Santhiniketan Minority Educational Society, Guntur V. The Assistant Commissioner of Income Tac (Examption), Vijayawada

ITA 601/VIZ/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 5907 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 year(s) 6 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-04-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2015-2016
• Appeal Filed On: 15-10-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D.K.SONOWAL
• Keywords: Application of stay; Additional evidence
• Section: 11; 143(3); 12A; 20

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM , . . , BEFORE SHRI N.K.CHOUDHRY, HONBLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH, HONBLE ACCOUNTANT MEMBER S. A.NO. 46 /VIZ/20 20 (ARISING OUT OF I.T.A. NO.601/VIZ/2019) ( / A SSESSMENT Y EAR : 20 1 5 - 16 ) ./ I.T.A. NO.601/VIZ/2019 ( / A SSESSMENT Y EAR : 2015 - 16) M/S S ANTHINIKETHAN MINORITY EDUCATIONAL SOCIETY 592 - 43, 2 ND LANE DEVAPURAM, GUNTUR [PAN : A A ETS0941C ] VS . ASST.COMMISSIONER OF INCOME TAX (EXEMPTIONS) VIJAYAWADA ( / APPELLANT) ( / RESPONDENT) / APPELLANT BY : SHRI C.SUBRAHMANYAM , AR / RESPONDENT BY : S HRI D.K.SONOWAL, CIT, DR / DATE OF HEARING : 07 . 0 4 .202 1 / DATE OF PRONOUNCEMENT : 16 . 0 4 . 202 1 / O R D E R P ER D.S.SUNDER SINGH , ACCOUNTANT MEMBER : TH IS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)[CIT(A)] - 2, GUNTUR IN ITA 2 S.A. NO.46/VIZ/2020 AND I.T.A. NO . 601 /VIZ/20 19 , A.Y.20 1 5 - 16 SANTHINIKETAN MINORITY EDUCATIONAL SOCIETY, GUNTUR NO.10540/GNT/CIT(A) - 2/2017 - 18 DATED 16.08.2019 FOR THE ASSESSMENT YEAR (A.Y.) 2015 - 16. 2. T HE ASSESSEE IS A SOCIETY, CLAIMED EXEMPTION U/S 12A OF THE INCOME TAX ACT, 1961 (IN SHORT ACT). THE ASSESSING OFFICER (AO) COMPLETED THE ASSESSMENT U/S 143(3) OF THE ACT AND MADE THE ADDITION OF RS.3,34,90,000/ - DENYING THE EXEMPTION CLAIMED BY THE ASSE SSEE FOR VIOLATION OF SECTION 13(1)(C) OF THE ACT, BY ADVANCING THE SUM OF RS.3,34,90,000/ - TO M/S KINETA GLOBAL LTD., HYDERABAD, WHEREIN SHRI VALLABHANENI BALASHOWRY, THE PRESIDENT OF THE ASSESSEE SOCIETY HAD SUBSTANTIAL INTERE ST. THE SUM WAS ADVANCED WITHOUT CHARGING ADEQUATE INTEREST OR ADEQUATE SECURITY, HENCE ASSESSED THE SUM OF RS.3,34,90,000/ - AS INCOME OF THE SOCIETY. 4. AGAINST THE ORDER OF THE AO, THE ASSESSEE WENT ON APPEAL BEFORE THE CIT(A) AND THE LD.CIT(A) DISMI SSED THE APPEAL OF THE ASSESSEE. 5. AGAINST WHICH, THE ASSESSEE FILED APPEAL BEFORE THIS TRIBUNAL. DURING THE APPEAL HEARING, THE LD.AR SUBMITTED THAT THE AO HA D MISUNDERSTOOD THAT THE SOCIETY HAS GIVEN THE LOAN TO THE INTERESTED PARTIES WITHOUT CHARGIN G INTEREST AND ADEQUATE SECURITY AND DENIED EXEMPTION U/S 11 OF 3 S.A. NO.46/VIZ/2020 AND I.T.A. NO . 