Siddartha Foundation, Hyderabad V. DIT(Exemptions), Hyderabad

ITA 1477/HYD/2014

• Counselvise Citation: 147722514 RSA 2014
• Duration Of Justice: 4 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-01-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 15-01-2015
• Assessment Year: misc
• Appeal Filed On: 15-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G APARNA RAO
• Assessee Lawyers: K A SAI PRASAD
• Keywords: Competent authority
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA.NO.1477/HYD/2014 SIDDARTHA FOUNDATION, NIZAMABAD. PAN AAJTS1402P VS. DIT(EXEMPTIONS) HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : MR. K.A. SAIPRASAD FOR REVENUE : SMT. G. APARNA RAO DATE OF HEARING : 14.01.2015 DATE OF PRONOUNCEMENT : 21.01.2015 ORDER PER SAKTIJIT DEY, J.M. THE AFORESAID APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 16.06.2014 PASSED BY THE LE ARNED DIT(E), HYDERABAD. 2. THERE IS A DELAY OF 04 DAYS IN FILING OF APPEAL BY THE ASSESSEE. ASSESSEE HAS FILED A PETITION FOR CON DONING THE DELAY BEING SUPPORTED BY AN AFFIDAVIT. AFTER CONSID ERING THE SUBMISSIONS OF THE ASSESSEE AND CAUSE OF DELAY AS E XPLAINED IN THE AFFIDAVIT, WE ARE INCLINED TO CONDONE THE DELAY AND ADMIT THE APPEAL FOR HEARING ON MERITS. 2. THOUGH, THE LEARNED DIT(E) HAS GRANTED REGISTRATION TO THE ASSESSEE UNDER SECTION 12AA OF THE ACT W.E.F. 29.04.2014, THE SPECIFIC GRIEVANCE OF THE AS SESSEE IS WITH REGARD TO THE DIRECTION OF THE LEARNED DIT(E) FOR O BTAINING REGISTRATION UNDER SECTION 43 OF THE A.P. CHARITABL E AND HINDU 2 ITA.NO.1477/HYD/2014 SIDDARTHA FOUNDATION, NIZAMABAD. RELIGIOUS INSTITUTIONS AND ENDOWMENT ACT, 1987 AND FURNISHED A COPY OF SUCH REGISTRATION CERTIFICATE W ITHIN A PERIOD OF SIX MONTHS. 3. BRIEFLY STATED FACTS ARE, THE ASSESSEE-TRUST HA D FILED APPLICATION SEEKING REGISTRATION UNDER SECTIO N 12A OF THE ACT ON 24.02.2012 BEFORE THE LEARNED DIT(E). THE LE ARNED DIT(E), HOWEVER, REFUSED TO GRANT REGISTRATION VIDE ORDER DATED 29.08.2012. BEING AGGRIEVED OF SUCH ORDER OF THE LE ARNED DIT(E), ASSESSEE APPROACHED THE ITAT. THE ITAT DISP OSED OF THE APPEAL OF THE ASSESSEE REGISTERED AS ITA.NO.141 0/HYD/12 VIDE ORDER DATED 18.04.2013 SETTING ASIDE THE ORDER OF THE LEARNED DIT(E) AND REMITTED THE MATTER BACK TO HIM WITH A DIRECTION TO CONSIDER ASSESSEES APPLICATION FOR RE GISTRATION AFRESH. IN PURSUANCE TO THE DIRECTIONS OF THE ITAT, THE LEARNED DIT(E), CALLED UPON THE ASSESSEE TO FURNISH NECESSA RY DETAILS. IN RESPONSE TO THE QUERY MADE BY THE LEARNED DIT(E) , ASSESSEE