The Andhra Pradesh Federation of Chambers of Commerce & Trade, Hyderabad V. The Director of Income Tax (Exemptions), Hyderabad

ITA 1208/HYD/2013

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 5518 (ITAT-HYDERABAD)
• Duration Of Justice: 7 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-03-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 14-08-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P SOMASEKHAR REDDY
• Assessee Lawyers: G PAWAN KUMAR
• Section: 80G; 12A; 12AA; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A, HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. P. MADHAVI DEVI, JUDICIAL MEMBER ITA NO. 1208/HYD/2013 THE ANDHRA PRADESH FEDERATION OF CHAMBERS OF COMMERCE AND TRADE., APPELLANT HYDERABAD. (PAN AAAAT6747J) VS. THE DIRECTOR OF INCOME-TAX(EXEMPTIONS), RESPONDEN T HYDERABAD. APPELLANT BY : SHRI G. PAWAN KUMAR RESPONDENT BY : SHRI P. SOMA SEKHAR REDDY DATE OF HEARING : 11/03/2014 DATE OF PRONOUNCEMENT : 14/03/2 014 ORDER PER P. MADHAVI DEVI, J.M.: THIS IS AN ASSESSEES APPEAL FILED AGAINST THE ORD ER OF DIT(EXEMPTIONS), HYDERABAD DATED 07/06/2013 REJECTI NG THE ASSESSEES APPLICATION FOR RECOGNITION U/S 80G OF T HE IT ACT. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS AN ASSOCIATION UNDERTAKING VARIOUS ACTIVITIES, SEMINAR S, MEDICAL RELIEF, AWARENESS PROGRAMMES AND ALSO ACTIVITIES OF GENERAL PUBLIC UTILITY WITHOUT ANY PROFIT MOTIVE. THE PREDO MINANT OBJECTS OF THE ASSOCIATION ARE TO PROMOTE TRADE AND COMMERCE WHICH IS A CHARITABLE ACTIVITY. THE ASSESSEE HAD AP PLIED FOR REGISTRATION U/S 12A AND THE SAME IS CLAIMED BY THE ASSESSEE TO HAVE BEEN GRANTED TO THE ASSESSEE IN THE YEAR 1 988-89. ITA NO. 1208/HYD/13 THE ANDHRA PRADESH FEDERATION OF CHAMBERS OF COMMERCE & TRADE. 2 THEREAFTER, THE ASSESSEE HAS ALSO APPLIED FOR RECOG NITION U/S 80G AND IT WAS GRANTED ACCORDINGLY. HOWEVER, THE AS SESSEES APPLICATION FOR RENEWAL OF RECOGNITION U/S 80G WAS REJECTED VIDE ORDERS DATED 12/09/2008 HOLDING THAT THE ASSES SEE HAD RESORTED TO AGITATIONAL ACTIVITIES. ON APPEAL, THE TRIBUNAL VIDE ORDERS DATED 23/12/2009 HELD THAT PROVISO TO SECTIO N 2(15) SHALL NOT APPLY TO THE DONATIONS RECEIVED BY THE AS SESSEE UPTO 31/03/2009 AND IN THE ABSENCE OF ANY ACTS OF VIOLAT ION OF THE PROVISION OF SECTION 80G(5) OF THE ACT BY THE ASSES SEE, ASSESSEE IS ENTITLED FOR APPROVAL U/S 80G OF THE AC T IN RESPECT OF THE DONATIONS RECEIVED UP TO 31/03/2009 ONLY. CO NSEQUENT THERETO, THE ASSESSEE WAS GRANTED RECOGNITION U/S 8 0G OF THE ACT FOR A LIMITED PERIOD. SUBSEQUENTLY, THE ASSESSE E, AGAIN, FILED AN APPLICATION IN FORM NO. 10G ON 10/12/2012 SEEKING RENEWAL OF APPROVAL U/S 80G(5)(VI) OF THE