Madhya Pradesh State Open School, Bhopal V. CIT (Exemption), Bhopal

ITA 543/Ind/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 9810 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 9 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-04-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 27-03-2019
• Assessment Year: 2017-2018
• Appeal Filed On: 03-07-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ASHIMA GUPTA
• Keywords: Business income
• Section: 12AA; 12

Judgement Text

ITA NOS. 543 AND 687 OF 2017 MADHYA PRADESH STATE OPEN SCHOOL 1 IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE SHRI KUL BHARAT, HONBLE J.M. AND SHRI MANISH BORAD, HONBLE A.M. I.T.A.NO S . 543 & 687 /IND/20 17 A.Y S . : 12AA & 2013 - 1 4 MADHYA PRADESH STATE OPEN SCHOOL, BHOPAL CIT (EXEMPTION), BHOPAL & DCIT (EXEMPTION), BHOPAL VS. APPELLANT RESPONDENT PAN NO. AAAAM 1067 A APPELLANT BY : SHRI PANKAJ SHAH, CA RESPONDENT BY : S MT. ASHIMA GUPTA, CIT DATE OF HEARING : 0 3 . 4 .201 9 DATE OF PRONOUNCEMENT : 04 . 4 .201 9 O R D E R PER SHRI MANISH BORAD, A.M. BOTH THESE APPEALS ARE FILED BY THE ASSESSEE AGAINS T THE DIFFERENT ORDERS OF LD. CIT-EXEMPTION, BHOPAL DATED 24.5.2017 RELATING TO SECTION 12AA & LD. CIT(A)-2, BHOPAL, DATED 11.08.2017 RELAT ING TO SECTION 143(3), RESPECTIVELY. 2. IN ITA NO.543/IND/2017, THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: ITA NOS. 543 AND 687 OF 2017 MADHYA PRADESH STATE OPEN SCHOOL 2 1. ON THE FACTS AND IN CIRCUMSTANCES OF THE CASE, LD. CIT(EXEMPTION) ERRED IN DENYING REGISTRATION U/S 12 AA OF THE INCOME TAX ACT. 2. THE ASSESSEE PRAYS THAT THE LD. CIT BE DIRECTED TO GRANT THE REGISTRATION U/S 12AA OF THE INCOME TAX ACT. 3. IN ITA NO.687/IND/2017, THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: GROUND I 1. ON THE FACTS AND IN CIRCUMSTANCES OF THE CASE, L D. CIT(A) ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN N OT ACCEPTING THE EXEMPTION U/S 10(23)(VI) AS WELL AS SECTION 10(23)( IIIAB) AND 10(23)(IIIAD) OF THE ACT. 2. THE ASSESSEE PRAYS THAT THE LD. ASSESSING OFFICE R BE DIRECTED TO ACCEPT THE EXEMPTION AVAILABLE TO THE ASSESSEE. GROUND II 1. ON THE FACTS AND IN CIRCUMSTANCES OF THE CASE, L D. CIT(A) ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN N OT ACCEPTING THE EXEMPTION U/S 12AA OF THE ACT. 2. THE ASSESSEE PRAYS THAT THE LD. ASSESSING OFFICE R BE DIRECTED TO ACCEPT THE EXEMPTION AVAILABLE TO THE ASSESSEE. GROUND III 1. ON THE FACTS AND IN CIRCUMSTANCES OF THE CASE, L D. CIT(A) ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN T REATING THE SURPLUS OF INCOME OVER EXPENDITURE AS TAXABLE BUSINESS INCOME, DESPITE THE FACT, THE INSTITUTION WAS ESTABLISHED FOR PROVIDING EDUCA TION TO THE GENERAL PUBLIC. 