Association of India Management School, Hyderabad V. Income Tax Officer(E), Ward-1(2), Hyderabad

ITA 1158/Hyd/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 8166 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 8 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-03-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Assessment Year: 2007-2008
• Appeal Filed On: 17-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NIVEDITA BISWAS
• Section: 12A; 12AA; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEM BER AND SHRI S.S.GODARA, JUDICIAL MEMBER ITA NO. A.Y. APPELLANT RESPONDENT 46/HYD/16 2010-11 ASSOCIATION OF INDIAN MANAGEMENT SCHOOLS, HYDERABAD [PAN: AAAAA2599R] DEPUTY DIRECTOR OF INCOME TAX, EXEMPTIONS-II, HYDERABAD 47/HYD/16 2011-12 ASST. DIRECTOR OF INCOME TAX, EXEMPTIONS-I, HYDERABAD 48/HYD/16 2012-13 INCOME TAX OFFICER (EXEMPTIONS) WARD-2, HYDERABAD 49/HYD/16 2014-15 COMMISSIONER OF INCOME TAX (EXEMPTIONS), HYDERABAD 2137/HYD/18 2014-15 INCOME TAX OFFICER (EXEMPTIONS)-1, HYDERABAD 2138/HYD/18 2015-16 ASST. COMMISSIONER OF INCOME TAX (OSD) (EXEMPTIONS), HYDERABAD 1158/HYD/19 2017-18 INCOME TAX OFFICER (EXEMPTIONS), WARD-1(2), HYDERABAD / DCIT (CPC), BANGALORE FOR ASSESSEE : SHRI SAMUEL NAGADESI, AR FOR REVENUE : SMT. NIVEDITA BISWAS, DR DATE OF HEARING : 02-03-2021 DATE OF PRONOUNCEMENT : 29-03-2021 O R D E R PER S.S.GODARA, J.M. : THE INSTANT BATCH OF SEVEN CASES PERTAINS TO A SINGLE ASSESSEE M/S.ASSOCIATION OF INDIAN MANAGEMENT SCHOOLS . IT ASSOCIATION OF INDIAN MANAGEMENT SCHOOLS (GROUP CASES) :- 2 -: HAS FILED THE APPEALS ITA NOS.46 TO 48/HYD/2016 FOR AYS.2010-11, 2011-12 & 2012-13 AGAINST THE CIT(A)-9, HYDERABADS COMMON ORDER DATED 30-10-2015 IN CASE NOS.0101, 0096/DDIT (EXEMPTIONS)-113/2014-15 AND 0032/ITO(EXE), WARD-2/2015-16/CIT(A)-9, HYD/2015-16 INVOLVING PROCEEDINGS U/S.143(3) OF THE INCOME TAX A CT, 1961 [IN SHORT, THE ACT]. THE ASSESSEES FOURTH APPEAL IT A NO.49/HYD/2016 IS DIRECTED AGAINST THE DCIT(HQ) (EXEMPTIONS), OFFICE OF CIT(E) HYDERABADS ORDER DT.3 0-11- 2015 PASSED IN THE NAME OF CIT(EX), HYDERABAD IN FIL E NO.CIT(E) / HYD / 24(5) / 12A / 2014-15 INVOLVING P ROCEEDINGS U/S.12AA OF THE ACT. THE ASSESSEES NEXT THREE APPEAL S ITA NOS.2137/HYD/18, 2138/HYD/18 & 1158/HYD/19 FOR AYS.2014-15, 2015-16 & 2017-18 HAVE BEEN PREFERRED AGAINST THE CIT(A)-9, HYDERABADS COMMON ORDER DT.12-10-2018 (IN FORMER TWO) IN CASE NOS.10596/CIT(A)-9/HYD/2017-18 INVOLVING PROCEEDINGS U/S.143(3) OF THE ACT AND DT.26- 06-2019 (IN LAST YEAR) IN CASE NO.10022/CIT(A)-9/HYD/2019-20 IN PROCEEDINGS U/S.143(1) OF THE ACT; RESPECTIVELY. HEARD BOTH THE PARTIES. CASE FILES PERUSED. 