CherYsh Trust, Hyderabad V. Director of Income Tax (Exemptions), Hyderabad

ITA 1214/HYD/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 66607 (ITAT-HYDERABAD)
• Duration Of Justice: 4 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-12-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 08-08-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M H NAIK
• Assessee Lawyers: K SAI PRASAD
• Keywords: Opportunity of being heard
• Section: 80G; 12A; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A, HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER ITA NO. 1214/HYD/2012 CHERYSH TRUST, APPELLANT HYDERABAD. (PAN AABTC3412F) VS. DIRECTOR OF INCOME-TAX(EXEMPTIONS), RESPOND ENT BASHEERBAGH, HYDERABAD. (PAN NO. AABCM4751G) APPELLANT BY : SHRI K. SAI PRASAD RESPONDENT BY : SHRI M.H. NAIK DATE OF HEARING : 05/12/2012 DATE OF PRONOUNCEMENT : 20/12/ 2012 ORDER PER ASHA VIJAYARAGHAVAN, J.M.: THIS APPEAL PREFERRED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF DIT(E), HYDERABAD DATED 22/06/2012. 2. BRIEFLY THE FACTS OF THE CASE ARE THAT THE ASSE SSEE-TRUST ESTABLISHED ON 17 TH MAY, 2012 WITH REGISTERED OFFICE AT BANGALORE AND OPENED AN ADMINISTRATIVE OFFICE AT HOUSE NO. 24 , SENOR VALLEY, ROAD NO. 13, FILM NAGAR, JUBILEE HILLS, HYDERABAD 500 033 AND OPERATING ALL ITS ACTIVITIES FROM THIS ADDRESS AND ALSO APPLIED FOR PAN WITH THE SAME ADDRESS AND FILED AN APPLICATION DATE D 20/12/2011 BEFORE THE LEARNED DIT(E), HYDERABAD SEEKING REGIST RATION U/S 12A 2 ITA NO. 1214/HYD/2012 CHERYSH TRUST AND GRANT OF APPROVAL U/S 80G OF THE IT ACT, 1961. THE TRUST IS ESTABLISHED WITH THE FOLLOWING PRINCIPAL OBJECTIVES : PROMOTE, NURTURE AND ADVANCE THE GENERAL WELL-BEING OF THE SOCIETY THROUGH SUSTAINED DEVELOPMENT OF DISADVANTA GE COMMUNITIES BY PROVIDING SOCIALLY RELEVANT MEASURES IN THE SPHERES OF EDUCATION, FAMILY NOURISHMENT, WOMEN SEL F- SUSTAINABILITY ETC., WHICH CAN BE MAINLY CATEGORIZE D INTO THREE BROAD CATEGORIES NAMELY 1) EDUCATION, 2) MEDICAL RE LIEF AND 3) RELIEF TO THE POOR. 3. DURING THE COURSE OF PROCEEDINGS, NOTICES HAD BE EN ISSUED FROM TIME TO TIME ASKING THE ASSESSEE-TRUST TO FURN ISH INFORMATION AND ALL THE NOTICES WERE SERVED ON THE ASSESSEE-TRU ST AT HYDERABAD ADDRESS. THE AR OF THE ASSESSEE-TRUST APPEARED BEF ORE THE DIT(E) AND SUBMITTED THE REQUIRED INFORMATION FROM TIME TO TIME. THE DIT(E) REJECTED THE APPLICATION SEEKING REGISTRATIO N U/S 12A AND GRANT OF APPROVAL U/S 80G WITH THE FOLLOWING OBSERV ATIONS VIDE ORDER DATED 22/06/2012: THOUGH IN THE APPLICATION IN FORM 10A, ADDRESS OF T HE TRUST IS SHOWN AT HYDERABAD, THE REGISTERED OFFICE OF THE TR UST IS