Suresh Chandra Pannalal Lahoti Charities, Hyderabad V. DIT, Hyderabad

ITA 1355/HYD/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 3376 (ITAT-HYDERABAD)
• Duration Of Justice: 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-04-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 27-10-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NIVEDITA BISWAS
• Keywords: Charitable institution
• Section: 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI G.C.GUPTA, VICE PRESIDENT AND SHRI AKBER BASHA, ACCOUNTANT MEMBER ITA NO.1355/HYD/2010 AND ITA NO.419/HYD/2011 M/S. SURESH CHANDRA PANNALAL LAHOTI CHARITIES, SECUNDERABAD. (PAN AAGTS 7055 R) VS DIRECTOR OF INCOME - TAX (EXEMPTION), HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI PAVAN KUMAR RESPONDENT BY : SMT. NIVEDITA BISWAS O R D E R PER AKBER BASHA, ACCOUNTANT MEMBER: THESE TWO APPEALS BY THE ASSESSEE ARE DIRECTED AG AINST THE ORDERS OF THE DIRECTOR OF INCOME-TAX(EXEMPTION). W E HAVE HEARD THESE APPEALS TOGETHER AND PROCEED TO DISPOSE OF THE SAME BY THIS CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE.. ITA NO.1355/HYD/2010 2. EFFECTIVE GRIEVANCE OF THE ASSESSEE IN THIS APP EAL IS AGAINST THE ACTION OF THE DIRECTOR OF INCOME-TAX(EXEMPTION) IN REJECTING THE ASSESSEES APPLICATION FOR REGISTRATION UNDER S.12AA OF THE IN COME-TAX ACT. 3. WE HAVE HEARD BOTH SIDES AND PERUSED THE IMPUG NED ORDER OF THE DIRECTOR OF INCOME-TAX(EXEMPTION) REJECTING THE APPLICATION OF THE ASSESSEE FOR REGISTRATION UNDER S.12AA OF THE ACT. WE FIND THAT DURING THE ITA NO.1355/HYD/2010 & 419/HYD/2011 M/S. SURESH CHANDRA PANNALAL LAHOTI CHARITIES, SEC BAD. 2 PROCEEDINGS BEFORE THE DIRECTOR OF INCOME-TAX(EXEMP TION), THE ASSESSEE WAS CALLED UPON TO FURNISH- (A) COPY OF THE REGISTRATION U/S. 43(1) OF THE A.P. CHA RITABLE AND HINDU RELIGIOUS INSTITUTIONS & ENDOWMENTS ACT, 1987. (B) THE NAMES AND ADDRESSES OF THE BENEFICIARIES WHO GO T BENEFIT FROM THE CHARITIES CONDUCTED BY THE TRUST. SINCE THE ASSESSEE COULD NOT FURNISH THE ABOVE DETA ILS AND NOTE EVEN COPY OF THE ACKNOWLEDGEMENT OF ITS APPLICATION FOR REGIS TRATION U/S. 43(1) OF THE A.P. CHARITABLE AND HINDU RELIGIOUS INSTITUTIONS & ENDOWMENTS ACT, 1987, THE DIRECTOR OF INCOME-TAX(EXEMPTION) REJECTED THE APPLICATION OF THE ASSESSEE. 