M/s Sri Sai Saraswathi Trust, Amalapuram V. THE C.I.T., Rajahmundry

ITA 135/VIZ/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 1192 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 3 year(s) 2 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-05-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 01-01-2016
• Assessment Year: misc
• Appeal Filed On: 28-02-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOVINDA RAJAN
• Keywords: Additional evidence
• Section: 80G; 12AA

Judgement Text

ITA NOS.135&136/VIZAG/2013 SRI SAI SARASWATHI TRUST, AMALAPURAM 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . , $ BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI G. MANJUNATHA, ACCOUNTANT MEMBER ./I.T.A.NOS.135&136/VIZAG/2013 ( / ASSESSMENT YEAR: NA) SRI SAI SARASWATHI TRUST AMALAPURAM VS. CIT RAJAHMUNDRY [PAN: AALTS 1784J ] ( % / APPELLANT) ( &'% / RESPONDENT) / APPELLANT BY : SHRI G.V.N. HARI, AR / RESPONDENT BY : SHRI GOVINDA RAJAN, DR / DATE OF HEARING : 02.05.2016 / DATE OF PRONOUNCEMENT : 06.05.2016 / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: THESE APPEALS ARE FILED BY THE ASSESSEE AGAINST TH E ORDER OF CIT, RAJAHMUNDRY DATED 10.8.2012 & 1.8.2012 RESPECTIVELY . ITA NOS.135&136/VIZAG/2013 SRI SAI SARASWATHI TRUST, AMALAPURAM 2 ITA NO.125/VIZAG/2013: 2. THERE IS A DELAY OF 125 DAYS IN FILING THE APPEA L. THE LD. COUNSEL FOR THE ASSESSEE AS POINTED OUT FROM THE AFFIDAVIT HAS PRAYED THAT THE DELAY MAY BE CONDONED ON THE FOLLOWING LINES: THE APPELLANT HEREIN IS A CHARITABLE ORGANIZATION C ONSTITUTED ON 3.10.2011 AND APPLIED SIMULTANEOUSLY FOR GRANT OF RECOGNITION U/S 80G AND REGISTRATION U/S 12AA OF THE INCOME TAX ACT, 1961. HOWEVER, THE LEA RNED COMMISSIONER OF INCOME TAX, RAJAHMUNDRY DISPOSED OFF BOTH THE APPLICATIONS BY REFUSING TO GRANT RECOGNITION U/S 80G AND REGISTRATION U/S 12AA OF THE INCOME TAX ACT, 1961 VIDE ORDERS DATED 1.8.2012 AND 10.8.2012 RESPECTIVELY, WHICH WERE SER VED ON THE APPELLANT ON 9.8.2012 AND 27.8.2012 RESPECTIVELY. ON 31.08.2012 , THE APPELLANT HANDED OVER BOTH THE ORDERS TO THEIR ACCOUNTS MANAGER SRI S.R.K . VENKATA SOMA SURYA NARAYANA RAJU WITH A DIRECTION THAT THE ORDERS MAY BE GIVEN TO THE CHARTERED ACCOUNTANT AT VISAKHAPATNAM SRI G.V.N. HARI FOR PREPARATION OF AP PEAL PAPERS TO BE FILED BEFORE THE HONBLE ITAT, VISAKHAPATNAM. HOWEVER, SRI S.R. K. VENKATA SOMA SURYA NARAYANA RAJU DID NOT UNDERSTAND THE INSTRUCTION PR OPERLY AND GAVE THE PAPERS TO SRI V. BHASKAR RAM, CHARTERED ACCOUNTANT AT RAJAHMU NDRY WHO REPRESENTED THE CASE BEFORE THE COMMISSIONER OF INCOME TAX. THIS LAPSE CAME TO THE KNOWLEDGE OF THE APPELLANT ONLY ON 25 TH FEBRUARY, 2013 WHEN THEY MET SRI G.V.N. HARI AT VISAKHAPATNAM TO DISCUSS THE STATUS OF APPEAL FILED IN THE CASE OF SARASWATHI EDUCATIONAL SOCIETY (ITA NO.202/V/2012). IMMEDIATELY, THE APPELLANT TOOK NECESSARY STEPS AND ENSURED THAT THE APPEAL IS FILED BY 28 TH FEBRUARY, 2013. THUS, THE DELAY OF 125 DAYS IN FILING THE APPEAL W AS NEITHER INTENTIONAL NOR DELIBERATE AND WAS DUE TO REASONS BEYOND THE CONTRO L OF THE APPELLANT. HENCE, THE APPELLANT RESPECTFULLY PRAYS THE HONBLE ITAT TO KI NDLY CONDONE THE DELAY OF 125 DAYS IN FILING THE APPEAL AND TO PASS APPROPRIATE O RDERS. 