Raghuraji Devi Foundation Trust, Ambedkar Nagar V. Commissioner of Income Tax, Faizabad

ITA 146/LKW/2012

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 70552 (ITAT-LUCKNOW)
• Duration Of Justice: 1 year(s) 5 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-09-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 29-05-2017
• Assessment Year: misc
• Appeal Filed On: 23-03-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P K KAPOOR
• Keywords: Charitable institution
• Section: 80G; 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A, LUCKNOW BEFORE SHRI S.K. YADAV, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER ITA NO.145 & 146/LKW/2012 RAGHURAJI DEVI FOUNDATION TRUST, VS. COMMISSIONER O F INCOME TAX, VILL. MOHASINPUR, FAIZABAD. TEHSIL AKBARPUR, AMBEDKAR NAGAR. (PAN: AABTR 5636 G). (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI P.K. KAPOOR, C.A. RESPONDENT BY : SHRI MANOJ KUMAR GUPTA, CIT D.R. DATE OF HEARING : 17.09.2013 DATE OF PRONOUNCEMENT : 20.09.2013 ORDER PER SHAMIM YAHYA, ACCOUNTNT MEMBER: THESE APPEALS BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDERS OF LD. CIT DATED 23.01.2012 DISMISSING APPLICATION OF THE ASSESSEE F OR REGISTRATION UNDER SECTION 12AA OF THE INCOME TAX ACT, 1961 (THE ACT HEREINA FTER) AND APPROVAL UNDER SECTION 80G OF THE ACT RESPECTIVELY. 2. IN THESE CASES THE ASSESSEE TRUST HAS APPLIED FOR REGISTRATION UNDER SECTION 12AA AND SECTION 80G OF THE ACT ON 05.02.2010. THESE APP LICATIONS WERE REJECTED BY 2 ITA NOS.145 & 146/LKW/2012 THE LD. CIT BY ORDER DATED 26.08.2010. AGGRIEVED B Y THESE ORDERS, THE ASSESSEE MOVED TO THE ITAT. THE ITAT SET ASIDE THE ISSUE FO R FRESH ADJUDICATION BY ORDER DATED 12.01.2011 PASSED IN ITA NOS.613 & 593/LUC/20 10. 3. PURSUANT TO THE ABOVE REMAND, THE LD. CIT PASSED ORDER ON 23.01.2012 WHEREIN HE REJECTED THE APPLICATIONS OF THE ASSESSE E FOR REGISTRATION UNDER SECTION 12AA AND 80G OF THE ACT RESPECTIVELY. AGAINST THE ABOVE ORDER, THE ASSESSEE IS IN APPEAL BEFORE US. 4. WE HAVE HEARD BOTH THE LD. COUNSELS AND PERUSED THE RECORDS. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT AFTER SETTI NG ASIDE THE ISSUE BY ITAT, THE ASSESSEE STOOD RELEGATED TO THE STAGE OF FILING APP LICATION AND, THEREFORE, ADVERSE ORDER, IF ANY, COULD BE PASSED WITHIN A PERIOD OF S IX MONTHS FROM THE DATE OF ORDER OF THE ITAT. AS NO SUCH ORDER HAS BEEN PASSED AND SERVED ON THE APPLICANT, IT HAD BECOME ENTITLED TO REGISTRATION UNDER SECTION 12AA AND APPROVAL UNDER SECTION 80G(5) OF THE ACT. IN THIS REGARD, LD. COUNSEL FOR THE ASSESSEE REFERRED TO CASE LAWS FROM HONBLE JURISDICTIONAL HIGH COURT IN SUPPORT O F HIS SUBMISSIONS. 5. THE LD. DEPARTMENTAL REPRESENTATIVE COULD NOT CO NTROVERT THIS SUBMISSION BY THE LD. COUNSEL FOR THE ASSESSEE NOR HE COULD PRODU CE ANY CONTRARY DECISION IN THIS REGARD. 