ACT ALONG WITH THE NECESSARY ENCLOSURES. THE DIT(E) REQUIRED THE ASSES SEE TO FURNISH A COPY OF THE REGISTRATION GRANTED U/S 12AA OF THE ACT IN THE CASE OF THE ASSESSEE SOCIETY. THE ASSESSEE S UBMITTED THAT THE COPY OF THE REGISTRATION U/S 12AA IS NOT T RACEABLE. THE DIT(E) VIDE ORDERS DATED 07/06/2013 HELD THAT T HE APPLICATION FOR APPROVAL U/S 80G(5)(VI) OF THE ACT CANNOT BE CONSIDERED AS FILING OF COPIES OF REGISTRATION GRAN TED U/S 12A IS MANDATORY. HE, THUS, REJECTED THE APPLICATION OF THE ASSESSEE. 3. AGGRIEVED BY THE ORDER OF THE DIT(E) DATED 07/06 /2013, THE ASSESSEE IS IN APPEAL BEFORE US. 4. AT THE TIME OF HEARING, THE LEARNED COUNSEL FOR THE ASSESSEE, SHRI G. PAWAN KUMAR, HAS FILED BEFORE US A REPLY OF THE REVENUE DEPARTMENT TO THE APPLICATION FILED BY THE ASSESSEE UNDER RIGHT TO INFORMATION ACT SEEKING FUR NISHING OF THE CERTIFIED COPY OF THE REGISTRATION U/S 12A OF T HE ACT GRANTED BY THE IT DEPARTMENT WHEREIN IT IS STATED B Y THE ITA NO. 1208/HYD/13 THE ANDHRA PRADESH FEDERATION OF CHAMBERS OF COMMERCE & TRADE. 3 DEPARTMENT THAT THE FILE PERTAINING TO THE ASSESSEE S CASE IS NOT READILY AVAILABLE IN ITS OFFICE AS THE CASE PER TAINS TO THE YEAR 1988-89 AND HENCE IT IS NOT POSSIBLE TO FURNIS H A COPY OF REGISTRATION U/S 12A OF THE ACT. HE HAS ALSO FILED BEFORE US A COPY OF THE COMMUNICATION OF THE CIT,AP-II DATED 29 /11/1999 TO THE ASSESSEE WHEREIN THERE IS A REFERENCE TO THE REGISTRATION U/S 12A AND 80G FOR 1988-89. THE LEARN ED COUNSEL FOR THE ASSESSEE HAS ALSO FILED A PAPER BOO K CONTAINING COPIES OF IT RETURNS, INCOME AND EXPENDI TURE ACCOUNT, BALANCE SHEET AND AUDIT REPORT FOR THE AY 2003-04 TO 2012-13 TO DEMONSTRATE THAT THE ASSESSEE HAS ALWAYS BEEN FURNISHING RETURNS OF INCOME WITH DDIT(E) AND THE COMPUTATION OF INCOME HAS BEEN DONE U/S 11 OF THE A CT ALL ALONG. HE SUBMITTED THAT ALL ALONG THE RETURNS FILE D BY THE ASSESSEE HAVE BEEN ACCEPTED BY THE DEPARTMENT AND T HE COMMUNICATION ACCEPTING THE RETURN HAS BEEN GIVEN T O THE ASSESSEE ONLY FOR ONE AY. FURTHER, HE SUBMITTED THA T IN THE EARLIER YEARS WHEN THE ASSESSEE HAD APPLIED FOR REC OGNITION U/S 80G OF THE ACT, THE REVENUE DEPARTMENT HAS NEVE R TAKEN A STAND THAT THE COPY OF THE REGISTRATION U/S 12A I S NOT AVAILABLE. THUS, ACCORDING TO HIM, THE SUBSTANTIAL EVIDENCE SUCH AS, DEPARTMENT GRANTING THE RENEWAL OF RECOGNI TION U/S 80G TO THE ASSESSEE IN EARLIER ASSESSMENT YEARS ON THE BASIS OF THE REGISTRATION U/S 12A, SHOULD BE CONSIDERED WHILE CONSIDERING THE ASSESSEES APPLICATION FOR GRANT OF RECOGNITION U/S 80G OF THE ACT. 5. THE LEARNED DR, SHRI P. SOMA SEKHARA REDDY, ON T HE OTHER HAND, SUPPORTED THE ORDERS OF THE DIT(E) AND SUBMITTED THAT IT IS MANDATORY REQUIREMENT OF LAW THAT THE AP PLICATION FOR RECOGNITION U/S 80G SHOULD BE ACCOMPANIED BY A COPY OF THE REGISTRATION U/S 12A OF THE ACT AND SINCE SUCH COPY IS NOT ITA NO. 1208/HYD/13 THE ANDHRA PRADESH FEDERATION OF CHAMBERS OF COMMERCE & TRADE. 