NEHRU YUVAJANA SEVA SANGHAM, Chittoor V. The CIT, Tirupathi

ITA 1575/HYD/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 82223 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 9 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-08-2014
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 15-10-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: PALLAVI AGARWAL
• Assessee Lawyers: S RAMA RAO
• Section: 80G; 12A; 12AA; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B', HYDERABAD BEFORE SHRI P.M.JAGTAP, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NO.1575/HYD/12 & ITA NO.157 6 /HYD/12 NEHRU YUVA JANA SEVA SANGHAM, CHITTOOR ( PAN - AACEP 4562 F ) V/S. COMMISSIONER OF INCOME - TAX TIRUPATI (APPELLANT) (RESPONDENT) APPELLANT BY : S HRI S.RAMA RAO RESPONDENT BY : SMT. PALLAVI AGARWAL DR DATE OF HEARING 05 .0 8 .2014 DATE OF PRONOUNCEMENT 08.08.2014 O R D E R PER P.M.JAGTAP, ACCOUNTANT MEMBER: THESE TWO APPEALS FILED BY THE ASSESSEE A RE DIRECTED AGAINST A COMMON ORDER OF THE LEARNED COMMISSIONER OF INCOME - TAX, TIRUPATI, DATED 31.7.2012, WHEREBY HE REJECTED THE APPLICATIONS FILED BY THE ASSESSEE FOR REGISTRATION UNDER S.12 A OF THE INCOME TAX ACT,1961 AND FOR RECOGNITION UNDER S.80G OF THE INCOME TAX ACT, 1961. 2. AT THE OUTSET, IT IS OBSERVED THAT THERE IS A DELAY OF 12 DAYS ON THE PART OF THE ASSESSEE IN FILING THESE APPEALS BEFORE THE TRIBUNAL. IN THIS REGARD, THE ASSESSEE HAS FILED APPLICATION SEEKING CONDONATION OF THE SAID DELAY. AFTER HAVING GONE THROUGH TH E SUBMISSIONS MADE THEREIN, WE ARE SATISFIED THAT SMALL DELAY OF 12 DAYS ON THE PART OF THE ASSESSEE IN FILING THESE APPEALS IS FOR I TA NO. 1575 & 1576/H YD/201 4 NEHRU YUVA SEVA SANGHAM, CHITTOOR 2 SUFFICIENT CAUSE. THE SAID DELAY IS, THEREFORE, CONDONED AND THESE APPEALS OF THE ASSESSEE ARE BEING DISPOSED OFF ON MERITS . 3. THE ASSESSEE IN THE PRESENT CASE IS A SOCIETY WHICH WAS FORMED ON 22.5.1976 UNDER THE REGISTRATION OF SOCIETIES ACT. IT FILED APPLICATION S ON 20 TH JANUARY, 2012 TO THE LEARNED COMMISSIONER OF INCOME - TAX SEEKING GRANT OF REGISTRATION UNDER S.12A OF THE INCOME TAX ACT, 1961 AND RECOGNITION FOR EXEMPTION UNDER S.80G OF THE ACT. BOTH THESE APPLICATIONS, HOWEVER, WERE REJECTED BY THE LEARNED COMMISSIONER OF INCOME - TAX, AFTER RECORDING HIS OBSERVATIONS IN PARAGRAPH 2 OF THE IMPUGNED ORDER AS UNDER - 2. VIDE THIS OFFICE LETTER DATED 18.06.2012, THE APPLICANT HAS BEEN ASKED TO P R O D UCE BOOKS OF ACCOUNT AND VOUCH E RS FOR THE L A ST THREE Y EA RS. ORIGINAL T R UST DEED/MOA FOR VERIFICATION, NOT E ON IMMEDIATE PLAN OF ACTION AND THE APPLICANT HAS ALSO B E EN ASKED TO FU RNISH DETAILS OF CHARITABLE ACTIVITIES CON D U C TED BY TH E SO C I E TY AND EVIDEN CE TH E REON, ETC., FIXING THE DATE OF H E ARING ON 03.07.2012. THE ASSESSEE HAS APP E ARED AND SUBMITTED THE INFORMATION. THE AP P LI C ANT SOCIETY WAS FORMED/R E GI S TERED BEFORE THE R E GI S TRAR OF SO C IE T I E S ON 22.05.1976. APPLI C ATION FOR REGISTRATION U/S. 12A & E X EMPTION U/S. 80G IS FIL E D ON 20.01.2012, I.E., AFTER A LAPSE OF ABOUT 36 Y E A R S. THE APPLICANT SOCIETY HAS NEITH E R FIL E D ANY EXPLAN A TION FOR THE SAID DELAY O F ABOUT 36 YE A RS NOR EXPLAIN E D ORALLY REGARDING THE DELAY. 