601 /VIZ/20 19 , A.Y.20 1 5 - 16 SANTHINIKETAN MINORITY EDUCATIONAL SOCIETY, GUNTUR THE ACT. THE LD AR SUBMITTED THAT THE LOAN FUNDS WERE BORROWED FROM DHANA LAKSHMI BANK LTD., GUNTUR AND UTILIZED BY ANOTHER CONCERN BY NAME M/S KENETA GLOBAL LTD AND THE ASSESSEE SOCIETY HAS GOT NOTHING TO DO WITH THIS TRANSACTION. THE LD.AR FURTHER SUBMITTED THAT THE ASSESSEE COULD NOT APPEAR BEFORE THE LD.CIT(A) DUE TO REASONS BEYOND ITS CONTROL TO EXPLAIN THE FACTS. THE LD.AR ALSO FILED A PETITION FOR ADMISSION OF THE FOLLOWING DOCUMEN TS AS ADDITIONAL EVIDENCE: I) MINUTES OF MEETING HELD IN ASSESSEE SOCIETY DT.25.11.2014 DT.10.02.2015 II) LETTER FROM KINETA GLOBAL LIMITED DT.26.02.2015 III) LETTER FROM PRESIDENT & VICE PRESIDENT TO ASSESSEE SOCIETY DT.16.01.2015 THE LD.AR FURTHER SUBMITTED THAT THE REPRESENTATIVE APPEARING BEFORE THE AO COULD NOT FURNISH THE ABOVE MINUTES, SINCE, THE LD.CIT(A) HAS DECIDED THE APPEAL EX - PARTE , THEREFORE, REQUESTED TO ADMIT THE ADDITIONAL EVIDENCE AND DECIDE THE APPEAL ON MERITS . FOR A QUERY FROM THE BENCH, BOTH THE LD.AR AS WELL AS THE LD.DR HAVE AGREED TO REMIT THE ISSUE BACK TO THE FILE OF THE LD.CIT(A) , SINCE , THE APPEAL WAS DECIDED EX - PARTE. WE HAVE GONE THROUGH THE ORDER OF THE LD.CIT(A) AND FIND THAT ORDER IS CRYPTIC AND 4 S.A. NO.46/VIZ/2020 AND I.T.A. NO . 601 /VIZ/20 19 , A.Y.20 1 5 - 16 SANTHINIKETAN MINORITY EDUCATIONAL SOCIETY, GUNTUR NOT DISCUSSED THE ISSUE IN DETAILED MANNER. THEREFORE, WE CONSIDER THE SUBMISSIONS MADE BY BOTH THE PARTIES AND OF THE CONSIDERED VIEW THAT THE ISSUE NEEDS TO BE REMITTED BACK TO THE FILE OF THE LD.CIT(A) TO DECIDE THE ISSUE AFRESH ON MERITS AFTER CONSID ERING THE ADDITIONAL EVIDENCES PLACED BY THE ASSESSEE AND WE KEEP ALL THE ISSUES OPEN FOR CONSIDERATION OF THE LD.CIT(A) ACCORDINGLY, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. 6 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. S.A.46/VIZ/2020 7. SINCE THE APPEAL IS TAKEN UP FOR HEARING, T HE STAY APPLICATION FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 16 TH APRIL, 2021. S D/ - SD/ - ( ) ( . . ) (N.K.CHOUDHRY) (D.S.SUNDER SINGH) / JUDICIAL MEMBER / ACCOUNTANT MEMBER DATED : 16 .0 4 .2021 L.RAMA, SPS 5 S.A. NO.46/VIZ/2020 AND I.T.A. NO . 601 /VIZ/20 19 , A.Y.20 1 5 - 16 SANTHINIKETAN MINORITY EDUCATIONAL SOCIETY, GUNTUR / COPY OF THE ORDER FORWARDED TO : - 1 . / THE ASSESSEE M/S S ANTHINIKETHAN MINORITY EDUCATIONAL SOCIETY, 592 - 43, 2 ND LANE, DEVAPURAM, GUNTUR 2 . / THE REVENUE ASST.COMMISSIONER OF INCOME TAX (EXEMPTIONS) VIJAYAWADA 3. THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), HYDERABAD 4. THE COMMISSIONER OF INCOME TAX (APPEALS) - 2 , GUNTUR 5 . , , / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // SR. PRIVATE SECRETARY ITAT, VISAKHAPATNAM