Andhra Pradesh Pollution Control Board, Hyderabad V. DIT(Exemptions), Hyderabad

ITA 1481/HYD/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 87273 (ITAT-HYDERABAD)
• 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: 2008-2009
• Appeal Filed On: 15-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G APARNA RAO
• Assessee Lawyers: B SATYANARAYANA MURTHY
• Section: 12A; 12AA; 12; 154; 11

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.1481/HYD/2014 ASSESSMENT YEAR 2008-09 ANDHRA PRADESH POLLUTION CONTROL BOARD, HYDERABAD 500 018. PAN AAAJA1601Q VS. THE DIT(EXEMPTIONS) HYDERABAD 500 004. (APPELLANT) (RESPONDENT) FOR ASSESSEE : MR. B. SATYANARAYANA MURTHY FOR REVENUE : SMT. G. APARNA RAO DATE OF HEARING : 14.01.2015 DATE OF PRONOUNCEMENT : 21.01.2015 ORDER PER SAKTIJIT DEY, J.M. THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST T HE ORDER DATED 14.07.2014 OF THE DIT(E), HYDERABAD PAS SED UNDER SECTION 154 OF THE INCOME TAX ACT, 1961. 2. BRIEFLY STATED, THE ASSESSEE A STATUTORY BOARD CREATED BY THE GOVERNMENT OF ANDHRA PRADESH. IT APP LIED FOR REGISTRATION UNDER SECTION 12AOF THE ACT. HOWEVER, THE APPLICATION FILED BY THE ASSESSEE WAS REJECTED VIDE ORDER DATED 26.09.2008. THE ORDER OF REJECTION WAS SET ASIDE BY THE ITAT WHILE DECIDING ASSESSEES APPEAL IN ITA.NO.1702/HYD /2009 DATED 30.09.2009. THE DIT(E) AGAIN REJECTED THE APP LICATION FOR GRANT OF REGISTRATION VIDE ORDER DATED 31.12.2012. BEING AGGRIEVED OF THE ORDER OF REJECTION, ASSESSEE CAME IN APPEAL BEFORE THE ITAT. THE ITAT VIDE ORDER PASSED IN 2 ITA.NO.1481/HYD/2014 A.P. POLLUTION CONTROL BOARD, HYDERABAD. ITA.150/H/2013 DATED 30.09.2013 SET ASIDE THE ORDER OF THE DIT(E) AND DIRECTED HIM TO GRANT REGISTRATION TO TH E ASSESSEE UNDER SECTION 12AA OF THE ACT. PURSUANT TO THE DIRE CTION OF THE TRIBUNAL, THE DIT(E) PASSED AN ORDER ON 20.03.2014 GRANTING REGISTRATION UNDER SECTION 12AA OF THE ACT W.E.F. 3 1.03.2008. 3. AFTER RECEIVING THE AFORESAID ORDER GRANTING REGISTRATION, ASSESSEE FILED PETITION UNDER SECTION 154 OF THE ACT SEEKING RECTIFICATION OF THE ORDER ON THE GROUN D THAT IN PARA 4 OF THE ORDER PASSED UNDER SECTION 12AA OF TH E ACT, THE DIT(E) HAS OBSERVED THAT THE REGISTRATION IS GRANTE D W.E.F. 31.03.2008 ONWARDS, WHEREAS, AS PER PROVISO 1 TO SE CTION 12A(1) OF THE INCOME TAX ACT, THE REGISTRATION GRAN TED SHALL BE EFFECTIVE FROM 1 ST DAY OF FINANCIAL YEAR IN WHICH THE APPLICATION IS MADE. IT WAS FURTHER SUBMITTED BY THE ASSESSEE T HAT SINCE THE APPLICATION WAS MADE ON 31.03.2008, THE REGISTR ATION SHOULD BE EFFECTIVE FROM THE 1 ST DAY OF APRIL, 2007. THE DIT(E) AFTER CONSIDERING THE SUBMISSIONS MADE BY THE ASSES SEE IN THE CONTEXT OF PROVISIONS CONTAINED UNDER SECTION 12A O F THE