4. AGGRIEVED BY THE ORDER OF THE LEARNED COMMISSIONER OF INCOME - TAX, ASSESSEE HAS PREFERRED THE PRESENT APPEALS BEFORE THE TRIBUNAL. 5. WE HAVE HEARD THE ARGUMENTS OF BOTH SIDES AND ALSO PERUSED THE RELEVANT MATERIAL ON RECORD. AS PER THE PROVISIONS OF S.11 AND 12 OF THE ACT, THE INCOME FROM PROPERTY HELD FOR I TA NO. 1575 & 1576/H YD/201 4 NEHRU YUVA SEVA SANGHAM, CHITTOOR 3 CHARITABLE OR RELIGIOUS PURPOSES AND INCOME OF TRUST OR INSTITUTIONS FROM CONTRIBUTIONS RESPECTIVELY ARE EXEMPT FROM TAX, SUBJECT TO THE SATISFACTION OF TERMS AND C ONDITIONS. THE BASIC CONDITION FOR AVAILING THE BENEFIT OF THE PROVISIONS OF S.11 AND S.12 IS THAT THE TRUST OR INSTITUTION CLAIMING THE SAID BENEFIT SHOULD BE REGISTERED UNDER S.12AA OF THE ACT. THIS CONDITION IS STIPULATED IN S.12A OF THE ACT, THE PROVIS IONS OF WHICH READ AS UNDER: CONDITIONS FOR APPLICABILITY OF SECTIONS 11 AND 12 . 12A. (1) THE PROVISIONS OF SECTION 11 AND SECTION 12 SHALL NOT APPLY IN RELATION TO THE INCOME OF ANY TRUST OR INSTITUTION UNLESS THE FOLLOWING CONDITIONS ARE FULFILLED, NAMELY: ( A ) THE PERSON IN RECEIPT OF THE INCOME HAS MADE AN APPLICATION FOR REGISTRATION OF THE TRUST OR INSTITUTION IN THE PRESCRIBED FORM AND IN THE PRESCRIBED MANNER TO THE COMMISSIONER BEFORE THE 1ST DAY OF JULY, 1973, OR BEFORE THE EXPIRY OF A PER IOD OF ONE YEAR FROM THE DATE OF THE CREATION OF THE TRUST OR THE ESTABLISHMENT OF THE INSTITUTION, WHICHEVER IS LATER AND SUCH TRUST OR INSTITUTION IS REGISTERED UNDER SECTION 12AA ] : PROVIDED THAT WHERE AN APPLICATION FOR REGISTRATION OF THE TRUST OR INSTITUTION IS MADE AFTER THE EXPIRY OF THE PERIOD AFORESAID, TH E PROVISIONS OF SECTIONS 11 AND 12 SHALL APPLY IN RELATION TO THE INCOME OF SUCH TRUST OR INSTITUTION, ( I ) FROM THE DATE O F THE CREATION OF THE TRUST OR THE ESTABLISHMENT OF THE INSTITUTION IF THE COMMISSIONER IS, FOR REASONS TO BE RECORDED IN WRITING, SATISFIED THAT THE PERSON IN RECEIPT OF THE INCOME WAS PREVENTED FROM MAKING THE APPLICATION BEFORE THE EXPIRY OF THE PERIOD AFORESAID FOR SUFFICIENT REASONS; ( II ) FROM THE 1ST DAY OF THE FINANCIAL YEAR IN WHICH THE APPLICATION IS MADE, IF THE COMMISSIONER IS NOT SO SATISFIED: PROVIDED FURTHER THAT THE PROVISIONS OF THIS CLAUSE SHALL NOT APPLY IN RELATION TO ANY APPLICATION M ADE ON OR AFTER THE 1ST DAY OF JUNE, 2007; I TA NO. 1575 & 1576/H YD/201 4 NEHRU YUVA SEVA SANGHAM, CHITTOOR 4 ( AA ) THE PERSON IN RECEIPT OF THE INCOME HAS MADE AN APPLICATION FOR REGISTRATION OF THE TRUST OR INSTITUTION ON OR AFTER THE 1ST DAY OF JUNE, 2007 IN THE PRESCRIBED FORM 49 AND MANNER TO THE COMMISSIONER AND SUCH TRUST OR INSTITUTION IS REGISTERED UNDER SECTION 12AA ; ( B ) WHERE THE TOTAL INCOME OF THE TRUST OR INSTITUTION AS COMPUTED UNDER THIS ACT WITHOUT GIVING EFFECT TO