FURNISHED ALL THE DETAILS. BEING SATISFIED WITH THE OBJECT OF THE TRUST AND THE INFORMATION SUBMITTED BEFORE HIM, LEA RNED DIT(E) PASSED THE IMPUGNED ORDER GRANTING REGISTRAT ION UNDER SECTION 12AA OF THE ACT W.E.F. 29.04.2014. HOWEVER, WHILE DOING SO, THE LEARNED DIT(E), DIRECTED THE ASSESSEE TO APPLY FOR REGISTRATION UNDER SECTION 43 OF THE A.P. CHARITABL E AND HINDU RELIGIOUS INSTITUTIONS AND ENDOWMENT ACT, 1987 AND FURNISH A COPY OF SUCH ORDER OF REGISTRATION WITHIN A PERIOD OF SIX MONTHS. BEING AGGRIEVED WITH THE AFORESAID DIRECTIO N OF THE LEARNED DIT(E), ASSESSEE IS BEFORE US. 4. THE LEARNED A.R. SUBMITTED THAT THE DIRECTION O F LEARNED DIT(E) IS NOT ONLY UNNECESSARY BUT NOT IN A CCORDANCE WITH THE STATUTORY PROVISIONS. THE LEARNED A.R. SUB MITTED THAT THE PROVISION CONTAINED UNDER SECTION 12A READ WITH SECTION 3 ITA.NO.1477/HYD/2014 SIDDARTHA FOUNDATION, NIZAMABAD. 12AA OF THE ACT, DOES NOT REQUIRE THE ASSESSEE TO O BTAIN REGISTRATION UNDER SECTION 43 OF THE A.P. CHARITABL E AND HINDU RELIGIOUS INSTITUTIONS AND ENDOWMENT ACT, 1987. IN THIS CONTEXT, THE LEARNED A.R. RELIED ON THE FOLLOWING T WO DECISIONS : (I) M/S. BRAHMA VIDYA YOGASHRAMAM SHARADA MATHAM, TAHADPAKAL (V) VS. DIT(E), HYDERABAD. ITA.NO.6/HYD/2014 DATED 29.04.2014. (II) THE TIMBAKTU KUTUMBAM FOUNDATION, HYDERABAD VS. DIT(E), HYDERABAD ITA.NO.1100/HYD/2014 DATED 17.10.2014. 5. THE LEARNED D.R. RELIED ON THE ORDER OF THE LEA RNED DIT(E). 6. WE HAVE CONSIDERED THE SUBMISSIONS OF THE PARTI ES AND PERUSED THE MATERIALS ON RECORD. ON CAREFUL REA DING OF THE PROVISIONS CONTAINED UNDER SECTION 12A AND 12AA OF THE ACT, WE DO NOT FIND ANY CONDITION IMPOSED THEREIN WITH R EGARD TO OBTAINING OF REGISTRATION UNDER SECTION 43 OF THE A .P. CHARITABLE AND HINDU RELIGIOUS INSTITUTIONS AND END OWMENT ACT, 1987. THEREFORE, WHEN THE STATUTORY PROVISION DOES NOT REQUIRE ANY SUCH REGISTRATION TO BE OBTAINED MANDAT ORILY BY A TRUST OR INSTITUTION THE DIRECTION OF THE LEARNED D IT(E) IMPOSING SUCH CONDITION ON THE ASSESSEE IN OUR VIEW, IS NOT ONLY IN VIOLATION OF THE STATUTORY PROVISIONS BUT ALSO IN E XCESS OF HIS JURISDICTION. THE COORDINATE BENCH OF THIS TRIBUNAL IN ITA.NO.6/HYD/2014 DATED 29.04.2014 (SUPRA) WHILE EX AMINING THE VALIDITY OF SIMILAR DIRECTION IN CASE OF M/S. B RAHMA VIDYA YOGASHRAMAM SHARADA MATHAM, TAHADPAKAL (V) VS. DI T(E), HYDERABAD HAS HELD AS UNDER : 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL ON RECORD. IN OUR OPINION, THE DIT(E) IS N OT JUSTIFIED 4 ITA.NO.1477/HYD/2014 SIDDARTHA