DCIT Central Circle-4, Hyderabad v. Shri Shadan Educationa Society, Hyderabad

ITA 1113/HYD/2011 | 2007-2008
Pronouncement Date: 30-03-2012 | Result: Partly Allowed

Appeal Details

RSA Number 111322514 RSA 2011
Assessee PAN AAETS8676E
Bench Hyderabad
Appeal Number ITA 1113/HYD/2011
Duration Of Justice 9 month(s) 21 day(s)
Appellant DCIT Central Circle-4, Hyderabad
Respondent Shri Shadan Educationa Society, Hyderabad
Appeal Type Income Tax Appeal
Pronouncement Date 30-03-2012
Appeal Filed By Department
Order Result Partly Allowed
Bench Allotted B
Tribunal Order Date 30-03-2012
Assessment Year 2007-2008
Appeal Filed On 09-06-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B' HYDERABAD BEFORE SHRI CHANDRA POOJARI ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHAVAN JUDICIAL MEMBER I.T.A. NO. 1113/HYD/2011 ASSESSMENT YEAR : 2007-08 DY. COMMISSIONER OF INCOME - TAX CENTRAL CIRCLE-4 HYDERABAD. VS. M/S. SHADAN EDUCATIONAL SOCIETY HYDERABAD PAN: AAETS8676E APPELLANT RESPONDENT I.T.A. NO. 1010/HYD/2011 ASSESSMENT YEAR : 2007-08 M/S. SHADAN EDUCATIONAL SOCIETY HYDERABAD PAN: AAETS8676E VS. DY. COMMISSIONER OF INCOME - TAX CENTRAL CIRCLE-4 HYDERABAD. APPELLANT RESPONDENT REVENUE BY: SMT. K. MYTHILI RANI ASSESSEE BY: SHRI K. VASANT KUNAR AND SHRI MOHD. AFZAL DATE OF HEARING: 09.02.2012 DATE OF PRONOUNCEMENT: 30.03.2012 O R D E R PER CHANDRA POOJARI AM: THE ABOVE CROSS APPEALS ARE DIRECTED AGAINST THE O RDER OF THE CIT(A)-VII HYDERABAD DATED 31.3.2011 FOR A.Y. 2007 -08. 2. THE FIRST GROUND IN ASSESSEE'S APPEAL IS WITH REGAR D TO ALLOWABILITY OF RENT PAID TO THE OWNER OF THE PROPE RTY BY THE ASSESSEE. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE CLAIM ED AN EXPENDITURE OF RS. 5 02 80 000 TOWARDS RENTAL EXPEN DITURE PAID TO DR. MOHD. VIZARATH RASOOL KHAN AND HIS FAMILY MEMBE RS. THE DETAILS OF THESE DEEDS AND THEIR CONTENTS ARE AS UN DER: ITA NOS. 1010 & 1113/HYD/2011 M/S. SHADAN EDUCATIONAL SOCIETY ============================ 2 S. NO RELEVANT PAGES OF SEIZED MATERIAL DATE OF LEASE DEED NAME OF THE LESSOR NAME OF THE LESSEE PREMISE RENTED AMOUNT OF RENT 1 PAGE 29 TO 32 OF ANNEXURE A/SES/KHAI/02 22-04- 2006 DR. MOHD VIZARATH RASOOL KHAN & MD. SARIB RASOOL KHAN SHADAN EDUCATIONAL SOCIETY BUILDING HEARING MCH NO. 6-2-979/1 TO 8 AND 6-2- 980 ADNEASURING 3037 SQ YDS SUTYATED AT RAJ BHAVAN RD KHAIRTABAD HYD RS. 18.50 LAJKHS PER MONTH @ RS. 10/- PER SQ.FEET 2 PAGE 33 TO 36 OF ANNEXURE A/SES/KHAI/02 22-04- 2006 SMT. SHADAN TAHNIATH W/O DR. MD VIZARATH RASOOL KHAN -DO- 12 FLOOR BUILDING BEARING MCH NO. 6-2-978 AZMATH NISHAN. RAJ BHAVAN RD KHAIRTABA3D HYD RS. 18.50 LAJKHS PER MONTH @ RS. 10/- PER SQ.FEET 3 PAGE 38 TO 41 OF ANNEXURE A/SES/KHAI/02 22-04- 2006 SH. MD. SAQIB RASOOL KHAN S/O DR MD VIZARATH RASOOL KHAN -DO- 9 FLOOR BUILDING BEARING MCH NO. 6-2-977 ADMEASURING 1200 SQ YARDS AT RAJ BHAVAN RD KHAIRTABAD HYDERABAD RS. 5.40 LAKHS PER MONTH @ RS. 10/- PER SQ.FEET 4. THE ABOVE PROPERTY HAD BEEN GIVEN TO THE ASSESSEE S OCIETY IN THE YEAR 1984 WHEREIN THE ASSESSEE CONSTRUCTED BUIL DINGS AND HAS BEEN RUNNING AN EDUCATIONAL INSTITUTION FOR THE MIN ORITY STUDENTS. THE LAND OFFERED BY DR. MOHD. V. RASOOL KHAN AND HI S FAMILY MEMBERS IS NOT AS A DONATION AND THE SAID LAND IS N OT TRANSFERRED TO THE SOCIETY. THE LAND WAS ONLY OFFERED FOR CONS TRUCTION OF THE BUILDINGS TO START EDUCATIONAL INSTITUTION FOR THE MINORITY STUDENTS. THE ASSESSEE SOCIETY HOWEVER HAD NOT PAID ANY CON SIDERATION TO THE OWNERS OF THE LAND AND THE OWNERS OF THE LAND A LSO DID NOT FORCE FOR COLLECTION OF ANY RENTS FOR HAVING USED T HE LAND BECAUSE THE SOCIETY WAS AT INFANCY STAGE WHERE THE SOCIETY WAS VIRTUALLY ITA NOS. 1010 & 1113/HYD/2011 M/S. SHADAN EDUCATIONAL SOCIETY ============================ 3 STRUGGLING FOR ITS OWN EXISTENCE BECAUSE OF CRUNCH OF FUNDS. THEREFORE THE OWNERS OF THE LAND HAD NOT DEMANDED FOR ANY RENTS EVEN THOUGH THE APPELLANT SOCIETY HAD USED THE LAND S BELONGING TO