharti Mission Proprietor Swami Umba Bharti Public School, Haryana V. ACIT, Haryana

ITA 5365/DEL/2012

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 6522 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-12-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 06-10-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 19-10-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: F R MEENA
• Assessee Lawyers: SURESH ANAND
• Keywords: Rectification of order; Charitable institution
• Section: 143(3); 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: F NEW DELHI BEFORE SMT SUCHITRA KAMBLE, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, A CCOUNTANT MEMBER ITA NO . 5365/DEL/2012 (ASSESSMEN T YEAR-2009-10) PARAM HANS UMA BHARTI MISSION PROPRIETOR SWAMI UMBA BHARTI PUBLIC SCHOOL, JHAJJAR ROAD HARYANA AAATP9225G (APPELLANT) VS ACIT CIRCLE REWARI HARYANA (RESPONDENT) APPELLANT BY SH. SURESH ANAND, CA RESPONDENT BY SH. F. R. MEENA, SR. DR ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED AGAINST THE ORDER DATED 16/8/2 012 PASSED BY CIT(A) ROHTAK. 2. THE ASSESSEE CHARITABLE TRUST HAS BEEN ENGAGED I N IMPARTING EDUCATION WHICH CHARITABLE PURPOSE INCLUDES RELIEF OF THE POO R, EDUCATION AND MEDICAL RELIEF ETC. UNDER CLAUSE (15) OF THE SECTION .2 OF THE INCOME TAX ACT. THE SCHOOL IS BEING RUN BY THE CHARITABLE TRUST AND ITS INCOME WAS TREATED EXEMPT IN ASSESSMENTS UNDER SECTION 143(3) OF THE ACT UP TO T HE ASSESSMENT YEAR 2005- 06. ITS INCOME FOR THE ASSESSMENT YEAR 2006-07 WAS HELD EXEMPT FOR THE ASSESSMENT YEAR 2006-07 BY DELHI BENCH 'F' OF THE I TAT BY THEIR ORDER DATED 31.8.2012. DATE OF HEARING 06.10.2016 DATE OF PRONOUNCEMENT 14 .12.2016 3. THE ASSESSEE CHARITABLE TRUST FILED APPLICATION IN FORM NO.56D FOR THE GRANT OF EXEMPTION IN RESPECT OF ITS INCOME FOR THE ASSESSMENT YEAR 2007-08 UNDER SECTION 10(23C) (VI) OF THE ACT BEFORE THE CH IEF COMMISSIONER OF INCOME TAX, HARYANA PANCHKULA. THE EXEMPTION WAS GRANTED B Y THE CCIT PANCHKULA VIDE ORDER DATED 22.02.2008 FOR THE ASSESSMENT YEAR 200 7-08. THE EXEMPTION IN RESPECT OF ITS INCOME FOR THE SUBSEQUENT ASSESSM ENT YEARS 2008-09, 2009- 10, 2010-11 AND SO ON IS ALLOWABLE UNLESS THE SAID ORDER WAS CANCELLED OR WITHDRAWN. 4. ACCORDING TO CIRCULAR NO.7/2010 (F.NO.L97/21/201 0-ITA-L) DATED 27.10.2010 OF THE CENTRAL BOARD OF DIRECT TAXES, IN CASE OF APPROVALS UNDER SUB-CLAUSES (IV) AND (V) OF SECTION 10(23C) ISSUED ON OR AFTER 1.12.2006, THE SUB-CLAUSES (VI) AND (VI A) OF THAT SUB-SECTION WIL L ALSO BE ONE TIME APPROVAL WHICH WOULD BE VALID TILL IT IS WITHDRAWN. THE ASSE SSING OFFICER HAD ISSUED NOTICE UNDER SECTION 148 OF THE ACT ON 23.2.2010 FO R THE ASSESSMENT YEAR 2008-09 ON THE GROUND THAT THE ASSESSEE HAD NOT REC EIVED THE APPROVAL FROM THE CCIT ESPECIALLY WHEN THE RECEIPTS FOR THE PREVI OUS YEAR OF RS.2,30,54,768 EXCEEDED RUPEES ONE CRORE. IN REPLY THE ASSESSEE SU BMITTED THAT THE APPROVAL HAVING BEEN GRANTED BY THE CCIT PANCHKULA ON 22.02. 