ITO (Exemptions)- Ward, Ghaziabad V. M/s. Muslim Social Uplift Society, Aligarh

ITA 582/DEL/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 6759 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 5 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-07-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2011-2012
• Appeal Filed On: 04-02-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH D NEW DELHI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER & SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER I.T.A. NO.582/DEL/2016 ASSESSMENT YEAR: 2011-12 ITO(E), GHAZIABAD. VS. M/S. MUSLIM SOCIAL UPLIFT SOCIETY, SULTAN JAHAN MANZI SHAMSAD, MARKET, ANOOPSHAHR ROAD, ALIGARH. TAN/PAN: AAATM 8291R (APPELLANT) (RESPONDENT) APPELLANT BY: NONE RESPONDENT BY: SHRI AMIT JAIN, SR.D.R. DATE OF HEARING: 11 04 2018 DATE OF PRONOUNCEMENT: 04 07 2018 O R D E R PER AMIT SHUKLA, J.M.: THE AFORESAID APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE IMPUGNED ORDER DATED 09.11.2015, PASSED BY LD. CIT(APPEALS), ALIGARH FOR THE QUANTUM OF ASSESSMENT PASSED U/S.143(3) FOR THE ASSESSMENT YEAR 2011-12. 2. THE FACTS IN BRIEF ARE THAT THE ASSESSEE IS A SO CIETY REGISTERED UNDER THE SOCIETIES REGISTRATION ACT, 18 60 AND ALSO REGISTERED U/S.12AA W.E.F. 1.04.1999. THE ASSESSING OFFICER AFTER REFERRING TO THE FOLLOWING JUDGMENTS: SOLE TRUSTEE, LOKA SHIKSHAN TRUST VS. CIT, (1975) 101 ITR 234 (SC); SA URASHTRA EDUCATIONAL FOUNDATION VS. CIT, (2005) 273 ITR 139 (GUJ.); AND BIHAR INSTITUTE OF I.T.A. NO.582/DEL/2016 2 MINING & MINE SURVEYING V. CIT (1994) 208 ITR 608 ( PAT.) HELD THAT ASSESSEES ACTIVITY IS MAINLY PROVIDING COACHING TO THE STUDENTS FOR APPEARING IN VARIOUS EXAMINATIONS, HEN CE IT DOES NOT FALL UNDER THE CATEGORY OF EDUCATIONAL OR CHARI TABLE ACTIVITY. ACCORDINGLY, HE TAXED THE SURPLUS INCOME AS PER THE INCOME AND EXPENDITURE ACCOUNT OF RS.50,52,210/-. 3. BEFORE THE LD. CIT (A), FIRST OF ALL, ASSE SSEE SUBMITTED THAT IN THE EARLIER ASSESSMENT YEARS 2004-05, 2005- 06, 2006- 07 & 2009-10, THIS PRECISE GROUND WAS RAISED BY THE ASSESSING OFFICER, WHICH HAS BEEN DECIDED IN FAVOUR OF THE ASSESSEE BY THE APPELLATE AUTHORITIES. APART FROM T HAT, IT WAS SUBMITTED THAT THE ASSESSEE AS A PART OF ITS CHARIT ABLE ACTIVITY IS PROVIDING FINANCIAL ASSISTANCE TO VARIOUS CATEGO RIES OF STUDENTS AND ALSO GIVING NEEDY STUDENTS SCHOLARSHIP AND ALSO GIVING COACHING FOR SUCH NEEDY AND POOR STUDENTS FO R VARIOUS COMPETITIVE EXAMINATIONS. THE CHARITABLE ACTIVITIES AS CARRIED OUT BY THE ASSESSEE SOCIETY HAS HIGHLIGHTED IN THE FOLLOWING WAY:- 6. THAT THE SOCIETY IS CARRYING OUT CHARITABLE ACT IVITY BY PROVIDING FINANCIAL ASSISTANCE TO VARIOUS CATEGORIE S OF STUDENTS INCLUDING RELIEF TO THE POOR AND NEEDY. IT IS NOT O UT PLACE TO SUBMIT THAT MANY SUCH NEEDY STUDENTS TO WHOM SCHOLARSHIP A RE GIVEN ARE NOT EVEN THE STUDENTS OF ASSESSEE SOCIETY, AND SUCH STUDENTS ARE STUDYING IN DIFFERENT COLLEGES. THE OBJECT OF CARRY ING THE SOCIAL, EDUCATIONAL AND CHARITABLE ACTIVITIES WITH THE SPEC IFIC OBJECT TO WORK FOR THE EDUCATION ADVANCEMENT OF THE PEOPLE TO PROM OTE EDUCATION AMONG THE INDIAN CITIZENS WITH A VIEW TO DEVELOP RE SPONSIBILITY AND GOD FEARING HUMAN BEINGS, TO CREATE IN STUDENTS QUA LITIES OF I.T.A. NO.582/DEL/2016 3 INITIATIVE, TEAM WORK, CO-OPERATION, SELF-RELIANCE AND COMPETITIVENESS AND BUILD THEIR CHARACTER ACCORDING TO THE TEACHING OF RELIGION, TO INCULCATE IN THE STUDENTS A TRUE SE NSE OF ENQUIRY AND LOVE OF KNOWLEDGE AND TO COLLABORATE IN KINDRED ACT IVITIES WITH OTHER NATIONAL OR INTERNATIONAL ORGANIZATIONS, ASSOCIATIO NS OR INSTITUTIONS WITH SIMILAR OBJECTIVES AND OTHER CHARITABLE ACTIVI TIES INCLUDING RELIEF TO POOR AND NEEDY PEOPLE. THE TRUE COPY OF MEMORAND UM OF ASSOCIATION AND BY E-LAWS OF SOCIETY IS ENCLOSED HE REWITH. 