DR. MOHD. V. RASOOL KHAN AND HIS FAMILY MEMBERS. H OWEVER FOR THE ASSESSMENT YEAR UNDER CONSIDERATION THE OWNERS OF THE LANDS HAVE ASKED RENTS THEREFORE THE ASSESSEE SOCIETY H AD AGREED TO MAKE A PAYMENT OF RS. 10 PER SQ. FT. THEREBY THE TO TAL RENTAL PAYMENT FOR THE ASSESSMENT YEAR UNDER CONSIDERATION WORKS OUT TO BE AT RS. 5 02 80 000 PER ANNUM. THE ASSESSING OFFI CER HOWEVER HAS NOT ACCEPTED THE SAID TRANSACTION AND THE SAME IS DISALLOWED. THEREFORE IT IS THE ARGUMENT OF THE AUTHORISED REP RESENTATIVE THAT THE ASSESSING OFFICER IS NOT JUSTIFIED TO DENY THE REASONABLE RENTAL PAYMENT FOR HAVING UTILIZED THE LANDS BY THE SOCIET Y. 5. BEFORE THE ASSESSING OFFICER THE ASSESSEE SUBMITTED THE SHADAN EDUCATIONAL SOCIETY WAS FORMED IN THE YEAR 1 984-85 FOR THE UP-LIFTMENT OF MINORITIES THROUGH EDUCATION BY STARTING EDUCATIONAL INSTITUTIONS. THE SOCIETY STARTED ITS FIRST EDUCATIONAL INSTITUTE I.E. B. ED. COLLEGE IN 1985 IN THE BUILD ING AT M. NO. 6-2- 978 KHAIRATABAD KNOWN AS 'AZMATH NISHAN' OWNED BY THE SECRETARY OF THE SOCIETY SMT. SHADAN TAHNIATH. THIS PROPERTY WITH A LAND OF 2500 SQ YARDS WAS ACQUIRED BY SMT. SHADAN TAHNIATH BY WAY OF GIFT FROM HER PARENTS. AS THE EDUCATIONAL IN STITUTES EXPANDED AND THE EXISTING BUILDING WAS NOT SUFFICIE NT A BANK LOAN AMOUNTING TO RS. 40 00 000/- WAS TAKEN BY SMT. SHAD AN TAHNIATH FOR THE EXPANSION OF THE BUILDING. SUBSE QUENTLY THE SOCIETY WITH ITS OWN FUNDS FURTHER EXPANDED THE BUI LDING KNOWN AS 'AZMATH NISHAN'. NOW THE BUILDING IS A 12 STORIED BUILDING. AS THERE WAS FURTHER EXPANSION OF THE EDUCATIONAL INST ITUTES MANAGED BY THE SOCIETY THE CHIEF PROMOTER AND HIS TWO SONS ACQUIRED TWO MORE ADJACENT PLOTS ADMEASURING 3037 SQ. YARDS AND 1200 SQ. YARDS OUT OF THEIR OWN FUNDS GENERATED FROM THE SA LE OF ANCESTRAL ASSETS IN THE YEAR 1991/1992. ITA NOS. 1010 & 1113/HYD/2011 M/S. SHADAN EDUCATIONAL SOCIETY ============================ 4 6. AS THE NUMBER OF EDUCATIONAL INSTITUTES INCREASED TO MEET THE REQUIREMENTS OF SPACE FOR THESE EDUCATIONAL INS TITUTES THE SOCIETY OVER A PERIOD CONSTRUCTED MULTI-STORIED CO MPLEXES ON SUBSEQUENTLY ACQUIRED PLOTS BY DR. MOHD. VIZARATH R ASOOL KHAN AND HIS FAMILY MEMBERS WITH ITS OWN FUNDS. IT IS PERTINENT TO MENTION HERE THAT THE BUILDING OWNED BY SMT. SHADAN TAHNIATH AND THE PLOTS OWNED BY DR. VIZARATH RASOOL KHAN MO HD SARIB RASOOL KHAN AND MOHD SAQUIB RASOOL KHAN WERE NEVER TRANSFERRED TO THE SOCIETY IN ANY MANNER. THE SOCI ETY WAS ALLOWED TO ENJOY THE PROPERTY FROM 1984/1991 TO 31.03.2006 WITHOUT ANY PAYMENT OF ANY RENT OR OTHER BENEFIT TO THE OWNERS OF THE PROPERTIES. THE SOCIETY ENJOYED THE PROPERTIES OF THE OWNERS FREE OF COST UP TO 31.03.2006. IT IS FURTHER SUBMITTED THAT THE SOCIETY HAD AN ORAL UNDERSTANDING WITH THE OWNERS OF THE LA ND THAT THE SOCIETY WILL ENJOY THE PROPERTIES FOR A REASONABLE PERIOD FREE OF COST BY DEVELOPING ITS OWN INFRASTRUCTURE WITH ITS OWN FUNDS ACCORDING TO ITS NEEDS AND AFTER EXPIRY OF A REASON ABLE PERIOD THE SOCIETY WILL HAVE TO VACATE THE PROPERTIES. IN CAS E IT IS NOT VACATING THE PROPERTIES THE SOCIETY WILL BE CHARGED WITH A REASONABLE RENT PREVAILING IN THE MARKET. THE SOCIETY ENJOYED THE P ROPERTIES OF THE OWNERS FOR A PERIOD MORE THAN 22 LONG YEARS WITHOUT PAYING ANY RENT OR BENEFIT TO THE OWNERS. THEREFORE DURING 20 06 IT WAS DECIDED AND AGREED BY THE SOCIETY AND THE OWNERS TH AT IT SHOULD PAY A REASONABLE RENT TO THE OWNERS. THE PRESENT MA RKET VALUE OF THESE THREE PROPERTIES ON WHICH THE BUILDINGS STAND IS ABOUT 80 CRORES. AS MENTIONED ABOVE THESE PROPERTIES WERE AC QUIRED BY DISPOSING OF THE PRIME ANCESTRAL PROPERTIES OF DR. VIZARATH RASOOL KHAN AND FAMILY. THE SOCIETY ENJOYED THE PROPERTIE S FOR QUITE A LONG PERIOD WITHOUT PAYING ANY RENT THEREFORE IT WAS INTENDED AND AGREED UPON BETWEEN THE SOCIETY AND THE OWNERS TO C HARGE A REASONABLE RENT NOT ONLY CONSIDERING THE MARKET VAL UE OF THE PROPERTIES BUT KEEPING IN MIND THE LOSS OF INCOME T O THE LAND ITA