Asst.Director of Income-tax (Exemptions)-I,, Hyderabad v. Hyderabad Mahila Vidya Sangham,, Hyderabad

ITA 1625/HYD/2013 | 2007-2008
Pronouncement Date: 23-04-2014 | Result: Allowed

Appeal Details

RSA Number 162522514 RSA 2013
Assessee PAN AAATT7901R
Bench Hyderabad
Appeal Number ITA 1625/HYD/2013
Duration Of Justice 4 month(s) 25 day(s)
Appellant Asst.Director of Income-tax (Exemptions)-I,, Hyderabad
Respondent Hyderabad Mahila Vidya Sangham,, Hyderabad
Appeal Type Income Tax Appeal
Pronouncement Date 23-04-2014
Appeal Filed By Department
Order Result Allowed
Bench Allotted B
Tribunal Order Date 23-04-2014
Assessment Year 2007-2008
Appeal Filed On 28-11-2013
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B' HYDERABAD BEFORE SHRI CHANDRA POOJARI ACCOUNTANT MEMBER ANDSHRI SAKTIJIT DEY JUDICIAL MEMBER I.T.A. NO. 1625/HYD/2013 A.Y. : 2007-08 ASST. DIRECTOR OF INCOME- TAX (EXEMPTION) VS. HYDERABAD MAHILA VIDYA SANGHAM HYDERABAD. (PAN AAATT7901R) APPELLANT RESPONDENT REVENUE BY: SHRI JEEVAN LAL LAVIDIYA ASSESSEE BY: SHRI S. RAMA RAO DATE OF HEARING: 27.03.2014 DATE OF PRONOUNCEMENT: 23.04.2014 O R D E R PER SAKTIJIT DEY JM: THIS APPEAL FILED BY THE DEPARTMENT IS AGAINST THE ORDER OF THE CIT(A)-IV HYDERABAD DATED 06/09/2013 FOR THE ASSES SMENT YEAR 2007-08. 2. THE DEPARTMENT IS AGGRIEVED BY THE ORDER OF THE CIT(A) IN HOLDING THAT EVEN IN ABSENCE OF APPROVAL U/S 10(23C ) THE ASSESSEE SOCIETY BEING REGISTERED U/S 12A OF THE ACT CAN CLA IM EXEMPTION U/S 11 OF THE ACT AND FURTHER DIRECTING THE ASSESSING OFFICER TO ALLOW EXEMPTION TO THE ASSESSEE U/S 11 IF THE ASSESSEE HA S NOT CHARGED ANY MONEY BY WHATEVER NAME IT IS CALLED I.E. DONATI ON BUILDING FUND AUDITORIUM FEE ETC. OVER AND ABOVE THE PRESCRIBED FEES FOR ADMISSION OF THE STUDENTS. 3. BRIEFLY THE FACTS ARE THE ASSESSEE A SOCIETY IS REGISTERED U/S 12A OF THE ACT. FOR THE AY UNDER DISPUTE THE ASSES SEE FILED ITS RETURN OF INCOME FOR THE AFORESAID ASSESSMENT YEAR DECLAR ING NIL INCOME AFTER CLAIMING EXEMPTION U/S 11 OF THE ACT. DURING THE ASSESSMENT I.T.A. NO. 1625//HYD/2013 HYDERABAD MAHILA VIDYA SANGHAM 2 PROCEEDINGS THE ASSESSING OFFICER NOTICING THAT TH E ASSESSEE HAS NOT OBTAINED APPROVAL U/S 10(23C) AND SINCE THE ASSESSE E IS RUNNING AN EDUCATIONAL INSTITUTION NO EXEMPTION CAN BE GRANTE D TO THE ASSESSEE. ACCORDINGLY HE PROPOSED TO DISALLOW THE EXEMPTION CLAIMED BY THE ASSESSEE. IN RESPONSE TO THE QUERY MADE BY THE ASSE SSING OFFICER THE ASSESSEE CONTENDED THAT EVEN IN ABSENCE OF APPR OVAL U/S 10(23C) OF THE ACT THE ASSESSEE WILL BE ENTITLED FOR EXEMP TION U/S 11 OF THE ACT AS IT HAS FULFILLED ALL OTHER CONDITIONS PRESC RIBED THEREIN. THE ASSESSING OFFICER THOUGH ACCEPTED THE FACT THAT THE ASSESSEE HAS BEEN REGISTERED U/S 12A OF THE ACT BUT SHE REFUSE D EXEMPTION U/S 11 OF THE ACT TO THE ASSESSEE ON THE GROUND THAT THE A SSESSEE BEING AN EDUCATIONAL INSTITUTION CAN ONLY AVAIL EXCEPTION U/ S 10(23C)(VI). AS THE ASSESSEE HAS NOT OBTAINED APPROVAL U/S 10(23C)(VI) IT IS NOT ELIGIBLE FOR EXEMPTION AND ACCORDINGLY COMPLETED THE ASSESSM ENT. BEING AGGRIEVED OF THE ASSESSMENT ORDER SO PASSED THE ASS ESSEE PREFERRED APPEAL BEFORE THE CIT(A). 