PALLAVI EDUCATIONAL SOCIETY,SECUNDERABAD vs. INCOME TAX OFFICER, EXEMPTIONS-3, HYDERABAD, HYDERABAD

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ITA 1231/HYD/2017Status: DisposedITAT Hyderabad26 November 2020AY 2009-104 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal noted that exemption under Section 11 was allowed in an earlier appeal for the assessee's own case. Therefore, the AO was directed to recompute the income considering the ITAT's earlier directions.

What were the facts?

The assessee initially claimed exemption under Section 11, which was denied. Subsequently, the assessment was reopened to disallow a debit towards TDS, and the assessee's appeal against this addition was confirmed by the CIT(A).

What were the issues?

Whether the assessee is entitled to exemption under Section 11, and if so, how the income should be recomputed in light of earlier Tribunal orders.

Which sections of the Income-tax Act were involved?

Section 11,Section 13(1)(c),Section 143(3),Section 147,Section 144

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, HYDERABAD BENCHES “A” : HYDERABAD

Before: SMT. P. MADHAVI DEVI & SHRI A. MOHAN ALANKAMONY

For Assessee : Shri S. Rama Rao For Revenue : Shri Sunil Kumar Pandey Date of Hearing : 23-11-2020 Date of Pronouncement : 26-11-2020 O R D E R PER P. MADHAVI DEVI, J.M. :

This is an appeal of the assessee for the AY 2010-11 against the order of CIT(A) – 9, Hyderabad, dated 7th March, 2017 confirming the additions made in the assessment order passed u/s 143(3) rws 147 rws 144 of the IT Act.

2.

The ld. counsel for the assessee submitted that initially the assessee had filed its return of income on 30/09/2009 declaring nil income after claiming exemption u/s 11 of the Act. It was :- 2 -: Pallavi Educational Society, Sec’bad.

submitted that initially order u/s 143(3) of the Act was passed on 29/12/2011 denying the exemption claimed u/s 11 of the Act for violating the provisions of section 13(1)(c) of the act and the income was assessed at Rs. 60,95,011/-. Subsequently, the assessment was reopened u/s 147 of the Act and the assessee was asked to show cause as to why this assessment should not be completed by disallowing an amount of Rs. 1,08,262/- debited in the income and expenditure account towards TDS. Since the assessee did not appear and no explanation was offered, the AO passed exparte order and brought to tax the said amount of Rs. 1,08,262/-. Against this order, the assessee filed an appeal before the CIT(A), who confirmed the assessment order. Against the order of CIT(A), the assessee is in second appeal before the Tribunal.

3.

The ld. counsel for the assessee submitted that initially assessment order u/s 143(3) was passed denying the claim of exemption u/s 11, which was challenged before the CIT(A) and subsequently before the Tribunal and the Tribunal vide its order dated 13/12/2017 in has allowed the exemption u/s 11 of the IT Act. He, therefore, submitted that in the present appeal, the Tribunal may direct the AO to recompute the income of the assessee in accordance with the decision of the ITAT. The ld. DR also agreed to the same.

:- 3 -: Pallavi Educational Society, Sec’bad.

4.

Having regard to the rival contentions and perusing the material on record, we are of the view that since exemption u/s 11 has been allowed to the assessee by the Tribunal in the asesssee’s own case in the earlier appeal against the original assessment, it would suffice if the AO is directed to recompute the income by taking into consideration the directions of the ITAT. Accordingly, the appeal of the assessee is treated as allowed for statistical purposes.

5.

In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 26th November, 2020.

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