NOS. 1010 & 1113/HYD/2011 M/S. SHADAN EDUCATIONAL SOCIETY ============================ 5 OWNERS FOR MORE THAN 22 LONG YEARS. AN AMOUNT OF R S. 10/- PER SQ. FEET WAS MUTUALLY AGREED TO BE A FAIR CHARGE ON SOCIETY PAYABLE TO OWNERS FOR ALLOWING THE LAND AND A PART OF THE PROPERTY PER MONTH ON THE EXISTING CARPET AREA. ACCORDING TO THE ASSESSEE THE RENT CHARGED IS VERY REASONABLE AND MUCH LOWER COMPARED WITH THE RENTS PREVAILING IN THE MARKET. AS STATED EARLIER THE COST OF LAND IS AROUND RS. 80 CRORES. TO SUBSTANTIATE T HE SAME A COPY OF SALE DEED OF SALE AFFECTED BY A.P. STATE TRADING CORPORATION TO RELIANCE FOR A CONSIDERATION OF RS. 83 CRORES OF A N EQUIVALENT AREA OF LAND IS PLACED ON RECORD. THIS LAND IS ALSO SITU ATED IN THE SAME AREA. 7. A SEARCH AND SEIZURE OPERATIONS WAS TAKEN PLACE IN THE PREMISES OF THE ASSESSEE ON 20.12.2006. DURING THE COURSE OF SEARCH AND SEIZURE THE DEPARTMENT FOUND LEASE AGRE EMENTS BETWEEN THE SOCIETY AND DR. MOHD. VIZARATH RASOOL K HAN AND MOHD. SARIB RASOOL KHAN WHO ARE THE ABSOLUTE OWNERS OF PLOT ADMEASURING 3037 SQ. YARDS SHADAN EDUCATIONAL SOCI ETY AND SMT. SHADAN TAHNIATH WHO IS THE ABSOLUTE OWNER OF H . NO. 6-2- 978 KNOWN AS 'AZMATH NISHAN' AND SHADAN EDUCATIONAL SOCIETY AND MOHD SAQUIB RASOOL KHAN WHO IS THE ABSOLUTE OWN ER OF PLOT ADMEASURING 1200 SQ. YARDS. IT IS PERTINENT TO MENT ION HERE THAT IN ALL THESE LEASE DEEDS IT IS MENTIONED THAT THE L ESSORS ARE ABSOLUTE OWNERS AND POSSESSORS OF THE BUILDINGS. O N THE STRENGTH OF THESE LEASE DEEDS THE OWNERS OF THE PROPERTY WER E PAID RS. 10/- PER SQ. FT. RENT WHICH IS AGGREGATING TO THE RS. 5. 02 CRORES. TDS WAS MADE ON THE RENT PAID AND THE ASSESSEE PAID THE BALANCE TAX BY WAY OF SELF ASSESSMENT. THE DEPARTMENT WAS OF T HE OPINION THAT THE STRUCTURES WERE DEVELOPED ON THE PROPERTIE S WITH THE FUNDS OF THE SOCIETY THEREFORE SIMPLY ASSUMED THA T THE OWNERS ARE NOT ELIGIBLE FOR RENT. ITA NOS. 1010 & 1113/HYD/2011 M/S. SHADAN EDUCATIONAL SOCIETY ============================ 6 8. ON THESE PROPERTIES THE SOCIETY OVER A PERIOD OF T IME INVESTED THE AMOUNTS TOWARDS CONSTRUCTION AS UNDER: S. NO. ASSESSMENT YEAR AMOUNTS SPENT BY THE SOCIETY (RS.) 1. 1989-90 24 28 069 2. 1990-91 - 3. 1991-92 12 70 292 4. 1992-93 32 12 502 5. 1993-94 49 42 731 6. 1994-95 48 27 658 7. 1995-96 45 98 747 8. 1996-97 - 9. 1997-98 69 00 520 10. 1998-99 57 73 569 11. 1999-00 1 29 15 906 12. 2000-01 24 71 588 13. 2001-02 58 15 892 14. 2002-03 1 01 58 948 15. 2003-04 1 11 11 469 16. 2004-05 32 18 555 17. 2005-06 7 67 500 18. 2006-07 31 00 000 19. 2007-08 - TOTAL 8 35 13 949 9. AS PER THE ABOVE STATEMENT THE SOCIETY SPENT ABOUT RS. 8.35 CRORES AND ODD AND ENJOYED THE PROPERTIES PERPETUAL LY OVER A PERIOD OF 22 YEARS WITHOUT PAYING ANY RENT. THIS A MOUNT WAS CLAIMED AS APPLICATION OF FUNDS BY CLAIMING THE DED UCTIONS AS AVAILABLE IN THE I.T. ACT. ACCORDING TO THE ASSESS EE IF THE SOCIETY HAD PAID THE RENTS TO THE THIRD PARTIES IT WOULD HA VE BEEN MUCH MORE THAN WHAT IT HAS SPENT ON DEVELOPMENT WORK. TH E SAVINGS MADE IN THIS MANNER WERE UTILIZED FOR THE DEVELOPME NT OF THE INFRASTRUCTURE REQUIRED FOR THE PURPOSE OF EDUCATIO NAL INSTITUTES. HAD THE OWNERS OF THE PROPERTIES WHICH ARE LOCATED AT THE HEART OF THE CITY EXPLOITED COMMERCIALLY THEY WOULD HAVE GO T THE RETURNS MUCH MORE THAN WHAT THE SOCIETY PAYING IN THE FORM RENT AFTER 22 YEARS. THE SACRIFICE OF THE PROPERTY OWNERS CANNOT BE OVER LOOKED AS THESE PROPERTIES ARE NEITHER SOLD TO THE SOCIETY FOR MONETARY ITA NOS. 1010 & 1113/HYD/2011 M/S. SHADAN EDUCATIONAL SOCIETY ============================ 7 GAINS NOR THEY ARE TRANSFERRED TO THE SOCIETY IN AN Y MANNER. THE OWNERS ALLOWED THE PROPERTIES TO BE ENJOYED PERPETU ALLY OVER A LONG PERIOD OF TIME ONLY KEEPING IN VIEW THE DEVELOPMENT OF EDUCATIONAL OBJECT AMONG THE EDUCATIONALLY BACKWARD MUSLIM COMM UNITY. IN THIS SCENARIO THE SOCIETY STARTED PAYING RENT WHICH IS VERY VERY LOW COMPARED TO THE MARKET RATE PREVAILING IN THE LOCAL ITY WHERE IT IS SITUATED. THE INVESTMENT OF THE SOCIETY OVER A PER IOD OF TIME IS ONLY ABOUT RS. 8.35 CRORES WHEREAS THE MARKET VALU E OF THE OWNERS' PROPERTIES IS ABOUT RS. 80 CRORES AS ON THE DATE WHEN THE SOCIETY STARTED PAYING THE RENT. JUST BECAUSE THE SOCIETY INVESTED AN AMOUNT WHICH IS 1/10 TH OF THE MARKET VALUE OF THE PROPERTY THE OWNERS WILL NOT LOSE THE OWNERSHIP OR THE RIGHT TO ENJOY THE PROPERTY BEING THE OWNERS. 