Late Seth Shorabji Jamshedji Watcha Charitable Block (Shorab Manzil), Hyderabad V. Commissioner of Income Tax (Exemption), Hyderabad

ITA 1730/Hyd/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 4479 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 5 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-05-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Assessment Year: misc
• Appeal Filed On: 27-11-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: Y V S T SAI
• Assessee Lawyers: DAYAKAR
• Section: 80G; 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B ', HYDERABAD BEFORE S HRI SATBEER SINGH GODARA , JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU , ACCOUNTANT MEMBER ITA NO S . 1730 & 1731 /H/201 9 LATE SETH SHORABJI JAMSHEDJI WATCHA CHARITABLE BLOCK (SHORAB MANZIL), HYDERABAD. PAN A AATL 7645Q VS. COMMISSIONER OF INCOME TAX (EXEMPTION), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: SHRI M.S. DAYAKAR REVENUE BY: SHRI Y.V.S.T. SAI DATE OF HEARING: 05 /0 4 /2021 DATE OF PRONOUNCEMENT: 24 / 0 5 /2021 O R D E R PER L.P. SAHU , AM: BOTH T HESE APPEALS FILED BY THE ASSESSEE ARE DIRECTED AGAINST THE CIT( EXEMPTIONS ), HYDERABAD S ORDER S , DATED 30 /0 9 /201 9 INVOLVING PROCEEDINGS U/S 12AA AND 80G OF THE INCOME TAX ACT, 1961 ; IN SHORT THE ACT . 2. AS REGARDS THE APPEAL IN ITA NO. 1730/HYD/2019, THE ASSESSEE E - FILED APPLICATION IN FORM NO. 10A SEEKING REGISTRATION U/S 12A OF THE ACT ON 23/0 3 /2019. ACCORDINGLY, CIT(E) ISSUED NOTICE TO THE APPLICANT TO I.T.A. NO S . 1730 & 1731 /HYD/201 9 LATE SETH SHORABJI JAMSHEDJI WATCHA CHARITABLE BLOCK, (SHORAB MANZIL), HYD. 2 APPEAR AND PRODUCE ITS ORIGINAL MEMORANDUM OF AS SOCIATION/TRUST DEED FOR VERIFICATION AND TO FURNISH A DETAILED REPLY ON SPECIFIC POINTS ON OR BEFORE 29/08/2019. HOWEVER, THE ASSESSEE FAILED TO FURNISH THE SAME. THEREFORE, THE CIT(E) OBSERVED THAT IN THE ABSENCE OF THE BILLS/VOUCHERS AND AUDITED BOOKS OF ACCOUNTS FOR VERIFICATION WHICH IS THE REQUIREMENT AS PER RULE 17A, THE GENUINENESS OF THE ACTIVITIES COULD NOT BE VERIFIED AND THEREFORE, THE GENUINENESS OF THE OBJECTS AND GENUINENESS OF THE ACTIVITY IS IN DOUBT. IN VIEW OF THE ABOVE OBSERVATIONS, T HE CIT(E) HELD THAT THE APPLICANT IS NOT FIT FOR GRANT OF REGISTRATION U/S 12AA OF THE ACT AND HENCE, THE APPLICATION IN FORM NO. 10A FILED BY THE APPLICANT WAS REJECTED. 3. AGGRIEVED THE ASSESSEE IS IN APPEAL BEFORE THE ITAT. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD AS WELL AS GONE THROUGH THE ORDER OF CIT(E). ON PERUSAL OF RECORD, WE FIND THAT THE ASSESSEE HAS FURNISHED RECEIPTS AND EXPENDITURE ACCOUNT FOR THE PERIOD FROM 31/03/2016 TO 31/03/2019. IN THE YEAR ENDED 31/0 3/2019, THE RECEIPTS & EXPENDITURE ACCOUNT IS NOT TALLIED AND THE ASSESSEE HAS PAID ADVOCATE FEE OF RS. 2,75,000/ - , WHICH IS REFLECTED IN THE RECEIPTS & E XPENDITURE ACCOUNT. WE ARE OF THE VIEW THAT THE TRUST WILL HAVE TO SHOW ITS I.T.A. NO S . 1730 & 1731 /HYD/201 9 LATE SETH SHORABJI JAMSHEDJI WATCHA CHARITABLE BLOCK, (SHORAB MANZIL), HYD. 3 CHARITABLE ACTIVITIES TO GET REGISTRATION U/S 12AA OF THE ACT. ON CONSIDERING THE TOTALITY OF THE FACTS OF THE CASE, IN THE INTEREST OF JUSTICE, ONE MORE OPPORTUNITY MAY BE GIVEN TO ASSESSEE TO FURNISH THE COMPLETE BOOKS OF ACCOUNT ALONG WITH THE BILLS AND VOUCHERS FOR VERIFICATI ON BEFORE THE CIT(E) TO GRANT REGISTRATION U/S 12AA OF THE ACT. THE CIT(E) IS DIRECTED TO GIVE ONE MORE OPPORTUNITY TO THE ASSESSEE TO PUT - FORTH THE DOCUMENTARY EVIDENCE AS REQUIRED FOR REGISTRATION U/S 12AA OF THE ACT. 5. AS REGARDS THE APPEAL IN ITA NO. 1731/HYD/2019, THE ASSESSEE FILED APPLICATION IN FORM NO. 10G FOR APPROVAL U/S 80G, WHICH WAS REJECTED BY THE CIT(E) ON THE GROUND THAT REGISTRATION U/S 12A IS MANDATORY TO GRANT APPROVAL U/S 80G. SINCE, THE REGISTRATION U/ S 12A WAS REJECTED TO ASSESSEE, APPROVAL U/S 80G IS ALSO REJECTED. 6. AS WE HAVE REMITTED THE FILE FOR SEEKING REGISTRATION U/S 12A BACK TO THE FILE OF CIT(E), THE APPEAL FOR APPROVAL U/S 80G IS ALSO REMITTED TO THE FILE OF CIT(E) FOR GRANT OF APPROVAL U/S 80G AS PER LAW. I.T.A. NO S . 1730 & 1731 /HYD/201 9 LATE SETH SHORABJI JAMSHEDJI WATCHA CHARITABLE BLOCK, (SHORAB MANZIL), HYD. 4 7. IN THE RESULT, BOTH THE APPEALS UNDER CONSIDERATION ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSES. A COPY OF THIS ORDER SHOULD BE KEPT IN THE RESPECTIVE FILES. PRONOUNCED IN THE OPEN COURT ON 24 TH MAY , 2021. SD/ - ( S.S. GODARA ) JUDICIAL MEMBER SD/ - ( L.P. SAHU ) ACCOUNTANT MEMBER HYDERABAD, DATED 24 TH MAY , 2021 KV 1 LATE SETH SHORABJI JAMSHEDJI WATCHA CHARITABLE BLOCK, (SHORAB MANZIL), C/O GANDHI & GANDHI, CAS., 1002, PAIGAH PLAZA, BASHEERBAGH, HYDERABAD 500 063 2 CIT(E), 2 ND FLOOR, AAYAKAR BHAWAN, BASHEERBAGH, H YDERABAD. 3 ITO (E) 2, HYDERABAD. 4 ITAT, DR, HYDERABAD. 5 GUARD FILE.