FOUNDATION, NIZAMABAD. IN DIRECTING THE ASSESSEE TO OBTAIN REGISTRATION FR OM THE COMPETENT AUTHORITY OF GOVERNMENT OF ANDHRA PRADESH U/S. 43 OF THE A.P. CHARITABLE & HINDU RELIGIOUS INSTITUTIONS & ENDOWMENTS ACT, 1987 AND FURNISH A C OPY OF SUCH ORDER OF REGISTRATION IN HIS OFFICE FOR RECORD , WITHIN A PERIOD OF 6 MONTHS FROM THE DATE OF RECEIPT OF THE IMPUGNED ORDER. THERE IS NO PROVISION U/S.12AA OF THE ACT TO SEEK REGISTRATION FROM THE COMPETENT AUTHORITY OF GOVERN MENT OF ANDHRA PRADESH U/S. 43 OF THE A.P. CHARITABLE & HIN DU RELIGIOUS INSTITUTIONS & ENDOWMENTS ACT, 1987 SO AS TO GRANT REGISTRATION U/S.12AA OF THE ACT BY THE DIT(E ). THE JUDGMENT RELIED ON BY THE DIT(E) IN HIS ORDER IS NO T RELEVANT TO GRANT REGISTRATION U/S.12AA OF THE ACT. BEING SO , THE DIT(E) IS NOT JUSTIFIED IN DIRECTING THE AS TO OBTA IN SUCH REGISTRATION. 6. THE TRIBUNAL ON EARLIER OCCASION VIDE ORDER DATE D 15.3.2013 IN ITA.NO.1552/HYD/2012 IN ASSESSEES OWN CASE DIRECTED THE DIT(E) TO GRANT REGISTRATION U/S. 12AA OF THE ACT. BEING SO, THE DIT(E) CANNOT SIT OVER THE O RDER OF THE TRIBUNAL AND PUT ANY CONDITION WHILE GRANTING REGIS TRATION U/S.12AA OF THE ACT. WE EXPUNGE SUCH DIRECTION GIVE N BY THE DIT(E) IN HIS ORDER TO OBTAIN REGISTRATION FROM THE COMPETENT AUTHORITY OF GOVERNMENT OF ANDHRA PRADESH U/S. 43 OF THE A.P. CHARITABLE & HINDU RELIGIOUS INSTITUTIONS & ENDOWMENTS ACT, 1987. 7. SIMILAR VIEW WAS EXPRESSED IN OTHER DECISIONS O F THE COORDINATE BENCH ALSO. THEREFORE, RESPECTFULLY FOLLOWING THE DECISIONS OF THE COORDINATE BENCH AS CITED BEFORE U S BY THE LEARNED A.R. WE HOLD THAT THERE IS NO NEED FOR THE ASSESSEE TO OBTAIN REGISTRATION UNDER SECTION 43 OF THE A.P. CH ARITABLE AND 5 ITA.NO.1477/HYD/2014 SIDDARTHA FOUNDATION, NIZAMABAD. HINDU RELIGIOUS INSTITUTIONS AND ENDOWMENT ACT, 198 7. ACCORDINGLY, THE ORDER OF LEARNED DIT(E) IS MODIFIE D TO THIS EXTENT BY EXPUNGING THE DIRECTION CONTAINED IN PARA 10 OF THE IMPUGNED ORDER. ACCORDINGLY, GROUND RAISED BY THE A SSESSEE IS ALLOWED. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D. ORDER PRONOUNCED IN THE OPEN COURT ON 21.01.2015 SD/- SD/- (B.RAMAKOTAIAH) (SAKTIJIT DEY) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED 21 ST JANUARY, 2015 VBP/- COPY TO 1. SIDDARTHA FOUNDATION, 5-7-622, KHALEELWADI, NIZAMAB D, C/O. CH. PARTHASARATHY & CO., 1-1-298/2/B3, 1 ST FLOOR, SOWBHAGYA AVENUE, STREET NO.1, ASHOKNAGAR, HYDERABAD 500 020. 2. DIRECTOR OF INCOME TAX (EXEMPTIONS), HYDERABAD. 3. DDIT(E)-III, HYDERABAD 4. D.R. ITAT A BENCH, HYDERABAD.