10. ACCORDING TO THE ASSESSEE THE REASONABLENESS OF RE NT IS TO BE SEEN BY ESTIMATING THE PROBABLE INTEREST ONE WOU LD GET IF HE HAS INVESTED SECURELY THE VALUE OF LAND. THE AMOUNT OF RS. 5.02 CRORES PAID BY THE SOCIETY ON THE VALUE OF RS. 80 CRORES G IVES A RATE OF AROUND 6.5% AND THIS BY NO STRETCH OF IMAGINATION B E SAID TO BE MORE THAN MARKET RENT. THE SOCIETY PAID THE RENT O F RS. 5.02 CRORES PER ANNUM FROM 01.04.2006 ONWARDS AFTER DEDU CTING TDS AS PROVIDED U/S. 194(1) OF THE I.T ACT THE OWNERS HAVE PAID THE TAXES BY DECLARING THE RENTAL INCOME IN THE RESPEC TIVE HANDS AND BALANCE TAXES WERE ALSO PAID U/S. 140A OF THE I.T. ACT. SECTION 13(1)(C) OF THE I.T. ACT DOES NOT PROHIBIT A REASON ABLE CHARGE FOR THE SERVICES OR FOR THE ASSET OF THE PERSONS MENTIONED IN SUB SECTION 3 OF SECTION 13. IN SUPPORT OF THE SAME THE ASSESSEE RELIED ON THE DECISION OF A.P. HIGH COURT IN WP NO. 2333 OF 2010 DT. 11.11.2010 WHEREIN THEIR LORDSHIPS HAVE SET ASIDE THE ISSUE TO THE CCIT WHILE DECIDING THE WRIT FOR VERIFYING WHETHER THE RENT PA ID IS REASONABLE OR NOT OBSERVING THAT 'IT IS ONLY IF THE RENT PAID IS MORE THAN THE PREVAILING MARKET RATES CAN THE RECIPIENT OF THE RE NT/RENTAL ADVANCE BE SAID TO HAVE BENEFITED THEREBY.' A COPY OF THE ITA NOS. 1010 & 1113/HYD/2011 M/S. SHADAN EDUCATIONAL SOCIETY ============================ 8 JUDGMENT IS PLACED ON RECORD. ACCORDINGLY IT WAS REQUESTED TO ALLOW THE EXPENDITURE OF RS. 5 02 80 000/- PAID TO THE OWNERS OF THE PROPERTIES TOWARDS RENTS. 11. ACCORDING TO THE ASSESSEE THE ASSESSING OFFICER RE JECTED THE CLAIM OF EXPENDITURE ONLY ON THE BASIS THAT THE INV ESTMENT FOR THE CONSTRUCTION IS MADE BY THE SOCIETY THEREFORE ASS UMED THAT THE CLAIM OF PAYMENT OF RENT IS NOT ALLOWABLE. THE FACT OF OWNERSHIP OF THE LAND AND ALSO THE FACT OF NON- PAYMENT OF RENT FOR OVER A PERIOD OF 1989 TO 31.03.2006 AND FROM 1.4.1997 TO 31.3.200 6 WAS BROUGHT TO HIS NOTICE BUT THE ISSUE WAS NOT EXAMI NED. IT WAS ALSO SUBMITTED THAT THE VALUE OF THE PROPERTY ON WH ICH RENT IS PAID IS ABOUT RS. 80 CRORES. THE REASONABILITY OF THE RE NT CAN ALSO BE DECIDED TAKING INTO CONSIDERATION OF THE RENT BEING PAID BY THE TENANTS IN THE ADJACENT BUILDINGS. THE FOLLOWING A RE THE FACTS WITH REGARD TO VALUE OF THE PROPERTY WHETHER A REASONAB LE RENT/CHARGE CON BE COLLECTED FROM THE SOCIETY BY THE MEMBER OF THE SOCIETY WHEN HE HAS HIRED HIS ASSETS TO THE SOCIETY THE IS SUE IS DECIDED IN FAVOUR OF ASSESSEE BY THE HON'BLE AP. HIGH COURT IN THE UNDER MENTIONED CASE. (A) COPY OF THE SALE DEED EXECUTED BY AP. STATE TRA DING CORPORATION LTD FOR THE PROPERTY ADMEASURING 6753 S Q. YARDS. AT THE RATE OF RS. 1 25 001/- TOTAL SALE CO NSIDERATION RS. 84 41 95 504/- IN THE SAME LOCALITY. (COPY ENC LOSED). (B) COPY OF THE ORDER OF THE A.P. HIGH COURT IN THE CASE OF M/S. NEW NOBLE EDUCATIONAL SOCIETY VS. CCIT-1 DATED 11.11.2010. (COPY ENCLOSED.) (C) THE ASSESSEE IS A CHARITABLE INSTITUTE PROMOTIN G THE CAUSE OF EDUCATION AMONG THE MINORITIES WHO ARE ECONOMICALLY AND EDUCATIONALLY BACKWARD COMMUNITY AS PER THE REPORT OF JUSTICE SACCHER COMMITTEE. CONSIDERING THIS ASPECT THE ITA NOS. 1010 & 1113/HYD/2011 M/S. SHADAN EDUCATIONAL SOCIETY ============================ 9 OWNERS HAVE CHARGED ONLY RS. 10/- PER SQ. FT FOR TH E ENTIRE AREA IN SPITE OF HIGHER RATE PREVAILING IN THE MARK ET. IN THIS REGARD IT IS SUBMITTED THAT THE ENQUIRIES HAVE BEEN MADE WITH THE ADJACENT TENANTS THE FOLLOWING FACTS EMER GED. THERE IS AN ELECTRONIC GOODS SHOP IN THE ADJACENT BUILDIN G IN THE NAME OF PCH E ZONE IN THE GROUND FLOOR WHICH IS P AYING RS. 66/- PER SQ. FT AS PER THE AGREEMENT ENTERED WI TH THE OWNERS IN 2007. IN THE SAME BUILDING THE TENANTS AT TOP FLOOR ARE PAYING RS. 25/- PER SQ. FT. ON THE OTHER SIDE TO THE ASSESSEE INDIAN OVERSEAS BANK IS FUNCTIONING AT GRO UND FLOOR WHICH IS PAYING RS. 35/- PER SQ. FT SINCE 19 95. IN THE SAME BUILDING THE OTHER TENANTS AT 6 TH FLOOR ARE PAYING RS. 15/- PER SQ. FT SINCE 1998. 