Steel Educational Society, Visakhapatnam V. The Income Tax Officer(Exemptions), Visakhapatnam

ITA 597/VIZ/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 3768 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 9 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-08-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 26-11-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: D K SONOWAL
• Section: 12A; 12AA; 201

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . . , BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , ACCOUNTANT MEMBER . / I . T .A.NO. 5 97 /V IZ /201 8 ( / ASSESSMENT YEAR : ) STEEL EDUCATIONAL SOCIETY UKKUNAGARAM DELHI PUBLIC S CHOOL VISAKHAPATNAM STEEL PLANT SECTOR 8, UKKUNAGARAM VISAKHAPATNAM [PAN : A AAAD3921G ] VS. INCOME TAX OFFICER (EXEMPTIONS) GUNTUR ( / APPELLANT) ( / RESPONDENT) / APPELLANT BY : S HRI C.SUBRAHMANYAM, AR / RESPONDENT BY : SHRI D.K.SONOWAL , CIT D R / DATE OF HEARING : 29 . 0 7 . 201 9 / DATE OF PRONOUNCEMENT : 30 .0 8 . 201 9 / O R D E R P ER SHRI D.S.SUNDER SINGH, ACCOUNTANT MEMBER : THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) [CIT(E)], HYDERABAD VIDE F.NO.CIT(E)/HYD/107(03)/12A/2017 - 18 DATED 28.09.2018. 2 I.T.A. NO . 5 97 /VIZ/201 8 STEEL EDUCAITONAL SOCIETY, VISAKHAPATNAM 2. ALL THE GROUNDS OF APPEAL ARE RELATED TO THE REJECTION OF REGISTRATION U/S 12AA OF THE INCOME TAX ACT, 1961 (IN SHORT ACT). IN THE INSTANT CASE, THE ASSESSEE FILED APPLICATION IN FORM NO.10 SEEKING REGISTRATION U/S 12AA OF THE ACT ON 31.03.2018. THE LD.CIT(E) OBSERVED T HAT THE ASSESSEE FILED APPLICATION MANUALLY WITHOUT FURNISHING PAN NO. AND CLAIMED THE ACTIVITIES OF ANOTHER ASSESSEE I.E. DELHI PUBLIC SCHOOL (DPS) IN ITS APPLICATION. HENCE, THE LD.CIT(E) ISSUED NOTICE DATED 12.09.2018 POSTING THE CASE FOR HEARING ON 24.09.2018 CALLING EXPLANATION OF THE ASSESSEE AS TO WHY THE APPLICATION SEEKING REGISTRATION U/S 12AA SHOULD NOT BE REJECTED, FOR WHICH THE ASSESSEE FILED THE REPLY. THE LD.CIT(E) PERUSED THE APPLICATION OF THE ASSESSEE AND FOUND THAT IT QUOTED THE PAN AS AAAAD3921G WHICH IS RELATING TO DELHI PUBLIC SCHOOL(DPS) WHICH WA S INCORPORATED ON 22.03.1991. T HE ASSESSEE SOCIETY WAS FORMED ON 28.03.2018, THUS, OBSERVED THAT THE ASSESSEE IS NOT HAVING PAN. FURTHER THE LD.CIT(E) FOUND THAT THE DPS, VISAKHAPATNAM STEEL PLANT WAS ESTABLISHED IN 1991 IN COLLABORATION WITH RASHTRIYA ISPAT NIGAM LIMITED (RINL). AFTER FORMING THE ASSESSEE SOCIETY ON 28.03.2018, THE NAME OF THE DPS HAS BEEN CHANGED TO STEEL EDUCATIONAL SOCIETY AND THE SAID SOCIETY IS RUNNING THE ACTIVI TIES OF DPS SINCE MARCH 2018. HOWEVER, THE ASSESSEE DID NOT PROVIDE ANY 3 I.T.A. NO . 