DCIT (Exemption) Bhopal, Bhopal V. Indore Education and Service Society, INDORE

MA 17/Ind/2023

AI Insights

The case involves the Deputy Commissioner of Income Tax (Exemptions), Bhopal as the applicant and M/s. Indore Education and Service Society as the respondent. The Revenue filed a Miscellaneous Application seeking the recall of an ITAT order that had remanded the Revenue's appeal back to the Assessing Officer for a fresh adjudication concerning the assessment year 2016-17. The ITAT's initial order had only addressed one of the several grounds of appeal, leaving others unadjudicated. The Revenue argued that this oversight constituted an apparent error that warranted a recall of the order. Both parties agreed to the recall, leading to the setting of a new hearing date.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 130631 (ITAT-INDORE)
• Duration Of Justice: 4 month(s) 7 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 31-08-2023
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 31-08-2023
• Assessment Year: 2016-2017
• Appeal Filed On: 23-04-2023
• Other Referred Cases: Goetze (India) Ltd Vs CIT reported in 284 ITR 323 SC [2006]
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ASSESSEE INSTANTLY AGREED
• Assessee Lawyers: ABHINAV JAIN
• Section: 254(2); 13; 10(23C)

Judgement Text

Page 1 of 3 आयकर अपीलȣय अͬधकरण, इंदौर Ûयायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI B.M. BIYANI, ACCOUNTANT MEMBER MA No. 17/Ind/2023 (Arising out of ITA No.990/Ind/2019) Assessment Year: 2016-17 Dy. CIT (Exemptions), Bhopal बनाम/ Vs. M/s.Indore Education and Service Society, 4,Sita Building, Y.N.Road, Opp.State of India, Indore. (Revenue/Applicant) (Assessee/Respondent) PAN: AAATI3186K Assessee by Shri Sudhir Padliya and Shri Abhinav Jain, ARs Revenue by Shri Ashish Porwal, Sr. DR Date of Hearing 01.09.2023 Date of Pronouncement 01.09.2023 आदेश / O R D E R Per B.M. Biyani, A.M.: This Misc. Application [“M/A”] u/s 254(2) of Income-tax Act, 1961 is filed by Assessee seeking recall of Order dated 21.11.2022 of ITAT, Indore Bench in ITA No. 990/Ind/2019 for assessment-year 2016-17 [“impugned order”] by which Revenue’s appeal was remanded back to AO for a fresh adjudication. Dy. CIT (Exemptions), Bhopal v.M/s. Indore Education & Service Society,Indore. MANo.17/Ind/2023 – AY 2016-17 Page 2 of 3 2. Ld. DR for revenue carried us to Para No. 2 of the impugned order and demonstrated that the assessee has raised following grounds in the said appeal: On the facts and in the circumstances of the case, the Ld CIT (A) has erred in:- 1. Whether on the facts and in the circumstances of the case, the Ld. CIT(A) was justified in allowing the society benefits of the exemption u/s 10(23C)(vi) of Income Tax Act when such claim of exemption u/s 10(23C)(vi) of the Act was neither made in the return of income nor before the assessing officer. Such claim is not allowable as per the decision of the Hon'ble Supreme Court in Goetze (India) Ltd Vs CIT reported in 284 ITR 323 SC [2006]. 2. "Whether on the facts and in the circumstances of the case, the Ld. CIT(A) was justified in allowing the society benefits of the exemption u/s 10(23C)(vi) of Income Tax Act especially when it was found by the Assessing officer that the income of the society was used or applied for the benefit of the interested persons which is contravention of the 13th proviso of section 10(23C) of the Act and hence society cannot be said to be existing solely for educational purposes but existed for the purposes of profit. 3. "Whether on the facts and in the circumstances of the case, the Ld. CIT(A) was justified in allowing the relief to the society on addition of Rs, 2,45,83,832/- made on account of development fees ignoring the findings of the Assessing Officer that the said amount recovered from students are not routed through Income and Expenditure account of the society." 4. "Whether on facts & circumstances of the case, the Ld. CIT(A) was justified in deleting addition of Rs.1,50,00,000/- being the amount of excessive payment made to specified person covered u/s 13 (3) of the Act, ignoring the findings of the Assessing Officer?" 5. "Whether on facts & circumstances of the case and law, the Ld. CIT(A) was justified in deleting the addition of Rs.1,25,00,000/- made on account of educational activities ignoring the fact that the assessee has not explained the detail nature of expense, name of the party to whom payment was made?". 6. "The order of Ld. CIT(A) is erroneous both in law and on facts" Dy. CIT (Exemptions), Bhopal v.M/s. Indore Education & Service Society,Indore. MANo.17/Ind/2023 – AY 2016-17 Page 3 of 3 3. Thereafter, Ld. DR carried us to Para No. 5 of the order and demonstrated that the ITAT has decided only the grievance of Ground No. 3; all other grounds remained unadjudicated. Therefore, there is an apparent error in the order of ITAT which can be rectified only by re-calling order. Hence, the present M/A by revenue has merit and ought to be accepted. 4. Ld. AR for assessee instantly agreed. 5. On perusal of order of ITAT, we agree with the aforesaid submissions of Ld. DR. Further, the Ld. AR also agrees. Consequently, this M/A is allowed and the impugned order is re-called. The registry is directed to fix the original ITA for hearing on 21.09.2023. The parties have noted the date of hearing. No separate notice to be given to parties. 6. Resultantly, this M/A is allowed. Order pronounced in the open court on conclusion of hearing and subsequently reduced in writing on the same day. sd/- sd/- (VIJAY PAL RAO) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER Indore Ǒदनांक /Dated : 01.09.2023 CPU/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order Sr. Private Secretary, ITAT, Indore