12. THE LEARNED AR DREW OUR ATTENTION TO THE DETAILS OF RENT PAID TO THE OWNERS OF THE PROPERTIES AGGREGATING TO RS. 5.02 CRORES THE DETAILS OF OWNERSHIP AND OTHER DETAILS ARE FURNISHE D HERE UNDER: S. NO. NATURE OF DOCUMENT EXTENT OF AREA IN SQ. YARDS COST OF ACQUISITION/ DATE OF ACQUISITION EXTENT OF CONSTRUCTED AREA AMOUNT OF RENT DRAWN @ RS. 10 PER SFT PER MONTH (RS.) 1. PROPERTY AT 6-2-978 KHAIRATABAD HYDERABAD ACQUIRED BY WAY OF GIFT FROM MOTHER BY SMT. SHADAN TAHNIATH. 2500 'NIL' 22.06.1978 GROUND + 11 FLOORS TOTAL BUILT UP AREA ABOUT 180000 SFT. 18 00 000 2. PROPERTY AT 6-2-977 KHAIRATABAD HYDERABAD PURCHASED FROM PUTLI BEGUM SAHEBA W/O. LATE NAVAB SYED ABDULLAH BY DR. MOHD. VIZARATH RASOOL KHAN MOHD. MOHD. SAQUIB RASOOL KHAN AND MOHD. AAZIB RASOOL KHAN. 1196 RS. 25 00 000 26.09.1994 9 FLOORS BUILDING HAVING 54000 SFT BUILT UP AREA. 5 40 000 3. PROPERTY AT 6-2-90 KHAIRATABAD HYDERABAD PURCHASED FROM SRI OMPRAKASH AGARWAL & GEETHA BAI BY DR. MOHD. VIZARATH RASOOL KHAN MOHD. MOHD SARIB RASOOL KHAN. 2262 RS. 70 00 000 02.11.1993 CELLAR + GROUND + 10 FLOORS + MALGIES BUILT UP AREA 185000 SFT. 18 50 000 PROPERTY (8 MALGIES) AT RAJBHAVAN ROAD BEARING MCH NOS. 6-2- 979/1 2 3 4 5 6 & 7 KHAIRATABAD HYDERABAD PURCHASED FROM SMT. KABEERUNNISA MTULLAH AIRAJ AND SMT. M. PADMAVATHI BY MOHD. SARIB RASOOL KHAN 377 RS.17 00 000 1.1.1994 21.7.1995 21.11.1996 ITA NOS. 1010 & 1113/HYD/2011 M/S. SHADAN EDUCATIONAL SOCIETY ============================ 10 13. HE SUBMITTED THAT THE SOCIETY HAD ENJOYED THE FREE LANDS FOR CONSTRUCTING THE EDUCATIONAL INSTITUTION AND ALSO I N POSITION TO CATER THE NEEDS OF MANY STUDENTS SINCE 1984. THE SO CIETY GREW BY LEAPS AND BOUNDS AND THE SOCIETY WHICH WAS STARTED AS A SMALL EDUCATIONAL INSTITUTION; NOW IT IS A BIG INSTITUTIO N TO CATER EDUCATION IN VARIOUS FIELDS LIKE ENGINEERING MEDIC INE BACHELOR OF EDUCATION AND VARIOUS OTHER SUBJECTS. SINCE 1984 TH E SOCIETY DID NOT MAKE ANY PAYMENT TO THE OWNERS OF THE LAND EVEN THOUGH THE LAND WAS UTILIZED BY THE SOCIETY FOR MORE THAN 22 Y EARS AND FOR 15 YEARS IN CASE OF THE OTHER PORTION OF LANDS. THE LA ND OWNERS ALSO DID NOT PRESSURIZE THE SOCIETY FOR TAKING ANY PAYME NTS EITHER IN THE FORM OF RENT FOR ONLY REASON THAT THEY WANTED T O SEE THE SOCIETY TO GROW WITH ITS OWN STRENGTH TO ACHIEVE THE ORIGIN AL GOALS. 14. ACCORDING TO THE AR THE CLAIM OF RENT AT RS. 10 PE R SQ. FT. IS REASONABLE. THE ASSESSEE SOCIETY HAS MADE A VARIOUS COMPARISON WITH OTHER CASES WHEREIN THE RENTS HAVE BEEN PAID @ RS. 20 TO 30 PER SQ. FT. AND IT IS RELATING TO THE LAND AS WELL AS FOR CONSTRUCTED BUILDING AND OTHER FURNITURE ETC. THE ASSESSEE SOC IETY HAS TAKEN ONLY THE LAND FROM THE OWNERS AND THEREON CONSTRUCT ED THE BUILDING ARRANGED THE FURNITURE AND OTHER NECESSARY EQUIPMENTS BY ITSELF. THEREFORE WHAT ACTUALLY THE ASSESSEE IS PAYING THE RENT IS ONLY FOR USAGE OF LAND. HENCE THE CLAIM OF THE APP ELLANT FOR MAKING THE PAYMENTS AT RS. 10 PER SQ. FT CANNOT BE REJECTED AS UNREASONABLE. MORE SO AS IT COULD BE SEEN THAT THE OWNERS OF THE LAND HAVE NOT DEMANDED THE RENTS FOR LANDS UTILIZED BY THE SOCIETY FOR 22/15 YEARS AND PAYING OF RS. 10 PER SQ. FT. CA NNOT BE CONSIDERED AS EXORBITANT. BEING THE SOCIETY HAS EN JOYED THE UTILISATION OF THE LANDS BELONGED TO THE LAND OWNER S FOR SO MANY YEARS IT WOULD BE APPROPRIATE TO PAY RENT AT RS. 10 PER SQ. FT. ACCORDING TO THE AR THERE IS NO BASIS FOR CIT(A) T O REDUCE THE SAME TO RS. 9 PER SQ. FT. ITA NOS. 1010 & 1113/HYD/2011 M/S. SHADAN EDUCATIONAL SOCIETY ============================ 11 15. THE LEARNED DR DREW OUR ATTENTION TO THE FOLLOWING TABLE AS PER GHMC NOTIFICATION: GREATER HYDERABAD MUNICIPAL CORPORATION NOTIFICATION SHOWING THE MONTHLY RENT FIXED FOR SFT OF PLINTH AREA IN CIRCLE-6 (NEW NO. 10) CENTRAL ZONE: RENTAL DATA FOR THE YEAR 2006-07 (SEE RULE 2(V)) S. NO. NUMBER & NAME OF THE LOCALITY DOOR NOS./LAND MARKS FROM TO SUB-ZONE-IV-A 1. 