3. ON THE OTHER HAND, THE LD. D.R. HAS SUBMITTED TH AT DELAY IS INORDINATE AND MAY NOT BE CONDONED. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE AF FIDAVIT FILED BY THE ASSESSEE. WE FIND THAT THERE IS A SUFFICIENT C AUSE FOR NOT FILING THE ITA NOS.135&136/VIZAG/2013 SRI SAI SARASWATHI TRUST, AMALAPURAM 3 APPEAL WITHIN THE TIME AND WE FIND THAT THIS IS A F IT CASE TO CONDONE THE DELAY. ACCORDINGLY, DELAY IS CONDONED. 5. SO FAR AS MAIN CASE OF THE ASSESSEE IS CONCERNED , THE ASSESSEE IS A TRUST, APPLIED FOR REGISTRATION U/S 12AA OF THE INC OME TAX ACT, 1961 (HEREINAFTER CALLED AS 'THE ACT') ALONG WITH FORM N O.10A DATED 7.12.2011. THE LD. COMMISSIONER IN HIS ORDER DATED 10.8.2012 REJECTED THE REGISTRATION AS PRAYED BY THE ASSESSEE ON THE G ROUND THAT THE ASSESSEE TRUST DOES NOT CONTAIN THE WORDING NO AME NDMENT, ALTERATION OR RESOLUTIONS MADE WITH THE PRIOR APPROVAL OF THE CIT WHILE MAKING ANY AMENDMENT OR IN A CASE OF RESOLUTION OF THE TRUST AND FURTHER HE HAS OBSERVED THAT ASSESSEE IS A RELIGIOUS AS WELL AS CH ARITABLE ORGANIZATION. FINALLY, HE REJECTED THE REGISTRATION U/S 12AA OF T HE ACT. 6. THE ASSESSEE TRUST SUBSEQUENT TO THE PASSING OF ORDER BY THE LD. COMMISSIONER REJECTING THE REGISTRATION U/S 12AA OF THE ACT HAS AMENDED THE TRUST DEED AND EXECUTED A SUPPLEMENTARY DEED ON 27.2.2012 AND THE SAME WAS FILED BEFORE US AS AN AD DITIONAL EVIDENCE AND PRAYED THAT THE SAME MAY BE ADMITTED. ITA NOS.135&136/VIZAG/2013 SRI SAI SARASWATHI TRUST, AMALAPURAM 4 7. ON THE OTHER HAND, THE LD. D.R. HAS SUBMITTED T HAT IF THE ADDITIONAL EVIDENCE IS ADMITTED, THE SAME MAY BE SE NT BACK TO THE FILE OF THE LD. COMMISSIONER FOR EXAMINATION AND FRESH CONS IDERATION. 8. ON THE OTHER HAND, LD. COUNSEL FOR THE ASSESSEE HAS ALSO SUBMITTED THAT IT MAY BE SENT TO THE FILE OF THE LD . COMMISSIONER FOR FRESH EXAMINATION. AFTER CONSIDERING THE SUBMISSIO NS OF BOTH THE PARTIES, WE FIND THAT IT IS A FIT CASE TO ADMIT THE ADDITIONAL EVIDENCE AND ACCORDINGLY THE SUPPLEMENTARY TRUST DEED DATED 27.2 .2012 IS ADMITTED AND MATTER REMITTED BACK TO THE FILE OF THE A.O. I N VIEW OF THE ABOVE, WE SET ASIDE THE ORDER PASSED BY THE LD. CIT AND DI RECT HIM TO CONSIDER THE SUPPLEMENTARY TRUST DEED AND DECIDE THE ISSUE D E-NOVO IN ACCORDANCE WITH LAW. 9. IN SO FAR AS ITA NO.136/VIZAG/2013 IS CONCERNED, FOR GRANT OF 80G(5)(VI) OF THE ACT, THERE IS A DELAY OF 143 DAYS IN FILING THE APPEAL AND THE LD. COUNSEL FOR THE ASSESSEE AS POINTED OUT FROM THE AFFIDAVIT HAS PRAYED THAT THE DELAY MAY BE CONDONED ON THE FO LLOWING LINES: THE APPELLANT HEREIN IS A CHARITABLE ORGANIZATION C ONSTITUTED ON 3.10.2011 AND APPLIED SIMULTANEOUSLY FOR GRANT OF RECOGNITION U/S 80G AND REGISTRATION U/S 12AA OF THE INCOME TAX ACT, 1961. HOWEVER, THE LEA RNED COMMISSIONER OF INCOME TAX, RAJAHMUNDRY