THE PROVISIONS OF SECTION 11 AND SECTION 12 EXCEEDS THE MAXIMUM AMOUNT WHICH IS NOT CHARGEABLE TO INCOME - TAX IN ANY PREVIOUS YEAR, THE ACCOUNTS OF THE TRUST OR INSTITUTION FOR THAT YEAR HAVE BEEN AUDITED BY AN ACCOUNTANT AS DEFINED IN THE EXPLANATION BELOW SUB - SECTION (2) OF SECTION 288 AND THE PERSON IN RECEIPT OF THE INCOME FURNISHES A LONG WITH THE RETURN OF INCOME FOR THE RELEVANT ASSESSMENT YEAR THE REPORT OF SUCH AUDIT IN THE PRESCRIBED FORM DULY SIGNED AND VERIFIED BY SUCH ACCOUNTANT AND SETTING FORTH SUCH PARTICULARS AS MAY BE PRESCRIBED. (2) WHERE AN APPLICATION HAS BEEN MADE ON O R AFTER THE 1ST DAY OF JUNE, 2007, THE PROVISIONS OF SECTIONS 1 1 AND 12 SHALL APPLY IN RELATION TO THE INCOME OF SUCH TRUST OR INSTITUTION FROM THE ASSESSMENT YEAR IMMEDIATELY FOLLOWING THE FINANCIAL YEAR IN WHICH SUCH APPLICATION IS MADE. 6. IN THE PRESENT CASE, ALTHOUGH THE ASSESSEE SOCIETY WAS FORMED ON 22.5.21976 UNDER THE REGISTRATION OF SOCIETIES ACT, IT FILED THE APPLICATION SEEKING GRANT OF REGISTRATION UNDER S12A OF THE INCOME TAX ACT,1961 ONLY ON 20 TH JANUARY, 2012, AND AS RIGHTLY SUBMITTED BY THE LEARNED COUNSEL FOR THE ASSESSEE, EVEN IF THE LEARNED COMMISSIONER OF INCOME - TAX WAS NOT SATISFIED THAT THE DELAY O N THE PART OF THE ASSESSEE IN MAKING THE APPLICATION UNDER S.12AA WAS FOR SUFFICIENT REASONS, HE SHOULD HAVE CONSIDERED THE APPLICATION OF THE ASSESSEE AS PER SUB - SECTION (2) OF S.12A, IN ORDER TO GIVE THE BENEFIT OF THE PROVISIONS OF S.11 AND 12 TO THE AS SESSEE F R OM ASSESSMENT YEAR 2012 - 13, BEING THE ASSESSMENT YEAR IMMEDIATELY FOLLOWING THE FINANCIAL YEAR IN WHICH SUCH APPLICATION WAS MADE. HE HAS CONTENDED THAT THE MATTER, THEREFORE, MAY BE REMAND ED BACK TO THE LEARNED COMMISSIONER OF INCOME - TAX FOR CONSIDERING AND DISPOSING OFF THE APPLICATIONS OF THE ASSESSEE, AS I TA NO. 1575 & 1576/H YD/201 4 NEHRU YUVA SEVA SANGHAM, CHITTOOR 5 PER THE PROVISIONS OF SUB - SECTION (2) OF S.12A. WE FIND MERIT IN THIS CONTENTION OF THE LEARNED COUNSEL FOR THE ASSESSEE AND SINCE THE LEARNED DEPARTMENTAL REPRESENTATIVE HAS ALSO NOT R AISED ANY OBJECTION IN THIS REGARD, WE RESTORE THE MATTER TO THE FILE OF THE LEARNED COMMISSIONER OF INCOME - TAX FOR DISPOSING OFF THE APPLICATIONS OF THE ASSESSEE FOR REGISTRATION UNDER S.12A OF THE ACT AS WELL AS FOR RECOGNITION UNDER S.80G OF THE ACT, IN ACCORDANCE WITH THE PROVISIONS OF SUB - SECTION (2) OF S.12A, AND AFTER GIVING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. 7. IN THE RESULT, APPEALS OF THE ASSESSEE ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 8 TH AUGUST, 2014 SD/ - SD/ - ( SAKTIJIT DEY ) ( P.M.JAGTAP ) JUDICIAL MEMBER ACCOUNTANT MEMBER DT/ - 8TH AUGUST, 2014 COPY FORWARDED TO: 1. NEHRU YUVA JANA SEVA SANGHAM (CHITTOOR) C/O. M/S. K.G.M.GUPTA & CO., CHARTERED ACCOUNTANTS, 10/67, GANDHI ROAD, CHITTOOR 517 001 2 . ASST COMMISSIONER OF INCOME - TAX CIRCLE 1(1), TIRUPATI 3. COMMISSIONER OF INCOME - TAX TIRUPATI 4. DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S