4. ON CAREFUL CONSIDERATION OF THE RIVAL SUBMISSI ONS, WE FIND THAT THE REASONS GIVEN BY THE DIRECTOR OF INCOME-TAX(EXE MPTION) FOR REFUSING REGISTRATION UNDER S.12AA TO THE ASSESSEE ARE NOT V ALID. IT HAS BEEN CONSISTENTLY HELD BY THE VARIOUS BENCHES OF THIS TR IBUNAL, AS IN THE CASE OF M/S. KAMALAKAR MEMORIAL CHARITABLE TRUST, HYDERABAD (ORDER DATED 5.3.2010 IN ITA NO.1145/HYD/2009), THAT REGISTRATIO N OF AN ASSESSEE UNDER S.43(1) OF THE A.P. CHARITABLE AND HINDU RELIGIOUS INSTITUTIONS & ENDOWMENTS ACT, 1987, IS NOT MANDATORY FOR GRANT OF REGISTRATION UNDER S.12AA OF THE INCOME-TAX ACT. SECONDLY, IT IS NOT INCUMBENT UPON THE CONCERNED AUTHORITY OR THE REVENUE TO OBTAIN AND VE RIFY THE NAMES AND ADDRESSES OF THE BENEFICIARIES WHO GOT BENEFIT FROM THE CHARITIES CONDUCTED BY THE TRUST, BEFORE GRANTING OF REGISTRATION, AND AS SUCH THE ASSESSEE IS NOT OBLIGED TO FURNISH SUCH DETAILS PRIOR TO GRANT OF R EGISTRATION UNDER S.12AA OF THE ACT. IN THIS VIEW OF THE MATTER, WE SET ASIDE THE IMPUGNED ORDER OF THE DIRECTOR OF INCOME-TAX(EXEMPTION) AND SET ASIDE THE MATTER TO HIS FILE WITH A DIRECTION TO GRANT REGISTRATION UNDER S.12AA OF THE ACT TO THE ASSESSEE, IF OTHER CONDITIONS ARE SATISFIED. ITA NO.1355/HYD/2010 & 419/HYD/2011 M/S. SURESH CHANDRA PANNALAL LAHOTI CHARITIES, SEC BAD. 3 5. IN THE ORDER, APPEAL OF THE ASSESSEE, BEING IT A NO.1355/HYD/2010 IS ALLOWED. ITA NO.419/HYD/2011 6. THE LONELY EFFECTIVE GRIEVANCE OF THE ASSESSE E IN THIS APPEAL IS THAT THE DIRECTOR OF INCOME-TAX(EXEMPTION) HAS NOT GRANTED APPROVAL TO THE ASSESSEE UNDER S.80G OF THE INCOME-TAX ACT. 7. WE HAVE HEARD THE PARTIES. WE MAY NOTE AT THE OUTSET, THAT THE ASSESSEE HAS NOT FILED THE ORDER OF THE DIRECTOR OF INCOME-TAX(EXEMPTION) REFUSING APPROVAL TO THE ASSESSEE UNDER S.80G OF TH E INCOME-TAX ACT, AND THE ORDER IMPUGNED IN THIS APPEAL IS ALSO THE ONE D ATED 27.9.2010 OF THE DIRECTOR OF INCOME-TAX(EXEMPTION), BY WHICH THE DIR ECTOR OF INCOME- TAX(EXEMPTION) REFUSED REGISTRATION TO THE ASSESSEE UNDER S.12AA OF THE ACT, WHICH IS SILENT ON THE ASPECT OF APPLICATION O F ASSESSEE, IF ANY, FOR APPROVAL UNDER S.80G OF THE ACT. IN THIS VIEW OF T HE MATTER, THIS APPEAL OF THE ASSESSEE IS NOT MAINTAINABLE AND ACCORDINGLY, I T IS DISMISSED IN LIMINE. 8. TO SUM UP, WHILE APPEAL ITA NO.1355/HYD/2010 IS ALLOWED, APPEAL ITA NO.419/HYD/2011 IS DISMISSED AS NOT MAIN TAINABLE. ORDER PRONOUNCED IN THE COURT ON 18.4.2011 SD/- SD/- ( G.C.GUPTA ) ( AKBER BASHA ) VICE PRESIDENT ACCOUNTANT MEMBER DT/- 18 TH APRIL, 2011 ITA NO.1355/HYD/2010 & 419/HYD/2011 M/S. SURESH CHANDRA PANNALAL LAHOTI CHARITIES, SEC BAD. 4 COPY FORWARDED TO: 1. M/S. SURESH CHANDRA PANNALAL LAHOTI CHARITIES, C/O. M/S. KALYANDAS & CO., CHARTERED ACCOUNTANTS, 1 5, VENKATESWARA COLONY, HYDERABAD 500 029 2. DIRECTOR OF INCOME - TAX(EXEMPTION), HYDERABAD 3. DY. DIRECTOR OF INCOME - TAX(EXEMPTION), HYDERABAD 4. DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S.