Sohanlal Chokhani Public Charitable Trust, Hyderabad V. Director of Income-tax (Exemptions), Hyderabad

ITA 1468/HYD/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 1411 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-01-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 25-09-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMISHA S GUPT
• Assessee Lawyers: K L RATHI; SIDDHARTH TOSHNIWAL
• Keywords: Charitable institution
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B', HYDERABAD BEFORE SMT. ASHA VIJAYARAGHAVAN, J.M. AND SHRI B.R.BASKARAN, A.M. ITA NO.1468/HYD/2012 SOHANLAL CHOKHANI PUBLIC CHARITABLE TRUST, HYDERABAD ( PAN - AAHTS 7742 J ) V/S. DIRECTOR OF INCOME - TAX(EXEMPTION) HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY : S/ S HRI K.L.RATHI & SIDDHARTH TOSHNIWAL RESPONDENT BY : S MT. AMISHA S. GUPT DR DATE OF HEARING 2.1 .201 3 DATE OF PRONOUNCEMENT 4.1.2013 O R D E R PER B.R.BASKARAN, ACCOUNTANT MEMBER: THE APPEAL OF THE ASSESSEE IS DIRECTED AGAINST T HE ORDER DATED 30- 08-2012 PASSED BY LEARNED DIT (EXEMPTIONS), HYDERAB AD REFUSING TO GRANT REGISTRATION TO THE ASSESSEE U/S 12AA OF THE ACT. 2. THE LEARNED COUNSEL APPEARING FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE ORIGINALLY FILED APPLICATION SEEKING REGIS TRATION U/S 12AA OF THE ACT ON 13.10.2008 AND THE SAME WAS REJECTED BY THE LEARNED DIRECTOR OF INCOME TAX (EXEMPTIONS). THE ASSESSEE PREFERRED APPEAL BEFORE THE ITAT CHALLENGING THE SAID ORDER AND THE TRIBUNAL, VIDE ITS ORDER DATED 1 4.10.2009, SET ASIDE THE ORDER OF DIT (EXEMPTIONS) AND RESTORED THE MATTER TO HIS FILE FOR FRESH DECISION IN ITA NO.1468/HYD/12 SOHANLAL CHOKHANI PUBLIC CHARITABLE TRUST, HYDERABAD 2 ACCORDANCE WITH LAW. THE DIT (EXEMPTIONS) HAS PASS ED THE IMPUGNED ORDER ON 30-08-2012, I.E., AFTER A PERIOD OF MORE THAN 2 YEA RS FROM THE DATE OF ORDER OF THE TRIBUNAL AND HE HAS REJECTED THE APPLICATION AGAIN. THE LEARNED COUNSEL SUBMITTED THAT THE LEARNED DIT IS REQUIRED TO PASS THE ORDER WITHIN A PERIOD OF SIX MONTHS AS PER THE PROVISIONS OF SUB SEC. (2) OF SEC. 12AA. BY PLACING RELIANCE ON THE DECISION OF DELHI SPECIAL BENCH OF ITAT IN T HE CASE OF BHAGWAD SWARUP SHRI SHRI DEVRAHA BABA MEMORIAL SHRI HARI PARMARTH DHAM TRUST VS. CIT (2008)(299 ITR (AT) 161), THE LEARNED COUNSEL SUBM ITTED THAT IF THE LEARNED DIT FAILS TO PASS ORDER WITHIN SIX MONTHS, THE REGI STRATION SHALL BE DEEMED TO HAVE BEEN GRANTED. 3. ON THE CONTRARY, THE LEARNED D.R SUBMITTED THA T THE PROVISIONS OF SUB SEC. (2) OF SEC. 12AA PROVIDING FOR DISPOSAL OF APPLICATION WITHIN SIX MONTHS SHALL NOT APPLY TO THE SET ASIDE PROCEEDINGS, I.E., ACCORDING TO LEARNED D.R, THE SAID CONDITION SHALL APPLY ONLY TO THE APPLICATIONS FILED BEFORE THE LEARNED DIT BY THE ASSESSEE. 4. WE HAVE HEARD THE RIVAL CONTENTIONS ON THIS IS SUE. IT WAS BROUGHT TO OUR NOTICE THAT AN IDENTICAL ISSUE WAS CONSIDERED B Y THE CO-ORDINATE BENCH OF THE TRIBUNAL IN THE CASE OF NICE FOUNDATION VS. DDIT IN ITA NO.2039/HYD/2011 AND THE TRIBUNAL, VIDE ITS ORDER DATED 08-08-2012, HAS HELD THAT THE PERIOD OF SIX MONTHS PRESCRIBED IN THE ACT IN SUB SEC. (2) OF SEC . 