ACT HELD AS UNDER : 3. I HAVE CAREFULLY CONSIDERED THE SUBMISSIONS OF THE ASSESSEE INSTITUTION MADE IN THAT PETITION. I HAVE ALSO CAREFULLY GONE THROUGH THE PROVISIONS OF SECTION 12 A(1) OF THE ACT. IN THIS CASE, THE ASSESSEE INSTITUTION HAS FILED THE APPLICATION FOR REGISTRATION U/S. 12A ON 31.03.2008 , WHICH IS ADMITTED IN THE SAID PETITION. AS PER SUB-SECTIO N (2) TO SECTION 12A OF THE ACT, IT SAYS, WHERE AN APPLICAT ION HAS BEEN MADE ON OR AFTER THE 1 ST DAY OF JUNE, 2007, THE PROVISIONS OF SECTIONS 11 AND 12 SHALL APPLY IN REL ATION TO THE INCOME OF SUCH TRUST OR INSTITUTION FROM THE AS SESSMENT YEAR IMMEDIATELY FOLLOWING THE FINANCIAL YEAR IN WH ICH SUCH APPLICATION IS MADE. THUS, AS PER THE PROVISIONS O F THE SAID SUB-SECTION, IT SAYS, ABOUT APPLICABILITY OF P ROVISIONS OF SECTION 11 AND 12 OF THE ACT TO THE INCOME OF SU CH TRUST OR INSTITUTION FROM THE SUCCEEDING FINANCIAL YEAR, WHEN AN APPLICATION FOR REGISTRATION U/S.12A IS FILED BY SU CH TRUST OR 3 ITA.NO.1481/HYD/2014 A.P. POLLUTION CONTROL BOARD, HYDERABAD. INSTITUTION IN THE PRECEDING FINANCIAL YEAR. FURTHE R, IN SECTION 12AA WHILE DEALS WITH PROCEDURE FOR GRANTIN G REGISTRATION, UNDER SUB-CLAUSE (I) TO CLAUSE (B) TO SUB-SECTION (1), IT SAYS THAT THE COMMISSIONER SHALL PASS AN OR DER IN WRITING REGISTERING THE TRUST OR INSTITUTION. IN TH AT SUB- SECTION (1), NOWHERE THERE IS ANY MENTION ABOUT THE DATE FROM WHICH REGISTRATION HAS TO BE GRANTED U/S.12AA OF THE ACT TO SUCH TRUST OR INSTITUTION. UNDER THESE CIRCU MSTANCES, AND WHEN THE ASSESSEE INSTITUTION HAS FILED THE SAI D APPLICATION FOR REGISTRATION ON 31.3.2008, IN MY VI EW, THE ASSESSEE INSTITUTION HAS RIGHTLY BEEN GRANTED REGIS TRATION U/S.12AA OF THE ACT, WITH EFFECT FROM THE DATE OF F ILING OF THAT APPLICATION IN FORM NO.10A I.E., FROM 31.3.200 8 AND THERE IS NO INFIRMITY IN THE SAID ORDER DATED 20.3. 2014 PASSED BY THE DIT(E), HYDERABAD. 4. IN VIEW OF THE FOREGOING DISCUSSION, THUS, NO RECTIFICATION IS CALLED FOR IN THE SAID ORDER DATED 20.03.2014 PASSED BY THE DIT(E), HYDERABAD GRANTING REGISTRATI ON U/S.12AA OF THE ACT, TO THE ASSESSEE INSTITUTION. H ENCE, THE SAID APPLICATION FILED BY THE INSTITUTION U/S.154 O F THE ACT, IS REJECTED. BEING AGGRIEVED OF THE AFORESAID FINDING OF THE DIT (E), ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 4. WE HAVE HEARD THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IT IS THE CONTENTION OF THE LEARNED A.R. THAT AS PER SECTION 12A(2) ASSESSEE IS ENTITLE D TO AVAIL EXEMPTION UNDER SECTIONS 11 AND 12 FROM THE ASSESSM ENT YEAR IMMEDIATELY FOLLOWING THE FINANCIAL YEAR IN WHICH A PPLICATION FOR REGISTRATION WAS FILED. HE SUBMITTED THAT AS TH E ASSESSEE HAS FILED THE APPLICATION FOR REGISTRATION ON 31.03 .2008, ASSESSEE WILL BE ENTITLED FOR EXEMPTION UNDER SECTI ON 11 FROM THE IMMEDIATELY FOLLOWING ASSESSMENT YEAR I.E., A.Y . 