M/s Swarnandhra Educational Society., v. The ITO, Ward-1., Palakol

ITA 468/VIZ/2008 | 2008-2009
Pronouncement Date: 24-02-2010 | Result: Allowed

Appeal Details

RSA Number 46825314 RSA 2008
Bench Visakhapatnam
Appeal Number ITA 468/VIZ/2008
Duration Of Justice 1 year(s) 5 month(s) 19 day(s)
Appellant M/s Swarnandhra Educational Society.,
Respondent The ITO, Ward-1., Palakol
Appeal Type Income Tax Appeal
Pronouncement Date 24-02-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted DB
Tribunal Order Date 24-02-2010
Date Of Final Hearing 02-02-2010
Next Hearing Date 02-02-2010
Assessment Year 2008-2009
Appeal Filed On 04-09-2008
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV JUDICIAL MEMBER AND SHRI BR BASKARAN ACCOUNTANT MEMBER ITA NO.468/VIZAG/2008 ASSESSMENT YEAR : 2008-09 SWARNANDHRA EDUCATIONAL SOCIETY NARASAPUR ITO WARD-1 PALAKOLE (APPELLANT) VS. (RESPONDENT) PAN NO.ABKFS 6017Q APPELLANT BY: SHRI S. RAMA RAO RESPONDENT BY: SHRI G.S.S. GOPINATH DR ORDER PER SHRI S.K. YADAV JUDICIAL MEMBER:- THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT ON FOLLOWING GROUNDS: 1. THE APPELLANT SOCIETY IS EXCLUSIVELY DEVOTED TO THE CAUSE OF EDUCATION WHICH IS A CHARITABLE PURPOSE WITHIN THE MEANING OF S.2(15) OF THE I.T. ACT 1961 AND AS SUCH IT IS A CHARITABLE INST ITUTION AND HENCE REGISTRATION OUGHT TO HAVE BEEN GRANTED TO THE APPE LLANT U/S 12AA OF THE I.T. ACT 1961. 2. THE APPELLANT SOCIETY HAVING BEEN FORMED EXCLUSIVEL Y FOR THE CAUSE OF EDUCATION AND NOT WITH ANY PROFIT MOTIVE AS MADE CL EAR IN ITS CONSTITUTING DOCUMENTS NAMELY MEMORANDUM OF SOCIET Y AND THE ARTICLES AND THE SOCIETY IS NOT BEING RUN ON COMME RCIAL BASIS. AS SUCH REFUSAL TO GRANT REGISTRATION U/S 12AA IS NOT JUSTIFIED. 3. ANY OTHER REASON THAT MAY BE URGED AT THE TIME OF H EARING. 2. DURING THE COURSE OF HEARING OF THE APPEAL THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT CIT HAS REJECTED THE RE GISTRATION U/S 12AA AND EXEMPTION U/S 80G OF THE I.T. ACT FOR THE REASONS T HAT THE TRUST IS NOT DOING ANY CHARITABLE ACTIVITIES EXCEPT RUNNING ENGINEERIN G COLLEGES BY IMPARTING CERTAIN COURSES ON COMMERCIAL BASIS. THE FINDING O F THE CIT IS WITHOUT REASONS AND NOTHING HAS BEEN BORNE OUT FROM IT AS T O ON WHAT BASIS HE HAS DRAWN THE INFERENCE THAT ASSESSEE IS ENGAGED IN RUN NING OF ITS COLLEGE ON COMMERCIAL BASIS. THE LD. D.R. ON THE OTHER HAND HA S SIMPLY PLACED THE RELIANCE UPON THE ORDER OF THE CIT. 2 3. HAVING CAREFULLY EXAMINED THE ORDER OF THE LOWER AUTHORITIES WE FIND THAT CIT HAS NOT GIVEN PROPER REASONS AS TO ON WHAT BASIS HE HAS DRAWN INFERENCE THAT ASSESSEE TRUST IS NOT DOING ANY CHAR ITABLE ACTIVITIES EXCEPT RUNNING ENGINEERING COLLEGES BY IMPARTING CERTAIN C OURSES ON COMMERCIAL BASIS. WE THEREFORE OF THE VIEW THAT THIS MATTER S HOULD GO BACK TO THE FILE OF THE CIT FOR FURTHER RE-ADJUDICATION OF THE ISSUE BY PASSING A SPEAKING ORDER AND ALSO BY GIVING REASONS ON WHAT BASIS HE HAS CO NCLUDED THAT THE ASSESSEE IS ENGAGED IN RUNNING OF THIS ENGINEERING COLLEGES ON COMMERCIAL BASIS. ACCORDINGLY THE ORDER OF CIT IS SET ASIDE AND MATT ER IS RESTORED TO HIM FOR FRESH ADJUDICATION IN TERMS INDICATED ABOVE. 4. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 24.2.2010 SD/- SD/- (BR BASKARAN) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER VG/SPS VISAKHAPATNAM DATED 24 TH FEBRUARY 2010 COPY TO 1 SWARNANDHRA EDUCATIONAL SOCIETY D.NO.4-3-10 SIV ALAYAM STREET NARASAPUR-534 275 WEST GODAVARI DISTRICT (AP) 2 ITO WARD-1 PALAKOL 3 THE CIT RAJAHMUNDRY 4 THE CIT(A) RAJAHMUNDRY 5 THE DR ITAT VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM