Income Tax Appellate Tribunal - Pune
Sinhagad Technical Education ... vs Assistant Commissioner Of ... on 6 January, 2017
आयकर अपील य अ धकरण पुणे यायपीठ "ए" पण
ु े म
IN THE INCOME TAX APPELLATE TRIBUNAL
PUNE BENCH "A", PUNE
ी आर. के. पांडा, लेखा सद य
एवं ी वकास अव थी, या"यक सद य के सम#
BEFORE SHRI R.K. PANDA, AM
AND SHRI VIKAS AWASTHY, JM
रोक आवेदन सं. / S.A. No.104/PUN/2016
(Arising out of ITA No.2076/PUN/2014)
"नधा&रण वष& / Assessment Year : 2008-09
Sinhgad Technical Education .......... अपीलाथ /
Society, Appellant
19/15, Erandwane,
Smt. Khilare Marg,
Erandwane, Off Karve Road,
Pune-411 004
PAN AABTS9900Q
बनाम v/s
ACIT, Central Circle-2(2), Pune
.......... यथ /
Respondent
आवेदक क ओर से / Applicant by : Shri S.N. Doshi
यथ क ओर से / Respondent by : Shri Anil Chaware h
सन
ु वाई क तार ख / घोषणा क तार ख /
Date of Hearing : 06.01.2017 Date of Pronouncement:06.01.2017
आदे श / ORDER
PER VIKAS AWASTHY, JM :
The assessee has filed this petition for stay of outstanding demand arising out of order passed by the Commissioner of Income-tax (Appeals) Central, Pune dated 14-10-2014 for Assessment Year 2008-09.
2. Shri S.N. Doshi appearing on behalf of the assessee submitted that the petitioner/assessee is a trust registered under the Bombay Public Trust Act, 1950, Societies Registration Act, 1860 and is also registered u/s.12A of the Income Tax Act, 1961 (hereafter referred to as 'the Act'). The assessee is running several educational institutions imparting 2 education in the field of medicine, law, engineering, management etc. The Assessing Officer while completing scrutiny assessment for A.Y. 2008-09 held that the assessee has violated the provisions of section 11(2) r.w.s. 11(5) of the Act, therefore, the benefit available to the assessee trust is not allowable by virtue of the provisions of section 13(1)(d) of the Act. Exemption claimed u/s.11 has been denied to the assessee on the ground that the assessee has paid excess rent of Rs.8,69,356/- to M.N. Navale, Managing Trustee in respect of property taken on rent from him. In first appeal, the CIT(A) has held that there cannot be contravention of section 13(1)(c) in respect of the property acquired on rent from M.N. Navale (Bigger HUF), as it does not fall under the category of specified/prohibited person u/s.13(3) of the Act. The Ld. AR contended that assuming but without admitting the payment of any excess rent, if the same analogy is applied to the rent paid to Shri M.N. Navale there would not be total denial of exemption. It is only the alleged excess rent that would not qualify for exemption. The Ld. AR in support of his submissions placed reliance on the decision of Hon'ble Karnataka High Court in the case of CIT Vs. Karnataka Industrial Area Development Board in ITA No.557/2008 decided on 17-06-2014. The Ld. AR further submitted that the judgment of Hon'ble High Court was challenged by the department before the Hon'ble Supreme Court of India. The Hon'ble Apex Court dismissed the SLP of department vide order dated 11-11-2016.
The Ld. AR prayed that the assessee has prima-facie good case in its favour, therefore, the outstanding demand of Rs.35,32,758/- be stayed.
3. On the other hand, Shri Anil Chaware representing the department strongly opposed the stay of outstanding demand. 3
4. We have heard the submissions made by the rival sides. The addition in case of assessee for A.Y. 2008-09 has been confirmed by CIT(A) on the premise that the assessee has violated the provisions of section 11 of the Act. After examining the impugned order, we are prima-facie of the view that the outstanding demand of Rs.35,32,758/- deserves to be stayed. Accordingly, the recovery of outstanding amount is stayed for the period of 180 days from the date of this order or the disposal of the appeal, whichever is earlier.
5. In the result, the stay application of assessee is allowed in aforesaid terms.
Pronounced in the Open Court on Friday, the 6th day of January, 2017.
Sd/- Sd/-
(R.K. PANDA) (VIKAS AWASTHY)
ACCOUNTANT MEMBER JUDICIAL MEMBER
पण
ु े Pune; !दनांक Dated : 06 January, 2017
th
सतीश
आदे श क) *"त,ल प अ-े षत/Copy of the Order forwarded to :
1. अपीलाथ / The Appellant
2. यथ / The Respondent
3. The CIT(A) Central, Pune
4. The CIT Central, Pune
5. %वभागीय (त(न)ध, आयकर अपील य अ)धकरण, "ए" पण ु े / DR, ITAT, "A" Pune;
6. गाड- फाईल / Guard file.
आदे शानस ु ार/ BY ORDER, //True Copy/ // True Copy // व/र0ठ (नजी स)चव / Sr. Private Secretary आयकर अपील य अ)धकरण, पण ु े / ITAT, Pune