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

ITA 1711/HYD/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 77841 (ITAT-HYDERABAD)
• Duration Of Justice: 4 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-04-2014
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 09-12-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: K CHENNUBOTLU
• Assessee Lawyers: K SOMA SEKHARA REDDY

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI B.RAMAKOTAIAH, ACCOUNTANT MEMBER AND S HRI V.DURGA RAO , JUDICIAL MEMBER ITA NO.1 711 /HYD/13 : ASSESSMENT YEAR 20 13 - 14 M/S. SPANDANA FOUNDATION HYDERABAD ( PAN - AA ACC 8276 B ) V/S. DIRECTOR OF INCOME - TAX(EXEMPTION) HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY : S HRI K.CHENNUBOTLU RESPONDENT BY : SHRI K.SOMA SEKHARA REDDY DR DATE OF HEARING 08.04 .2014 DATE OF PRONOUNCEMENT 11.04.2014 O R D E R PER V.DURGA RAO , JUDICIAL MEMBER: TH IS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE DIRECTOR OF INCOME - TAX (EXEMPTION) HYDERABAD DATED 10.10.1013, PASSED UNDER S.12AA(1)(B)(II) READ WITH S.254(1) OF THE INCOME - TAX ACT, 1961, REJECTING THE APPLICATION OF THE ASSESSEE FOR REGIS TRATION UNDER S.12AA OF THE ACT. 2. FACTS OF THE CASE IN BRIEF, LEADING TO THE FILING OF THE PRESENT APPEAL ARE THAT THE ASSESSEE SOCIETY HAS ORIGINALLY FILED AN APPLICATION IN FORM NO10A ON 24.8.2011, SEEKING REGISTRATION UNDER S.12AA OF THE ACT. HOWE VER, POINTING OUT VARIOUS DEFECTS IN THE SAID APPLICATION, PARTICULARLY ABSENCE OF WITNESS IN THE MEMORANDUM OF ASSOCIATION AND ABSENCE OF NAME OF THE SIGNATORY IN THAT APPLICATION FILED, ABSENCE OF ACCOUNTS FOR DIFFERENT ACCOUNTING YEARS AND STATING OTHER REASONS, THE SAID APPLICATION IN FORM NO.10A WAS REJECTED BY THE DIRECTOR OF INCOME - TAX(EXEMPTION) VIDE HIS ORDER DATED 29.2.2012. WHEN THE SAID ORDER WAS CONTESTED IN APPEAL, THE TRIBUNAL VIDE ITS ITA NO. 1 711 / HYD/20 13 M/S. SPANDANA FOUNDATION HYDERABAD 2 ORDER DATED 19.10.2012 IN ITA NO.472/HYD/2012, THOUGH NO TED THAT THERE ARE CERTAIN PROCEDURAL MISTAKES, OBSERVING THAT THE SAME CAN BE RECTIFIED, SET ASIDE THE SAID ORDER OF THE DIRECTOR OF INCOME - TAX(EXEMPTION) AND RESTORED THE MATTER TO HIS FILE, WITH A DIRECTION TO GIVE ONE MORE OPPORTUNITY TO THE ASSESSEE FOR CORRECTING THE MISTAKES AND TO ESTABLISH THAT THE SOCIETY IS ENTITLED FOR REGISTRATION. IN HIS ORDER DATED 10.10.2013, PASSED IN FURTHERANCE OF THE DIRECTION OF THE TRIBUNAL, THE DIRECTOR OF INCOME - TAX (EXEMPTION) HAS AGAIN REJECTED THE APPLICATION OF THE ASSESSEE FOR REGISTRATION UNDER S.12AA OF THE ACT. HENCE, ASSESSEE PREFERRED THE PRESENT APPEAL BEFORE US. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT INADVERTENTLY THE NAME OF THE PERSON WHO ORIGINALLY SIGNED FORM 10A, SHRI M.KRISHNAIAH, GENERAL SECRETARY OF THE SOCIETY, HAS NOT BEEN FILED IN THAT FORM, WHO IS OUT OF COUNTRY. THEREFORE, HE COULD NOT FILE THE FORM WITH THE SIGNATURE OF SHRI M.KRISHNAIAH. THE LEARNED DIRECTOR OF INCOME - TAX(EXEMPTION) REJECTED THE REGISTRATION U NDER S.12AA ON TECHNICAL GROUNDS, AND HE IS NOT JUSTIFIED IN REJECTING THE REGISTRATION, WITHOUT CONSIDERING THE REQUEST OF THE ASSESSEE. 