Ginnaram Pedda Gowni Prasad Memorial Charitable Trust, Medak Dist, Medak V. DIT (Exemptions), Hyderabad, Hyderabad

ITA 141/HYD/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 6668 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 1 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-04-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 07-04-2016
• Assessment Year: 2013-2014
• Appeal Filed On: 09-02-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P SOMASEKHAR REDDY
• Assessee Lawyers: D RANGA RAO
• Keywords: Charitable institution; Reasonable cause
• Section: 12A; 12AA

Judgement Text

ITA NO 141 OF 2015 GINNARAM PEDDA GOWNI PRASAD MEMO RIAL CHARITABLE TRUST MEDAK PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD BEFORE SHRI P.MADHAVI DEVI, JUDICIAL MEMBER & SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO.141 /HYD/2015 (ASSESSMENT YEAR: 2013-14) GINNARAM PEDDA GOWNI PRASAD MEMORIAL CHARITABLE TRUST, MEDAK PAN: AABTG 8647 E VS. DIRECTOR OF INCOME TAX (EXEMPTION) HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI D. RANGA RAO FOR REVENUE : SHRI P. SOMASEKHAR REDDY, DR DATE OF HEARING : 7.4.2016 DATE OF P RONOUNCEMENT : 13 .4.2016 O R D E R PER SMT. P. MADHAVI DEVI, J.M. THIS IS ASSESSEES APPEAL FOR THE A.Y 2013-14 AGAIN ST THE REJECTION OF ASSESSEES APPLICATION FOR REGISTRATIO N U/S 12AA OF THE I.T. ACT. 2. AT THE OUTSET, IT IS NOTICED THAT THE APPEAL IS BARRED BY 422 DAYS IN FILING OF THE APPEAL BEFORE THE TRIBUNAL. W E FIND THAT THE ASSESSEE HAS FILED AN APPLICATION FOR CONDONATION O F DELAY AND THE REGISTRY HAS POINTED OUT THE DELAY OF 422 DAYS . HOWEVER, ASSESSEE FILED AN AFFIDAVIT FOR CONDONATION OF DELA Y FOR 470 DAYS. SUBSEQUENTLY THE ASSESSEE FILED A LETTER DATED 4.4. 2016 RECTIFYING ITS MISTAKE IN MENTIONING THE NUMBER OF DAYS. FOR C ONDONATION ITA NO 141 OF 2015 GINNARAM PEDDA GOWNI PRASAD MEMO RIAL CHARITABLE TRUST MEDAK PAGE 2 OF 4 OF DELAY, ASSESSEE HAS FILED A LETTER IN WHICH THE FOLLOWING REASONS ARE GIVEN: I) THE HEALTH OF MAIN TRUSTEE, SHRI G. SHIVA KUMAR GOUD HAS SUFFERED AND COULD NOT ATTEND TO THE ISSUE TILL JUL Y 2014; AND II) IN THE MONTH OF SEPTEMBER, THE AUDITOR LOOKING AFTER THESE MATTERS HAD A BLOW ON ACCOUNT OF DEATH OF HIS SON A ND COULD NOT ATTEND TO THE OFFICE TILL LAST WEEK OF DE CEMBER 2014 AND THE DELAY IS DUE TO CURCUMSTANCES BEYONG T HE CONTROL OF THE ASSESSEE. TAKING NOTE OF THE SAME, WE ARE SATISFIED THAT THER E IS A REASONABLE CAUSE FOR NON-FILING OF THE APPEAL WITHI N THE SPECIFIED TIME BEFORE THE TRIBUNAL. THEREFORE, THE DELAY IS C ONDONED. 