050-KHAIRATABAD 1. BUILDINGS FACING THE MAIN ROAD STARTING FROM BOATS CLUB (RIGHT SIDE) H. NO. 6-1-2 RAVINDRA BHARATHI LAKIDIKAPOOL NO. NO. 6-1-62 RIGHT SIDE. 2. BUILDINGS FACING THE MAIN ROAD STARTING FROM RAVINDRA BHARATHI; H. NO. 6-1-62 RIGHT SIDE SAIFABAD POLICE STATION OLD AT VENKATESHWARA LODGE. NO. NO. 6-1-73 RIGHT SIDE. 3. BUILDINGS FACING THE MAIN ROAD STARTING FROM LUCKY CAFE LAKDIKAPOOL JUNCTION H. NO. 6-1-1081 RIGHT SIDE. AC GUARD H. NO. 6-2-37 TVS SHOWROOM RIGHT SIDE. 4. BUILDINGS FACING THE MAIN ROAD STARTING FROM HOTEL AYODHYA JUNCTION H.NO. 6-2030 PETROL BUNKS BOTH SIDES. KHAIRATABAD JUNCTION RIGHT SIDE ICICI BANK LEFT SIDE INSTITUTE OF ENGINEERING. 5. LAKDIKAPOOL X ROAD DWARAKA HOTEL BOTH SIDES. HOME SCIENCE COLLEGE AND ANY OTHER BUILDINGS FACING MAIN ROADS H. NO. 6-1- 87 BOTH SIDES LAKIDIKAPOOL X ROADS BOTH SIDES JALAVIHAR BOTH SIDES (BPPA) DR. CAR (HUDA). 6. NIRANKARI BHAVAN JUNCTION BOTH SIDES. 7. ROAD FACING LUNMIBI PARK BOTH SIDES. 8. NTR PARK BACK SIDE CIRCLE NO. X ZONE NO. IV SUB-ZONE NO. IV-B LOCALITIES/AREAS INCLUDED IN ZONE/SUB-ZONE S. NO. NUMBER & NAME OF THE LOCALITY DOOR NOS./LAND MARKS FROM TO SUB-ZONE-IV-B 2. 050-KHAIRATABAD 1. KHAIRATABAD POST OFFICE (H. NOS. 6- 1-1067) (BOTH ROADS) RAILWAY GATE KHAIRATABAD. 2. DWARAKA HOTEL (H.NO. 6-1-1061) (BOTH SIDE ROAD) KHAIRATABAD LIBRARY; H. NO. 6-1-360 3. BIG BASS HOTEL OPP. SHADAN COLLEGE (EITHER SIDE) CHINTAL BASTHI KHAIRATABAD AND ANY OTHER BUILDINGS INTERNAL ROADS EXCLUDING MAIN ROADS OF ZONE IV-A. CIRCLE NO. X ZONE NO. IV SUB-ZONE NO. IV-C LOCALITIES/AREAS INCLUDED IN ZONE/SUB-ZONE S. NO. NUMBER & NAME OF THE LOCALITY DOOR NOS./LAND MARKS FROM TO SUB-ZONE-IV-C 3. 050-KHAIRATABAD 1. MARUTHI NAGAR CIB QUARTERS BJR NAGAR GANDHI NAGAR BUDDA JAGAM BASTHI MCH QUARTERS INDIRA NAGAR AND EWS QUARTERS ENTIRE AREA 2. MARUTINAGAR ENTIRE AREA 3. BUILDINGS LOCATED AT THE SUB-ZONE IC AREA BISTHI WADA CHINTHAL BASTHI TUMMALA BASTHRI AREA. ENTIRE AREA 4. MS MAQTHA RAJ NAGAR OPP. RAJ BHAVAN ENTIRE AREA AND ANY OTHER BUILDINGS IN LANES AND BY-LANES. ITA NOS. 1010 & 1113/HYD/2011 M/S. SHADAN EDUCATIONAL SOCIETY ============================ 12 ATER HYDERABAD MUNICIPAL CORPORATION NOTIFICATION SHOWING THE MONTHLY RENT FIXED PER SFT OF PLINTH AREA IN CIRCLE-5 (NEW NO. 10) CENTRAL ZONE: RENTAL DATA FOR THE YEAR 2006-07 (SEE RULE 2( V)) CATEGORY OF BUILDINGS SHOPS SHOPPING COMPLEXES OFFICES BANKS ATMS SUPER SPECIALTY HOSPITALS & NURSING HOMES OTHER HOSPITALS CLINICS DISPENSARIES & DIAGNOSTIC CENTRES IVA IVB IVC IVA IVB IVC IVA IVB IVC IVA IVB IVC IVA IVB IVC IVA IVB IVC IVA IVB IVC 1 2 3 4 5 6 7 RCC POSH BUILDING 1. INDEPENDENT 12.00 6.00 4.00 15.00 7.50 5.00 12.00 5.40 3.60 15.00 11.50 7.50 50.00 45.00 40.00 10.00 7.50 - 8.00 6.00 4.00 MULTI - STORIED 1. CELLAR 9.60 4.80 3.20 12.00 6.50 4.00 9.60 4.30 2.90 12.00 9.20 6.00 40.00 36.00 32.00 8.00 6.00 - 6.40 4.80 3.20 2. GROUND AND 1 ST FL. 12.00 6.00 4.00 15.00 7.50 5.00 12.00 5.40 3.60 15.00 11.50 7.50 50.00 45.00 40.00 10.00 7.50 - 8.00 6.00 4.00 3. OTHER FLOORS 10.80 5.50 3.40 13.50 6.10 4.30 10.80 4.60 3.10 12.80 9.80 6.40 45.00 38.30 34.00 9.00 6.40 - 7.20 5.10 3.40 4. PARKING 2.25 1.80 - 2.50 1.80 - 2.25 1.80 - 2.00 1.80 - - - - 2.25 1.80 - 2.00 1.80 - RCC ORDINARY BLDG. 1. INDEPENDENT 9.60 4.80 3.20 12.00 6.50 4.00 9.60 4.30 2.90 12.00 9.20 6.00 40.00 40.00 35.00 8.00 6.00 - 6.40 4.80 3.20 MULTI - STORIED 1. CELLAR 7.70 3.90 2.40 9.60 4.80 3.20 7.70 3.50 2.30 9.60 7.20 4.80 32.00 28.80 25.60 6.40 4.80 - 5.20 4.00 2.40 2. GROUND AND 1 ST FL. 9.60 