Centenary Baptist Church , Hyderabad V. Commissioner of Income Tax, (Exemptions), Hyderabad

ITA 1711/Hyd/2018

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 6068 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 8 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-04-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Assessment Year: 2018-2019
• Appeal Filed On: 16-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJIV RANKA
• Section: 12AA; 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER I.T.A. NO. 1711/HYD/2018 ASSESSMENT YEAR: 2018-19 CENTENARY BAPTIST CHURCH, HANMAKONDA [PAN: AABTC2108G] VS COMMISSIONER OF INCOME TAX (EXEMPTIONS), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI SAMUEL NAGADESI, AR FOR REVENUE : SHRI RAJIV RANKA, DR DATE OF HEARING : 25-02-2021 DATE OF PRONOUNCEMENT : 22-04-2021 O R D E R PER S.S.GODARA, J.M. : THIS ASSESSEES APPEAL FOR AY.2018-19 ARISES FROM TH E CIT(EXEMPTIONS)-HYDERABADS ORDER DATED 31-07-2018 PA SSED IN CASE NO.CIT(E)/HYD/57(01)/12A/2017-18, U/S.12AA( 1)(B)(II) OF THE INCOME TAX ACT, 1961 [IN SHORT, THE ACT]. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE ASSESSEES SOLE SUBSTANTIVE GRIEVANCE CHALLEN GES CORRECTNESS OF THE CIT(EXEMPTIONS)S ORDER UNDER CHALL ENGE DENYING SECTION 12AA REGISTRATION AFTER INTER ALIA HOLDING THAT ITS AIM AND OBJECT IS TO SPREAD CHRISTIANITY AND PASTO RS SALARY ITA NO. 1711/HYD/2018 :- 2 -: CLAUSE TO BE PAID FROM SOCIETYS FUNDS, VIOLATE SECTIO N 13(1) OF THE ACT. 3. LEARNED AUTHORISED REPRESENTATIVE VEHEMENTLY CONTEND ED DURING THE COURSE OF HEARING THAT THE CIT(E) HAS ERRED IN LAW AND ON FACTS IN REJECTING ASSESSEES REGISTRATION APPLI CATION. HE QUOTED HONBLE APEX COURTS DECISION IN CIT VS. M/S.DAWOODI BOHARA JAMAT (CIVIL APPEAL NO.2492 OF 20 14), HONBLE PUNJAB & HARYANA HIGH COURTS DECISION IN A LEXANDRA SCHOOL VS. CIT, ITA NO.190 OF 2014, DT.30-07-2015 THA T THE IMPUGNED REGISTRATION OUGHT NOT TO BE DENIED ONLY FOR THE REASON THAT THE APPLICANT CONCERNED IS INDULGED IN RE LIGIOUS ACTIVITIES. 4. LEARNED DEPARTMENTAL REPRESENTATIVE FAILS TO DISPUTE TH E CLINCHING FACT THAT THE CIT(E) HAS QUOTED THIS TRIBUNAL S CO- ORDINATE BENCHS DECISION IN ALEXANDRA SCHOOL VS. CIT (2014) [44 TAXMANN.COM 139] (AMRITSAR TRIB) WHICH STANDS REVERSED IN THE HONBLE PUNJAB AND HARYANA HIGH COUR TS DECISION HEREIN ABOVE (SUPRA). FACED WITH THIS SITUATION, WE DEEM IT APPROPRIATE THAT LEARNED CIT(E) NEEDS TO RE-EXAMINE THE ENTIRE ISSUE OF ASSESSEES SECTION 12AA REGISTRATION AFRESH KEEPING IN MIND THE ABOVE JUDICIAL PRECEDENTS AS WELL AS AFTER PERUSIN G ITS OBJECT CLAUSE(S) ALONG WITH THE CHARITABLE ACTIVITY CAR RIED OUT; IF ANY, AS PER LAW. WE ALSO MAKE IT CLEAR THAT BEFORE PA RTING THAT ALTHOUGH THE HONBLE APEX COURTS DECISION IN MAA ANA NDA SOCIAL AND EDUCATIONAL TRUST VS. CIT, CIVIL APPEAL N OS.5437 & 5438/2012 HAS SETTLED THE LAW THAT COMMENCEMENT OF CHARITABLE ACTIVITY IS NOWHERE A CONDITION PRECEDENT FOR THE ITA NO. 1711/HYD/2018 :- 3 -: PURPOSE OF REGISTRATION U/S.12AA BUT SINCE THE ASSESSE E HAS ITSELF CLAIMED TO BE ENGAGED IN ACADEMIC ACTIVITY, WE ARE LEAVING THIS ISSUE TO BE EXAMINED KEEPING IN MIND THE FOREGOING JUDICIAL PROCEEDINGS. 5. THIS ASSESSEES APPEAL IS TREATED AS ALLOWED FOR S TATISTICAL PURPOSES IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 22 ND APRIL, 2021 SD/- SD/- (LAXMI PRASAD SAHU) (S.S.G ODARA) ACCOUNTANT MEMBER JUDICIAL MEM BER HYDERABAD, DATED: 22-04-2021 TNMM ITA NO. 1711/HYD/2018 :- 4 -: COPY TO : 1.CENTENARY BAPTIST CHURCH, HANMAKONDA. C/O. SAMUE L NAGADESI, CHARTERED ACCOUNTANT, 408, SRI RAMAKRISHN A TOWERS, BESIDE IMAGE HOSPITALS, AMEER PET, HYDERABA D. 2.THE COMMISSIONER OF INCOME TAX(EXEMPTIONS), HYDERABAD. 3.THE ADDL.CIT(EXEMPTIONS)-HYDERABAD. 4.D.R. ITAT, HYDERABAD. 5.GUARD FILE.