FOUND TO BE AT BANGALORE, KARNATAKA. IN THE TRUST DEED TH ERE IS A CLEAR MENTION REGARDING THE LOCATION OF THE REGISTE RED OFFICE AT BANGALORE. IN THIS CONTEXT, IT IS RELEVANT TO REPRO DUCE THE CONTENTS OF CLAUSE 2.3 OF THE TRUST DEED, WHICH IS AS UNDER:- 2.3 THE TRUST SHALL HAVE ITS REGISTERED OFFICE AT 2 0, LAVELLE ROAD, 3 RD CROSS ROAD, BANGALORE 560 001, K.A, INDIA OR AT SUCH OTHER ADDRESS AS MAY BE DETERMINED BY THE BOARD OF TRUSTEES FROM TIME TO TIME. THE TRUST MAY FROM TIME TO TIME SET UP SUCH OTHER OFFICES INCLUDI NG PRINCIPAL OFFICER ETC. AS MAY BE DETERMINED FROM TI ME TO TIME. SINCE THE REGISTERED OFFICE IS AT BANGALORE, IN MY VIEW, THIS OFFICE HAS NO JURISDICTION OVER THE SAME. THER EFORE, THE SAID APPLICATION IN FORM 10A FILED BY THE ABOVE TRUST IS NO ACTED UPON AND HENCE THE SAME IS FILED. CONSEQUENTLY, THE OTHER APPLICATION ON FORM 10G FIL ED BY 3 ITA NO. 1214/HYD/2012 CHERYSH TRUST THE ABOVE TRUST, SEEKING APPROVAL U/S 80G OF THE AC T IS ALSO FILED. 4. AGGRIEVED THE ASSESSEE-TRUST IS IN APPEAL BEFORE US AND HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: A. THE LEARNED DIT(E) ERRED IN REJECTING APPLICATIO N SEEKING REGISTRATION/S 12A AND 80G STATING THAT HIS OFFICE HAS NO JURISDICTION SINCE THE REGISTERED OFFICE OF THE TRU ST IS AT BANGALORE WITHOUT, HOWEVER, RAISING THIS ISSUE AT A NY STAGE OF PROCEEDINGS. B. THE LEARNED DIT(E) ERRED IN APPRECIATING THE FAC T THAT THE ADMINISTRATIVE OFFICE OF THE TRUST IS IN HYDERABAD AND ALL NOTICES DURING THE COURSE OF PROCEEDING AS WELL AS REJECTION LETTER ARE SERVED TO THE SAME ADDRESS WHICH FALLS W ITHIN HIS JURISDICTION. C. THE LEARNED DIT(E) ERRED IN REJECTING APPLICATIO N SEEKING REGISTRATION U/S 12A AND 80G ON THE GROUND THAT HE HAS NO JURISDICTION, WITHOUT GIVING PROPER OPPORTUNITY OF BEING HEARD. 5. THE LEARNED DR SHRI M.H. NAIK SUPPORTED THE ORDE R OF THE DIT(E). 6. BEFORE US, THE LEARNED COUNSEL FOR THE ASSESSEE- TRUST SHRI K. SAI PRASAD SUBMITTED THAT DURING THE COURSE OF THE PROCEEDINGS, THE LEARNED DIT(E) HAS NEVER RAISED THE ISSUE OF JURISD ICTION AT ANY STAGE AND THE DIT(E) HAS NOT GIVEN ANY OPPORTUNITY TO BE HEARD AT ANY STAGE OF PROCEEDINGS. 7. THE LEARNED COUNSEL FOR THE ASSESSEE FILED A PAP ER BOOK BEFORE US CONTAINING THE FOLLOWING CORRESPONDENCE/APPLICAT IONS FILED BEFORE 4 ITA NO. 1214/HYD/2012 CHERYSH TRUST DIT(E) WHEREIN THE ADMINISTRATIVE OFFICE ADDRESS AT HYDERABAD IS MENTIONED: 1. PAGE 1 IS A COPY OF THE LETTER ADDRESSED TO DIT( E) FOR REGISTRATION U/S 12A AND APPROVAL U/S 80G OF THE IT ACT. 2. PAGE 2 IS A COPY OF THE LETTER ADDRESSED TO DIT( E) REG. CERTIFICATE BY TRUSTEES OF CHERYSH TRUST. 