4.80 3.00 12.00 6.00 4.00 9.60 4.30 2.90 12.00 9.00 6.00 40.00 36.00 32.00 8.00 6.00 - 6.50 5.00 6.40 3. OTHER FLOORS 8.60 4.10 2.50 10.80 5.10 3.40 8.60 3.70 2.50 10.00 7.30 5.10 36.00 30.60 27.20 7.20 5.50 - 5.50 4.30 2.50 4. PARKING 2.00 1.80 - 2.25 1.80 - 2.00 1.80 - 2.00 1.80 - - - - 2.00 1.80 - 2.00 1.60 - MADRAS TERRACED OR JACKARCH ROOFED OR STONE SLABS OR SLATES ROOFED BUILDINGS 4.80 1.50 1.50 6.00 3.00 2.00 4.80 1.50 1.50 7.50 5 .50 4.00 25.00 22.50 25.00 4.00 - - 3.50 2.50 1.50 MANGALORE TILED BUILDINGS OR ASBESTOS ROOFED OR GI ROOFED BUILDINGS 3.00 1.50 1.00 3.50 2.00 1.50 3.00 1.50 1.00 6.00 4 .50 3.00 - - - 3.25 - - 2.50 2.00 1.00 COUNTRY TILED BUILDING 2.50 1.00 0.50 - - - 2.50 1.00 0.50 - - - - - - - - - - - - ITA NOS. 1010 & 1113/HYD/2011 M/S. SHADAN EDUCATIONAL SOCIETY ============================ 13 16. ACCORDING TO THE DR THE RENT FIXED AT RS. 9 PER SQ . FT. IS ON VERY HIGHER SIDE AND IT IS TO BE LOWERED. HE SUBMI TTED THAT THE CIT(A) IGNORED THE FACT THAT PROPERTY TAX IN RESPEC T OF THE SAID BUILDING AND DEPRECIATION THEREON WAS CLAIMED BY TH E ASSESSEE SOCIETY MAKING IT THE DE FACTO OWNER OF THE SAID SO CIETY. 17. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATE RIAL ON RECORD. IT IS AN ADMITTED FACT THAT THE BUILDING O WNED BY THE ASSESSEE SOCIETY AND PLOT OF LAND OWNED BY DR. VIZA RATH RASOOL KHAN AND FAMILY MEMBERS. THIS PROPERTY HAS BEEN EN JOYED BY THE ASSESSEE SINCE 1984/1991 FOR WHICH THE ASSESSEE HAS NOT PAID ANY RENT UP TO 31.3.2006. THE PROPERTY WAS ALLOWED TO BE USED BY THE ASSESSEE ON ORAL AGREEMENT AND IT HAS BEEN USED BY THE ASSESSEE FOR A REASONABLE TIME AT FREE OF RENT BY DEVELOPING ITS OWN INFRASTRUCTURE WITH ITS OWN FUNDS AND AFTER EXPIRY OF A REASONABLE TIME THE ASSESSEE WILL HAVE TO VACATE THE PROPERTY AND IN CASE THE ASSESSEE NOT VACATING THE PROPERTY THE ASSESSEE HAS TO PAY REASONABLE RENT IN ACCORDANCE WITH MARKET CONDITION S. BEING SO THE ASSESSEE ENJOYED THE PROPERTY UP TO 31.3.2006. LATER IT WAS DECIDED TO MAKE THE PAYMENT OF RENT AT RS. 10 PER S Q. FT. THE ASSESSEE PAID RENT AT RS. 10 PER SQ. FT. ACCORDINGL Y. THERE IS AN AGREEMENT TO THIS EFFECT BETWEEN THE SOCIETY AND DR . MD. VIZARATH RASOOL KHAN MD. SARIB RASOOL KHAN AND OTHER FAMILY MEMBERS. THIS AGREEMENT WAS FOUND DURING THE COURSE OF SEARC H ACTION ON 20.12.2006. AS PER THIS THE ASSESSEE PAID TOTAL R ENT OF RS. 5.02 CRORES WORKED OUT AT RS. 10 PER SQ. FT. AND ON WHIC H TDS HAS BEEN DEDUCTED AND THE RECIPIENTS OF THE RENT DULY DISCLO SED THE RECEIPT OF RENT IN THEIR RESPECTIVE RETURNS OF INCOME. 18. ACCORDING TO THE ASSESSING OFFICER THE BUILDING S TANDING ON THE IMPUGNED LAND IS NOT OWNED BY DR. MD. VIZARATH RASOOL KHAN AND HIS FAMILY MEMBERS AND THEY ARE ONLY OWNING T HE PLOT OF LAND ITA NOS. 1010 & 1113/HYD/2011 M/S. SHADAN EDUCATIONAL SOCIETY ============================ 14 WHERE THE BUILDING IS EXISTING. BEING SO PAYMENT OF RENT AT RS. 10 PER SQ. FT IS ON VERY HIGHER SIDE. THE PROPERTY I S SITUATED AT THE HEART OF THE CITY HAVING MARKET VALUE OF RS. 80.00 CRORES AND ACCORDING TO THE ASSESSEE PAYMENT OF RENT AT RS. 10 PER SQ. FT. IS VERY REASONABLE AND THE CIT(A) FIXED THE RENT AT RS . 9 PER SQ. FT. HAS NO BASIS. THE LD. AR SUBMITTED THAT THE MARKET VALUE OF THE PROPERTY OUGHT TO HAVE BEEN CONSIDERED BY THE LOWER AUTHORITIES AS A BASIS FOR DETERMINING THE RENT. ACCORDING TO AR CONSIDERING THE VALUE OF PROPERTY THE PAYMENT OF RENT AT RS. 5.02 CORES IS VERY REASONABLE AS IT WORKED OUT TO RS. 6.5% PER ANNUM C OMPARED TO THE VALUE OF THE PROPERTY. IT IS ALSO NOT DISPUTED THAT THIS AMOUNT IS SUBJECT TO TDS U/S. 194-I OF THE INCOME-TAX ACT AND THE RECIPIENTS HAVE PAID THE TAX ON IT. IT IS ALSO BRO UGHT TO OUR NOTICES THAT FOR THE A.Y. 2008-09 THE ASSESSING OFFICER HAS HIMSELF ALLOWED THE CLAIM OF RENT VIDE ASSESSMENT ORDER DATED 31 ST DECEMBER 2010. IT IS ALSO BROUGHT TO OUR NOTICE THAT IN THE BUILDING SITUATED ADJACENT TO THIS BUILDING PCH-E ZONE IN