DISPOSED OFF BOTH THE APPLICATIONS BY REFUSING TO GRANT RECOGNITION U/S 80G AND REGISTRATION U/S 12AA OF THE INCOME TAX ACT, 1961 VIDE ORDERS DATED 1.8.2012 AND 10.8.2012 RESPECTIVELY, WHICH WERE SER VED ON THE APPELLANT ON 9.8.2012 AND 27.8.2012 RESPECTIVELY. ON 31.8.2012, THE APPELLANT HANDED OVER BOTH THE ORDERS TO THEIR ACCOUNTS MANAGER SRI S.R.K. VEN KATA SOMA SURYA NARAYANA RAJU ITA NOS.135&136/VIZAG/2013 SRI SAI SARASWATHI TRUST, AMALAPURAM 5 WITH A DIRECTION THAT THE ORDERS MAY BE GIVEN TO TH E CHARTERED ACCOUNTANT AT VISAKHAPATNAM SRI G.V.N. HARI FOR PREPARATION OF AP PEAL PAPERS TO BE FILED BEFORE THE HONBLE ITAT, VISAKHAPATNAM. HOWEVER, SRI S.R. K. VENKATA SOMA SURYA NARAYANA RAJU DID NOT UNDERSTAND THE INSTRUCTION PR OPERLY AND GAVE THE PAPERS TO SRI V. BHASKAR RAM, CHARTERED ACCOUNTANT AT RAJAHMU NDRY WHO REPRESENTED THE CASE BEFORE THE COMMISSIONER OF INCOME TAX. THIS LAPSE CAME TO THE KNOWLEDGE OF THE APPELLANT ONLY ON 25 TH FEBRUARY, 2013 WHEN THEY MET SRI G.V.N. HARI AT VISAKHAPATNAM TO DISCUSS THE STATUS OF APPEAL FILED IN THE CASE OF SARASWATHI EDUCATIONAL SOCIETY (ITA NO.202/V2012). IMMEDIATELY, THE APPELLANT TOOK NECESSARY STEPS AND ENSURED THAT THE APPEAL IS FILED BY 28 TH FEBRUARY, 2013. THUS, THE DELAY OF 143 DAYS IN FILING THE APPEAL W AS NEITHER INTENTIONAL NOR DELIBERATE AND WAS DUE TO REASONS BEYOND THE CONTRO L OF THE APPELLANT. HENCE, THE APPELLANT RESPECTFULLY PRAYS THE HONBLE ITAT TO KI NDLY CONDONE THE DELAY OF 143 DAYS IN FILING THE APPEAL AND TO PASS APPROPRIATE O RDERS. 10. ON THE OTHER HAND, THE LD. D.R. HAS SUBMITTED T HAT THERE IS AN INORDINATE DELAY AND HENCE THE DELAY MAY NOT BE CON DONED. 11. WE HAVE CONSIDERED THE AFFIDAVIT FILED BY THE AS SESSEE AND ALSO CONSIDERED THE ARGUMENTS OF BOTH THE PARTIES. WE F IND THAT THERE IS A SUFFICIENT CAUSE FOR NOT FILING THE APPEAL IN TIME AND WE FIND THAT IT IS ALSO A FIT CASE TO CONDONE THE DELAY. ACCORDINGLY, DELAY IS CONDONED. 12. SO FAR AS MERITS OF THE CASE ARE CONCERNED, IN VIEW OF OUR ORDER ABOVE, THE ORDER PASSED BY LD. CIT IS SET ASIDE. W E DIRECT THE LD. CIT TO CONSIDER THE GRANT OF REGISTRATION U/S 80G OF TH E ACT AFTER CONSIDERING THE ASSESSEES STATUS FOR REGISTRATION U/S 12AA OF THE ACT. THEREAFTER THE RECOGNITION U/S 80G OF THE ACT SHALL BE CONSIDE RED. ITA NOS.135&136/VIZAG/2013 SRI SAI SARASWATHI TRUST, AMALAPURAM 6 13. IN THE RESULT, BOTH THE APPEALS FILED BY THE AS SESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 6 TH MAY16. SD/- SD/- ( . ) ( . ) (G. MANJUNATHA) (V. DURGA RAO) /ACCOUNTANT MEMBER /JUDICIAL MEMBER ! /VISAKHAPATNAM: % /DATED : 06.05.2016 VG/SPS '! (! /COPY OF THE ORDER FORWARDED TO:- 1. / THE APPELLANT SRI SAI SARASWATHI TRUST, 101, S RI SAI SURYA RESIDENCY, BHUPAYYA AGRAHARAM, AMALAPURAM 2. / THE RESPONDENT THE CIT, RAJAHMUNDRY 3. ) / THE ACIT, KAKINADA 4. ) ( ) / THE PRINCIPAL CIT-2, VISAKHAPATNAM 5. ! , , , , ! / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY / /0 , (SR.PRIVATE SECRETARY) , , ! / ITAT, VISAKHAPATNAM