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TMI Blog2023 (5) TMI 1363X X X X Extracts X X X X X X X X Extracts X X X X ..... on record. As regards the publication of books the assessee making available the books cost recovery basis. HELD THAT:- It is not disputed by assessee that the order of the assessment is passed before the judgement given by the Jurisdictional High Court and there is no discussion in the order of the ld. CIT(A) about the Honourable High Court judgement on merits of the case. In view of the peculiar circumstances of the case wherein there is no discussion on merits of the case viz a viz the decision of the Honourable Jurisdictional High Court in the orders of the ld. CIT(A). Even the arguments that the revenue is raising was not arising from the order of the lower authorities. Based on these aspect of the case we feel that it would be in the interest of the justice to remand back the matter to the record of the ld. CIT(A) for deciding the appeal afresh on merits of the case after considering the judgement of the Honourable High Court in the case of the assessee for A. Y. 2010-11 after giving an opportunity of being heard to the assessee - Appeal of the assessee is allowed for statistical purpose. - SHRI SANDEEP GOSAIN, JM AND SHRI RATHOD KAMLESH JAYANTBHAI, AM For the Assessee : Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion and book sale with no profit motive. The society has declared total receipts of Rs.2,01,24,884/- and application Rs.1,02,54,750/- for the year under consideration. The academy has claimed exemption u/s 10(23C)(iiiab) and 10(23C)(iv) r.w.s. 2(15) of IT Act amounting Rs.98,70,134/- and has declared taxable income of Rs. 0/-. 3.2 In the assessment proceeding, the assessing officer observed that the assessee is an independent body which publishes text books and other publications for which the academy obtains grant from State Govt. Sales proceeds are being deposited into banks and creates a revolving fund. During the year under consideration the assessee society has declared surplus of Rs.98,70.134/- and has been claimed exemption u/s 10(23C) (iiiab) and 10(23C)(iv) rws 2(15). The AR of the assessee was asked as to why exemption claimed by the academy may not be disallowed because the assessee does not fall under ambit of provisions of section 10(23C)(iiiab) and 10(23C) rws 2(15). In response, the AR has furnished a copy of Hon ble ITAT s order in its own case of the academy for the AY 2010-11. On perusal of said ITAT s order, it revealed that during the course of finalization of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clause (iv) of section10(23C) also. Since income of the appellant claimed to be exempt is not find to be exempt under any cause of Section 10, Assessing Offer is Justified in not granting exemption to the appellant. Accordingly, addition made by the AO is confirmed. 3.6 However, in alternate additional ground of the assessee that lower authorities did not extend the benefit of income so assessed u/s 11(2) of the Act despite the fact that the assessee is registered is u/s 12A of the IT Act and prayed to ITAT that AO may be directed to give benefit of the income u/s 11(2) if the exemption u/s 10(23C)(iiiab) and (iv) is denied. 3.7 Hon ble ITAT has allowed the alternate additional ground of the assessee and directed to AO to give the benefit to the assessee u/s 11(2) of the Act. 3.8 Thereafter, during the assessment proceedings, the assessee has revised its computation of total income before the undersigned dated 23/09/2016 claiming therein benefit of section 11(2) amounting to Rs 98,70,134/-. 3.9 The contention of the assessee as well as its revised computation considered carefully but not found the same as acceptable because to claim benefit of section 11(2), the assessee had to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fact that the appellant is a Government institution will not entitle it to benefits u/s 11(2). If Government institutions itself start disregarding government rules/procedures, then very bad precedent will be set up for others. The Assessing Officer has rightly denied benefit to the appellant. This ground of appeal is therefore rejected. 5. As the assessee not satisfied with the finding of the ld. CIT(A), assessee filed the present appeal before the tribunal. Apropos to the grounds so raised by the assessee the ld. AR appearing on behalf of the assessee has heavily placed reliance to their written submission which is extracted in below; The Appellant Rajasthan Hindi Granth Academy is an autonomous body was established constituted by the State Government for publication and production of books in hindi and other regional language for post graduate student in Universities in India as per the Education Policy Decision of the Ministry of Education Social Welfare, Department of Education L-02, Section of Government of India. It has registered as institution under Registrar of Sansthan vide Reg no 108 in 1969-70. The said institution is also Registered u/s 12AA of the IT Act from 01.04. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considered. The similar issue has also decided in various other cases where similar activities has been treated educational purposes: Hon. Delhi High Court in Indian School Certificate examination VS. DGIT (2012) 362 ITR 436 Hon. Delhi High Court- in Delhi Bureau of Text books Vs DIT(E)- ITA NO. 807/2015 dt 3-5-2017 Hon. Patna High Court-in Bihar Text Book Publication Corporation Vs CIT(2011)- 241 CTR 403 Hon. Supreme Court-Assam State Text book Production and Publication Corpn. VS CIT (2009)-319 ITR 317 Hon. Rajasthan High Court - CIT VS Rajasthan State Text Book Board (2000) 13 Taxman 204 Hon. Orrisa High Court in Secondary Board of Education Vs ITO(1972) 86 ITR 408. Hon. Madhya Pradesh High Court in CIT VS Madhya Pradesh Rajya Pathya Pustak Nigam (2009) 318 ITR 497 Hon. Karnataka High Court in DIT Vs Dhampakasha Rajakarya Prasakta B.M. Shreenivasiah Educational Trust (2015) 372 ITR 307. 