THE GROUND FLOOR IS PAYING RS. 66 PER SQ. FT. FROM THE YEAR 2007. IN THE SAME BUILDING THE TOP FLOOR WAS RENTED AT RS. 25 PER SQ. FT. ON THE OTHE R SIDE TO THE ASSESSEE INDIAN OVERSEAS BANK IS FUNCTIONING IN TH E GROUND FLOOR WHICH IS PAYING RS. 35 PER SQ. FT. SINCE 1995. IN THE SAME BUILDING THE OTHER TENANTS AT 6 TH FLOOR ARE PAYING RS. 50 PER SQ. FT. SINCE 1988. CONSIDERING THE ABOVE FACTS IN OUR OPINION THE PROPERTY BEING SITUATED AT THE HEART OF THE CITY CHARGING O F RENT AT RS. 10 PER SQ. FT. IS VERY REASONABLE AND THERE IS NO BASI S FOR THE LOWER AUTHORITIES TO REDUCE THE RENT CLAIMED BY THE ASSES SEE. IN OUR OPINION THE CLAIM OF THE ASSESSEE IS JUSTIFIED AND THE SAME HAS TO BE ALLOWED. HOWEVER THE PROPERTY TAX CANNOT BE BO RNE BY THE ASSESSEE AND IT IS THE LIABILITY OF THE LAND OWNER TO PAY THE SAME TO THE GOVERNMENT AUTHORITIES. ACCORDINGLY WE DIRECT THE ASSESSING OFFICER TO ALLOW THE CLAIM OF THE RENT BY ASSESSEE AND TO DISALLOW THE MUNICIPAL TAX IF IT IS PAID BY THE ASSESSEE AS THE ASSESSEE IS ITA NOS. 1010 & 1113/HYD/2011 M/S. SHADAN EDUCATIONAL SOCIETY ============================ 15 RECEIVING PREVAILING MARKET VALUE OF RENT. SINCE WE HAVE ALLOWED THE PAYMENT OF RENT AS CLAIMED BY THE ASSESSEE IN OUR OPINION IT IS APPROPRIATE TO BEAR THE PAYMENT OF MUNICIPAL TAX BY THE LAND LORD THEMSELVES INSTEAD OF ASSESSEE BEARING THE SAME. 19. COMING TO THE REVENUE APPEAL THE ISSUE IS RELATING TO THE RENT WHICH REQUIRES NO ADJUDICATION AS WE HAVE ALRE ADY HELD THAT PAYMENT OF RS. 10 PER SQ. FT. IS REASONABLE INSTEAD OF RS. 9 PER SQ. FT. DETERMINED BY THE CIT(A). 20. COMING TO THE OTHER GROUND IN THE REVENUE APPEAL TH AT THE CIT(A) ERRED IN ALLOWING 'P-MONEY' AS PETROL EXPEND ITURE WITHOUT PROPER EVIDENCE. 21. BRIEF FACTS RELATING TO THIS ISSUE ARE THAT THERE W AS AN ENTRY IN THE SEIZED MATERIAL VIDE ANNEXURE A/B1/VRK/02 AT PAGE NO. 73 WHEREIN 'P-MONEY' WAS WRITTEN. THE ASSESSING OFFIC ER IS OF THE VIEW THAT 'P-MONEY AT RS. 1 50 000' STANDS FOR POCK ET MONEY AND TREATED IT AS UNDISCLOSED INCOME OF THE ASSESSEE. ACCORDING TO THE ASSESSEE 'P-MONEY' INDICATES MONEY FOR PETROL UTILI SED FOR VEHICLES USED BY THE ASSESSEE AND IT CANNOT BE CONSIDERED AS POCKET MONEY. ACCORDING TO THE AR THERE IS NOTHING LIKE P OCKET MONEY EXPENDITURE. HE HAS RELIED ON THE JUDGEMENT OF THE DELHI HIGH COURT IN THE CASE OF CIT VS. GIRISH CHAUDHARY (296 ITR 619) WHEREIN IT WAS HELD THAT 'THERE WAS NO MATERIAL ON RECORD TO SHOW ON WHAT BASIS THE ASSESSING OFFICER HAD REACHED TO THE CONCLUSION THAT THE FIGURE '48' WAS TO BE READ AS RS. 48 LAKHS . THE DOCUMENT RECOVERED DURING THE COURSE OF SEARCH WAS A DUMB DO CUMENT AND LED NOWHERE. THE TRIBUNAL HAD RIGHTLY DELETED THE ADDITION OF RS. 48 LAKHS MADE BY THE ASSESSING OFFICER AND THE ORDE R OF THE TRIBUNAL DID NOT GIVE RISE TO A QUESTION OF LAW.' ITA NOS. 1010 & 1113/HYD/2011 M/S. SHADAN EDUCATIONAL SOCIETY ============================ 16 22. WE HAVE HEARD BOTH THE PARTIES ON THIS ISSUE. THER E IS NO CONCLUSIVE EVIDENCE TO SHOW THAT 'P-MONEY' REFLECTS POCKET MONEY IN THE ABSENCE OF CORROBORATIVE MATERIAL TO HOLD TH AT THE 'P-MONEY' SUGGESTS THE POCKET MONEY. WE ARE NOT IN A POSITIO N TO CONFIRM THE ORDER OF THE ASSESSING OFFICER. BEING SO THE DELETION OF ADDITION MADE BY THE CIT(A) IS JUSTIFIED. 23. IN THE RESULT THE REVENUE APPEAL AS WELL AS ASSESS EE APPEAL IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH MARCH 2012. SD/ - (ASHA VIJAYARAGHAVAN) JUDICIAL MEMBER SD/ - (CHANDRA POOJARI) ACCOUNTANT MEMBER HYDERABAD DATED THE 30 TH MARCH 2012 COPY FORWARDED TO: 1. DEPUTY COMMISSIONER OF INCOME - TAX (CENTRAL CIRCLE - 4) 8 TH FLOOR AAYAKAR BHAVAN L.B. STADIUM ROAD BAHSEERBA GH HYDERABAD-500 004. 2. M/S. SHADAN EDUCATIONAL SOCIETY C/O. MOHD. AFZAL ADVOCATE 11-5-465 FLAT NO. 402 SHERSON'S RESIDENCY CRIMIN AL COURT ROAD HILLS HYDERABAD-500 004. 3. THE CIT(A) - VII HYDERABAD. 4. THE CIT (CENTRAL) HYDERABAD. 5. THE DR B BENCH ITAT HYDERABAD TPRAO