K.T.A. & G.R.S. Educational Trust, Tirupattur V. ACIT, CHENNAI

ITA 2164/CHNY/2013

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 7193 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 09-12-2014
• Assessment Year: misc
• Appeal Filed On: 18-12-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ANIRUDH RAI
• Assessee Lawyers: G BASKAR
• Section: 12A; 12AA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , C B ENCH, CHENNAI . , ! # $ , % & BEFORE SHRI A.MOHAN ALANKAMONY ACCOUNTANT MEMBER AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER ./I.T.A.NO. 2164/MDS/2013 K.T.A & G.R.S EDUCATIONAL TRUST, 18-A, KATTUR VILLAGE, PUDUPET POST TIRUPATTUR. PIN: 635 541. VS DIRECTOR OF INCOME TAX (EXEMPTIONS)-III, CHENNAI-600 034. PAN: AAIFK8399Q ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR. G.BASKAR, ADVOCATE /RESPONDENT BY : MR. ANIRUDH RAI, CIT DR / DATE OF HEARING : 9 TH DECEMBER, 2014 /DATE OF PRONOUNCEMENT : 19 TH DECEMBER, 2014 / O R D E R PER CHALLA NAGENDRA PRASAD, JM: THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE O RDER OF THE DIRECTOR OF INCOME TAX (EXEMPTIONS), CHENNA I DATED 30.09.2013 IN NOT GRANTING REGISTRATION UNDER SECTI ON 12AA FROM THE DATE WHEN THE APPLICATION WAS FIRST MADE O N 30.05.2007 INSTEAD FROM 26.9.2013 RELEVANT TO THE ASSESSMENT YEAR 2014-15. 2. COUNSEL FOR THE ASSESSEE SUBMITS THAT DIRECTOR O F INCOME TAX (EXEMPTIONS) SHOULD HAVE GRANTED REGIST RATION UNDER SECTION 12A FROM THE DATE OF FILING OF INITIA L APPLICATION 2 ITA NO.2164/MDS/2013 FOR REGISTRATION WHICH WAS FILED ON 30.05.2007 INST EAD OF GRANTING REGISTRATION WITH EFFECT THE ASSESSMENT YE AR 2014- 15. HE FURTHER SUBMITS THAT THE FIRST APPLICATION W HICH WAS FILED ON 30.5.2007 WAS NOT REJECTED BY THE DIRECTOR OF INCOME TAX (EXEMPTIONS) BUT WAS ONLY LODGED. PLACING RELIA NCE ON THE JUDGEMENT OF THE HONBLE MADRAS HIGH COURT IN T HE CASE OF DIRECTOR OF INCOME TAX (EXEMPTIONS) VS. ANJUMAN- E- KHYRKHAH-E-AAM (237 CTR 509), COUNSEL SUBMITS THAT DIRECTOR OF INCOME TAX (EXEMPTIONS) SHOULD NOT HAV E LODGED THE APPLICATION BUT SHOULD HAVE EITHER GRANTED THE REGISTRATION OR REJECTED THE APPLICATION. THEREFORE, HE SUBMITS THAT SINCE THE DIRECTOR OF INCOME TAX (EXEMPTIONS) NEITHER GRA NTED REGISTRATION NOR REJECTED THE APPLICATION FILED ON 30.05.2007 THE DELAY SHOULD HAVE CONDONED NOW BY THE DIRECTOR OF INCOME TAX (EXEMPTIONS) AND GRANTED REGISTRATION WI TH EFFECT FROM 30.05.2007. 3. DEPARTMENTAL REPRESENTATIVE PLACES RELIANCE ON T HE ORDER OF THE DIRECTOR OF INCOME TAX (EXEMPTIONS) IN GRANTING REGISTRATION ONLY FROM THE ASSESSMENT YEAR 2014-15 AND NOT WITH EFFECT FROM 30.05.2007 FOR THE DETAILED REASON GIVEN IN THE ORDER. 3 ITA NO.2164/MDS/2013 4. HEARD BOTH SIDES. PERUSED ORDERS OF LOWER AUTHOR ITIES. ON GOING THROUGH THE ORDER OF THE DIRECTOR OF INCOM E TAX (EXEMPTIONS), WE FIND THAT THE ASSESSEE INITIALLY F ILED APPLICATION FOR REGISTRATION UNDER SECTION 12A OF T HE ACT ON 30.05.2007 AND THIS APPLICATION COULD NOT BE PROCES SED FURTHER AS THE ASSESSEE FAILED TO RESPOND TO DEPART MENTS LETTER DATED 31.08.2007. ONE OF THE DEFICIENCIES WA S THAT ACCOUNTS FOR THE PERIOD 2004-05 TO 2006-07 WERE NOT FILED ALONG WITH THE APPLICATION, ALTHOUGH THE SAME WAS R EQUIRED TO BE FILED UNDER RULE 17A OF THE I.T.RULES. IN SUCH CIRCUMSTANCES, DIRECTOR OF INCOME TAX (EXEMPTIONS) HELD THAT APPLICATION DATED 30.05.2007 WAS INCOMPLETE AN D IT WAS NOT POSSIBLE TO PROCESS IT FURTHER. THE ASSESSEE AP PEARS TO HAVE FILED SECOND APPLICATION IN FORM 10A ON 11.03. 