S.D. Education Society, Karnal v. ACIT, Karnal

ITA 5276/DEL/2012 | 2009-2010
Pronouncement Date: 31-07-2013 | Result: Allowed

Appeal Details

RSA Number 527620114 RSA 2012
Assessee PAN AABAS5001P
Bench Delhi
Appeal Number ITA 5276/DEL/2012
Duration Of Justice 9 month(s) 15 day(s)
Appellant S.D. Education Society, Karnal
Respondent ACIT, Karnal
Appeal Type Income Tax Appeal
Pronouncement Date 31-07-2013
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted G
Tribunal Order Date 31-07-2013
Date Of Final Hearing 30-07-2013
Next Hearing Date 30-07-2013
Assessment Year 2009-2010
Appeal Filed On 15-10-2012
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : G: NEW DELHI BEFORE SHRI G.D. AGRAWAL VICE PRESIDENT AND SHRI I. C. SUDHIR JUDICIAL MEMBER ITA NO. 5276/DEL/2012 ASSESSMENT YEAR: 2009-10 S.D. EDUCATION SOCIETY VS. ACIT C/O GIRISH ANEJA CA KARNAL CI RCLE 796 SECTOR-13 U.E. KARNAL KARNAL 132001 (PAN AABAS5001P) (APPELLANT) (RES PONDENT) AND ITA NO. 5274/DEL/2012 ASSESSMENT YEAR: 2009-10 SBS BALWANT SINGH TECHNICAL & SCIENTIFIC VS. ACIT EDUCATION SOCIETY KARNAL CIRCLE C/O FIRIRSH ANEJA CA KARNAL. 796 SECTOR -13 UE KARNAL (PAN AAABS50957L) (APPELLANT) (RES PONDENT) APPELLANT BY : SHRI GIRISH AN EJA CA RESPONDENT BY : SMT. RENUKA JAIN GUPTA SR. DR ORDER PER I.C. SUDHIR JUDICIAL MEMBER IN THESE APPEALS FIRST APPELLATE ORDERS HAVE BEEN QUESTIONED ON THE FOLLOWING GROUNDS :- 1. THAT ON THE FACTS AND CIRCUMSTANCES OF TH E CASE THE ORDER OF THE AO IN ASSESSING INCOME OF THE ASSESSEE @ RS . 54 79 663/- IN ITA NO. ITA NOS. 5276.5274/DEL/2012 2 5276/DEL/2012 AND RS. 10 76 050/- IN ITA NO. 5274/DEL/12 IS BAD IN LAW AND THE LD. CIT(A) HAS FURTHER ER RED IN CONFIRMING THE SAME. 2. THE AO HAS ERRED IN LAW AND ON FACTS BY ME CHANICALLY FOLLOWING THE ACTION OF THE LD. CCIT PANCHKULA IN DENYI NG THE BENEFIT OF CIRCULAR NO. 7/2010 TO THE ASSESSEE IGNORING THE BINDING AND BENEVOLENT NATURE OF THE CBDT CIRCULARS AND THE LD . CIT (APPEALS) HAS FURTHER ERRED IN CONFIRMING THE SAME. 2. AT THE OUTSET OF HEARING LD. AR POINTED OU T THAT UNDER THE SIMILAR FACTS AND CIRCUMSTANCES IN THE CASE OF DAYAL SINGH COLLEGE TRUST VS. ACIT ITA NO. 5273/D/2012 THE TRIBUNAL VIDE ITS ORDER DA TED 30.4.2013 HAS SET ASIDE AND RESTORED THE MATTER BACK TO THE FILE OF T HE AO WITH DIRECTION THAT DECIDE THE ISSUE AFRESH AFTER FATE OF ASSESEES APP LICATION FOR EXEMPTION SOUGHT U/S 10(23C)(VI) OF THE ACT IS DECIDED. LD. A R SUBMITTED THAT FACTS OF BOTH THE SOCIETYS APPEALS UNDER CONSIDERATION ARE SIMILAR WITH AN IDENTICAL ISSUE AS RAISED IN THE ABOVE CITED CASE OF DAYAL S INGH COLLEGE TRUST VS ACIT (SUPRA) HENCE SIMILAR ORDER MAY BE PASSED IN T HE PRESENT APPEALS. 3. LD. SR. DR DID NOT DISPUTE THE ABOVE SUB MISSION. SHE HAS HOWEVER PLACED RELIANCE ON THE FIRST APPELLATE ORDER. 4. HAVING GONE THROUGH THE ORDER DATED 30.4. 2013 OF THE TRIBUNAL IN THE CASE OF DAYAL SINGH COLLEGE VS. ACIT (SUPRA) W E FIND THAT UNDER SIMILAR FACTS AND CIRCUMSTANCES AN IDENTICAL ISSUE HAS BEEN SET ASIDE AND RESTORED TO THE FILE OF THE AO WITH DIRECTION TO DECIDE THE SAME AFTER OUTCOME OF THE FATE OF ASSESSEES APPLICATION FOR EXEMPTION SOUGHT U/S 10(23C)(VI) OF THE ACT. THE FACTS IN BRIEF ARE THAT THE ASSESSEE IS A REGISTERED TRUST / SOCIETY. ITA NOS. 5276.5274/DEL/2012 3 EARLIER IT WAS ELIGIBLE FOR EXEMPTION U/S 10(22) OF THE ACT. THEREAFTER CONSEQUENT TO INTRODUCTION OF SECTION 10(23C) OF TH E ACT ALSO THE EXEMPTION WAS GRANTED U/S 10(23C) (VI) OF THE ACT. IN THE CAS E OF S.D. EDUCATION SOCIETY THE LD. CCIT PANCHKULA GRANTED EXEMPTION U/ S 10(23C) (VI) OF THE ACT PER ORDER DATED 26.3.2008. AN APPLICATION TO GI VE EFFECT OF THE CBDT CIRCULAR NO. 7/2010 DATED 27.10.2010 TO THE EXEMPT ION ORDER DATED 26.3.2008 WAS MOVED ON 25.11.2010 BEFORE THE CCIT P ANCHKULA SEEKING A FORMAL RECTIFICATION ORDER MODIFYING THE PERIOD OF VALIDITY TO ASSTT. YEAR 2007-08 ONWARDS. THE SAME WAS REFUSED BY THE LD. CC IT PANCHKULA AGAINST WHICH THE APPELLANT MOVED HONBLE P & H HI GH COURT VIDE WRIT PETITION. THE HONBLE HIGH COURT WAS PLEASED TO QU ASH THE ORDER OF THE LD. CCIT WHEREBY HE HAD REFUSED AND DIRECTED THE LD. C CIT TO PASS FRESH ORDER IN ACCORDANCE WITH THE LAW AS LAID DOWN BY TH E HONBLE P & H HIGH COURT IN THE CASE OF PINEGROVE INTERNATIONAL TRUST. THE LD. CCIT HOWEVER IN THE FRESH PROCEEDINGS ALSO WITHOUT APPRECIATING THE CBDT CIRCULAR AND THE PINE GROVE JUDGMENT REFUSED THE APPLICATION FOR EXE MPTION AGAINST WHICH ASSESEE IS BEFORE THE HONBLE P & H HIGH COURT WHIC H HAS BEEN ADMITTED. MEANWHILE THE DEPARTMENT HAS MOVED TO THE HONBLE S UPREME COURT AGAINST THE PINEGROVE INTERNATIONAL TRUST JUDGMENT AND OTHER CONNECTED CASES INCLUDING THE ASSESSES WRIT PETITION BY WAY OF SLP. DEPARTMENT SLP IS STILL PENDING AND NO STAY OF ANY KIND THEREIN HAS B EEN GRANTED BY HONBLE SUPREME COURT. IN VIEW OF THESE FACTS IT HAS BEEN P RAYED BY THE APPEALS ITA NOS. 5276.5274/DEL/2012 4 THAT AS ON TODAY THE ASSESEES WRIT PETITIONS BEFOR E HONBLE P & H HIGH COURT AND DEPARTMENT SLP BEFORE THE HONBLE SUPREME COURT REMAINS PENDING. THE OUTCOME OF THESE PROCEEDINGS WILL DECI DE THE FUNDAMENTAL QUESTION ABOUT GRANT OF EXEMPTION. SINCE THE PRESEN T ASSESSMENT HAS BEEN FRAMED ON THE BASIS THAT LD. CCIT HAS REFUSED THE A SSESSEES APPLICATION FOR EXTENSION OF EXEMPTION ENDS OF JUST WILL MEET AFTER THE ASSESSMENT IN QUESTION IS SET ASIDE BACK TO THE FILE OF THE AO TO DECIDE THE SAME AFTER THE ISSUE ABOUT ASSESEES APPLICATION FOR THE EXEMPTION IS DECIDED. SIMILAR ARE THE FACTS AND PRAYER IN THE CASE OF SBS BALWANT SIN GH TECHNICAL & SCIENTIFIC EDUCATIONAL SOCIETY. WE THUS RESPECTFULLY FOLLOWING THE DECISION OF THE TRIBUNAL UNDER SIMILAR FACTS AND CIRCUMSTANCES ON A N IDENTICAL ISSUE IN THE CASE OF DAYAL SINGH COLLEGE TRUST SOCIETY VS. ACIT (SUPRA) SET ASIDE AND RESTORE THE MATTER BACK TO THE FILE OF THE AO WITH DIRECTION TO DECIDE THE SAME AFTER THE OUTCOME OF FATE OF APPLICATION FOR E XEMPTION IS DECIDED. IN THE RESULT APPEALS PREFERRED BY THE ASSESS EES ARE ALLOWED FOR STATISTICAL PURPOSES. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 31 ST JULY 2013. SD /- SD/- (G.D. AGRAWAL) ( I.C. SUDHIR ) VICE PRESIDENT JUDICIAL MEMBER DATED 31 ST JULY 2013 VEENA COPY OF ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) ITA NOS. 5276.5274/DEL/2012 5 4. CIT 5. DR BY ORDER DEPUTY REGISTRAR ITAT