Association of Physicians of Hyderabad Trust, Hyd, Hyderabad V. CIT(Exemptions), Hyd, Hyderabad

ITA 1419/HYD/2015

• Counselvise Citation: [2016] 128 COUNSELVISE.COM (IT) 9749 (ITAT-HYDERABAD)
• Duration Of Justice: 11 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-12-2016
• Appeal Filed By: Assessee
• Bench Allotted: B
• Next Hearing Date: 30-08-2016
• Assessment Year: 2015-2016
• Appeal Filed On: 17-12-2015
• Court: TRIBUNAL
• Department Lawyers: K.P.C. RAO
• Keywords: Set aside
• Section: 80G

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER I.T.A. NO. 1419/HYD/2015 ASSESSMENT YEAR: 2015-16 ASSOCIATION OF PHYSICIANS OF HYDERABAD TRUST, HYDERABAD [PAN: AABTA3795K] VS THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI A.V. RAGHU RAM, AR FOR REVENUE : SHRI K.P.C. RAO, CIT-DR DATE OF HEARING : 29-11-2016 DATE OF PRONOUNCEMENT : 16-12-2016 O R D E R PER B. RAMAKOTAIAH, A.M. : THIS IS AN APPEAL BY ASSESSEE AGAINST THE ORDER OF TH E COMMISSIONER OF INCOME TAX (EXEMPTIONS), HYDERABAD, DATED 28-09-2015, REJECTING THE APPLICATION FOR RENEWAL U/S . 80G(5) OF THE INCOME TAX ACT [ACT]. 2. BRIEFLY STATED, ASSESSEE-TRUST HAS FILED AN APPLICAT ION IN FORM 10G ON 20-03-2015 SEEKING RENEWAL OF THE APPROVAL U/S. 8 0G(5)(VI) OF THE ACT. THE LD. CIT(EXEMPTIONS) REJECTED THE APPLI CATION BY STATING AS UNDER: I.T.A. NO. 1419/HYD/2015 :- 2 -: 2. A PERUSAL OF INFORMATION WOULD REVEAL THAT THE NAME OF THE TRUST IS ASSOCIATION OF PHYSICIANS OF HYDERABAD TRUST W HEREAS ON THE PAN CARD, BEARING NO. AABTA3795K, IT IS WRITTEN AS ASS OCIATION OF PHYSICIANS OF HYDERABAD. 3. THE DETAILS OF ACTIVITIES / BENEFICIARIES FILED RELATE TO ANOTHER TRUST BY NAME ASSOCIATION OF PHYSICIANS OF INDIA, HYDERA BAD CHAPTER. 4. FURTHER, AS SEEN FROM THE ACCOUNTS FOR THE YEAR ENDED 31-03- 2014, IT IS NOTICED THAT THE TRUST HAS NOT INCURRED ANY EXPENDITURE TOWARDS ATTAINMENT OF ITS OBJECTS FOR WHICH IT WAS ESTABLIS HED. 5. IN VIEW OF THE ABOVE LAPSES, I AM OF THE OPINION THAT THE TRUST IS NOT FIT FOR RENEWAL OF APPROVAL U/S. 80G(5)(VI) OF THE ACT. THUS, RENEWAL OF APPROVAL SOUGHT U/S. 80G IS REJECTED. HENCE, THE S AID APPLICATION IN FORM 10G FILED BY THE APPLICANT IS REJECTED. 3. AGGRIEVED, ASSESSEE HAS PREFERRED THE PRESENT APP EAL AND RAISED THE FOLLOWING GROUNDS: 1. THE ORDER OF THE CIT(EXEMPTIONS) REJECTING RENE WAL OF SEC. 80-G OF I.T. ACT APPROVAL NOT ONLY ERRONEOUS IN LAW BUT IS PERVERSE. 2. THE LEARNED CIT(E) ERRED IN REJECTING RENEWAL ON THE GROUND THAT THERE WERE NO EXPENDITURE FOR ATTAINMENT OF OBJECTS WITHOUT APPRECIATING THE FACT THAT THERE WERE NOT MUCH OF R ECEIPTS TO APPLY FOR OBJECTS AND HENCE APPROACHED FOR RENEWAL OF APP ROVAL U/S. 80- G. 3. THE LEARNED CIT(E) FURTHER ERRED IN OBSERVING TH AT THE INFORMATION FURNISHED RELATE TO ANOTHER TRUST THOUGH SUCH MISTA KE THAT OCCURRED DUE TO INADVERTENCE IS RECTIFIED AND RELEVANT MATER IAL IS SUBMITTED BEFORE THE DY. C.I.T. 4. THE LEARNED CIT(E) ERRED IN OBSERVING THAT THE P AN AABTA3795K DOES NOT RELATE TO THE ASSESSEE WITHOUT ANY VERIFIC ATION, THOUGH THE SAME VERY MUCH RELATE TO THE ASSESSEE AND THEREBY E RRED IN MAKING IT A REASON FOR REFUSAL OF RENEWAL. GROUND NO. 5 IS GENERAL IN NATURE. 