12AA SHALL APPLY TO THE MATTERS SET ASIDE BY THE TRIBUNAL ALSO. 5. THE SPECIAL BENCH IN THE CASE OF BHAGWAD SWARUP SHRI SHRI DEVRAHA BABA MEMORIAL SHRI HARI PARMARTH DHAM TRUST (REFERR ED SUPRA) HAS HELD THAT THE REGISTRATION SHALL BE DEEMED TO HAVE BEEN GRANTED I F THE CONCERNED AUTHORITY FAILS TO PASS THE ORDER ON THE APPLICATION FILED BY THE A SSESSEE SEEKING REGISTRATION U/S 12AA OF THE ACT WITHIN A PERIOD OF SIX MONTHS. THE VARIOUS HIGH COURTS/TRIBUNAL ITA NO.1468/HYD/12 SOHANLAL CHOKHANI PUBLIC CHARITABLE TRUST, HYDERABAD 3 HAVE ALSO TAKEN IDENTICAL VIEWS, SOME OF WHICH WERE QUOTED BY THE CO-ORDINATE BENCH OF THE TRIBUNAL IN THE CASE OF NICE FOUNDATIO N (SUPRA), WHICH ARE AS UNDER:- (A) SOCIETY FOR PROMOTION OF EDUCATION ADVENTURE SPORT VS. CIT (5 DTR (ALL) 329. (B) SARDARILAL OBERAI MEMORIAL CHARITABLE TRUST VS. ITO (3 SOT 229) (C) REV. FATHER TRUST OSCAR COLASCO MEMORIAL MEDICAL A SSN VS. CIT (31 SOT 1)(MUM) (D) CIT VS. SOHANLAL CHHAHAN MAL (222 CTR (P&H) 190) 6. WE MAY CLARIFY HERE THAT WHEN THE TRIBUNAL S ET ASIDES A MATTER, THE SAID MATTER IS SET ASIDE AT THE STAGE AT WHICH IT W AS ORIGINALLY CONSIDERED BY THE CONCERNED AUTHORITY. FROM THE ORDER DATED 14.10.20 09 PASSED BY THE TRIBUNAL IN THE HANDS OF THE ASSESSEE, WE NOTICE THAT THE TRIBU NAL HAS FOUND THAT THE LEARNED DIT HAD DISMISSED THE APPLICATION FOR WANT OF PROSE CUTION AND FURTHER IT WAS NOTICED THAT THERE WAS NO FAULT ON THE PART OF THE ASSESSEE. HENCE THE TRIBUNAL RESTORED THE MATTER TO THE FILE OF LEARNED DIT FOR CONSIDERATION OF THE MATTER AFRESH. THESE DISCUSSIONS WOULD SHOW THAT THE TRIB UNAL HAS RESTORED THE MATTER AT THE STAGE OF THE FILING OF APPLICATION BY THE AS SESSEE BEFORE THE LEARNED DIT, MEANING THEREBY, THE PERIOD OF SIX MONTHS PRESCRIBE D UNDER SUB SEC. (2) OF SEC. 12AA SHALL ALSO APPLY TO THE SAID SET ASIDE PROCEED INGS. 7. IN THE INSTANT CASE, THERE IS NO DISPUTE W ITH REGARD TO THE FACT THAT THE LEARNED DIT DID NOT PASS ANY ORDER EITHER GRANT ING/REFUSING TO GRANT THE REGISTRATION WITHIN A PERIOD OF SIX MONTHS FROM THE DATE OF RECEIPT OF THE ORDER OF THE TRIBUNAL. HENCE, BY FOLLOWING THE VARIOUS DECI SIONS REFERRED (SUPRA), WE HOLD THAT THE REGISTRATION U/S 12AA SHALL BE DEEMED TO H AVE BEEN GRANTED TO THE ITA NO.1468/HYD/12 SOHANLAL CHOKHANI PUBLIC CHARITABLE TRUST, HYDERABAD 4 ASSESSEE AFTER EXPIRY OF SIX MONTHS FROM THE DATE O F RECEIPT OF TRIBUNALS ORDER BY LEARNED DIT. 8. IN VIEW OF ABOVE SAID DECISION, WE DO NOT F IND IT NECESSARY TO DISPOSE OF OTHER GROUNDS RAISED BY THE ASSESSEE. 9. IN THE RESULT, THE APPEAL FILED BY THE ASS ESSEE IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 4.1.2013 SD/- SD/- ( ASHA VIJAYARAGHAVAN ) ( B,R.BASKARAN ) JUDICIAL MEMBER ACCOUTNANT MEMBER DATED/- 4TH JANUARY, 2013 COPY FORWARDED TO: 1. SOHANLAL CHOKHANI PUBLIC CHARITABLE TRUST, C/O. SHRI K.L.RATHI, ADVOCATE, 3-5-144/5, EDEN GARDEN, HYDERABAD 500 001 2. 3. 4 DIRECTOR OF INCOME - TAX(EXEMPTION) HYDERABAD ASST. DIRECTOR OF INCOME-TAX(EXEMPTION) , HYDERABAD DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S.