2008 FOR THE ASSESSMENT YEAR 2007-08 IN PERPETUITY, THE EXEMPTION WILL BE ALLOWABLE FOR THE ASSESSMENT YEAR 2008-09 AND FOR SUBSEQUENT YEARS IN ACCORDANC E WITH THE INSTRUCTIONS OF THE BOARD CONTAINED IN THE ABOVE MENTIONED CIRCULAR . THE INSTRUCTIONS OF THE BOARD BEING BINDING ON THE SUBORDINATE AUTHORITIES, THE ASSESSING OFFICER DROPPED THE PROCEEDINGS UNDER SECTION 148 OF THE AC T FOR THE ASSESSMENT YEAR 2008-09, VIDE HIS ORDER DATED 3.12.2010. 5. THE ASSESSEE CHARITABLE TRUST FILED THE APPLICAT ION IN FORM NO.56D ON 27.03.2009 BEFORE THE CCIT PANCHKULA FOR THE ASSESS MENT YEAR 2008- 09 EVEN WHEN THE SAID APPLICATION WAS NOT MAINTAINABLE. SIM ILARLY, THE ASSESSEE CHARITABLE TRUST HAD FILED THE APPLICATIONS IN FORM NO.56D FOR THE ASSESSMENT YEARS 2009-10 AND 2010-11 ON 15.09.2010 AND 13.10.2 010 RESPECTIVELY. THE SUCCESSOR CCIT PANCHKULA REJECTED THE EXEMPTION CLA IM FOR THE ASSESSMENT YEAR 2008-09 VIDE HIS ORDER DATED 15.09.2011. SIMIL ARLY, HE REJECTED EXEMPTION CLAIMS FOR THE ASSESSMENT YEARS 2009-10 AND 2010-11 VIDE HIS ORDER DATED 13.10.2011. THE ASSESSEE CHARITABLE TRUST FILED REC TIFICATION APPLICATION BEFORE THE CCIT PANCHKULA. SIMILARLY THE ASSESSEE CHARITAB LE TRUST FILED THE APPLICATION BEFORE THE CHAIRMAN, CENTRAL BOARD OF D IRECT TAXES WITH THE REQUEST TO DIRECT THE CCIT PANCHKULA TO RECTIFY HIS ORDERS FOR THE ASSESSMENT YEARS 2008-09, 2009-10 AND 2010-11. THE ORDERS HAVE NOT BEEN RECTIFIED BY THE CCIT PANCHKULA FOR THE ASSESSMENT YEARS 2008-09 , 2009-10 AND 2010-11 NOR DID CHAIRMAN OF CENTRAL BOARD OF DIRECT TAXES I SSUED DIRECTIONS TO THE CCIT PANCHKULA TO RECTIFY HIS ORDERS FOR THE SAID T HREE YEARS. RELYING ON THE ORDERS OF THE CCIT PANCHKULA FOR THE ASSESSMENT YEA RS 2009-10 AND 2010-11, THE ASSESSING OFFICER HAS DENIED EXEMPTION TO THE A SSESSEE CHARITABLE TRUST UNDER SECTION 10(23C) (VI) OF THE ACT. AGGRIEVED BY THIS THE ASSESSEE CHARITABLE TRUST FILED APPEAL BEFORE THE CIT(A). THE CIT(A) RE LIED ON THE ORDER OF THE CCIT PANCHKULA AND DISMISSED THE APPEAL OF THE ASSESSEE CHARITABLE TRUST FOR THE ASSESSMENT YEAR 2009-10. 6. THE LD. AR SUBMITTED THAT VIDE ORDER DATED 16/9/ 2016. THE REVENUE HAS APPROVED THE REGISTRATION U/S 10(23C)(VI) FROM ASSESSMENT YEAR 2007-08. 7. THE LD. DR COULD NOT CONTROVERT THE ORDER DATED 16/9/2016. 