3. PAGE 3 IS A COPY OF THE FORM NO. 10A APPLICATION FOR REGISTRATION U/S 12A(A) OF THE ACT. 4. PAGE 4 & 5 IS A COPY OF THE FORM NO. 10G APPLI CATION FOR GRANT OF APPROVAL U/S 80G(5)(VI) OF THE ACT. 5. PAGES 6 & 7 ARE COPIES OF LETTER FROM DIT(E) TO THE ASSESSEE REQUESTING FOR INFORMATION. 8. REFERRING TO THE ABOVE DOCUMENTS, THE LEARNED CO UNSEL FOR THE ASSESSEE REITERATED THE SUBMISSION THAT THOUGH THE ASSESSEE-TRUST IS HAVING ITS REGISTERED OFFICE AT BANGALORE IT HAD OP ENED AN ADMINISTRATIVE OFFICE AT HOUSE NO. 24, SENOR VALLEY , ROAD NO. 13, FILM NAGAR, JUBILEE HILLS, HYDERABAD 500 033 AND OPERATING ALL ITS ACTIVITIES FROM THIS ADDRESS AND ALSO APPLIED FOR P AN WITH THE SAME ADDRESS AND FILED AN APPLICATIONS BEFORE THE LEARNE D DIT(E) FOR REGISTRATION U/S 12A AND GRANT OF APPROVAL U/S 80G. HE POINTED OUT THAT ALL THE NOTICES WERE SERVED ON THE ASSESSEE TR UST AT HYDERABAD ADDRESS BY THE DIT(E). HOWEVER, THE DIT(E) REJECTED THE APPLICATIONS SEEKING REGISTRATION U/S 12A AND GRANT OF APPROVAL U/S 80G ON THE GROUND THAT THE OFFICE OF DIT(E) HAS NO JURISDICTION AS ITS REGISTERED OFFICE IS AT BANGALORE. 9. WE HAVE HEARD THE ARGUMENTS OF BOTH THE PARTIES AND PERUSED THE RECORD. ON PERUSAL OF THE DOCUMENTS FILED BY TH E ASSESSEE WE 5 ITA NO. 1214/HYD/2012 CHERYSH TRUST FIND THAT IN FORM NO. 10A AND IN FORM NO. 10G, THE ASSESSEE MENTIONED ITS ADMINISTRATIVE OFFICE ADDRESS AT HYDE RABAD (SUPRA). EVEN, THE DIT(E) SERVED ALL THE NOTICES ON THE ASSE SSEE TO THE HYDERABAD ADDRESS. THEREFORE, REJECTING THE APPLICA TION FOR REGISTRATION U/S 12A AND GRANT OF APPROVAL U/S 80G ON THE GROUND OF JURISDICTION THAT ITS REGISTERED OFFICE IS IN BANG ALORE, BY THE DIT(E) IS NOT PROPER. THEREFORE, WE DIRECT THE DIT(E) TO E XAMINE ALL THE DOCUMENTS FILED BY THE ASSESSEE BEFORE HIM AND DECI DE THE ISSUE IN ACCORDANCE WITH LAW AFTER PROVIDING REASONABLE OPPO RTUNITY OF HEARING TO THE ASSESSEE IN THE MATTER. IF SO ADVISE D, THE ASSESSEE IS DIRECTED TO MAKE NECESSARY CHANGE IN THE ADDRESS IN THE PRESCRIBED FORMS FOR REGISTRATION U/S 12A AND GRANT OF APPROVA L U/S 80G OF THE ACT. 10. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 20 TH DECEMBER, 2012. SD/- SD/- (CHANDRA POOJARI) (ASHA VIJAY ARAGHAVAN) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED: 20 TH DECEMBER, 2012 KV 6 ITA NO. 1214/HYD/2012 CHERYSH TRUST COPY TO:- 1) CHERYSH TRUST, C/O M/S CH. PARTHASARATHY & CO., 1- 1- 298/B/3, 1 ST FLOOR, SOWBHAGYA AVENUE, STREET NO. 1, ASHOK NAGAR, HYDERABAD-20. 2) DIT(E), HYDERABAD. 3) THE CIT(A)-II, HYDERABAD 4) ADIT(E)-II, HYDERABAD 5) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYD ERABAD.