4. ON THE OTHER HAND, THE LEARNED DEPARTMENTAL REPRESENTATIVE DUTIFULLY SUPPORTED THE ORDER OF THE DIRECTOR OF INCOM E - TAX(EXEMPTION). 5. W E HEARD BOTH SIDES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IN THIS CASE, THE ASSESSEE IS A FOUNDATION, WHICH FILED APPLICATION BEFORE THE DIRECTOR OF INCOME - TAX(EXEMPTION) FOR GRANT OF REGISTRATION UNDER S.12AA OF THE AC T. WHEN THE ASSESSEE FILED FORM 10A, ONE SHRI M.KRISHNAIAH, GENERAL SECRETARY OF THE ASSESSEE - SOCIETY HAS SIGNED IN THE FORM, BUT HIS NAME WAS MISSING IN THE FORM. THE DIRECTOR OF INCOME - TAX(EXEMPTION) HAS REJECTED THE REGISTRATION UNDER S.12AA ON THE GR OUND THAT THE PERSON WHO APPLIED INFORM NO.10A SEEKING REGISTRATION OF THEIR TRUST/SOCIETY HAS TO FIL L HIS NAME. IN OTHER WORDS, A PERSON APPLYING FOR IN THE SAID REGISTRATION, HAS TO WRITE HIS NAME HIMSELF. IT WAS SUBMITTED BEFORE THE DIRECTOR OF INCOME - TAX(EXEMPTION) BY THE ASSESSEE THAT NOT WRITING THE NAME OF T H E PERSON WHO SIGNED FORM 10A ITA NO. 1 711 / HYD/20 13 M/S. SPANDANA FOUNDATION HYDERABAD 3 WAS AN INADVERTENT MISTAKE . IT WAS ALSO SUBMITTED BEFORE THE DIRECTOR OF INCOME - TAX(EXEMPTION) THAT THE PERSON WHO SIGNED FORM 10A WAS OUT OF COUNTRY IN USA, AND WH ENEVER HE COMES, HE WOULD WRITE HIS NAME IN FORM 10A. IT IS NOT DISPUTED BY THE DIRECTOR OF INCOME - TAX(EXEMPTION) THAT THE PERSON WHO SIGNED IN FORM 10A WAS OUT OF THE COUNTRY, AND IT WAS ALSO NOT DISPUTED BY THE DIRECTOR OF INCOME - TAX(EXEMPTION) THAT THE MISTAKE WAS NOT AN INADVERTENT MISTAKE. HIS ONLY OBJECTION WAS THAT AS PER THE STATUTORY RULES, THE PERSON WHO SIGNED FORM 10A, HAS TO WRITE HIS NAME IN THE FORM HIMSELF. WHEN THE PERSON WHO SIGNED FORM 10A IS NO T AVAILABLE AT THAT TIME, AND THE MISTAKE WAS IDENTIFIED/OBJECTED BY THE DIRECTOR OF INCOME - TAX(EXEMPTION), IT WAS NOT POSSIBLE FOR THE ASSESSEES COUNSEL TO PRODUCE BEFORE THE DIRECTOR OF INCOME - TAX(EXEMPTION) TO RECTIFY THE MISTAKE. UNDER THESE CIRCUMSTANCES, IN THE INTERESTS OF JUSTICE, WE ARE OF THE OPINION THAT ONE MORE OPPORTUNITY MUST BE GIVEN TO THE ASSESSEE TO RECTIFY THE MISTAKE. THEREFORE, WE SET ASIDE THE IMPUGNED ORDER, AND REMIT THE MATTER TO THE FILE OF THE DIRECTOR OF INCOME - TAX(EXEMPTION) TO GIVE ONE MORE OPPORTUNITY TO THE ASS ESSEE TO RECTIFY THE MI S TAKE. HE SHALL GIVE REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE, AND DISPOSE OF THE MATTER AFRESH IN ACCORDANCE WITH LAW BY SPEAKING ORDER. 6. IN THE RESULT, ASSESSEES APPEAL IS TREATED AS ALLOWED FOR STATISTICAL PURPOSE S. ORDER PRONOUNCED IN THE COURT ON 11 .0 4 . 2 0 14 SD/ - SD/ - (B.RAMAKOTAIAH) ( V.DURGA RAO ) ACCOUNTANT MEMBER JUDICIAL MEMBER DT/ - 11 TH APRIL, 2014 COPY FORWARDED TO: 1. M/S. SPANDANA FOUNDATION HYDERABAD 2. DIRECTOR OF INCOME - TAX(EXEMPTION) HYDERABAD 3. DY. DIRECTOR OF INCOME - TAX(EXEMPTION) II, HYDERABAD ITA NO. 1 711 / HYD/20 13 M/S. SPANDANA FOUNDATION HYDERABAD 4 4 . DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S