Govats Foundation, Hyderabad V. Director of Income-Tax (Exemptions), Hyderabad

ITA 1028/HYD/2014

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 7628 (ITAT-HYDERABAD)
• Duration Of Justice: 4 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-10-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 23-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P SOMASEKHAR REDDY
• Assessee Lawyers: NARAYANDAS JHAWAR
• Keywords: Competent authority
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER I.T.A. NO. 1028/HYD/2014 ASSESSMENT YEAR : N.A. M/S. GOVATS FOUNDATION HYDERABAD PAN: AABAG6870G VS. THE DIRECTOR OF INCOME - TAX (EXEMPTIONS) HYDERABAD APPELLANT RESPONDENT APPELLANT BY: SRI NARAYANDAS JHAWAR RESPONDENT BY: SRI P. SOMA SEKHAR REDDY DATE OF HEARING: 15 .09.2014 DATE OF PRONOUNCEMENT: 13.10.2014 O R D E R PER ASHA VIJAYARAGHAVAN, JM: THIS APPEAL BY ASSESSEE IS DIRECTED AGAINST THE OR DER OF THE DIRECTOR OF INCOME-TAX (EXEMPTIONS) [DIT(E)] AG AINST THE ORDER DATED 15.11.2012 PASSED BY CIT(A)-IV, HYDERAB AD PERTAINING TO ASSESSMENT YEAR 2009-10. 2. THE ONLY GROUND RAISED BY THE ASSESSEE IS AS UNDER: 'THE DIRECTOR OF INCOME-TAX (EXEMPTIONS) ERRED IN DIRECTING THE SOCIETY TO OBTAIN REGISTRATION FROM T HE COMPETENT AUTHORITY OF GOVERNMENT OF ANDHRA PRADESH U/S. 43 OF THE ANDHRA PRADESH CHARITABLE AND HINDU RELIGIOUS INSTITUTIONS AND ENDOWMENTS ACT, 1987, WITHIN SIX MONTHS WHILE GRANTING REGISTRATION U/S. 12AA OF THE IT ACT, 1961.' 3. FACTS OF THE CASE ARE THAT THE ASSESSEE SOCIETY IS WORKING TO SERVE COWS AND THEIR PRESERVATION AND FEEDING AS SISTANCE, PROPAGATION OF IMPORTANCE OF COWS, ETC. THE ASSESS EE FILED AN I.T.A. NO. 1028/HYD/2014 M/S. GOVATS FOUNDATION =================== 2 APPLICATION IN FORM NO. 10A FOR REGISTRATION U/S. 1 2A(1)(AA) OF THE INCOME-TAX ACT, 1961 ON 25.09.2013. THE DIT(E) HAS REGISTERED THE ASSESSEE SOCIETY IN THE REGISTER MEA NT FOR APPLICATIONS IN FORM NO. 10A VIDE F. NO. DIT(E)/23( 09)/12A & 80G/2013-14 AND GRANTED REGISTRATION WITH EFFECT FR OM 10.03.2014 ONWARDS. 4. HOWEVER, WHILE GRANTING REGISTRATION THE DIT(E) HEL D THAT THE ABOVE SOCIETY HAS TO OBTAIN REGISTRATION FROM T HE COMPETENT AUTHORITY OF GOVERNMENT OF ANDHRA PRADESH U/S. 43 O F THE ANDHRA PRADESH CHARITABLE & HINDU RELIGIOUS INSTITU TIONS & ENDOWMENTS ACT, 1987, AND FURNISH A COPY OF SUCH OR DER OF REGISTRATION IN HIS OFFICE FOR RECORD, WITHIN A PER IOD OF SIX MONTHS FROM THE DATE OF RECEIPT OF HIS ORDER. WHILE HOLDI NG SO, THE DIT(E) PLACED RELIANCE ON THE DECISION OF THE HONB LE SUPREME COURT IN THE CASE OF BIHARILAL JAISWAL AND OTHERS V S. CIT & OTHERS (217 ITR 746), WHEREIN IT WAS HELD THAT 'ONE ARM OF LAW CANNOT BE UTILISED TO DEFEAT THE OTHER ARM OF LAW A ND DOING SO WOULD BE TO OPPOSE TO PUBLIC POLICY AND WOULD BRING THE LAW INTO RIDICULE', AND, THE DECISION OF THE HONBLE ANDHRA PRADESH HIG H COURT, IN THE CASE OF M/S. NEW NOBLE EDUCATIONAL SO CIETY VS. CIT-1, HYDERABAD, REPORTED IN 334 ITR 303, RELATING TO MATTER OF APPROVAL U/S. 10(23C)(VI) OF THE ACT, WHEREIN IT IS HELD THAT THE CHIEF COMMISSIONER OF INCOME-TAX MAY PRESCRIBE REGI STRATION UNDER AP ACT 30 OF 1987, WITHIN A SPECIFIED PERIOD AS A CONDITIONAL SUBJECT TO WHICH APPROVAL MAY BE GRANTE D U/S. 10(23C) OF THE ACT. ACCORDINGLY, HE PRESCRIBED A C ONDITION PRECEDENT OF OBTAINING APPROVAL FROM THE COMPETENT AUTHORITY OF GOVERNMENT OF ANDHRA PRADESH U/S. 43 OF THE ANDHRA PRADESH CHARITABLE & HINDU RELIGIOUS INSTITUTIONS & ENDOWME NTS ACT, 1987. AGGRIEVED, ASSESSEE IS IN APPEAL BEFORE US. I.T.A. NO. 1028/HYD/2014 M/S. GOVATS FOUNDATION =================== 3 5. WE HAVE HEARD BOTH PARTIES, CAREFULLY GONE THROUGH THE ORDER OF THE DIT(E) AS ALSO MATERIALS BROUGHT ON RE CORD. WE FIND ON SIMILAR ISSUE, THE CO-ORDINATE BENCH OF THIS TRI BUNAL IN ITA NO. 1408/HYD/2013 IN THE CASE OF AHINSA EDUCATION & HEALTH TRUST, HYDERABAD HAS RULED THAT DIT(E) IS NOT TO IN SIST UPON OBTAINING REGISTRATION U/S. 43 OF THE AP CHARITABLE & HINDU RELIGIOUS INSTITUTION & ENDOWMENTS ACT, 1987, RELEV ANT PORTION OF WHICH IS REPRODUCED HEREUNDER: '7. THE ASSESSEE HAS ALSO RAISED THE FOLLOWING ADDITIONAL GROUND: 'THE DIT(E) ERRED IN DIRECTING THE TRUST TO OBTAIN THE REGISTRATION FROM THE COMPETENT AUTHORITY OF GOVERNMENT OF ANDHRA PRADESH U/S 43 OF THE ANDHRA PRADESH CHARITABLE AND HINDU RELIGIOUS INSTITUTIONS AND ENDOWMENTS ACT, 1987, WHERE THE SAME IS NOT PRESCRIBED IN THE INCOME TAX ACT.' SINCE THE ISSUE RAISED IN THE ADDITIONAL GROUND IS A LEGAL ISSUE AND CAN BE DECIDED ON THE BASIS OF MATERIALS ON RECORD, WE ADMIT THE ADDITIONAL GROUND AND PROCEED TO DECIDE THE SAME. WHILE GRANTING REGISTRATION U/S 12AA OF THE ACT, THE DIT (E) IN PARAGRAPH-9 OF HIS ORDER OBSERVED THAT THE TRUST SHOULD OBTAIN REGISTRATION FROM COMPETENT AUTHORITY U/S 43 OF ANDHRA PRADESH CHARITABLE & HINDU RELIGIOUS INSTITUTIONS & ENDOWMENTS ACT, 1987. FURTHER HE DIRECTED THE TRUST TO FURNISH A CO PY OF SUCH REGISTRATION WITHIN A PERIOD OF SIX MONTHS. FOR THIS PURPOSE, THE DIT(E) RELIED UPON DECISION OF HON'BLE SUPREME COURT IN CASE OF BIHARILAL JAISWAL AND OTHERS VS. CIT & OTHERS (217 ITR 746) AND OF HON'BLE ANDHRA PRADESH HIGH COURT IN CASE OF M/S NEW NOBLE EDUCATIONAL SOCIETY VS. CHIEF COMMISSIONER OF INCOME-TAX (334 ITR 303). HAVING CONSIDERED THE SUBMISSIONS OF THE PARTIES, WE ARE O F THE VIEW THAT THE DIT(E) WAS NOT CORRECT IN DIRECTI NG THE ASSESSEE TO OBTAIN REGISTRATION U/S 43 OF THE ANDHRA PRADESH CHARITABLE & HINDU RELIGIOUS INSTITUTIONS AND ENDOWMENTS ACT, 1987. WHEN THE PROVISIONS CONTAINED U/S 12A READ WITH SEC. 12AA OF THE ACT DO NOT MANDATE OBTAINING OF SUCH REGISTRATI ON I.T.A. NO. 1028/HYD/2014 M/S. GOVATS FOUNDATION =================== 4 AS A CONDITION PRECEDENT FOR REGISTRATION U/S 12A, THE DIT (E) CANNOT INSIST UPON SUCH REGISTRATION. DIFFE RENT BENCHES OF THE TRIBUNAL INCLUDING THE HYDERABAD BENCHES HAVE ALSO EXPRESSED THE VIEW THAT FOR GRANT OF REGISTRATION U/S 12A OF THE ACT IT IS NOT NECESS ARY FOR A TRUST TO GET REGISTERED UNDER THE ANDHRA PRADESH CHARITABLE & HINDU RELIGIOUS INSTITUTIONS & ENDOWMENTS ACT, 1987. THE DECISIONS RELIED UPON BY THE DIT (E) ARE TOTALLY INAPPLICABLE TO A CASE OF G RANT OF REGISTRATION U/S 12A OF THE ACT. THEREFORE, WE DIRECT THE DIT(E) NOT TO INSIST UPON OBTAINING REGISTRATION U/S 43 OF THE ANDHRA PRADESH CHARITABL E & RELIGIOUS INSTITUTIONS ENDOWMENTS ACT, 1987. THIS GROUND IS ALSO ALLOWED.' 6. AS THE ISSUE IN THE PRESENT APPEAL IS SQUARELY COVE RED BY THE ABOVE DECISION, RESPECTFULLY FOLLOWING THE RATI O LAID DOWN BY THE CO-ORDINATE BENCH OF THIS TRIBUNAL, THE GROUND TAKEN BY THE ASSESSEE IS ALLOWED. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 13 TH OCTOBER, 2014. SD/ - (B. RAMAKOTAIAH) ACCOUNTANT MEMBER SD/ - (ASHA VIJAYARAGHAVAN) JUDICIAL MEMBER HYDERABAD, DATED 13 TH OCTOBER, 2014 TPRAO COPY FORWARDED TO: 1. M/S. GOVATS FOUNDATION, 5 - 3 - 989, 2 ND FLOOR, 210, SHERZA ESTATE, NIZAM SHAHI ROAD, HYDERABAD-500 095. 2. DIRECTOR OF INCOME - TAX (EXEMPTIONS), AAYAKAR BHAVAN, BASHEERBAGH, HYDERABAD. 3. THE DDIT(E) - I , HYDERABAD. 4 . THE DR A BENCH, ITAT, HYDERABAD