Sreenidhi University, Secunderabad V. DIT (Exemptions), Hyderabad

ITA 918/HYD/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 74467 (ITAT-HYDERABAD)
• Duration Of Justice: 7 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-01-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 31-05-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: D SUDHAKAR RAO
• Assessee Lawyers: C KAMESWARA RAO
• Keywords: Charitable institution
• Section: 12AA; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B', HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER ITA NO. 918/HYD/2013 SREENIDHI UNIVERSITY, HYDERABAD. PAN AAATS7411B VS. DIRECTOR OF INCOME-TAX (E), HYDERABAD. APPELLANT RESPONDENT ASSESSEE BY: SRI C. KAMESWARA RAO REVENUE BY: SRI D. SUDHAKAR RAO DATE OF HEARING: 08/01/2014 DATE OF PRONOUNCEMENT: 08/01/2014 O R D E R PER CHANDRA POOJARI, AM: THIS APPEAL PREFERRED BY THE ASSESSEE IS DIRECTED A GAINST THE ORDER OF THE DIT(E), HYDERABAD DATED 12/03/2013. 2. AT THE TIME OF HEARING BEFORE US, THE LEARNED CO UNSEL FOR THE ASSESSEE HAS SUBMITTED THAT SIMILAR ISSUE CAME UP I N APPEAL BEFORE THE TRIBUNAL IN CASE OF ITS SOCIETY IN ITA NO. 564/ HYD/2012 VIDE ORDER DATED 31/07/2013 WHEREIN THE COORDINATE BENCH HELD AS FOLLOWS: 16. IN THE PRESENT CASE NO MATERIAL HAS BEEN BROUG HT ON RECORD TO SHOW THAT THE ASSESSEE SOLELY EXISTS F OR PROFIT MOTIVE. THE DEPARTMENT HAS NOT BEEN ABLE TO DISCHARGE ITS ONUS OF SHOWING AS TO HOW THE CONDITI ONS FOR GRANT OF REGISTRATION HAVE BEEN BREACHED BY THE ASSESSEE. THE REGISTRATION HAS BEEN GRANTED TO THE SOCIETY FOR MANY YEARS IN THE PAST UNDER THE SAME FACTS AND THERE IS NO CHANGE IN THE FACTS OR IN THE ACTIVITIES OF THE SOCIETY IN THE PRESENT YEAR. IT HAS ALSO NOT BEEN DEMONSTRATED BY THE DEPARTMENT AS TO HOW THE OBJECT OF THE ASSESSEE HAS TURNED INTO A COMMERCIAL ONE. THE PREDOMINANT OBJECT OF THE ASSESSEE IS AND REMAINS TO CARRY OUT CHARITABLE PURPOSE OF ADVANCEMENT OF EDUCATION AND NOT TO EARN I.T.A. NO.918/HYD/2013 SREENIDHI UNIVERSITY 2 PROFIT. IN FACT NO PROFIT HAS BEEN ESTABLISHED TO H AVE BEEN EARNED BY THE ASSESSEE. THE DIT HAS FAILED TO SPECIFY AS TO HOW PROFIT EARNING IS THE PREDOMINANT ACTIVITY OF THE ASSESSEE AND THE SOCIETY HAS BEEN PURSUING ITS OBJECT OF IMPARTING EDUCATION TO STUDE NTS. THEREFORE, THE ASSESSEE SOCIETY CANNOT BE DEPRIVED OFF OF THE BENEFIT OF REGISTRATION GRANTED BY THE DIT(E ) U/S 11 OF THE ACT. BEING SO, IN OUR OPINION, REGISTRATI ON GRANTED U/S 12AA OF THE ACT CANNOT BE CANCELLED. HOWEVER, THE AFORESAID FINDINGS GIVEN BY US ARE NOTHING TO DO WITH THE ALLOWABILITY OF EXEMPTION U/ S 11 OF THE ACT. IN CASE ANY DISCREPANCY OR IRREGULARITY WITH REGARD TO THE ALLOWABILITY OF EXEMPTION U/S 11 IS NOTICED BY THE AO, HE CAN MAKE AN INDEPENDENT ENQUIRY/EXAMINATION AT THE TIME OF ASSESSMENT FOR EACH ASSESSMENT YEAR AND DECIDE IN ACCORDANCE WITH LAW. 3. IN VIEW OF THE ABOVE DECISION OF THE COORDINATE BENCH, THE LEARNED COUNSEL SUBMITTED THAT SINCE ASSESSEE HAS N O GRIEVANCE IN THE PRESENT APPEAL, THE SAME MAY BE TREATED AS NOT PRESSED. 4. ON THE OTHER HAND, THE LEARNED DR HAS NOT CONTRO VERTED TO THE SUBMISSION OF THE LEARNED COUNSEL. 5. WE HAVE CONSIDERED THE SUBMISSIONS AND PERUSED T HE RECORD. AS THE LEARNED COUNSEL DOES NOT WANT TO PRESS THE A PPEAL FOR THE REASONS MENTIONED AS ABOVE, WE DISMISS THIS APPEAL AS NOT PRESSED. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISS ED. PRONOUNCED IN THE OPEN COURT ON 08/01/2014. SD/- (ASHA VIJAYARAGHAVAN) JUDICIAL MEMBER SD/- (CHANDRA POOJARI) ACCOUNTANT MEMBER HYDERABAD, DATED 08/01/2014. I.T.A. NO.918/HYD/2013 SREENIDHI UNIVERSITY 3 KV COPY FORWARDED TO: 1. SRI C. KAMESWARA RAO, C/O RAMANATHAM & RAO, CAS. FLAT NO. 302, KALA MANSION, SD ROAD, SECUNDERABAD 500 003. 2. DIT (E), 3 RD FLOOR, AAYAKAR BHAVAN, BASHEER BAGH, HYD. 3. ADIT(E), HYDERABAD 4. THE DR, ITAT, HYDERABAD