4. THE CIT(A) AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE ACCEPTED THE CLAIM THAT EVEN IF THE ASSESSEE HAS NO T OBTAINED APPROVAL U/S 10(23C)(VI) OF THE ACT BUT STILL THE ASSESSEE BEING REGISTERED U/S 12A OF THE ACT WILL BE ELIGIBLE FOR EXEMPTION U/S 11 OF THE ACT SUBJECT TO SATISFACTION OF THE CONDITIONS LAID DOWN U/S 11 TO 13 OF THE ACT. THE OBSERVATIONS MADE BY THE CIT(A) ARE EXTRACTED HEREUNDER: 3. THE APPELLANT IS ADMITTEDLY REGISTERED UNDER SEC . 12AA BUT HAD NOT BEEN NOTIFIED U/S. 10(23C) OF THE ACT. (THOUGH THE APPROVAL U/S 10(23C) HAS SUBSEQUENTLY BEEN GRAN TED BY THE CCIT-I HYDERABAD VIDE HIS ORDER IN F. NO. CC/TECH- I/22B(257)/2007-08 DATED 26.3.2008 THE APPROVAL HA S BEEN GRANTED FOR THE AY 2008 ONWARDS AND DOES NOT ASSIST THE APPELLANT IN THE PRESENT APPEAL.) THE ALLOWABILITY OF THE ALTERNATIVE CLAIM U/S 11 UNDER SIMILAR CIRCUMSTANCE S IS SUPPORTED BY THE FOLLOWING JUDICIAL PRONOUNCEMENTS: 1. CIT VS BAR COUNCIL OF MAHARASTRA [1981] 130 ITR 28(SC) I.T.A. NO. 1625//HYD/2013 HYDERABAD MAHILA VIDYA SANGHAM 3 2. AMERICAN HOTEL AND LODGING ASSOCIATION/ EDUCATIONAL INSTITUTE VS CBDT (2008) (170 TAXMAN 306) (SC) 3. RAJASTHANI SIKSHA SAMITHI (ITA NO 80 & 81/HYD/2008) 4. ST. THERESA'S CONVENT SOCIETY .HYDERABAD (ITA NO. 844/HYD/08) 5. ADIT(EXEMPTIONS) VS LOUIS EDUCATIONAL SOCIETY (ITA NO 1456/HYD/2008 DT 26.12.2008) 6. AP SOCIETY FOR KNOWLEDGE (ITA NO. 843/HYD/09 DT 09.10.2009. 4. IT WAS HELD IN THESE. CASES THAT ONCE ALL THE RE QUISITE CONDITIONS FOR EXEMPTION UNDER SEC. 11 WERE MET EVEN IF THE CONDITIONS UNDER SEC. 10(23C)(VI) HAD NOT BEEN COMPLIED WITH THERE WOULD BE NO BAR TO SEEK EXEMPTION UNDER SEC. 11. 5. IT IS FURTHER SEEN THAT THE JURISDICTIONAL ITAT HAS HELD THAT IF DONATIONS ARE RECEIVED COMPULSORILY FOR THE ADMI SSION OF STUDENTS BY WHATEVER NAME CALLED I.E. DONATION B UILDING FUND AUDITORIUM FUND ETC OVER AND ABOVE THE PRES CRIBED FEE FROM THE STUDENTS THE ASSESSEE WOULD NOT BE E NTITLED FOR EXEMPTION U'/S 10(23C) OR U/S 11. THIS VIEW HAS REPEATEDLY BEEN EXPRESSED BY THE ITAT AS IN THE FOL LOWING CASES: 1. VASAVI ACADEMY OF EDUCATION (ITA NO. 1133/HYD/2006 DATED 15.4.2009) 2. JAMIA NIZAMIA (ITA NO. 763/HYD/2007 DATED 30.6.2008) 3. INTERNATIONAL EDUCATIONAL ACADEMY (ITA NO. 494/HYD/2007) 4. SRI VENKATA SAI EDUCATIONAL SOCIETY (ITA NO. 1440/HYD/2011 DATED 9.4.2012) 6. FOLLOWING THE ABOVE DECISIONS OF THE JURISDICTIO NAL ITAT IT IS HELD THAT IF THE ASSESSING OFFICER HAS FOUND THAT BESIDES FULFILLING OTHER PREREQUISITES FOR EXEMPTIO N U/S. 11 AS STIPULATED IN SECTIONS 11 TO 13 OF THE ACT THE A PPELLANT DID NOT CHARGE ANY MONEY BY WHATEVER NAME IT IS CA LLED I.T.A. NO. 1625//HYD/2013 HYDERABAD MAHILA VIDYA SANGHAM 4 I.E. DONATION BUILDING FUND AUDITORIUM FEE ETC. OVER AND ABOVE THE PRESCRIBED FEE FOR THE ADMISSION OF THE STUDEN T THE APPELLANT WOULD BE ENTITLED FOR EXEMPTION U/S. 11 EVEN IF THE NOTIFICATION U/S. 10(23C) OF THE ACT HAS NO T BEEN OBTAINED BY IT. THE APPEAL IS THEREFORE DECIDED IN FAVOUR OF THE APPELLANT SUBJECT TO VERIFICATION OF FULFILMENT OF THE ABOVE CONDITIONS. 