M/s. Ashok Nagar Anjanayer Bhaktha Sabha, CHENNAI V. DIT, CHENNAI

ITA 1938/CHNY/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 0964 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-01-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Appeal Filed On: 01-11-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T N BETGIRI
• Section: 12AA; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI BEFORE SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER I.T.A. NO. 1938/MDS/2012 M/S ASHOK NAGAR ANJANAYER BHAKTHA SABHA, ASHOK NAGAR ANJANAYER TEMPLE, 53 RD STREET, ASHOK NAGAR, CHENNAI - 600 083. PAN : AADTA 3003 E (APPELLANT) V. THE DIRECTOR OF INCOME TAX (EXEMPTIONS), CHENNAI. (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY : SHRI T.N. BETGIRI , JCIT DATE OF HEARING : 24.01.2013 DATE OF PRONOUNCEMENT : 24.01.2013 O R D E R PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER : IN THIS APPEAL FILED BY THE ASSESSEE, ITS GRIEVAN CE IS THAT THE DIT DENIED REGISTRATION SOUGHT BY IT UNDER SECTION 12AA OF INCOME- TAX ACT, 1961 (IN SHORT 'THE ACT'). I.T.A. NO. 1938/MDS/12 2 2. FACTS APROPOS ARE THAT ASSESSEE, CONSTITUTED BY A TRUST DEED ON 26.7.2010, HAD FILED AN APPLICATION IN FORM 10A FOR REGISTRATION UNDER SECTION 12AA ON 30.3.2012. LD. DIT(E), AFTER PERUSING TRUST DEED, CAME TO A CONCLUSION THAT OBJECTS OF THE ASSE SSEE-TRUST WERE ADMIXTURE OF RELIGION AND CHARITY AND, THEREFORE, R EGISTRATION UNDER SECTION 12AA COULD NOT BE GRANTED. FURTHER, ACCORD ING TO HIM, ASSESSEE ALSO FAILED TO FILE A COPY OF RETURN OF IN COME FOR ASSESSMENT YEAR 2011-12 AND ITS STATEMENT OF ACCOUNT FOR YEAR ENDING 31.3.2011. 3. WHEN THE APPEAL CAME UP FOR HEARING, NO ONE ENTE RED APPEARANCE FOR THE ASSESSEE, DESPITE THE ISSUE OF N OTICE. 4. LEARNED D.R., STRONGLY SUPPORTING THE ORDER OF D IT(E), SUBMITTED THAT ASSESSEE HAD NOT FURNISHED DOCUMENTS CALLED FOR. THEREFORE, REGISTRATION WAS RIGHTLY DENIED. 5. WE HAVE PERUSED THE ORDER OF DIT(E) AND HEARD T HE SUBMISSION OF LEARNED D.R. WHAT WE NOTE FROM THE ORDER OF DIT(E) IS THAT WHEN THE MATTER WAS POSTED FOR HEARING ON 1 6.8.2012 BEFORE THE DIT(E), TRUSTEE OF THE ASSESSEE HAD APPEARED AN D PRODUCED THE TRUST DEED AND DETAILS SOUGHT FOR. ASSESSEE-TRUST WAS REQUIRED TO FILE A COPY OF RETURN OF INCOME FOR ASSESSMENT YEAR 2011-12 AND I.T.A. NO. 1938/MDS/12 3 STATEMENT OF ACCOUNTS FOR THE YEAR ENDING 31.3.2012 . STATEMENT OF ACCOUNTS FOR THE YEAR ENDING 31.3.2011 WAS FILED BY THE ASSESSEE- TRUST ON 5.9.2012. IN SUCH A SITUATION, WE CANNOT SAY THAT THERE WAS TOTAL NON-COMPLIANCE BY THE ASSESSEE WITH DIRECTION S OF DIT(E). FOR GRANT OF REGISTRATION UNDER SECTION 12AA TO AN ASSE SSEE, IT IS NOT ESSENTIAL THAT RETURNS UPTO DATE OF APPLICATION ARE TO BE FILED BY AN ASSESSEE. NO DOUBT, RULE 17A OF INCOME-TAX RULES, 1962 DOES MENTION THAT AN ASSESSEE ALONG WITH ITS APPLICATION IN FORM 10A, HAS TO FILE TWO COPIES OF THE ACCOUNTS RELATING TO PRIO R YEARS. HOWEVER, THIS IS ONLY A PROCEDURAL REQUIREMENT AND, IN OUR O PINION, WILL NOT DISENTITLE AN ASSESSEE FROM GETTING A REGISTRATION UNDER SECTION 12AA IF OTHER CONDITIONS ARE NOT SATISFIED. IN ANY EVEN T, IN THE GIVEN CASE BEFORE US, REGISTRATION WAS DENIED FOR A REASON THA T OBJECTS OF THE ASSESSEE-TRUST WERE ADMIXTURE OF RELIGION AND CHARI TY. IN OUR OPINION, THE VIEW TAKEN BY LD. DIT(E) IS NOT CORREC T. IT IS NOT IN TUNE WITH THE JUDGMENT OF HON'BLE JURISDICTIONAL HIGH CO URT IN THE CASE OF DY. IT(E) V. ANJUMAN-E-KHYKHAH-E-AAM [(2011) 49 DTR 262] AND IN THE CASE OF CIT V. MISPTA PENTACOSTAL MISSION [TCA NO.648 OF 2011 DATED 6.2.2012]. IN THESE DECISIONS, IT HAS BEEN H ELD BY HON'BLE JURISDICTIONAL HIGH COURT THAT A CIT, WHILE CONSIDE RING AN APPLICATION UNDER SECTION 12AA OF THE ACT, WAS NOT CORRECT IN A PPLYING THE SCOPE I.T.A. NO. 1938/MDS/12 4 OF THE PROVISIONS OF SECTION 11 OF THE ACT, AND APP LICATION THEREOF HAD TO BE CONSIDERED BY THE ASSESSING OFFICER AT THE TI ME OF ASSESSMENT. MERELY BECAUSE OBJECTS OF THE TRUSTS WERE ADMIXTURE OF BOTH RELIGION AND CHARITY, IT COULD NOT BE A GROUND FOR DENYING R EGISTRATION UNDER SECTION 12AA OF THE ACT. WE ARE, THEREFORE, OF TH E OPINION THAT THE ASSESSEE WAS ELIGIBLE FOR REGISTRATION UNDER SECTIO N 12AA OF THE ACT. DIT(E) IS DIRECTED TO GRANT SUCH A REGISTRATION TO THE ASSESSEE-TRUST. 6. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS A LLOWED. THE ORDER WAS PRONOUNCED IN THE COURT ON THURSDAY, THE 24 TH OF JANUARY, 2013, AT CHENNAI. SD/- SD/- (CHALLA NAGENDRA PRASAD) (ABRAHAM P. GEORGE) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 24 TH JANUARY, 2013. KRI. COPY TO: (1) APPELLANT (2) RESPONDENT (3) DIT (EXEMPTIONS), CHENNAI (4) D.R. (5) GUARD FILE