2. THE ASSESSEE PRAYS THAT THE LD. ASSESSING OFFICE R BE DIRECTED TO NOT CONSIDERING THE SURPLUS AS INCOME OF THE ASSESS EE. GROUND IV 1. ON THE FACTS AND IN CIRCUMSTANCES OF THE CASE, L D. CIT(A) ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN M AKING AN ADDITION OF RS.6,93,01,038/- BY CONSIDERING IT AS INCOME OF THE ASSESSEE. 2. THE ASSESSEE PRAYS THAT THE ADDITION BE DIRECTED TO BE DELETED. GROUND V ITA NOS. 543 AND 687 OF 2017 MADHYA PRADESH STATE OPEN SCHOOL 3 1. ON THE FACTS AND IN CIRCUMSTANCES OF THE CASE, L D. CIT(A) ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN N OT TREATING THE INCOME TAX PAID AS APPLICATION OF FUNDS. 2. THE ASSESSEE PRAYS THAT THE PAYMENT OF TAX SHOUL D BE TREATED AS APPLICATION AND ALLOWED AS DEDUCTION FROM THE ALLEG ED INCOME OF THE ASSESSEE. 4. AT THE OUTSET OF THE HEARING, THE LEARNED COUNSE L FOR THE ASSESSEE HAS FILED TWO DECLARATIONS IN FORM NO.8 UNDER THE PROVI SIONS OF SECTION 158A(1) OF THE INCOME-TAX ACT, 1961, TO AVOID THE REPETITIV E APPEALS ON THE GROUND THAT THE SUBSTANTIAL QUESTIONS OF LAW HAVE ALREADY BEEN ADMITTED BY THE HON'BLE HIGH COURT IN THE ASSESSEES OWN CASE IN IT A NOS.6/2013/ 114/2014, 60/2016, 64/2016, 65/2016, 66/2016 & 67/2016. THERE FORE, FORM NO.8 MAY BE ACCEPTED AND THE APPEALS MAY BE DECIDED ACCORDIN GLY. 5. LD. CIT D.R. DID NOT RAISE ANY OBJECTION IN THIS REGARD. 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS OF BOTH THE PARTIES AND GONE THROUGH THE MATERIAL AVAILABLE ON THE FILE. THE ASS ESSEE HAS FILED THE COPY OF ORDER DATED 14.3.2016 IN WHICH IN ASSESSEES OWN CA SE, THE HONBLE HIGH COURT HAS ADMITTED THE FOLLOWING SUBSTANTIAL QUESTI ONS OF LAW: A. WHETHER, THE TRIBUNAL WAS RIGHT IN LAW IN DENYIN G THE EXEMPTION TO THE ASSESSEE U/S 10(23C)(IIIAB), (IIIAC) (VI) OF THE IN COME TAX ACT. B. WHETHER, THE ORDER OF THE TRIBUNAL IS PERVERSE, ARBITRARY AND UNREASONABLE IN DENYING THE EXEMPTION TO THE ASSESS EE AS AN EDUCATIONAL INSTITUTION FOR REGULATING AND DEVELOPM ENT OF SCHOOL EDUCATION IN THE STATE. ITA NOS. 543 AND 687 OF 2017 MADHYA PRADESH STATE OPEN SCHOOL 4 7. LOOKING TO THE ABOVE FACTS, WE ACCEPT THE FORM N O.8, SO FILED, AND ACCORDINGLY, THE APPEALS OF THE ASSESSEE DESERVE TO BE DISMISSED FOR THE PRESENT AND THE AO IS DIRECTED TO TAKE THE DECISION AS PER OUTCOME OF THE APPEALS IN ASSESSEES OWN CASE WHEREIN THE AFORESAI D SUBSTANTIAL QUESTIONS OF LAW HAVE BEEN ADMITTED BY THE HON'BLE M.P.HIGH C OURT IN ITA NOS.6/2013/ 114/2014, 60/2016, 64/2016, 65/2016, 66/2016 & 67/2 016. 8. IN RESULT, THE APPEALS FILED BY THE ASSESSEE ARE DISMISSED FOR THE PRESENT ADMITTING THE DECLARATIONS I.E FORM NO.8 FI LED U/S 158A(1) OF THE INCOME TAX ACT IN TERMS INDICATED HEREINABOVE. THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 04.4.2019. SD/ - (KUL BHARAT) JUDICIAL MEMBER SD/ - (MANISH BORAD) ACCOUNTANT MEMBER DATED : 04.4.2019 ! VYAS ! COPY TO: APPELLANT/RESPONDENT/PR.CIT(A)/PR.CIT/DR, INDORE