4 ENCLOSED ALONG WITH APPLICATION, APPLICATION FOR RE COGNITION U/S 80G IS INCOMPLETE AND THE DIT(E) HAS RIGHTLY RE JECTED SUCH INCOMPLETE APPLICATION. 6. HAVING HEARD BOTH THE PARTIES AND HAVING CONSIDE RED THEIR RIVAL SUBMISSIONS AND ALSO MATERIAL ON RECORD , WE FIND THAT THE ASSESSEE IS A CHARITABLE ORGANIZATION AND IS CARRYING ON CHARITABLE ACTIVITIES AND IT HAS BEEN ALLEGEDLY GRANTED REGISTRATION U/S 12A OF THE ACT, AS FAR BACK AS 198 8-89. THE SUBSEQUENT EVENTS SUCH AS THE ASSESSEE FILING RETUR NS AS CHARITABLE ORGANIZATION BEFORE THE DIT(E) AND THE R EVENUE DEPARTMENT ACCEPTING SUCH RETURNS, GOES TO PROVE TH AT THE REGISTRATION U/S 12A IS IN FORCE. EVEN THE ORDER OF THE DIT(E) DATED 12/09/2008, WHICH HAS BEEN ASSAILED BEFORE TH E TRIBUNAL IN ITA NO. 1682/HYD/2008 DID NOT RAISE ANY OBJECTION AS TO THE FURNISHING OR NON-FURNISHING CO PY OF THE REGISTRATION U/S 12A OF THE ACT. PURSUANT TO THE DI RECTION OF THE TRIBUNAL THAT THE ACTIVITIES OF THE ASSESSEE OF AGITATING FOR CAUSE OF THE TRADE AND COMMERCE ARE NOT IN VIOLATIO N OF THE PROVISIONS OF SECTION 80G(5)(VI) OF THE ACT, WE FIN D THAT THE DIT(E) HAS GRANTED RECOGNITION U/S 80G OF THE ACT T O THE ASSESSEE. WE FIND THAT ALL THESE CIRCUMSTANCES GO T O PROVE THE CONTENTION OF THE ASSESSEE THAT REGISTRATION U/ S 12A IN FAVOUR OF THE ASSESSEE IS IN FORCE. MERELY BECAUSE THE COPY OF THE REGISTRATION U/S 12A IS NOT AVAILABLE WITH THE ASSESSEE AND THE REVENUE DEPARTMENT IS NOT ABLE TO TRACE THE FIL E AND THE COPY OF THE REGISTRATION, IT CANNOT BE SAID THAT TH E ASSESSEE IS NOT ELIGIBLE FOR RECOGNITION U/S 80G OF THE ACT. IN VIEW OF THE SAME, WE REMIT THE ISSUE BACK TO THE FILE OF THE DI T(E) TO CONSIDER THE ASSESSEES APPLICATION FOR RECOGNITION U/S 80G ON THE BASIS OF THE EVIDENCE AVAILABLE WITH THE ASSESS EE. ITA NO. 1208/HYD/13 THE ANDHRA PRADESH FEDERATION OF CHAMBERS OF COMMERCE & TRADE. 5 NEEDLESS TO MENTION THAT THE ASSESSEE SHALL BE GIVE N A FAIR OPPORTUNITY OF HEARING IN THE MATTER. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 14/03/2014. SD/- SD/- (CHANDRA POOJARI) (P. MADHAV I DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED: 14/03/2014 KV COPY TO:- 1) THE AP FEDERATION OF CHAMBERS OF COMMERCE & TRADE, C/O KALYANDAS & CO., CAS, 15, VENKATESWARA COLONY, NARAYANAGUDA, HYD-29. 2) DIT(E), HYDERABAD. 3) DDIT(E)-III, HYDERABAD 4) THE DEPARTMENTAL REPRESENTATIVE, I.T.A. T., HYDERABAD.