2. On merit we further submit as under: 2.1 Correct facts and provision not considered: At the very outset it is submitted that the Id A.O has failed to consider the corrects facts of the case and law/provisions applicable in the present case while denying the exemption u/s 10(23C)(iiiab). As per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... istry of Education, Govt. of India, New Delhi, are required to be transferred to a Revolving Fund out of which expenditure of the text publication of books are met. Incidentally the sale proceeds, not immediately used in meeting the expenditure in respect of next publication of books in Hindi are placed as fixed deposit in a Schedule Bank on which amount of interest is accrued and accounted for accordingly in the books of the Appellant maintained in the ordinary course of its directed activities And assessee itself not having own control. The said institution is Registered u/s 12AA of the IT Act from 01.04.2007 vide certificate (PB 42) of CIT-II Jaipur. As the Appellant, Rajasthan Hindi Granth Academy, Jaipur came into existence as a policy decision of Ministry of Education, Government of India, New Delhi established for the purpose of publication of books in Hindi language for post graduate student of universities in India. 2.2. The Appellant, being an Educational Institute established by the Ministry of Education, Govt. of India, New Delhi is not a Institute established for the purpose and with a view to earn any kind of income/profit which is chargeable to income- tax. The Appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o allow the exemption u/s 1 0(23C) (illab) and addition so made may also kindly be deleted in full. Alternatively and without prejudice to the above submission, the Id. AO is erred in law as well as on the facts of the case in not giving the benefit of the income so assessed under of S. 11 (2) despite the facts that the assessee is registered u/s 12A for which the assessee is entitled as per law(PB 42). Because the authority has or Revenue has accepted the Registration u/s 12A and the activities are in charitable in nature. Further the Honble ITAT has also accepted the benefit u/s 11(2) to the assessee-vide order in ITA No. 440/ JP /2014 dt. 08.09.2016 for A.Y. 2010-11 on similar fact. Copy of the order is enclosed. (PB 69-77) 6. In addition to the written submission the ld. AR of the assessee submitted that the issue is squarely covered by the decision of the Hon ble Rajasthan High Court in the assessee s own case and the fact of the case before the Rajasthan High Court in that year and this year are almost similar. There is no discussion of differentiating the judgment of the hon ble high court and relying on judgement he prayed to take a consistent view of the matter as there is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chh Bharat Kosh, set up by the Central Government; or (iiiaaa) the Clean Ganga Fund, set up by the Central Government; or (iiiaaaa) the Chief Minister's Relief Fund or the Lieutenant Governor's Relief Fund in respect of any State or Union territory as referred to in sub- clause (iiihf) of clause (a) of sub-section (2) of section 80G; or (iiiab) any university or other educational institution existing solely for educational purposes and not for purposes of profit, and which is wholly or substantially financed by the Government 89; or (iiiac) any hospital or other institution for the reception and treatment of persons suffering from illness or mental defectiveness or for the reception and treatment of persons during convalescence or of persons requiring medical attention or rehabilitation, existing solely for philanthropic purposes and not for purposes of profit, and which is wholly or substantially financed by the Government 90. Explanation. For the purposes of sub-clauses (iiiab) and (iiiac), any university or other educational institution, hospital or other institution referred therein, shall be considered as being substantially financed by the Government for any previous ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... financial aspect of the assessee in the year under consideration. 10. We have heard the rival contentions and perused the material placed on record. It is not disputed by the ld. AR of the assessee that the order of the assessment is passed before the judgement given by the Jurisdictional High Court and there is no discussion in the order of the ld. CIT(A) about the Honourable High Court judgement on merits of the case. In view of the peculiar circumstances of the case wherein there is no discussion on merits of the case viz a viz the decision of the Honourable Jurisdictional High Court in the orders of the ld. CIT(A). Even the arguments that the revenue is raising was not arising from the order of the lower authorities. Based on these aspect of the case we feel that it would be in the interest of the justice to remand back the matter to the record of the ld. CIT(A) for deciding the appeal afresh on merits of the case after considering the judgement of the Honourable High Court in the case of the assessee for A. Y. 2010-11 after giving an opportunity of being heard to the assessee. The assessee is also directed to co-operate with the ld. CIT(A) in deciding the appeal and without s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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