4. IT WAS THE CONTENTION OF THE LD. COUNSEL THAT THEY HAVE WRONGLY FILED INFORMATION PERTAINING TO OTHER ASSESSEE AND LATER I.T.A. NO. 1419/HYD/2015 :- 3 -: CORRECT ACCOUNT PERTAINING TO ASSESSEE-TRUST WERE FILED WHICH WERE NOT CONSIDERED BY THE LD. CIT(EXEMPTIONS). IT WAS FU RTHER SUBMITTED THAT ASSESSEE-TRUST WAS INCORPORATED BY THE CHAI RMAN OF ASSOCIATION OF PHYSICIANS OF INDIA, HYDERABAD CHA PTER, WHICH WAS ENTIRELY DIFFERENT ONE THAN THE PRESENT ASSESSEE. W ITH REFERENCE TO THE DISPUTE WITH REFERENCE TO PAN, NAME ON THE PAN CARD, LD. COUNSEL FILED A COPY OF THE PAN ISSUED BY THE DEPARTMENT, WHEREIN ASSOCIATION OF PHYSICIANS OF HYDERABAD TRUS T WAS CLEARLY STATED. IT WAS SUBMITTED THAT PAN DO INDICATE THE NAME OF ASSESSEE CORRECTLY. ACCORDINGLY, THE CONTENTION IN PAR A 2 OF THE CIT(EXEMPTIONS) IS NOT CORRECT. AS FAR AS THE ACTIVITIES ARE CONCERNED, IT WAS SUBMITTED THAT EARLIER SECTION 80G WAS GRANTED ON 07-03-2007 AND ASSESSEE HAS RECEIVED VARIOUS DON ATIONS WHICH WERE OF CAPITAL NATURE AND HAS BEEN SPENT FOR THE PURP OSE OF THE OBJECTIVES OF THE SOCIETY. SINCE THESE ISSUES ARE NOT APPRECIATED BY THE CIT(EXEMPTIONS), IT WAS SUBMITTED THAT THE MATTER CAN B E RESTORED TO THE FILE OF THE CIT(EXEMPTIONS) FOR FRESH EX AMINATION. 5. LD. DR HOWEVER, RELIED ON THE ORDERS OF THE CIT(EX EMPTIONS) TO SUBMIT THAT THE PAN IN PAGE AT 215 DO INDICATE NAME O F ASSESSEE AS ASSOCIATION OF PHYSICIANS OF HYDERABAD, THEREF ORE, CIT(EXEMPTIONS) IS CORRECT. IT WAS ALSO SUBMITTED THAT A SSESSEE HAS NOT SPENT ANY AMOUNT TOWARDS ITS OBJECTS AND RELIED ON THE PRINCIPLES LAID DOWN BY THE DECISION OF HON'BLE KAR NATAKA HIGH COURT IN THE CASE OF GANJAM NAGAPPA & SON TRUST VS. DIT(EXEMPTION) [269 ITR 59] FOR THE PROPOSITION THAT THE AUTHORITY ON BEING SATISFIED THAT NO CHARITABLE ACTIVITIES WERE BE ING CARRIED ON BY THE PETITIONER, REJECTION OF APPLICATION FOR RENE WAL OF I.T.A. NO. 1419/HYD/2015 :- 4 -: RECOGNITION U/S. 80G(5) BY A WELL REASONED ORDER DOE S NOT REQUIRE ANY INTERFERENCE. 6. WE HAVE CONSIDERED THE ISSUE AND PERUSED THE DOCUM ENTS PLACED ON RECORD. IT IS A FACT THAT THERE ARE TWO TRUSTS, ONE IN THE NAME OF ASSOCIATION OF PHYSICIANS OF INDIA, HYDERAB AD CHAPTER AND ASSESSEE-TRUST HAVING THE NAME OF ASSOCIATION OF PHYSICIANS OF HYDERABAD TRUST. AS SUBMITTED, THERE SEEMS TO BE SOME MIX UP OF THE ACCOUNTS FURNISHED TO THE CIT(EXEMPTIONS). FURTHER, THE COPY OF PAN CARD PLACED ON RECORD DO INDICATE THE PAN GIVE N IN THE NAME OF ASSESSEE. THUS TWO OF THE MAIN OBJECTIONS A RE NOT MATERIAL AT ALL FOR REJECTION OF APPLICATION. SINCE TH ESE ASPECTS WERE NOT PROPERLY ANALYSED BY THE CIT(EXEMPTIONS), WE ARE O F THE OPINION THAT ONE MORE OPPORTUNITY CAN BE GIVEN TO ASSE SSEE TO EXPLAIN THE FACTS AND ACTIVITIES OF ASSESSEE TRUST. C IT(EXEMPTIONS) IS FREE TO DETERMINE AFRESH AFTER DUE EXAMINATION. F OR THIS PURPOSE, WE SET ASIDE THE ORDER OF THE CIT(EXEMPTIONS) AND RESTORE THE ISSUE OF RENEWAL OF 80G TO THE FILE OF CIT(EXEMP TIONS) FOR FRESH CONSIDERATION. 7. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED FOR S TATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 16 TH DECEMBER, 2016 SD/- SD/- (P. MADHAVI DEVI) (B. RAMAKOTAIAH) JUDICIAL MEMBER ACCOUNTANT MEM BER HYDERABAD, DATED 16 TH DECEMBER, 2016 TNMM I.T.A. NO. 1419/HYD/2015 :- 5 -: COPY TO : 1. ASSOCIATION OF PHYSICIANS OF HYDERABAD TRUST, C/ O. A.V. RAGHU RAM, ADVOCATE, 610, 6 TH FLOOR, BABUKHAN ESTATE, BASHEER BAGH, HYDERABAD. 2. THE COMMISSIONER OF INCOME TAX (EXEMPTIONS), HYDERABAD. 3. D.R. ITAT, HYDERABAD. 4. GUARD FILE.