M/S. VEDIC KANYA MAHAVIDYALYA, JAIPUR v. INCOME TAX OFFICER, EXEMPTION WARD-1, JAIPUR

ITA 380/JPR/2019 | 2015-2016
Pronouncement Date: 25-11-2019 | Result: Allowed

Appeal Details

RSA Number 38023114 RSA 2019
Assessee PAN AAAAV9805H
Bench Jaipur
Appeal Number ITA 380/JPR/2019
Duration Of Justice 8 month(s) 6 day(s)
Appellant M/S. VEDIC KANYA MAHAVIDYALYA, JAIPUR
Respondent INCOME TAX OFFICER, EXEMPTION WARD-1, JAIPUR
Appeal Type Income Tax Appeal
Pronouncement Date 25-11-2019
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted SMC
Tribunal Order Date 25-11-2019
Last Hearing Date 14-05-2019
First Hearing Date 14-05-2019
Assessment Year 2015-2016
Appeal Filed On 19-03-2019
Judgment Text
VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ T;IQJ U;K;IHB] T;IQJ T;IQJ U;K;IHB] T;IQJ T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCHES (SMC) JAIPUR JH JESK LH-'KEKZ] YS[KK LNL; DS LE{K BEFORE : SHRI RAMESH C.SHARMA ACCOUNTA NT MEMBER VK;DJ VIHY LA-@ ITA NO. 380/JP/2019 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2013-14 M/S. VEDIC KANYA MAHAVIDYALA GOVIND MARG RAJA PARK JAIPUR CUKE VS. THE ITO (EXEMPTION) WARD- 1 JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AAAAV 9805 H VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI MUKESH KHANDELWAL CA JKTLO DH VKSJ LS@ REVENUE BY: SHRI MANMOHAN KANDPAL ACIT(OSD)-DR LQUOKBZ DH RKJH[K@ DATE OF HEARING : 31/10/2019 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 25 /11/2019 VKNS'K@ ORDER PER RAMESH C. SHARMA AM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF THE LD. CIT(A)-3 JAIPUR DATED 01-02-2019 FOR THE ASSESS MENT YEAR 2015-16 IN THE MATTER OF ORDER PASSED U/S 143(3) OF THE I. T. ACT 1961. 2.1 IN THIS APPEAL THE ASSESSEE IS AGGRIEVED FOR D ECLINING THE CLAIM OF EXEMPTION U/S 10(23C)(IIIAD) OF I.T. ACT 1961. 2.2 RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORDS P ERUSED. FACTS IN BRIEF ARE THAT THE ASSESSEE SOCIETY IS REGISTERED U NDER THE RAJASTHAN ITA NO.380/JP/2019 M/S. VEDIC KANYA MAHAVIDYALA JAIPUR VS ITO (EXEMPTION) WARD-1 JAIPUR 2 SOCIETIES REGISTRATION ACT XXI OF 1860 BEARING REG ISTRATION NO. 168/1957-1958. DURING THE YEAR UNDER CONSIDERATION THE SOCIETY WAS ENGAGED IN EDUCATIONAL ACTIVITIES BY RUNNING SCHOOL S. DURING THE YEAR UNDER CONSIDERATION THE ASSESSEE HAS CLAIMED SURPL US OF RS. 15 47 866/- EXEMPTED U/S 10(23C)(IIIAD) OF THE I.T. ACT 1961. HOWEVER THE AO DECLINED THE SAME ON THE PLEA THAT THE ASSESSEE WAS HAVING OTHER OBJECTS. 2.3 BY IMPUGNED ORDER THE LD. CIT(A) CONFIRMED THE ACTION OF THE AO AGAINST WHICH THE ASSESSEE IS IN FURTHER APPEAL BE FORE THIS BENCH. 2.4 I HAVE CONSIDERED THE RIVAL CONTENTIONS AND GON E THROUGH THE ORDERS OF THE LOWER AUTHORITIES AND FOUND FROM THE RECORD THAT THE ASSESSEE IS AN EDUCATIONAL INSTITUTION EXISTING SOLELY FOR EDUCATI ONAL PURPOSES. IT RUNS A GIRLS COLLEGE AT ADRASH NAGAR JAIPUR. IT PROVIDES EDUCATION TO THE GIRLS FOR UG AND PG COURSES. IN THE RETURN FILED THE ASSESSE E HAD CLAIMED DEDUCTION U/S 10(23C)(IIIAD) OF THE ACT. THE AO DEN IED TO GRANT EXEMPTION TO THE ASSESSEE 10(23C)(IIIAD) OF THE ACT BY STATING THAT THERE ARE VARIOUS