5 97 /VIZ/201 8 STEEL EDUCAITONAL SOCIETY, VISAKHAPATNAM RESOLUTION/ AGREEMENT SHOWING THE CHANGE OF NAME FROM DPS TO STEEL EDUCATIONAL SOCIETY. THEREFORE, THE LD.CIT(E) HELD THAT THE SOCIETY IS NOT FIT FOR GRANT OF REGISTRATION U/S 12AA O F THE ACT, ACCORDINGLY REJECTED THE FORM NO.10A FILED BY THE ASSESSEE. 3. AGAINST THE ORDER OF THE LD.CIT(E), THE ASSESSEE IS IN APPEAL BEFORE US. DURING THE APPEAL HEARING, THE LD.AR ARGUED THAT THE ASSESSEE IS CHARITABLE EDUCATIONAL INSTITUTION PROVIDI NG EDUCATION TO THE VARIOUS SEGMENTS OF THE SOCIETY APART FROM THE CHILDREN OF THE STEEL PLANT EMPLOYEES. THE LD.CIT(E) DID NOT DISPUTE THE OBJECTS OF THE SOCIETY WHICH ARE CHARITABLE IN NATURE. THE OBJECTION OF THE LD.CIT(E) FOR REJECTION OF REGISTRATI ON U/S 12A OF THE ACT, IS ONLY DUE TO NOT HAVING PAN AND NON FURNISHING OF DOCUMENT SHOWING THE CHANGE OF THE NAME FROM DPS TO STEEL EDUCATIONAL SOCIETY. HAVING ACCEPTED THAT THE ACTIVITIES OF THE SOCIETY ARE CHARITABLE IN NATURE, THE LD.CIT(E) OUGHT TO H AVE GRANTED REGISTRATION U/S 12AA OF THE ACT. WITH REGARD TO THE NON FURNISHING OF PAN, THE LD.AR SUBMITTED THAT THE ASSESSEE HAD FURNISHED THE PAN OF DPS WHICH WAS IN EXISTENCE EARLIER. SUBSEQUENTLY, THE ASSESSEE SOCIETY SUBMITTED THE APPLICATION FOR AL LOTMENT OF PAN AND IT WAS RECEIVED AFTER RECEIPT OF THE ORDERS FROM THE LD.CIT(E). WITH REGARD TO SECOND OBJECTION, THE LD.AR SUBMITTED THAT THE RESOLUTION 4 I.T.A. NO . 5 97 /VIZ/201 8 STEEL EDUCAITONAL SOCIETY, VISAKHAPATNAM SHOWING THE CHANGE OF NAME FROM DPS TO STEEL EDUCATIONAL SOCIETY WAS SUBMITTED BEFORE THE CIT(E) ON 27.09.2018 WHICH WAS NOT CONSIDERED BY THE LD.CIT(E). ACCORDINGLY, IN PAPER BOOK IN PAGE NO.4 FURNISHED THE COPY OF MINUTES OF THE MEETING OF THE MANAGING COMMITTEE RESOLVING THE STEEL EDUCATIONAL SOCIETY, VISAKHAPATNAM STEEL PLANT TO RUN DELHI PUBLIC SCHOOL AS NON PROFIT ORGANIZATION. THE ASSESSEE IN PAGE NO.5 AND 6 OF THE PAPER BOOK PLACED A BRIEF NOTE OF THE ACTIVITIES OF THE EDUCATIONAL SOCIETY WHICH IS HAVING SCHOOL UNDER THE NAME DPS. APART FROM THE ABOVE, THE ASSESSEE ALSO FURNISHED THE FINAN CIAL STATEMENTS OF STEEL EDUCATIONAL SOCIETY INCLUDING THE BALANCE SHEET AND INCOME AND EXPENDITURE ACCOUNT IN PAGE NO.7 AND 8 . THE ASSESSEE ALSO PLACED THE COPY OF THE AGREEMENT DATED 22.03.1991 BETWEEN RINL AND THE DPS. COPY OF THE PAN ALSO IS PLACED IN PAGE NO.45 OF THE PAPER BOOK. THE LD.AR ARGUED THAT THE ASSESSEE HAS FURNISHED ALL THE PAPERS FOR GRANT OF REGISTRATION U/S 12AA BUT THE LD.CIT(E) HAS NOT CONSIDERED THE EVIDENCES PLACED BEFORE HIM. THEREFORE REQUESTED TO GRANT REGISTRATION U/S 12AA OF THE ACT. 4. ON THE OTHER HAND, THE LD.DR RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 5 I.T.A. NO . 