Commissioner of Income-tax (Exemption), Lucknow v. Maharan Pratap Educational Centre
[Citation -2017-LL-0712-20]

Citation 2017-LL-0712-20
Appellant Name Commissioner of Income-tax (Exemption), Lucknow
Respondent Name Maharan Pratap Educational Centre
Court HIGH COURT OF ALLAHABAD AT LUCKNOW
Relevant Act Income-tax
Date of Order 12/07/2017
Assessment Year 2010-11
Judgment View Judgment
Keyword Tags income from business • commercial in nature • benefit of exemption • excessive or unreasonable expenditure • deduction of tax at source • disallowance of expenditure
Bot Summary: Heard Sri Alok Mathur, learned counsel for appellant and learned counsel for respondent. This is an appeal under Section 260A of the Income Tax Act, 1961 arising from judgment dated ITA No. 758/LKW/2014 relating to assessment year 2010-11. Tribunal considered following five issues, raised by Revenue in appeal before Tribunal challenging order of Commissioner of Income Tax-II, Kanpur dated 12.06.2014:- That the Ld. Commissioner of Income Tax-II, Kanpur has erred in law and on facts in allowing exemption U/S 11 12 of the Income Tax Act, 1961 to the assessee without appreciating the fact that the Ld. CIT-I, Kanpur has withdrawn the registration u/s 12A of the Income Tax Act, 1961 granted to the assessee on the basis that the assessee was carrying on its educational activities on commercial basis and income derived therefore was being diverted for the personal uses of the members of the society. Commissioner of Income Tax-II Kanpur has erred in law and on facts in not appreciating the fact that restoration of registration u/s 12A of the Income Tax Act, 1961 by Hon ble ITAT was not accepted by the department and the same is pending before Hon ble High Court, Allahabad for adjudication. That the order of learned CIT-II, Kanpur dated 12.06.2014 needs to be quashed and the order passed by the Assessing Officer dated 25.02.2013 to be restored 4. 1 and 3 has observed that in view of restoration of registration under Section 12A, Assessing Officer has now to compute income as per Section 11 and 12 of Act, 1961 and if Assesses is able to establish that 85 percent or more of the income of Assessee has been utilized for the purpose of Assessee then income of Assessee should be exempted. In these facts and circumstances, we do not find that any substantial question of law which is pre- condition for admission of appeal has arisen in this appeal.


Court No. - 3 Case :- INCOME TAX APPEAL No. - 154 of 2015 Appellant :- Commissioner Of Income Tax (Exemption) Aayakar Bhawan Lko. Respondent :- M/S Maharan Pratap Educational Centre Sharda Nagar Kanpur Counsel for Appellant :- Alok Matur Hon'ble Sudhir Agarwal,J. Hon'ble Ravindra Nath Mishra-II,J. 1. Heard Sri Alok Mathur, learned counsel for appellant and learned counsel for respondent. 2. This is appeal under Section 260A of Income Tax Act, 1961 (hereinafter referred to as " Act 1961") arising from judgment dated ITA No. 758/LKW/2014 relating to assessment year 2010-11. 3. Tribunal considered following five issues, raised by Revenue in appeal before Tribunal challenging order of Commissioner of Income Tax (Appeals)-II, Kanpur dated 12.06.2014:- " That Ld. Commissioner of Income Tax (Appeals)-II, Kanpur has erred in law and on facts in allowing exemption U/S 11 & 12 of Income Tax Act, 1961 to assessee without appreciating fact that Ld. CIT-I, Kanpur has withdrawn registration u/s 12A of Income Tax Act, 1961 granted to assessee on basis that assessee was carrying on its educational activities on commercial basis and income derived therefore was being diverted for personal uses of members of society. That ld. Commissioner of Income Tax (Appeals)-II Kanpur has erred in law and on facts in not appreciating fact that restoration of registration u/s 12A of Income Tax Act, 1961 by Hon ble ITAT was not accepted by department and same is pending before Hon ble High Court, Allahabad for adjudication. That Ld. Commissioner of Income Tax (Appeals)-II Kanpur has erred in law and on facts in not appreciating fact that Assessing Officer has rightly treated income of assessee as Income from business or profession treating status of society as AOP. That Ld. Commissioner of Income Tax (Appeals)-II, Kanpur has erred in law and on fact in not appreciating fact that payment of salary to persons specified u/s 13(3) of Income Tax Act, 1961 was excessive and Assessing Officer has rightly disallowed Rs. 5,40,000/- under this head. 2 That Ld. Commissioner of Income Tax (Appeals)-II, Kanpur has erred in law and on facts in deleting disallowance of Rs. 1,72,908/- under head interst on TDS without appreciating fact assessee could not substantiate expenditure during course of assessment proceedings. That order of learned CIT (A)-II, Kanpur dated 12.06.2014 needs to be quashed and order passed by Assessing Officer dated 25.02.2013 to be restored 4. Tribunal considering issues no. 1 and 3 has observed that in view of restoration of registration under Section 12A, Assessing Officer (hereinafter referred to as A.O ) has now to compute income as per Section 11 and 12 of Act, 1961 and if Assesses is able to establish that 85 percent or more of income of Assessee has been utilized for purpose of Assessee then income of Assessee should be exempted. 5. With respect to ground no. 4, it has rejected contention of Revenue and in our view this ground was also factual inasmuch as what should be amount of salary is matter to be seen between parties and not from point of view on Revenue authorities. 6. With respect to ground no. 5, Tribunal has remanded matter to A.O to decide matter afresh. 7. In these facts and circumstances, we do not find that any substantial question of law which is pre- condition for admission of appeal has arisen in this appeal. 8. Dismissed. Order Date :- 12.7.2017 Pachhere/- Commissioner of Income-tax (Exemption), Lucknow v. Maharan Pratap Educational Centre
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