Wp/9071/2012 Of M/S J B Educational Society v. The Director General Of Income Tax [Investigation]

IN THE HIGH COURT OF JUDICATURE, ANDHRAPRADESH AT HYDERABAD WEDNESDAY, THE SEVENTEENTH DAY OFJULY TWO THOUSAND AND THIRTEEN PRESENT THE HON’BLE THE CHIEF JUSTICESRI KALYAN JYOTI SEN GUPTA AND THE HON'BLE MS. JUSTICE G.ROHINI WRIT PETITION No.9071 OF 2012 Between: M/s. J.B. Educational SocietyHaving its officer at 6-3-248/1/1/A,Bhaskar Plaza, Road No.1,Banjara Hills, Hyderabad,Rep. by its Secretary Mr.J.V.Krishna Rao ..... Petitioner AND The Director General of Income Tax (Investigation),9[th] Floor, Aayakar Bhavan, Basheerbagh,LB Stadium Road, Hyderabad and others .....Respondents The Court made the following : ORDER:(per the Hon’ble the Chief Justice Sri K.J. Sengupta) This writ petition is directed against the impugnedorder dated 16.12.2011 by which the Director Generalof Income Tax (Investigation) has held that thepetitioner assessee does not solely exist for educationalpurposes. On detailed fact finding it was held thatcommercial activity is being carried on instead ofcharitable activities and huge amount of money hasbeen collected by the assessee as capitation fee anddonation. In the background of the cases, since theobject of the assessee is defeated, the recognitiongranted to the assessee was withdrawn/rescinded witheffect from the assessment year 2000-2001 onwards,as on fact it was found that the assessee has violatedthe conditions under Sec.10(23C)(vi) of Income TaxAct. This fact-finding is so compact and based oninformation and particulars, we, in exercise of thepowers of judicial review, cannot substitute our ownfinding. In fact, there is no material to come to a differentfinding. Hence, we dismiss the writ petition. No costs. However, it is stated in the writ petition that againstthe order of assessment, appeals are pending.However, learned counsel for the respondents Mr. J.V.Prasad, says that the appeals were dismissed. There isno document to show that the appeals are dismissed. Therefore, we are of the view that in the event theappeals are pending and if they are allowed, then thequestion of fresh registration may be considered by theauthority concerned in accordance with law. ______________________ Kalyan Jyoti Sengupta, CJ. July 17, 2013MAS __________G.Rohini, J.