St.Ann'S Convent, Hyderabad vs Department Of Income Tax

This is a Revenue appeal against the order of the Commissioner of Income Tax (Appeals)-IV, Hyderabad dated 11-06-2014. In spite of issuing notices, none appeared on behalf of assessee-respondent. In view of this, appeal was decided ex-parte after hearing the Ld. DR.

2. Briefly stated, assessee is registered u/s. 12A of the Income Tax Act [Act] but had not been notified u/s. 10(23C) of the Act. Assessee runs one educational institution namely St. Ann's Girls High School, Vijay Nagar Colony, Hyderabad. Assessee is running an educational I.T.A. No. 1447/Hyd/2014 :- 2 -: St. Ann's Convent

institution and is existing solely for educational purposes. Assessing Officer (AO) was of the opinion that since assessee's receipts exceeded Rs. 1 Crore, in order to get exemption u/s. 11, assessee is required to obtain the approval from CCIT/DCIT as per the provisions of Section 10(23C)(vi). Since assessee failed to obtain the required approval, the AO denied the exemption in the proceedings u/s. 143(3) r.w.s. 147 of the Act.

3. Ld.CIT(A) considering the fact that assessee is registered u/s. 12A and following various judicial principles held that once all the requisite conditions for exemption u/s. 11 were met, even if the conditions u/s. 10(23C)(vi) had not been complied with, there will be no bar to seek exemption u/s. 11. Accordingly, the issue was decided in favour of assessee. Revenue is aggrieved.

4. After hearing the Ld. DR and considering the facts on record, we do not see any reason to interfere with the well reasoned order of the CIT(A). Co-ordinate bench in various cases have already held that registration u/s. 10(23C)(vi) is not pre-requisite to claim exemption u/s. 11, in case it fulfills all the requisite conditions for exemption u/s. 11. The Ld.CIT(A) followed the judicial pronouncements of the following cases:

i. CIT Vs. Bar Council of Maharastra [1981] 130 ITR 28 (SC);

ii. American Hotel and Lodging Association/Educational Institute Vs. CBDT (2008) (170 Taxman 306) (SC);

iii. Rajasthani Siksha Samithi (ITA No. 80 & 81/Hyd/2008);

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iv. St. Theresa's Convent Society, Hyderabad (ITA No. 844/Hyd/08);

v. ADIT (Exemptions) Vs. Louis Educational Society, (ITA No. 1456/Hyd/2008, 26-12-2008); and

vi. AP Society for Knowledge (ITA No. 843/Hyd/09, dt. 09-10-2009).

5. Since legal principles are already established and as Ld.CIT(A) followed the principles which are in tune with the co-ordinate bench orders also, we do not see any reason to interfere with the orders of CIT(A). Revenue's grounds are accordingly rejected.

6. In the result, appeal is dismissed.

Order pronounced in the open Court on 24th June, 2015.

Sd/- Sd/- (SAKTIJIT DEY) (B. RAMAKOTAIAH) JUDICIAL MEMBER ACCOUNTANT MEMBER

Hyderabad, Dated 24th June, 2015

TNMM I.T.A. No. 1447/Hyd/2014 :- 4 -: St. Ann's Convent

Copy to :

1. Dy. Director of Income Tax (Exemptions)-II, 3rd Floor, Aayakar Bhavan, Basheerbagh, Hyderabad.

2. St. Ann's Convent, Vijay Nagar Colony, Hyderabad.

3. CIT(Appeals)-IV, Hyderabad.

4. DIT (Exemptions), Hyderabad.

5. D.R. ITAT, Hyderabad.

6. Guard File.