2008-09. THEREFORE, THE DIT(E) IS NOT CORRECT IN HOLDING THA T THE ASSESSEE WILL BE ENTITLED FOR EXEMPTION UNDER SECTION 11 FRO M THE SUCCEEDING FINANCIAL YEAR. ON PERUSAL OF THE ORDER DATED 02.03.2014 PASSED BY THE DIT(E), IT IS VERY MUCH EV IDENT THAT 4 ITA.NO.1481/HYD/2014 A.P. POLLUTION CONTROL BOARD, HYDERABAD. THE REGISTRATION UNDER SECTION 12AA OF THE ACT WAS GRANTED TO THE ASSESSEE W.E.F. 31.03.2008 ON WHICH DATE ASSESS EE HAS MADE THE APPLICATION FOR REGISTRATION. ON A READING OF SUB- SECTION 2 TO SECTION 12A, IT BECOMES CLEAR THAT IN CASE OF AN ASSESSEE WHO HAS MADE AN APPLICATION FOR REGISTRATI ON AFTER 1ST JUNE, 2007, THE PROVISIONS CONTAINED UNDER SECTIONS 11 AND 12 OF THE ACT SHALL BE APPLICABLE TO IT FOR THE ASS ESSMENT YEAR IMMEDIATELY FOLLOWING THE FINANCIAL YEAR IN WHICH T HE APPLICATION FOR REGISTRATION WAS MADE. THEREFORE, W HAT FOLLOWS FROM THE AFORESAID STATUTORY PROVISION IS, AN ASSES SEE WILL BE ENTITLED FOR EXEMPTION UNDER SECTION 11 OF THE ACT FOR THE ASSESSMENT YEAR FOLLOWING THE FINANCIAL YEAR IN WHI CH HE HAS MADE THE APPLICATION FOR REGISTRATION UNDER SECTION 12A OF THE ACT. IN THE PRESENT CASE, THERE IS NO DISPUTE TO TH E FACT THAT THE ASSESSEE HAS APPLIED FOR REGISTRATION ON 31.03.2008 I.E., IN FINANCIAL YEAR 2007-08. THEREFORE, AS PER SECTION 1 2A(2) THE PROVISIONS OF SECTIONS 11 AND 12 OF THE ACT WILL BE APPLICABLE TO THE ASSESSEE FROM THE A.Y. 2008-09. IN THE ORDER PA SSED UNDER SECTION 12AA OF THE ACT, DIT(E) HAS NOT MADE ANY OB SERVATION WITH REGARD TO THE APPLICABILITY OF PROVISIONS UNDE R SECTION 11 OF THE ACT FROM A PARTICULAR ASSESSMENT YEAR. THIS ASPECT HAS TO BE EXAMINED BY THE A.O. KEEPING IN VIEW THE RELE VANT STATUTORY PROVISIONS. IN THESE CIRCUMSTANCES, WE FA IL TO UNDERSTAND THE NEED FOR THE ASSESSEE TO FILE THE AP PLICATION UNDER SECTION 154 OF THE ACT. BE THAT AS IT MAY, CO NSIDERING THE RELEVANT STATUTORY PROVISIONS AS CONTAINED UNDE R SECTION 12A(2) OF THE ACT, WE ARE INCLINED TO HOLD THAT THE PROVISIONS OF SECTIONS 11 AND 12 OF THE ACT WOULD APPLY TO THE AS SESSEE FROM THE ASSESSMENT YEAR 2008-09 AND NOT FINANCIAL YEAR 2008-09 AS OBSERVED BY THE LEARNED DIT(E). ACCORDINGLY, GRO UNDS OF THE ASSESSEE ARE ALLOWED. 5 ITA.NO.1481/HYD/2014 A.P. POLLUTION CONTROL BOARD, HYDERABAD. 5. 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. ANDHRA PRADESH POLLUTION CONTROL BOARD, HYDERABAD. C/O. MR. VENUGOPAL & CHENOY, CHARTERED ACCOUNTANTS, 4-1-889/16/2, TILAK ROAD, HYDERABAD 500 001. 2. DIRECTOR OF INCOME TAX (EXEMPTIONS), AAYAKAR BHAVAN , HYDERABAD. 3. DDIT(E)-II, HYDERABAD 4. D.R. ITAT A BENCH, HYDERABAD.