DDIT, Hyderabad v. Institute for Development Researcj in Banking Technology, Hyderabad

ITA 522/HYD/2009 | 2005-2006
Pronouncement Date: 29-01-2010 | Result: Dismissed

Appeal Details

RSA Number 52222514 RSA 2009
Bench Hyderabad
Appeal Number ITA 522/HYD/2009
Duration Of Justice 9 month(s) 9 day(s)
Appellant DDIT, Hyderabad
Respondent Institute for Development Researcj in Banking Technology, Hyderabad
Appeal Type Income Tax Appeal
Pronouncement Date 29-01-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 29-01-2010
Date Of Final Hearing 20-01-2010
Next Hearing Date 20-01-2010
Assessment Year 2005-2006
Appeal Filed On 20-04-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B HYDERABAD BEFORE SHRI G.C.GUPTA VICE PRERSIDENT AND SHRI AKBER BASHA ACCOUNTANT MEMBER ITA NO. 522/HYD/09 : ASST. YEAR 2005-06 DDIT(E)-I HYDERABAD. V/S. INSTITUTE OF DEVELOPMENT AND RESEARACH IN BANKING TECHNOLOGY HYDERABAD. (PAN: AAAA10204K) (APPELLANT) (RESPONDENT) APPELLANT BY : SMT. VASUNDHARA SINHA RESPONDENT BY : SHRI LAKSHMI NIVAS SHARMA O R D E R PER AKBER BASHA ACCOUNTANT MEMBER THIS APPEAL BY THE DEPARTMENT IS DIRECTED AGAINST THE ORDER OF CIT (A)-IV HYDERABAD FOR ASSESSMENT YEAR 2005-06. 2. THE REVENUE RAISED THE FOLLOWING GROUNDS IN ITS AP PEAL: 'I. THE ORDER OF THE CIT(A) IS NOT ACCEPTABLE AS THE AC TIVITIES OF THE ASSESSEE IN CONDUCTING RESEARCH WORK BANKING AND FI NANCIAL SECTOR DO NOT CONSTITUTE CHARITABLE PURPOSE U/S 2(1 5) OF TH IT ACT SINCE NO BENEFIT ENURES TO THE PUBLIC. 2 II. THE CIT(A) ERRED IN HOLDING THAT THE ASSESSEE IS EN TITLED TO EXEMPTION U/S 11 OF THE IT ACT SINCE THE ASSESSEE H AS BEEN CHARGING FEES FOR THE SERVICES AND THE SERVICES PRO VIDED CANNOT BE CONSIDERED AS CHARITABLE PURPOSE U/S 2(15) OF TH E I T ACT. III. THE CIT(A) OUGHT TO HAVE CONFIRMED THE ADDITION OF RS. TEN CRORES TOWARDS GRANTS RECEIVED FROM RBI AS THE ASSE SSEE COULD NOT PROVE THE CAPITAL NATURE OF THE GRANTS. IV. THE CIT(A) ERRED IN OBSERVING THAT THE APPLICATION OF INCOME SHOULD BE WORKED OUT WITH REFERENCE TO RECEIPTS AND PAYMENT ACCOUNT AFTER MAKING NECESSARY ADJUSTMENTS AS APPL ICATION OF INCOME SHOULD BE ARRIVED AT ON THE BASIS OF INCOME & EXPENDITURE ACCOUNT. V. THE FACTS OF THE CASE IN THE CASE OF BAR COUNCIL OF MAHARASHTRA AND THE DECISION OF THE ITAT IN MURMUAGAO PORT TRUS T VS. CIT (2007) 109 ITD 303 ARE DISTINGUISHABLE FROM THE FAC TS OF THE PRESENT CASE. VI. THE DECISION OF THE CIT (A) FOR THE EARLIER ASST. Y EARS HAS BEEN CONTESTED BEFORE THE ITAT AND THE DECISION OF THE I TAT BEFORE THE AP HIGH COURT ON THE SIMILAR ISSUE.' 3. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE MATERI AL AVAILABLE ON RECORD. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE D ECISION OF THE TRIBUNAL IN THE ASSESSEE'S OWN CASE FOR THE ASSESSMENT YEAR 2004-05 IN ITA NO.520/HYD/2008 DATED 28-5-2008. MOREOVER THE DEPARTMENT ALSO GRANTED REGISTRATION U/S 12AA OF THE INCOME-TAX ACT W. E.F. 1-4-2004. COPY OF THE SAID ORDER DATED 28-2-2005 IS ALSO PLACED B EFORE US AT THE TIME OF HEARING. HENCE THE ASSESSING OFFICER IS NOT JUSTI FIED IN HOLDING THAT THERE WAS NO REAL BENEFIT TO THE GENERAL PUBLIC UTILITY BY APPLICATION OF RECEIPTS OF THE ASSESSEE-SOCIETY AND THAT THE PROVISIONS OF SECTION 11 (1)(A) READ WITH SECTION 2(15) CANNOT BE APPLIED. ON THE OTHER HAND THE LEARNED DR RELIED ON THE ORDER OF THE ASSESSING OFF ICER. WE FIND THAT 3 SIMILAR ISSUES HAD COME BEFORE THIS TRIBUNAL IN THE ASSESSEE 'S OWN CASE IN ITA NO. 1223/HYD/06 DATED 3-3-2008. IN THIS ORDE R THE TRIBUNAL FOLLOWED ITS EARLIER ORDER IN THE ASSESSEE'S OWN CASE FOR A SSESSMENT YEAR 2003-04 AND UPHELD THE ORDER OF THE CIT (A) ALLOWIN G EXEMPTION U/S 11 OF THE INCOME-TAX ACT. IN THE CASE UNDER CONSIDERATION T HE ASSESSING OFFICER HAS COMPUTED THE TOTAL INCOME OF THE ASSESSEE WITH OUT CONSIDERING THE EXEMPTION U/S 11 OF THE ACT. SINCE THE ASSESSEE IS ALREADY GRANTED REGISTRATION U/S 12AA OF THE ACT WE D O NOT SEE ANY INFIRMITY IN THE ORDER OF THE CIT (A). SINCE WE HAVE REJECTED THE MAIN GROUNDS RAISED BY THE REVENUE IN THIS APPEAL THE RE MAINING GROUNDS HAVE BECOME INFRUCTUOUS AND THEREFORE DO NOT REQUIRE ANY ADJUDICATION. 4. IN THE RESULT THE APPEAL BY THE REVENUE IS DISMISSED . ORDER PRONOUNCED IN THE COURT 29-1-2010. SD/- SD/- (G.C.GUPTA) (AKBER BASHA) VICE PRESIDENT. ACCOUNTANT MEMBER. DT/-29TH JANUARY 2010 COPY FORWARDED TO: 1. DY. DIRECTOR OF INCOME-TAX (E) I GROUND FLOOR L. B. STADIUM BASHEERBAGH HYDERABAD. 2. INSTITUTE FOR DEVELOPMENT AND RESEARCH IN BANKING TECHNOLOGY C/O GOWTHAMI ACADEMY OF GENERAL AND TECHNI CAL EDUCATION 3-6-198 VASAVI SREEMUKH HIMAYATNAGAR HYDERABAD. 3. COMMISSIONER OF INCOME-TAX HYDERABAD. 4. COMMISSIONER OF INCOME TAX(A)-IV HYDERABAD. 5. DEPARTMENTAL REPRESENTATIVE ITAT HYDERABAD. JMR* 4