M/S VISWAKALYAN EDUCATIONAL CULTURAL& SOCIAL ASSOCIATION,VIJAYAPURA vs. THE INCOME TAX OFFICER (EXEMPTION) WARD-1, GULBARGA

M/s. Viswakalyan Educational Cultural & The Income Tax Social Association, Officer Excellent School, vs. [Exemptions], Ashram Road, Adarsh Ward – 1, Nagar, Gulbarga. Vijayapura – 586 103. PAN: AAAAV5544K APPELLANT RESPONDENT Appellant by : Shri Ravi Shankar, Advocate Respondent by : Shri D. Kiran, JCIT (DR) Date of hearing : 03.01.2019 Date of Pronouncement : 11.01.2019 O R D E R

Per Shri A.K. Garodia, Accountant Member

by the assessee are as under. “1. The orders of the authorities below in so far as they are against the appellant are opposed to law, equity, weight of evidence, probabilities, facts and circumstances of the case.

2. The learned CIT [A] is not justified in upholding the denial of exemption claimed u/s.10 [23C] [iiiad] in respect of the sum of Rs. 5,25,000/- on the ground that the said income from running coaching classes did not qualify for exemption u/s. 10[23C][iiiad] of the Act, under the facts and in the circumstances of the appellant's case. 2.1 The learned CIT[A] failed to appreciate that the aforesaid income derived by the appellant was also in furtherance of imparting education and not for the purpose of profit and consequently, the exemption claimed u/s.10[23C][iiiad] of the Act ought not to have been denied.

3. Without prejudice to the above, the learned CIT[A] is not justified in upholding the addition of Rs.8,94,000/- being the donation received by the appellant holding that the same has to be treated as income u/s.115BBC[3] of the Act, which provisions are not attracted to the Page 2 of 4 facts of the appellant's case since the appellant has given the name and address of the donors and thus the impugned addition made deserves to be deleted.

4. The learned CIT[A] is not justified in upholding the addition of Rs.10,95,500/- being the Building fund received by the appellant holding that the same has to be treated as income u/s.115BBC[3] of the Act, which provisions are not attracted to the facts of the appellant's case since the appellant has given the name and address of the donors and thus the impugned addition made deserves to be deleted.

6. Without prejudice to the right to seek waiver with the Hon'ble CCIT/DG, the appellant denies itself liable to be charged to interest u/s. 234A and 234B of the Act, which under the facts and in the circumstances of the appellant's case deserves to be cancelled.

5. I have considered the rival submissions and in view of the facts discussed above, I admit the additional ground raised by the assessee and restore the matter back to the file of CIT(A) for decision on merit of this issue. Regarding the various grounds raised by assessee on merit, I feel it proper to restore the same also to the file of CIT(A) for fresh decision after deciding the technical aspect first because the issue on merit should be decided after final decision on technical aspect. Moreover, the issue on merit is decided by CIT (A) in cryptic manner as per Para 4 of his order without considering various details provided by the assessee before AO and CIT(A) in respect of Page 4 of 4 receipt of donations by the assessee during the present year of Rs. 10,19,500/- on account of building fund as available on pages 18 to 24 of the paper book and Rs. 8,94,000/- on account of other donations as per the details available on page nos. 25 to 30 of paper book. As per the assessee, these details were furnished by assessee before AO and CIT(A) both but, CIT(A) states in Para 4.2 of his order that in the case of the assessee, complete details of donors were not submitted by assessee during assessment proceedings. For this reason also, I feel it proper to restore the entire matter back to the file of CIT(A) for fresh decision after providing adequate opportunity of being heard to both sides. In view of this decision, no adjudication on merit is called for at the present stage.

Order pronounced in the open court on the date mentioned on the caption page.