5. WE HAVE HEARD THE SUBMISSIONS OF THE PARTIES AND PERUSED THE MATERIALS ON RECORD. IT IS NOT DISPUTED THAT THE AS SESSEE IS REGISTERED U/S 12A OF THE ACT. THE REASON FOR WHICH THE ASSESS ING OFFICER HAS REFUSED EXEMPTION U/S 11 OF THE ACT IS AS THE ASSE SSEE IS RUNNING AN EDUCATIONAL INSTITUTION IT HAS TO GET APPROVAL U/S 10(23C)(VI) OF THE ACT. HOWEVER IN OUR VIEW THE ASSESSING OFFICER IS NOT CORRECT IN DENYING EXEMPTION TO THE ASSESSEE ON THAT GROUND AL ONE. IT IS WELL SETTLED BY NUMBER OF DECISIONS OF THE ITAT HYDERAB AD BENCHES THAT EVEN IN ABSENCE OF APPROVAL U/S 10(23C)(VI) OF THE ACT THE ASSESSEE CAN MAKE AN ALTERNATIVE CLAIM OF EXEMPTION U/S 11 O F THE ACT IF OTHERWISE IT SATISFIES THE CONDITIONS LAID DOWN TH EREIN. THEREFORE THE CIT(A)S ORDER BEING IN TUNE WITH THE CONSISTENT VI EW OF THIS TRIBUNAL WE DO NOT FIND ANY INFIRMITY IN THE SAME. SO FAR AS THE OTHER DIRECTION OF THE CIT(A) TO THE ASSESSING OFFICER TO VERIFY AN D ALLOW EXEMPTION U/S 11 OF THE ACT IF THE ASSESSEE HAS NOT COLLECT ED ANY MONEY BY WHATEVER NAME CALLED OVER AND ABOVE THE PRESCRIBED FEES FOR ADMISSION OF THE STUDENT THE SAME IS ALSO IN TERMS WITH THE RATIO LAID DOWN BY THE ITAT HYDERABAD BENCHES IN THE DECISION S REFERRED TO BY THE LEARNED CIT(A). BE THAT AS IT MAY FOLLOWING TH E CONSISTENT VIEW OF THE ITAT AS EXPRESSED IN THE VARIOUS ORDERS REFERRE D TO BY THE LEARNED CIT(A) IN HER ORDER WE DIRECT THE ASSESSING OFFICE R TO VERIFY THE CLAIM OF THE ASSESSEE AND IF THE ASSESSEE HAS NOT COLLECT ED ANY MONEY OVER AND ABOVE THE PRESCRIBED FEES FOR ADMISSION OF THE STUDENT BY WHATEVER NAME CALLED AND IF THE ASSESSEE OTHERWISE HAS FULFILLED THE CONDITIONS PRESCRIBED U/S 11 TO 13 OF THE ACT THEN IT WILL BE ELIGIBLE FOR EXEMPTION U/S 11 OF THE ACT. WITH THE AFORESAID DIRECTION THE MATTERS ARE REMITTED TO THE FILE OF THE ASSESSING O FFICER FOR TAKING A I.T.A. NO. 1625//HYD/2013 HYDERABAD MAHILA VIDYA SANGHAM 5 DECISION AFRESH AFTER AFFORDING REASONABLE OPPORTUN ITY OF HEARING TO THE ASSESSEE. 6. IN THE RESULT APPEAL FILED BY THE REVENUE IS AL LOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 23/04/20 14. SD/ - (CHANDRA POOJARI) ACCOUNTANT MEMBER SD/ - (SAKTIJIT DEY) JUDICIAL MEMBER HYDERABAD DATED 23 RD APRIL 2014 KV COPY FORWARDED TO: 1. ASST. DIRECTOR OF INCOME-TAX (E)-I 3 RD FLOOR AAYAKAR BHAVAN BASHEERBAGH HYDERABAD 500 004. 2. HYDERABAD MAHILA VIDYA SANGHAM H.NO. 3-4-527 NARAYANAGUDA HYDERABAD 3. THE CIT(A)-IV HYDERABAD. 4. THE DIT(E) HYDERABAD 5. THE DR ITAT HYDERABAD