M/S. SWAMY VEVEKANANDA EDUCATIONAL SOCIETY,JAGGAMPETA vs. THE CIT(EXEMPTIONS), HYDERABAD

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ITA 23/VIZ/2017Status: DisposedITAT Visakhapatnam25 January 20185 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT (Exemptions) had rejected the application based on the general nature of two objects. The assessee's counsel argued that these objects were amended.

What were the facts?

The assessee, an educational society, applied for exemption under Section 10(23)(vi) of the Income Tax Act. The CIT (Exemptions) rejected the application because two of the society's five objects were deemed general in nature.

What were the issues?

Whether the objects of the educational society are solely for educational purposes to qualify for exemption under Section 10(23)(vi) of the Act.

Which sections of the Income-tax Act were involved?

Section 10(23)(vi)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM

Before: SHRI V. DURGA RAO, HON’BLE & SHRI D.S. SUNDER SINGH, HON’BLE

For Appellant: Shri G.V.N. Hari – Advocate
For Respondent: Shri Deba Kumar Sonawal – CIT DR
Hearing: 10/01/2018

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO, HON’BLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH, HON’BLE ACCOUNTANT MEMBER ITA No. 23/VIZ/2017

M/s. Sri Swamy Vivekananda vs. CIT (Exemptions) Educational Society, D.No. 6-40, Hyderabad. Kakinada Road, Jaggampeta, East Godavari District. PAN No. AAHAS 2064 G (Appellant) (Respondent)

Assessee by : Shri G.V.N. Hari – Advocate. Department By : Shri Deba Kumar Sonawal – CIT DR

Date of hearing : 10/01/2018. Date of pronouncement : 25/01/2018.

O R D E R PER V. DURGA RAO, JUDICIAL MEMBER

This appeal by the assessee is directed against the order of Commissioner of Income Tax (Exemptions), Hyderabad, dated 11/11/2016. 2. Facts of the case, in brief, are that assessee - M/s. Sri Swami Vivekananda Educational Society filed an application before the ld.CIT(Exemptions) in Form No. 56D, seeking exemption under section 10(23)(vi) of the Income Tax Act, 1961 (hereinafter referred to as "Act") from the F.Y. 2015-16 onwards. The

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ld.CIT(Exemptions) has rejected the application filed by the assessee on the ground that the assessee society is not existing solely for educational purpose. Two objects, out of five, are general in nature, which are reproduced as under:- “(i) To develop social contracts and spirit of fellow feeling among its members and to maintain a library with good books, periodicals and newspapers. (ii) To develop the social and cultural activities for the welfare of the society.”

Keeping in view of the above objects, the ld. CIT(Exemptions) rejected the application filed by the assessee under section 10(23)(vi) of the Act. 3. The assessee is in appeal before the tribunal. 4. Ld. counsel for the assessee has submitted that initially there are five objects, out of which, two are general in nature. Subsequently, the assessee filed an amendment application before the Registrar of Societies for deleting two objects by letter dated 07/05/2015. The same was informed to the ld. CIT(Exemptions) vide letter dated 09/11/2016 through post. However, ld. CIT (Exemptions) passed the order dated 11/11/2016 and by the time of passing of order, the amended letter was not before the ld.CIT (Exemptions). It is submitted that all the objects of the assessee-

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society are only for the purpose of education and therefore, the amended objects may be considered and directed the ld.CIT (Exemptions) to pass a afresh order in accordance with law. 5. On the other hand, ld. Departmental Representative strongly supported the order passed by the ld.CIT(Exemptions) and submitted that the order of ld.CIT(Exemptions) is as per the objects of the assessee-society. 6. We have heard both the parties, perused the material available on record and the order of the ld.CIT(Exemptions) 7. The assessee-Sri Swami Vivekananda Educational Society has filed an application before the ld.CIT (Exemptions), seeking exemption under section 10(23)(vi) of the Act in Form No. 56D dated 13/04/2016 along with the following objects:- “(i) To develop social contacts and spirit of fellow feeling among its members and to maintain a library with good books, periodically newspapers. (ii) To strive for the eradication of illiteracy. (iii) To develop the social and cultural activities for the welfare of the society. (iv) To promote rural and adult education. (v) To establish schools, colleges and similar institutions in A.P.”

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8.

The ld.CIT (Exemptions) has considered the objects of the assessee-society and noted that there are two objects, which are not at all relating to the education, those are (i) To develop social contracts and spirit of fellow feeling among its members and to maintain a library with good books, periodicals and newspapers and (ii) To develop the social and cultural activities for the welfare of the society, and denied the registration claimed by the assessee. On appeal before us, it is submitted that subsequently the assessee has amended the objects. The amended objects are filed before us as follows:- (1) To strive for the eradication of illiteracy. (2) To promote rural and adult education. (3) To establish schools, colleges and similar institutions in A.P. He further submitted that the same were filed before the ld.CIT(A), but ld. CIT(A) passed the order before reaching the amended objects. In view of the above facts and circumstances of the case, we are of the opinion that the ld.CIT (Exemptions) has not considered the amended objects and passed the order based on the original objects of the assessee-society. Therefore, we set aside the order passed by the ld. CIT(A) and direct him to consider the amended objects and pass orders afresh in

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accordance with law. Thus, this ground of appeal raised by the assessee is allowed for statistical purpose. 9. In the result, appeal filed by the assessee is allowed for statistical purpose. Order Pronounced in open Court on this 25th day of Jan., 2018.

Sd/- sd/- (D.S. SUNDER SINGH) (V. DURGA RAO) Accountant Member Judicial Member Dated : 25th January, 2018. vr/- Copy to: 1. The Assessee - M/s. Sri Swamy Vivekananda Educational Society, D.No. 6-40, Kakinada Road, Jaggampeta, East Godavari District. 2. The Revenue - CIT (Exemptions), Hyderabad. 3. The D.R., Visakhapatnam. 4. Guard file. By order

(VUKKEM RAMBABU) Sr. Private Secretary, ITAT, Visakhapatnam.

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