2011. SINCE DEFICIENCIES WERE NOTICED BY THE DIRECTOR OF INCOME TAX (EXEMPTIONS) BY LETTER DATED 18.08.2011 CLARIFI CATION WAS SOUGHT FROM THE ASSESSEE. THE ASSESSEE WAS ALSO REQ UIRED TO FILE ADDITIONAL INFORMATION CALLED FOR. SINCE TH ERE WAS NO RESPONSE FROM THE ASSESSEE TRUST, DIRECTOR OF INCOM E TAX (EXEMPTIONS) REFUSED REGISTRATION UNDER SECTION 12A BY ORDER DATED 28.09.2011. THE ASSESSEE AGAIN APPROACHED DIR ECTOR 4 ITA NO.2164/MDS/2013 OF INCOME TAX (EXEMPTIONS) FOR REGISTRATION UNDER S ECTION 12A FOR THE THIRD TIME ON 13.03.2013. SINCE THE DIR ECTOR OF INCOME TAX (EXEMPTIONS) POINTED OUT CERTAIN ERRORS IN THE TRUST DEED AND REQUIRED THE ASSESSEE TO AMEND THE T RUST DEED, ASSESSEE AMENDED THE TRUST DEED ON 26.09.2013 AND THE DIRECTOR OF INCOME TAX (EXEMPTIONS) GRANTED REG ISTRATION FROM THE ASSESSMENT YEAR 2014-15 AS THE TRUST DEED WAS FINALLY AMENDED ON 26.09.2013 COMPLYING WITH THE P ROVISIONS OF SECTION 12AA OF THE ACT. THE ASSESSEE CONTENDS THAT DIRECTOR OF INCOME TAX (EXEMPTIONS) SHOULD HAVE GRA NTED REGISTRATION WITH EFFECT FROM 30.05.2007 BY CONDONI NG THE DELAY INSTEAD FROM 26.9.2013 RELEVANT TO THE ASSES SMENT YEAR 2014-15. WE ARE UNABLE TO AGREE WITH THE SUBM ISSION OF THE ASSESSEE THAT REGISTRATION SHOULD BE GRANTED WI TH EFFECT FROM 30.07.2007 CONDONING THE DELAY. FIRSTLY THE I NITIAL APPLICATION FILED ON 30.7.2007 COULD NOT BE PROCES SED FOR THE FAILURE ON THE PART OF THE ASSESSEE TO FURNISH DETAILS/INFORMATION CALLED FOR BY LETTER DATED 31.8 .2007 BY THE DIRECTOR OF INCOME TAX (EXEMPTIONS). SECONDLY THE ASSESSEE FILED ONE MORE APPLICATION FOR THE SECOND TIME ON 11.03.2011 FOR REGISTRATION UNDER SECTION 12AA AND THIS 5 ITA NO.2164/MDS/2013 APPLICATION FOR REGISTRATION WAS REJECTED BY THE DI RECTOR OF INCOME TAX (EXEMPTIONS) BY ORDER DATED 28.09.2011 F OR THE REASON THAT THE ASSESSEE DID NOT RESPOND TO THE LET TERS DATED 18.08.2011 WHEREIN CLARIFICATION/ADDITIONAL INFORMA TION WAS CALLED FOR BY THE DIRECTOR OF INCOME TAX (EXEMPTION S). THE ASSESSEE DID NOT APPROACH THE APPELLATE AUTHORITIES FOR GRANT OF REGISTRATION FROM 30.05.2007, WHEN THE EARLIER A PPLICATIONS WERE NOT PROCESSED OR REJECTED. IN SUCH CIRCUMSTANC ES, THE ASSESSEES PRAYER THAT 12AA REGISTRATION SHOULD BE GRANTED FROM THE DATE OF INITIAL APPLICATION I.E. 30.07.200 7 IS REJECTED. THE IMPUGNED ORDER OF THE DIRECTOR OF INCOME TAX (EXEMPTIONS) GRANTING REGISTRATION UNDER SECTION 1 2AA FROM THE ASSESSMENT YEAR 2014-15 IS SUSTAINED. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON FRIDAY , THE 19 TH DAY OF DECEMBER, 2014 AT CHENNAI. SD/- SD/- ( . ) ( % '( ) ( A.MOHAN ALANKAMONY ) ( CHALLA NAGENDR A PRASAD ) * / ACCOUNTANT MEMBER '+ * / JUDICIAL MEMBER ' /CHENNAI, - /DATED, 19 TH DECEMBER, 2014 SOMU 6 ITA NO.2164/MDS/2013 +/0 10 /COPY TO: 1. APPELLANT 2. RESPONDENT 3. 2 () /CIT(A) 4. 2 /CIT 5. 0 ++5 /DR 6. 8 /GF .