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

ITA 1100/HYD/2014

• Counselvise Citation: 110022514 RSA 2014
• Duration Of Justice: 4 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-10-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 30-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D SUDHAKAR RAO
• Assessee Lawyers: MANJULATHA NAVANDHAR
• Keywords: Charitable institution; Competent authority
• Section: 12A; 12AA

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER ITA NO. 1100/HYD/2014 ASSESSMENT YEAR 2012-13 THE TIMBAKTU KUTUMBAM FOUNDATION, HYDERABAD PAN: AABTT 7554R VS. THE DIRECTOR OF INCOME - TAX (EXEMPTIONS), HYDERABAD APPELLANT RESPONDENT APPELLANT BY: SMT. MANJULATHA NAVANDHAR RESPONDENT BY: SRI D. SUDHAKAR RAO DATE OF HEARING: 09 . 1 0.2014 DATE OF PRONOUNCEMENT: 17 . 1 0.2014 ORDER PER ASHA VIJAYARAGHAVAN, J.M.: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF DIRECTOR OF INCOME-TAX (EXEMPTIONS) [FOR S HORT DIT(E)], HYDERABAD DATED 21.03.2013 FOR A.Y. 2012-1 3. 2. THE ASSESSEE TRUST HAS FILED AN APPLICATION IN FORM NO. 10A ON 30.03.2012 SEEKING REGISTRATION U/S. 12A A OF INCOME-TAX ACT, 1961 WITH THE DIT(E), HYDERABAD. T HE ASSESSEE TRUST WAS REFUSED REGISTRATION U/S. 12AA O F THE ACT BY THE DIT(E) VIDE HIS ORDER IN F. NO. DIT(E)/H YD/66 (03)/12A/11-12 DATED 26.09.2012. AGGRIEVED BY THE SAID ORDER OF THE DIT(E), THE ASSESSEE FILED AN APPEAL B EFORE THE TRIBUNAL. THE TRIBUNAL VIDE THEIR ORDER IN ITA NO. 1631/ HYD/2012 DATED 8.3.2013 HAD SET ASIDE THE ORDER OF THE DIT(E) AND RESTORED THE MATTER TO HIS FILE WITH A D IRECTION 2 ITA NO. 1100/HYD/2014 THE TIMBAKTU KUTUMBAM FOUNDATION ============================= TO RE-DECIDE AFRESH ON THE APPLICATION OF THE ASSES SEE FOR REGISTRATION U/S. 12AA OF THE ACT. 3. THE DIT(E) THEREAFTER PASSED AN ORDER GRANTING REGISTRATION U/S. 12AA(1)(B)(I) OF THE ACT WITH EFF ECT FROM 30.03.2012. HOWEVER, THE DIT(E) HELD THAT REGISTRA TION IS SUBJECT TO CERTAIN CONDITIONS LAID DOWN U/S. 12A(1) (AA) OF THE INCOME-TAX ACT, 1961 AND ENUMERATED THEM AND WH ILE ENUMERATING HE STATED AT PARA 11 AS FOLLOWS: '11. FURTHER, THE ABOVE TRUST SHALL OBTAIN REGISTRA TION FROM THE COMPETENT AUTHORITY OF GOVERNMENT OF ANDHRA PRADESH U/S. 43 OF THE AP CHARITABLE & HINDU RELIGIOUS INSTITUTIONS & ENDOWMENTS ACT, 1987, AND FURNISH A COPY OF SUCH OR DER OF REGISTRATION IN THIS OFFICE FOR RECORD, WITHIN A PE RIOD OF SIX MONTHS FROM THE DATE OF RECEIPT OF THIS ORDER. FOR PUTTING SUCH A CONDITION, RELIANCE IS PLACED ON THE DECISION OF THE HON'BLE SUPREME COURT IN THE CASE OF BIHARILAL JAISWAL AND OTHERS VS. COMMISSIONER OF INCOME TAX & OTHERS (217 ITR 746), WHEREIN, IT WAS HELD THAT ONE ARM OF LAW CANNOT BE UTILIZED TO DEFEAT THE OTHER ARM OF LAW AND DOING SO WOULD BE T O OPPOSE TO PUBLIC POLICY AND WOULD BRING THE LAW INTO RIDICULE , AND, THE DECISION OF THE HONBLE ANDHRA PRADESH HIGH COURT I N THE CASE OF M/S. NEW NOBLE EDUCATIONAL SOCIETY VS. CHIEF COMMISSIONER OF INCOME TAX-I, HYDERABAD, REPORTED I N 334 ITR 303, RELATING TO MATTER OF APPROVAL U/S. 10(23C )(VI) OF THE ACT, WHEREIN, IT IS HELD THAT THE CHIEF COMMISSIONE R OF INCOME TAX, MAY PRESCRIBE REGISTRATION, UNDER AP ACT 30 OF 1987, WITHIN A SPECIFIED PERIOD AS A CONDITION SUBJECT TO WHICH APPROVAL MAY BE GRANTED U/S. 10(23C) OF THE ACT.' 4. AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE US WITH THE FOLLOWING GROUND OF APPEAL: (I) THE DIRECTOR OF INCOME-TAX (EXEMPTIONS) HAS ERRED IN GOING BEYOND THE SCOPE OF HIS AUTHORITY AND DIRECTING THE ASSESSEE FOR GETTING REGISTRATION WITH GOVERNMENT OF ANDHRA PRADESH U/S. 43 OF AP CHARITABLE & HINDU RELIGIOUS INSTITUTIONS & ENDOWMENTS ACT, 1987 AS A CONDITION FOR REGISTRATION U/S. 12AA(1)(B)(I) R.W.S. 251(1) OF THE IT ACT, 1961. 3 ITA NO. 1100/HYD/2014 THE TIMBAKTU KUTUMBAM FOUNDATION ============================= 5. THE LEARNED COUNSEL FOR THE ASSESSEE RELIED ON THE FOLLOWING DECISIONS OF THE TRIBUNAL, HYDERABAD BENC HES AND NAGPUR BENCH: A) M/S. KAMALAKAR MEMORIAL CHARITABLE TRUST VS. DIT(E) , ITA NO. 1145/HYD/2009 DATED 5 TH MARCH, 2010. B) DDIT (EXEMP)-II VS. SOCIETY FOR INTEGRATED DEVELOPM ENT IN URBAN & RURAL AREAS (SIDDUR, ITA NO. 674/HYD/2011 DATED 03.01.2014. C) DDIT (EXEMP)-II VS. ANDHRA PRADESH RIGHT TO SIGHT SOCIETY, 24 TAXMANN.COM 1 (HYD). D) AGRICULTURAL PRODUCE & MARKET COMMITTEE VS. CIT, 10 0 ITD (1) (NAG) 6. WE HAVE HEARD BOTH THE PARTIES. WE FIND THE ISSUE IS COVERED BY THE DECISION OF THIS TRIBUNAL IN THE CASE OF M/S. KAMALAKAR MEMORIAL CHARITABLE TRUST IN ITA NO. 1145/HYD/2009 DATED 5.3.2010 WHEREIN THE TRIBUNAL HELD AS UNDER: '5. ... WITH REGARD TO THE OTHER ISSUE OF NON-REGIS TRATION UNDER THE A.P. CHARITABLE & HINDU RELIGIOUS INSTITUTIONS ENDOWMENT ACT, 1987, WE FIND THAT THIS ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE WITH THE NAGPUR BENCH DECISION OF THE TRIBUNAL IN THE CASE O F AGRICULTURAL PRODUCE & MARKET COMMITTEE, TELHARA & ORS. (SUPRA) AND THE MERE FACT THAT THE ASSESSEE TR UST IS NOT REGISTERED UNDER THE PROVISIONS OF THE SAID ACT , SHALL NOT RENDER THE ASSESSEE TRUST AS A NON-CHARITABLE O NE. ...' 7. SINCE REGISTRATION UNDER AP CHARITABLE & HINDU RELIGIOUS INSTITUTIONS & ENDOWMENTS ACT, 1987 IS NO T REQUIRED FOR A TRUST TO BE REGISTERED UNDER THE PRO VISIONS OF INCOME-TAX ACT, 1961, THE DIRECTION OF THE DIT(E ) TO REGISTER THE ASSESSEE'S SOCIETY UNDER THE SAID ACT IS NOT CORRECT. FOLLOWING THE CO-ORDINATE BENCH DECISION ON THE 4 ITA NO. 1100/HYD/2014 THE TIMBAKTU KUTUMBAM FOUNDATION ============================= ISSUE WE DIRECT THE DIT(E) TO DELETE PARA 11 OF HIS ORDER GRANTING REGISTRATION U/S. 12AA OF THE ACT. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. PRONOUNCED IN THE OPEN COURT ON 17 TH OCTOBER, 2014 SD/ - (B. RAMAKOTAIAH) ACCOUNTANT MEMBER SD/ - (ASHA VIJAYARAGHAVAN) JUDICIAL MEMBER HYDERABAD, DATED THE 17 TH OCTOBER, 2014 TPRAO COPY TO: 1. THE TIMBAKTU KUTUMBAM FOUNDATION, C/O. M/S. GANDHI & GANDHI, CHARTERED ACCOUNTANTS, 1002, PAIGAH PLAZA, BASHEERBAGH, HYDERABAD-500 063. 2. THE DIRECTOR OF INCOME - TAX (EXEMPTIONS), 3 RD FLOOR, AAYAKAR BHAVAN, BASHEERBAGH, HYDERABAD-500 001. 3 . THE DY. DIT(E) - I, HYDERABAD. 4 . THE DR, B - BENCH, ITAT, HYDERABAD.