7. THAT APART FROM AFORESAID ACTIVITIES AS STATED I N THE PRECEDING PARAGRAPH THE ASSESSEE IS ALSO RUNNING A STUDY CENTRE OF NATIONAL COUNCIL FOR PROMOTION OF URDU LANGUAGE, MI NISTRY OF HRD, FOR DIPLOMA FUNCTIONAL ARABIC AND CERTIFICATE OF FU NCTIONAL ARABIC. THE DECISIONS RELIED UPON AND CITED BY THE ASSESSIN G OFFICER WAS DISTINGUISHED AND ALSO VARIOUS FUNCTIONS CARRIE D OUT BY THE ASSESSEE AS PER ITS OBJECT WAS ALSO EXPLAINED I N DETAIL. 4. LD. CIT (A) NOTED THAT IN THE EARLIER YEARS ALS O ON SIMILAR GROUNDS THE ASSESSING OFFICER HAS DENIED TH E BENEFIT OF SECTION 11, WHEREIN THE LD. CIT (A) HAS DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE, WHICH HAS BEEN CONFIRMED BY THE ITAT AGRA BENCH ALSO. THUS, FOLLOWING THE DECISION OF TH E TRIBUNAL FOR THE EARLIER YEARS, THE LD. CIT (A) DELETED THE ADDITION OF SURPLUS AMOUNT AND DIRECTED THE ASSESSING OFFICER T O GRANT EXEMPTION U/S.11. 5. BEFORE US, LEARNED DR HAS STRONGLY RELIED UPON T HE ORDER OF THE ASSESSING OFFICER AND SUBMITTED THAT E ARLIER ORDERS MAY NOT HAVE A BINDING PRECEDENCE IN VIEW OF THE I.T.A. NO.582/DEL/2016 4 PROVISO BROUGHT TO SECTION 2(15) W.E.F. 01.04.2009. THUS, ASSESSEES ACTIVITIES CANNOT BE HELD TO BE CHARITAB LE IN NATURE. 6. NONE APPEARED ON BEHALF OF THE ASSESSEE, DESPITE SERVICE OF NOTICE. 7. AFTER CONSIDERING THE RELEVANT FINDINGS GIVEN IN THE IMPUGNED ORDER, WE FIND THAT IT IS AN UNDISPUTED FA CT THAT ASSESSEE HAS BEEN GRANTED REGISTRATION U/S.12AA LOO KING TO ITS OBJECTS WHICH WERE FOUND TO BE FOR THE CHARITA BLE PURPOSES' ESPECIALLY, IN THE EDUCATIONAL FIELD. THE ASSESSEE HAS BEEN IMPARTING EDUCATIONAL ACTIVITIES TO THE ST UDENTS WHO WERE UNDERGOING THE COMPETITIVE EXAMINATION IN THE FIELDS OF ENGINEERING, MEDICAL AND OTHER PROFESSIONAL COURSES . IT IS ALSO PROVIDING DIPLOMA IN ARABIC LANGUAGE WHICH HAS BEEN ACCREDITED BY MINISTRY OF HUMAN RESOURCES DEVELOPME NT. IT IS ALSO PROVIDING FINANCIAL ASSISTANCE FOR THE POOR AND NEEDY STUDENTS AND GIVING SCHOLARSHIPS. LOOKING TO ITS ED UCATIONAL ACTIVITIES, IN ALL THE EARLIER YEARS, THE APPELLATE AUTHORITIES HAVE HELD THAT ASSESSEE SOCIETY IS CARRYING OUT EDU CATION ACTIVITY WHICH IS IN THE NATURE OF CHARITABLE ACTIV ITIES; HENCE BENEFIT OF SECTION 11 CANNOT BE DENIED TO THE ASSES SEE. IT IS SEEN THAT PRECISELY ON THE SAME ISSUE, THE ASSESSIN G OFFICER HAD DENIED THE EXEMPTION AND HAS TAXED THE SURPLUS WHICH HAS BEEN TURNED DOWN BY THE CIT (A) AND ALSO CONFIR MED BY THE ITAT. 8. IN SO FAR AS THE ARGUMENT PLACED BEFORE THE LEAR NED DEPARTMENT REPRESENTATIVE THAT EARLIER YEAR DECISIO NS WILL NOT I.T.A. NO.582/DEL/2016 5 HAVE PERVASIVE VALUE, WE DO NOT FIND ANY SUBSTANCE IN SUCH ARGUMENTS, BECAUSE THE PROVISO ADDED TO SECTION 2(15) IS ONLY FOR THE ADVANCEMENT OF ANY OTHER OBJECT OR GENERAL PUBLIC UTILITY, WHEREAS THE ASSESSEE IS CARRYING OUT THE EDUCATIONAL ACTIVITIES. THUS, THE SAID PROVISO WILL NOT BE APPLICABLE. ACCORDINGLY, THE ORDER OF THE LD. CIT (A) FOLLOWING THE EARLIER YEARS TRIBUNAL ORDER IS AFFIRMED AND CONSEQUENTLY T HE REVENUES APPEAL IS DISMISSED. 9. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 4 TH JULY, 2018. SD/- SD/- [PRASHANT MAHARISHI] [AMIT SHUKLA] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 4 TH JULY, 2018 PKK: COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR ASSISTANT REGISTRAR I.T.A. NO.582/DEL/2016 6 DATE 1. DATE OF DICTATION 02.07.2018 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 03.07.2018 3. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P.S./PS 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P.S./PS 7. DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT 8. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 9. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 10. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER 11. DATE OF DISPATCH OF THE ORDER