2. WE NOTICE AT THE OUTSET DURING THE COURSE OF HEARING TH AT THE ASSESSEES SIX APPEALS EXCEPT ITA NO.49/HYD/2016 ARE DIRECTED AGAINST THE LEARNED LOWER AUTHORITIES ACTION DENYING U/S.11 EXEMPTION FOR WANT OF SECTION 12AA REGISTRATION BY QUOTING HON'BLE APEX COURTS DECISION IN UP FOREST COR PORATION VS. DCIT [297 ITR 1] (SC) THAT SUCH A REGISTRATION IS A MUST SO AS TO BE ELIGIBLE FOR SECTION 11 RELIEF. THE SOLE E XCEPTION HEREIN IS ASSESSEES APPEAL ITA NO.49/HYD/2016 WHEREIN IT H AS ASSOCIATION OF INDIAN MANAGEMENT SCHOOLS (GROUP CASES) :- 3 -: CHALLENGED THE DCIT, HQRS, EXEMPTIONS, O/O.CIT(EX), HYDERABADS ORDER DT.30-11-2015 READING AS UNDER: SUB: APPLICATION FOR GRANT OF REGISTRATION U/S.12A M/S.ASSOCIATION OF INDIAN MANAGEMENT SCHOOLS, REKHA DELUXE ENCLAVE, PUNJAGUTTA, HYDERABAD - REG. *** YOU HAVE FILED A LETTER DT.15-05-2015 BEFORE THE CI T(E), HYDERABAD. IT IS MENTIONED THEREIN THAT THE ABOVE SOCIETY IS REGI STERED U/S.12AA OF THE ACT, 1961 BEFORE THE DIT(E)/BANGALORE VIDE NO.A ACTS-718-10A- VOL-AI-A665. IT IS ALSO STATED THEREIN THAT THE SOC IETY WAS SHIFTED TO HYDERABAD SUBSEQUENTLY. AS PER THE APPLICANT SOCIET Y, THEY HAVE NOTICED THAT COPY OF THE PROCEEDINGS GRANTING APPRO VAL U/S.12AA WAS NOT AVAILABLE IN THEIR RECORDS AND THAT THEY HAVE M ADE A REQUEST TO ISSUE A CERTIFIED COPY OF THE SAME BEFORE THE DIT(E ), BANGALORE VIDE THEIR LETTER DT.15-05-2007. THUS, AS PER THE INFORM ATION FILED BY THE APPLICANT, IT APPEARS THAT THEY HAVE MISPLACED THE COPY OF REGISTRATION PURPORTED TO HAVE BEEN GRANTED U/S.12A A OF THE ACT. THE ABOVE SOCIETY HAS NOW FILED WHAT IS CALLED BY THEM A CURATIVE APPLICATION IN FORM NO.12A. HOWEVER, THERE IS NO SU CH PROVISION LIKE GRANTING CURATIVE REGISTRATION UNDER THE ACT. UNDER THE CIRCUMSTANCES, THE PRESENT APPLICATION IN FORM NO.10A CANNOT BE AC TED UPON. THIS IS FOR YOUR INFORMATION. 3. LEARNED COUNSELS ONLY CASE AT THIS STAGE IS THAT TH E DCIT DOES NOT HAVE ANY JURISDICTION TO DEAL WITH ITS SECTIO N 12AA REGISTRATION AND THEREFORE, THE SAME IS NOT SUSTAINABLE IN LAW THEREBY CONFERRING THE ASSESSEE AUTOMATIC REGISTRATION A S IT HAD PRAYED FOR BY WAY OF FILING THE CORRESPONDING AP PLICATION. 4. LEARNED DEPARTMENTAL REPRESENTATIVE FAILS TO DISPUTE TH AT THE JURISDICTION WHETHER OR NOT TO ACCEPT THE APPLICATION IN SECTION 12AA PROCESS HAS ONLY BEEN CONFERRED ON THE CIT(E) AS PER THE LEGISLATIVE SCHEME IN THE ACT. 5. THE REVENUES NEXT VEHEMENT CONTENTION IS THAT THE ASSESSEE HAS CLAIMED ITSELF TO BE AN ALREADY REGISTE RED INSTITUTION U/S.12AA IN BANGALORE AND THEREFORE ITS CUR ATIVE ASSOCIATION OF INDIAN MANAGEMENT SCHOOLS (GROUP CASES) :- 4 -: APPLICATION SEEKING VERY RELIEF IS NOT MAINTAINABLE. WE ARE OF THE VIEW THAT SUCH A COURSE OF ACTION DOES NOT DESERVE TO BE AGREED WITH PER SE. WE NOTICE FROM A PERUSAL OF THE REVENUES PAPER BOOK