8. WE HAVE HEARD BOTH THE PARTIES AND PERUSED ALL THE DOCUMENTS. IT IS CLEAR FROM THE ORDER DATED 16/9/2016 PASSED U/S 10( 23C)(VI) OF THE INCOME-TAX ACT 1961 THAT THE ASSESSEE IS REGISTERED FOR THE PE RIOD UNDER CHALLENGE. THE ASSESSEE CHARITABLE TRUST HAD FILED THE APPLICATION S IN FORM NO.56D FOR THE ASSESSMENT YEARS 2009-10 AND 2010-11 ON 15.09.2010 AND 13.10.2010 RESPECTIVELY. SIMILARLY, THESE APPLICATIONS WERE NO T REQUIRED NOR WERE MAINTAINABLE FOR THESE TWO YEARS, ESPECIALLY WHEN T HE CCIT PANCHKULA HAD GRANTED EXEMPTION AFTER 1 . 12.2006 ON 22.02.2008 IN PERPETUITY FOR THE ASSESSMENT YEAR 2007-08, IN THE LIGHT OF THE INSTRU CTIONS OF THE SAID CIRCULAR OF THE BOARD. BUT IN SPITE OF THIS ALL, THE SUCCESSOR CCIT PANCHKULA REJECTED THE EXEMPTION CLAIM FOR THE ASSESSMENT YEAR 2008-09 VID E HIS ORDER DATED 15.09.2011. SIMILARLY, HE REJECTED EXEMPTION CLAIMS FOR THE ASSESSMENT YEARS 2009-10 AND 2010-11 VIDE HIS ORDER DATED 13.10.2011 . THE ORDERS OF THE CCIT PANCHKULA BEING APPARENTLY WRONG IN THE LIGHT OF TH E INSTRUCTIONS OF THE BOARD IN THE SAID CIRCULAR, THE ASSESSEE CHARITABLE TRUST FILED RECTIFICATION APPLICATION BEFORE THE CCIT PANCHKULA. SIMILARLY THE ASSESSEE C HARITABLE TRUST FILED THE APPLICATION BEFORE THE CHAIRMAN, CENTRAL BOARD OF D IRECT TAXES WITH THE REQUEST TO DIRECT THE CCIT PANCHKULA TO RECTIFY HIS ORDERS FOR THE ASSESSMENT YEARS 2008-09, 2009-10 AND 2010-11. BUT IN SPITE OF ALL, THE RECTIFICATION ORDERS HAVE NOT BEEN RECTIFIED BY THE CCIT PANCHKUL A FOR THE ASSESSMENT YEARS 2008-09, 2009-10 AND 2010-11 NOR DID CHAIRMAN OF CE NTRAL BOARD OF DIRECT TAXES ISSUED DIRECTIONS TO THE CCIT PANCHKULA TO RE CTIFY HIS ORDERS FOR THE SAID THREE YEARS. RELYING ON THE ORDERS OF THE CCIT PANC HKULA FOR THE ASSESSMENT YEARS 2009-10 AND 2010-11, THE ASSESSING OFFICER HA S DENIED EXEMPTION TO THE ASSESSEE CHARITABLE TRUST UNDER SECTION 10(23C) (VI ) OF THE ACT. THEREFORE, EARLIER ORDER DATED 13/10/2011 AND THE SUBSEQUENT O RDER PASSED BY THE CIT(A) DOES NOT SURVIVE. THE ASSESSEE IS REGISTERED FOR TH E PERIOD UNDER CHALLENGE. 9. IN RESULT, APPEAL IS ALLOWED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 14 TH OF DECEMBER, 2016. SD/- SD/- (PRASHANT MAHARISHI) (SU CHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 14/12/2016 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI DATE 1. DRAFT DICTATED ON 07.10 2016 PS 2. DRAFT PLACED BEFORE AUTHOR 07.10.2016 PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 10.2016 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 14 .10.2016 PS/PS 6. KEPT FOR PRONOUNCEMENT ON PS 7. FILE SENT TO THE BENCH CLERK 14 .12 .2016 PS 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER.