Sanjaya Memorial Institute of Technology, Berhampur v. ITO, Berhampur

IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK ( ) BEFORE . . HONBLE SHRI K.K.GUPTA ACCOUNTANT MEMBER. /AND . . . S HRI K.S.S.PRASAD RAO JUDICIAL MEMBER / I.T.A.NO. 94 95 AND 166/CTK/2010 / ASSESSMENT YEAR S 2003 - 04 AND 2004 - 05 SANJAYA MEMORIAL INSTITUTE OF TECHNOLOGY HILPATNA BERHAMPUR GANJAM 760 005 ORISSA PIN: AAAJS 0276 N - - - VERSUS - COMMISSIONER OF INCOME - TAX BHUBANESWAR 751 007 ( /APPELLANT ) ( / RESPONDENT ) / FOR THE APPELLANT : / SHRI A.K.PADHY AR / FOR THE RESPONDENT: / SHRI S.K.DASH DR / ORDER . . SHRI K.K.GUPTA ACCOUNTANT MEMBER . IN ITA NOS. 166 AND 95/CTK/2010 PERTAINING TO THE ASSESSMENT YEARS 2003 - 04 AND 2004 - 05 RESPECTIVELY THE ONLY ISSUE RAISED BY THE ASSESSEE IS AGAINST DISALLOWANCE OF CERTAIN EXPENDITURES AND NO T GRANTING EXEMPTION U/S.10(23)(C)(VI) FOR WANT OF REGISTRATION U/S.12AA OF THE INCOME - TAX ACT 1961 IN THESE AYS. ITA NO.94/CTK/2010 IS PENALTY CONFIRMED U/S.271(1)(C) FOR THE ASSESSMENT YEAR 2003 - 04. 2. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED BE FORE US THAT THE ASSESSEE SOCIETY WAS ESTABLISHED ON 29.8.1980 UNDER THE REGISTRATION OF SOCIETIES ACT 1960. IT FILED A PETITION DT.2.2.2010 BEFORE THE CIT FOR GRANTING REGISTRATION U/S.12AA FROM THE DATE OF INCEPTION I.E. 29.8.1980 BUT THE REGISTRATION/ S.12AA WAS REJECTED THE SAME AGAINST WHICH THE ASSESSEE HAD FILED AN APPEAL BEFORE THE TRIBUNAL. VIDE ORDER DT.15.2.2011 IN ITA I.T.A.NO. 94 95 AND 166/CTK/2010 2 NO.395/CTK/2010 THIS BENCH OF THE TRIBUNAL HAD DIRECTED THE CIT TO ISSUE REGISTRATION U/S.12AA TO THE ASSESSEE AS PRAYED FOR BY IT IN THE APPLICATION I.E. FROM THE DATE OF INCEPTION 29.8.1980. ON THE BASIS OF ABOVE THE LEARNED COUNSEL FOR THE ASSESSEE PRAYED TO SET ASIDE THE IMPUGNED ORDERS OF THE AUTHORITIES BELOW AND DIRECT THE ASSESSING OFFICER TO ALLOW THE BENEFIT OF EXEMPTI ON U/S.10(23)(C)(VI) OF THE ACT AND ASSESS UNDER THE SAID PROVISIONS . 3. THE LEARNED DR DID NOT DISPUTE THE ABOVE FACTS SAVE AND EXCEPT SUPPORTING THE IMPUGNED ORDERS OF THE AUTHORITIES BELOW. 4. HAVING HEARD BOTH THE PARTIES AND PERUSING THE MATERIAL A VAILABLE ON RECORD WE HOLD THAT THE ASSESSEE IS ENTITLED TO EXEMPTION U/S.10(23)(C)(VI) IN VIEW OF THE ORDER OF THE TRIBUNAL REFERRED TO ABOVE DIRECTING THE CIT TO GRANT REGISTRATION U/S.12AA FROM THE DATE OF INCEPTION I.E. 29.8.1980. WE THEREFORE SE T ASIDE THE IMPUGNED ORDERS OF THE AUTHORITIES BELOW AND DIRECT THE ASSESSING OFFICER TO GRANT EXEMPTION U/S.10(23)(C)(VI) IN THE LIGHT OF THE ORDER TO BE PASSED BY THE LEARNED CIT PURSUANT TO THE DIRECTION OF THE TRIBUNAL IN ITA NO.395/CTK/2010 DT.15.2.20 11 (SUPRA). 5. NEXT COMING TO ITA NO.94/CTK/2010 FILED BY THE ASSESSEE AGAINST LEVY OF PENALTY U/S.271(1)(C) OF THE I.T.ACT 1961 FOR THE ASSESSMENT YEAR 2003 - 04 WE ARE OF THE CONSIDERED VIEW THAT THE SAID PENALTY HAS NO LEG S TO STAND O N IN VIEW OF THE F ACT THAT THE ASSESSEE IS ENTITLED TO EXEMPTION U/S.10(23)(C)(VI) AS CONSEQUENCE TO OUR DIRECTION IN THE ABOVE PARAGRAPHS. THEREFORE WE ALLOW THE APPEAL OF THE ASSESSEE BY SETTING ASIDE THE IMPUGNED ORDER OF THE AUTHORITIES BELOW PERTAINING TO LEVY OF PENA LTY U/S.271(1)(C) OF THE ACT. I.T.A.NO. 94 95 AND 166/CTK/2010 3 6. IN THE RESULT ITA NOS. 166 AND 95/CTK/2010 ARE CONSIDERED ALLOWED FOR STATISTICAL PURPOSE AND ITA NO.94/CTK/2010 IS ALLOWED. THIS ORDER IS PRONOUNCED IN OPEN COURT ON DT. 18 TH FEBRUARY 2011 S D/ - S D/ - ( . . . ) (K.S.S.PRASAD RAO) JUDICIAL MEMBER. ( . . ) (K.K.GUPTA) ACCOUNTANT MEMBER. ( ) DAT E: 18 TH FEBRUARY 2011 - COPY OF THE ORDER FORWARDED TO: 1 . / THE APPELLANT : SANJAYA MEMORIAL INSTITUTE OF TECHNOLOGY HILPAT NA BERHAMPUR GANJAM 760 005 ORISSA 2 / THE RESPONDENT: COMMISSIONER OF INCOME - TAX BHUBANESWAR 751 007 3 . / THE CIT 4 . ( )/ THE CIT(A) 5 . / DR CUTTACK BENCH 6 . GUARD FILE . / TRUE COPY / BY ORDER [ ] SENIOR PRIVATE SECRETARY ( ) ( H.K.PADHEE ) SENIOR.PRIVATE SECRETARY.