3 ITA NOS.145 & 146/LKW/2012 6. WE HAVE CAREFULLY CONSIDERED THE SUBMISSIONS. W E FIND THAT SECTION 12AA IN CLAUSE-2 PROVIDES AS UNDER :- EVERY ORDER GRANTING OR REFUSING REGISTRATION UNDE R CLAUSE(B) OF SUB-SECTION(1) SHALL BE PASSED BEFORE THE EXPIRY OF SIX MONTHS FROM THE END OF THE MONTH IN WHICH THE APPLICATION WAS R ECEIVED UNDER CLAUSE(A) OR CLAUSE(AA) OF SUB-SECTION (1) OF SECTI ON 12A. 7. NOW WE EXAMINE THE PRESENT CASE ON THE TOUCHSTON E OF LEGAL PROVISION. IN THIS CASE THE MATTER WAS REMITTED TO THE FILE OF CI T BY THE ITAT VIDE ORDER DATED 12.01.2011. THE CIT PASSED THE ORDER REJECTING THE REGISTRATION VIDE ORDER DATED 23.01.2012. ADMITTEDLY THE ORDER WAS PASSED BEYON D THE STIPULATED PERIOD OF SIX MONTHS. UNDER THE CIRCUMSTANCES, WE FIND THAT THE PLEA OF THE LD. COUNSEL FOR THE ASSESSEE IS COGENT THAT THE ASSESSEE HAS BECOME ENT ITLED FOR REGISTRATION UNDER SECTION 12AA AND ALSO APPROVAL UNDER SECTION 80G OF THE ACT. IN THIS REGARD, WE DRAW SUPPORT FROM THE HONBLE JURISDICTIONAL HIGH C OURT DECISION IN THE CASE OF SOCIETY FOR THE PROMOTION OF EDUCATION, ADVENTURE S PORTS & CONVERSATION OF ENVIRONMENT VS. CIT & ORS., 216 CTR (ALL) 167. IN THIS CASE, FOLLOWING WAS EXPOUNDED :- (HEAD NOTES ONLY) CHARITABLE TRUST REGISTRATION UNDER S. 12A EFF ECT OF NON- PASSING OF ORDER WITHIN THE TIME-LIMIT TAKING THE VIEW THAT NON- CONSIDERATION OF THE REGISTRATION APPLICATION WITHI N THE TIME FIXED BY S. 12AA(2) WOULD RESULT IN DEEMED REGISTRATION, MAY AT THE WORST CAUSE LOSS OF SOME REVENUE OR INCOME-TAX PAYABLE BY THE I NDIVIDUAL ASSESSEE ON THE OTHER HAND, IF A CONTRARY VIEW IS TAKEN, I T WOULD LEAVE THE ASSESSEE TOTALLY AT THE MERCY OF THE IT AUTHORITIES INASMUCH AS THE ASSESSEE HAS NOT BEEN PROVIDED ANY REMEDY UNDER THE ACT AGAINST 4 ITA NOS.145 & 146/LKW/2012 NON-DECISION MOREOVER, THE FORMER VIEW FURTHERS T HE OBJECT AND PURPOSE OF THE STATUTORY PROVISION THUS, THE BETT ER INTERPRETATION WOULD BE TO HOLD THAT THE EFFECT OF NON-CONSIDERATI ON OF THE APPLICATION FOR REGISTRATION UNDER S. 12A WITHIN TH E TIME FIXED BY S. 12AA(2) WOULD BE A DEEMED GRANT OF REGISTRATION. 8. RESPECTFULLY FOLLOWING THE PRECEDENT AS ABOVE AN D ALSO THE LEGAL PROVISIONS DISCUSSED ABOVE, WE ARE OF THE OPINION THAT THE ORD ER OF LD. CIT IN THIS CASE IS LIABLE TO BE SET ASIDE AND THE ASSESSEE BE GRANTED DEEMED REGISTRATION AND APPROVAL AS APPLIED. 9. IN THE RESULT, THESE APPEALS FILED BY THE ASSESS EE ARE ALLOWED. (ORDER PRONOUNCED IN THE OPEN COURT ON 20.09.2013) SD/- SD/- (S.K. YADAV) (SHAMIM YAHYA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATE: 20.09.2013 PBN/* COPY OF THE ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT (APPEALS) 4. CIT 5. D.R. ASSISTANT REGISTER