3. COMING TO THE MERITS OF THE APPEAL, WE FIND THAT THE APPEAL IS AGAINST THE NON GRANTING OF REGISTRATION U/S 12A OF THE I.T. ACT. WE FIND THAT THE ASSESSEE IS A CHARITABLE TRUST WHI CH FILED AN APPLICATION IN FORM NO.10A DATED 27.03.2013 SEEKING REGISTRATION U/S 12AA OF THE I.T. ACT. THE DIRECTOR OF INCOME TAX (EXEMPTION) ASKED THE ASSESSEE TO PRODUCE THE ORIGI NAL TRUST DEED AND ALSO TO ANSWER THE SPECIFIC POINTS RAISED BY HIM AND TO PRODUCE BOOKS OF ACCOUNTS FOR VERIFICATION ETC. ASS ESSEE FILED THE REQUIRED DETAILS AND ON PERUSAL OF THE SAME, AO OBS ERVED THAT THE TRUST IS NOT A PUBLIC CHARITABLE TRUST AND THAT THE TRUSTEES HAVE A RIGHT FOR 20% OF THE INCOME OF THE TRUST. FU RTHER, HE ALSO OBSERVED THAT THERE IS NO MENTION ABOUT THE DURATIO N AND IRREVOCABILITY OF THE TRUST IN THAT DEED. HE OBSERV ED THAT FOR THE PURPOSE OF TREATING A TRUST AS A PUBLIC CHARITABLE TRUST, IT IS NECESSARY TO HAVE A CLAUSE MENTIONING THE IRREVOCAB ILITY NATURE ITA NO 141 OF 2015 GINNARAM PEDDA GOWNI PRASAD MEMO RIAL CHARITABLE TRUST MEDAK PAGE 3 OF 4 OF THE TRUST. HE THEREFORE, REJECTED ASSESSEES APP LICATION FOR REGISTRATION U/S 12AA OF THE ACT AGAINST WHICH THE ASSESSEE IS IN APPEAL BEFORE US. 4. WHILE REITERATING THE SUBMISSIONS MADE BEFORE TH E AUTHORITIES BELOW, THE LEARNED COUNSEL FOR THE ASSE SSEE HAS DRAWN OUR ATTENTION TO THE SUPPLEMENTARY TRUST DEED FILED AT PAGES 17 TO 49 OF THE PAPER BOOK AND ALSO FILED A C OPY OF EXEMPTION CERTIFICATE ISSUED BY THE MINISTRY OF HOM E AFFAIRS DATED 25.07.2014 GRANTING REGISTRATION UNDER THE FO REIGN CONTRIBUTION (REGULATION) ACT, 2010. HE SUBMITTED T HAT ONCE THE GOVT. OF INDIA HAS GRANTED EXEMPTION TO THE ASSESSE E AS A CHARITABLE ORGANIZATION, THE INCOME TAX DEPARTMENT ALSO OUGHT TO HAVE GRANTED REGISTRATION U/S 12AA OF THE ACT AS THE ASSESSEE IS CARRYING ON THE CHARITABLE ACTIVITY. 5. THE LEARNED DR, HOWEVER, SUBMITTED THAT THESE DO CUMENTS ARE ALL SUBSEQUENT TO THE REJECTION OF THE REGISTRA TION BY THE DIT (E) AND HENCE CONTRIBUTE FRESH EVIDENCE. 6. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE M ATERIAL ON RECORD, WE FIND THAT THE SUPPLEMENTARY TRUST DEED I S EXECUTED ON 16.04.2014, WHILE THE LETTER FROM THE GOVT. OF INDI A GRANTING EXEMPTION UNDER THE FOREIGN CONTRIBUTION (REGULATIO N) ACT IS ALSO DATED 27.05.2014. AS THESE TWO DOCUMENTS ARE S UBSEQUENT TO THE ORDER OF THE DIT (E), WE DEEM IT FIT AND PRO PER TO ADMIT THE SAME AND REMAND THE ISSUE TO THE DIT (E) FOR DENOVO CONSIDERATION IN ACCORDANCE WITH THE LAW. NEEDLESS TO MENTION THAT THE ASSESSEE SHALL BE GIVEN A FAIR OPPORTUNITY OF HEARING. ITA NO 141 OF 2015 GINNARAM PEDDA GOWNI PRASAD MEMO RIAL CHARITABLE TRUST MEDAK PAGE 4 OF 4 7. IN THE RESULT, ASSESSEES APPEAL IS TREATED AS A LLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 13 TH APRIL, 2016. S D/ - S D/ - (S.RIFAUR RAHMAN) (P. MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, 13 TH APRIL, 2016. VNODAN/SPS COPY TO: 1. PEDDA GOWNI PRASAD MEMORIAL CHARITABLE TRUST, GUDUR VILLAGE, SHIVAMPET, SHIVAMPET MANDAL, MEDAK 2. DIRECTOR OF INCOME TAX (EXEMPTIONS) 3 RD FLOOR, AAYAKAR BHAVAN, BASHEERBAGH, HYDERABAD 3. DDIT(E)-I HYDERABAD 4. THE DR, ITAT, HYDERABAD 5. GUARD FILE BY ORDER