5 97 /VIZ/201 8 STEEL EDUCAITONAL SOCIETY, VISAKHAPATNAM 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL PLACED ON RECORD. ON PERUSAL OF THE ORDER PASSED BY THE LD.CIT(E), IT APPEARS THAT THE LD.CIT(E) HAS NOT CONSIDERED THE EVIDENCES PLACED IN THE PAPER BOOK AT THE TIME OF REJECTING THE REGISTRATION U/S 12AA. SINCE THE ASSESSEE DID NOT RECEIVE PAN, THE ASSESSEE FURNISHED THE EARLIER PAN OF DELHI PUBLIC SCHOOL AND MADE APPLICATION FOR ALLOTMENT OF PAN WHICH WA S RECEIVED SUBSEQUENT TO PASSING THE ORDERS. SIMILARLY, THOUGH THE ASSESSEE HAS STATED TO HAVE FURNISHED THE RESOLUTION AND MINUTES OF DPS TO RUN THE SCHOOL UNDER THE NAME OF STEEL EDUCATIONAL SOCIETY, UKKUNAGARAM, THE SAME WAS NOT CONSIDERED BY THE LD.CI T(E). THE BALANCE SHEET, INCOME AND EXPENDITURE ACCOUNT AND THE RESOLUTION SHOWS THAT THE SOCIETY IS RUNNING THE SCHOOL UNDER THE NAME AND STYLE OF STEEL EDUCATIONAL SOCIETY, UKKUNAGARAM AND THERE IS NO DISPUTE THAT THE ASSESSEE IS CARRYING ON EDUCATIONAL ACTIVITY WHICH IS CHARITABLE IN NATURE. THEREFORE, WE HOLD THAT THE ASSESSEE IS ENTITLED FOR REGISTRATION U/S 12A OF THE ACT. HOWEVER, THE EVIDENCES PLACED IN THE PAPER BOOK APPEARS TO BE NOT AVAILABLE TO THE LD.CIT(E) AT THE TIME OF DISPOSING THE APPLI CATION OF THE ASSESSEE. THEREFORE, IN THE INTEREST OF JUSTICE, WE ARE OF THE CONSIDERED OPINION THAT THE ISSUE SHOULD BE REMITTED BACK TO THE FILE OF THE LD.CIT(E) TO VERIFY THE EVIDENCES AND THE DOCUMENTS 6 I.T.A. NO . 5 97 /VIZ/201 8 STEEL EDUCAITONAL SOCIETY, VISAKHAPATNAM PLACED IN THE PAPER BOOK AND DECIDE THE ISSUE AFRE SH ON MERITS. BOTH THE PARTIES HAVE CONSENTED FOR REMITTING THE MATTER BACK TO THE FILE OF THE LD.CIT(E). ACCORDINGLY, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRO NOUNCED IN THE OPEN COURT ON 30 TH AUGUST, 2019. S D/ - S D/ - ( . ) ( . . ) (V. DURGA RAO) ( D.S. SUNDER SINGH ) /JUDICIAL MEMBER /ACCOUNTANT MEMBER /VISAKHAPATNAM /DATED : 30 .0 8 .2019 L.RAMA, SPS / COPY OF THE ORDER FORWARDED TO: - 1. / THE ASSESSEE - STEEL EDUCATIONAL SOCIETY , UKKUNAGARAM , DELHI PUBLIC SCHOOL, VISAKHAPATNAM STEEL PLANT , SECTOR 8, UKKUNAGARAM , VISAKHAPATNAM 2. / THE REVENUE - INCOME TAX OFFICER (EXEMPTIONS), GUNTUR 3. THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) , HYDERABAD 4 . , , / DR, ITAT, VISAKHAPATNAM 5 . / GUARD FILE / BY ORDER // TRUE COPY // SR. PRIVATE SECRETARY ITAT, VISAKHAPATNAM