IN PAGES 1 TO 3 THAT THE CIT(E), HYDERABAD H AS FILED HIS CLARIFICATION THAT THE ASSESSEES RETURNS/ACKNOWLED GMENTS UPTO AY.2005-06 BEAR REGISTRATION NUMBER U/S.12A 2B- ACCTS-718-10A-VOL-AI-0665 WHICH COULD NOT BE TRACED DESPITE THE BEST OF THE EFFORTS MADE FROM THE DEPARTMENTAL AUTHORITIES SIDE. THE FACT ALSO REMAINS THAT THIS IS N OT THE REVENUES CASE THAT THERE HAS BEEN ANY CHANGE IN ASSES SEES ACTIVITY UNDERTAKEN ALL ALONG. WE THEREFORE REVERSE THE DCITS ORDER UNDER CHALLENGE IN THE INSTANT 12AA REGISTRATION P ROCESS FOR WANT OF JURISDICTION AND RESTORE SECTION 12AA ISSUE BACK TO THE CIT(EXEMPTIONS) FOR HIS APPROPRIATE ADJUDICATION A S PER LAW WITHIN THREE EFFECTIVE OPPORTUNITIES OF HEARING. IT IS MADE CLEAR THAT ASSESSEE SHALL BE AT LIBERTY TO FILE ALL THE RELEVANT EVIDENCE NOT ONLY QUA TO ITS ACTIVITIES CARRIED OUT THROUGHOUT BUT ALSO THAT PERTAINING TO THE EXEMPTION RELIEF GRANTED I N THE PRECEDING ASSESSMENT YEARS. THIS ASSESSEES APPEAL I TA NO.49/HYD/2016 IS ACCEPTED FOR STATISTICAL PURPOSE IN ABOVE TERMS. 6. COMING TO ASSESSEES SECTION 11 EXEMPTION APPEALS ITA NOS.46, 47 AND 48/HYD/2016, 2137 & 2138/HYD/2018 AN D 1158/HYD/2019, WE HOLD THAT THE SAME DESERVE TO BE RES TORED BACK TO THE CIT(A) TO GRANT THE FINAL OUTCOME OF CIT(E)S ADJUDICATION ON ASSESSEES SECTION 12AA REGISTRATION I SSUE SO AS TO AVOID MUTUALLY CONTRADICTORY FINDINGS. ORDERED ACCORDINGLY. IT IS MADE CLEAR THAT THE DELAY; IF ANY CA LLED IN ALL ASSOCIATION OF INDIAN MANAGEMENT SCHOOLS (GROUP CASES) :- 5 -: THIS PROCESS SHALL NOT BE ATTRIBUTABLE TO THE DEPARTMENT AUTHORITIES IN ANY MANNER; WHATSOEVER. 7. THESE ASSESSEES APPEALS ARE TREATED AS ALLOWED FO R STATISTICAL PURPOSES IN ABOVE TERMS. A COPY OF THIS CO MMON ORDER BE PLACED IN THE RESPECTIVE CASE FILES. ORDER PRONOUNCED IN THE OPEN COURT ON 29 TH MARCH, 2021 SD/- SD/- ( A. MOHAN ALANKAMONY ) ( S.S. GODAR A ) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED: 29-03-2021 TNMM ASSOCIATION OF INDIAN MANAGEMENT SCHOOLS (GROUP CASES) :- 6 -: COPY TO : 1.ASSOCIATION OF INDIAN MANAGEMENT SCHOOLS, C/O. SHRI SAMUEL NAGADESI, CHARTERED ACCOUNTANT, 408, SR I RAMAKRISHNA TOWERS, BESIDES IMAGE HOSPITALS, NAGARJ UNA NAGAR, AMEERPET, HYDERABAD. 2.COMMISSIONER OF INCOME TAX(EXEMPTIONS), HYDERABAD . 3.DEPUTY DIRECTOR OF INCOME TAX(EXEMPTIONS)-II, HYDERABAD. 4.DCIT(CPC), BANGALORE. 5.ASSISTANT DIRECTOR OF INCOME TAX(EXEMPTIONS)-I, HYDERABAD. 6.ASSISTANT COMMISSIONER OF INCOME TAX (OSD) (EXEMPTIONS)-HYDERABAD. 7.INCOME TAX OFFICER (EXEMPTIONS), WARD-2, HYDERABA D. 8.INCOME TAX OFFICER (EXEMPTIONS)-1, HYDERABAD. 9.INCOME TAX OFFICER (EXEMPTIONS), WARD-1(2), HYDER ABAD. 10.CIT(APPEALS)-9, HYDERABAD. 11.CIT(EXEMPTIONS)-HYDERABAD. 12.D.R. ITAT, HYDERABAD. 13.GUARD FILE.