OTHER OBJECTS IN THE CONSTITUTION OF TH E ASSESSEE AND HENCE IT DID NOT EXIST SOLELY FOR THE EDUCATIONAL PURPOSES W HICH IS PREREQUISITE FOR CLAIMING EXEMPTION 10(23C)(IIIAD) OF THE ACT. 2.4.1 FROM THE RECORD I FOUND THAT THE ASSESSEE IN STITUTION SOLELY EXISTS FOR EDUCATIONAL PURPOSES. ALL THE OBJECTS WHICH ARE MENTIONED IN THE CONSTITUTION DEED (AS DESCRIBED BY AO AT PAGE 3 AND 4 OF HIS ORDER) ARE ITA NO.380/JP/2019 M/S. VEDIC KANYA MAHAVIDYALA JAIPUR VS ITO (EXEMPTION) WARD-1 JAIPUR 3 RELATED TO EDUCATION ONLY AND IN NONE OF THEM ANY P ROFIT MOTIVE CAN BE SMELLED. THEREFORE THE ASSESSEE HAS SATISFIED ALL THE CONDITIONS STIPULATED 10(23C)(IIIAD) OF THE ACT AND HENCE THE EXEMPTION H AS TO BE ALLOWED TO IT UNDER SAID SECTION. THE AO HAS MADE A VERY CURSOR Y REMARK THAT THERE WERE VARIOUS OBJECTS IN THE CONSTITUTION OTHER THAN EDUCATION BUT A CLOSE LOOK AT THE OBJECTS SHOW THAT ALL THE OBJECTIVES AR E DIRECTLY RELATED TO EDUCATION. IT IS ALSO A FACT THAT EXCEPT EDUCATION THE ASSESSEE HAS NOT PERSUADED ANY OTHER ACTIVITY AND HENCE THE CLAIM OF DEDUCTION 10(23C)(IIIAD) OF THE ACT SHOULD HAVE BEEN ALLOWED TO IT. 2.4.2 THE OBSERVATION OF THE LD. CIT(A) THAT THE A SSESSEE HAD PERSUADED OBJECTS OTHER THAN EDUCATIONAL ONES IS INCORRECT AS HE HAS MADE THIS COMMENTS MERELY BY VERIFYING THE NAMES OF THE RECEI PTS AS CREDITED IN THE PROFIT AND LOSS ACCOUNT. HE DID NOT APPRECIATE THE DOCUMENTS SUBMITTED TO HIM PROPERLY. I FOUND THAT THE ASSESSEE HAS DEC LARED SUBJECT FEES WHICH IS THE AMOUNT CHARGED BY THE INSTITUTION FROM THE STUDENTS OF PG COURSES AS PER SELECTIONS MADE BY THEM. WHOLE AMOUN T OF SUBJECT FEES HAS BEEN RECEIVED FROM THE STUDENTS ONLY. THE RENT OF FURNITURE IS THE AMOUNT RECEIVED BY THE ASSESSEE FROM UNIVERSITY OF RAJASTHAN AGAINST USE OF THE FURNITURE OF THE ASSESSEE FOR CONDUCTING EXAMINATIONS FOR THE ACADEMIC YEAR 2013-14. THE INSTITUTION ALLOWS THE A UTHORITIES SUCH AS VARIOUS UNIVERSITIES COLLEGES GOVT. AUTHORITIES BANKS TO USE THEIR ITA NO.380/JP/2019 M/S. VEDIC KANYA MAHAVIDYALA JAIPUR VS ITO (EXEMPTION) WARD-1 JAIPUR 4 BUILDING FOR CONDUCTING VARIOUS COMPETITIVE EXAMINA TIONS AND HENCE WHOLE OF THE INCOME SO RECEIVED IS FROM AUTHORITIES FOR PURPOSES WHICH ARE CONNECTED WITH EDUCATION ONLY AND HENCE EARNING OF SUCH INCOME CANNOT DISENTITLE THE ASSESSEE FOR CLAIMING SUCH EX EMPTION. 2.4.3 IN VIEW OF THE ABOVE DISCUSSIONS I DO NOT F IND ANY MERIT IN THE ORDERS OF THE LOWER AUTHORITIES FOR DECLAIMING THE CLAIM OF EXEMPTION 10(23C)(IIIAD) OF THE ACT TO THE ASSESSEE 3.0 IN THE RESULT THE APPEAL OF THE ASSESSEE IS AL LOWED . ORDER PRONOUNCED IN THE OPEN COURT ON 25/11/201 9. SD/- JESK LH 'KEKZ (RAMESH C. SHARMA) YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 25 /11/ 2019 *MISHRA VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- M/S. VEDIC KANYA MAHAVIDYALA JAIPU R 2. IZR;FKHZ@ THE RESPONDENT- THE ITO (EXEMPTION) WARD- 1 JAI PUR 3. VK;DJ VK;QDRVIHY ) @ CIT(A) 4. VK;DJ VK;QDR@ CIT 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR ITAT JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO.380/JP/2019) VKNS'KKUQLKJ@ BY ORDER LGK;D IATHDKJ@ ASSISTANT. REGISTRAR