Rural India Self Development Trust, Hyderabad V. The CIT, (Examptions), Hyderabad

ITA 264/VIZ/2016

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 6727 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 year(s) 4 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-09-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 04-07-2017
• Assessment Year: 1991-1992
• Appeal Filed On: 02-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V MADHUVANI
• Assessee Lawyers: A V RAGHURAM
• Section: 143(3); 12A; 12AA; 147; 12; 11

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . . , BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , ACCOUNTANT MEMBER . / I . T .A.NO. 264 /VIZ/ 201 6 ( / ASSESSMENT YEAR: 1991 - 9 2 ) RURAL INDIA SELF DEVELOPMENT TRUST SWARAJ NAGAR A.C.GARDENS, RAJAHMUNDRY [ PAN : AAATR3046F] THE C.I.T. (EXEMPTIONS) HYDERABAD ( / APPELLANT) ( / RESPONDENT) / APPELLANT BY : SHRI A.V.RAGHU RAM, AR / RESPONDENT BY : SMT. V.MADHU VANI, DR / DATE OF HEARING : 3 0 .08.2017 / DATE OF PRONOUNCEMENT : 06 . 0 9 .2017 / O R D E R PER D.S. SUNDER SINGH , ACCOUNTANT MEMBER : THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE RE FUSAL OF GRANT OF REGISTRATION U/S 12AA OF I.T.ACT VIDE CI T (EXEMPTIONS), HYDERABAD 2 ITA NO. 264/VIZ/2016 RURAL INDIA SELF DEVELOPMWENT TRUS, RAJAHMUNDRY ORDER NO.CIT(E)/HYD/12A/2015 - 16 DATED 08.03.2016 COMMUNICATED TO THE ASSESSEE , STATING THAT THE RECORDS ARE NOT AVAILABLE IN THE OFFICE TO SHOW THAT THE ASSESSEE HAD MADE AN APPLICATION FOR REGISTRATION U/S 12A OF THE ACT AND THERE WA S NO CORRESPONDENCE AVAILABLE IN INCOME TAX OFFICE . H ENCE, COMMISSIONER OF INCOME TAX (EXEMPTIONS) HAS PASSED AN ORDER REJECTING THE GRANT OF REGISTRATION U/S 12A OF THE ACT. AGGRIEVED BY THE ORD ER OF THE CIT(EXEMPTIONS), THE ASSESSEE IS IN APPEAL BEFORE US AND RAISED THE FOLLOWING GROUNDS OF APPEAL : 1. THE ORDER OF THE LEARNED CIT REFUSING TO GRANT REGISTRATION U/S.12A IS NOT ONLY ERRONEOUS BOTH ON FACTS AND IN LAW BUT IS CONTRARY TO THE DECISION O F THE SUPREME COURT IN THE CASE OF SOCIETY FOR PROMOTION OF EDUCATION, ALLAHABAD. 2. THE LEARNED CIT ERRED IN REFUSING TO GRANT REGISTRATION ON THE GROUND THAT HIS OFFICE RECORDS DO NOT SHOW ANY GRANTING OF REGISTRATION WITHOUT APPRECIATING THE LEGAL POSIT ION THAT ONCE THE JURISDICTION VESTS WITH HIM THE PREVIOUS RECORDS ALSO SHALL VEST WITH HIM. 3. THE LEARNED CIT OUGHT TO HAVE OBTAINED THE PREVIOUS RECORDS AND OUGHT TO HAVE GRANTED REGISTRATION WITH EFFECT FROM 141990 IN VIEW OF THE DECISION OF SUPREME CO URT IN THE CASE OF SOCIETY FOR PROMOTION OF EDUCATION, ALLAHABAD. 4. ANY OTHER GROUND THAT MAY BE URGED AT THE TIME OF HEARING. 2. APPEARING FOR THE ASSESSEE, THE LD.AR ARGUED THAT THE ASSESSEE HAD FILED APPLICATION FOR GRANT OF REGIS TRATION U/S 12A IN 3 ITA NO. 264/VIZ/2016 RURAL INDIA SELF DEVELOPMWENT TRUS, RAJAHMUNDRY FO RM NO.10A AND THE LD.ACIT, CIRCLE - 1, RAJAHMUNDRY HAS ACKNOWLEDGED THE APPLI CATION FOR REGISTRATION VIDE THEIR LETTER DATED 13.12.91 ADDRESSED TO TH E SECRETARY OF THE A SSESSEE TRUST WHICH IS PLACED ON PAGE NO.7 OF PAPER BOOK. 3. REFERRING TO PAGE NO.8, THE LD.AR SUBMITTED THAT THE ASSESSEE HAD REPLIED FOR THE CLARIFICATIONS SOUGHT BY THE DEPARTMENT, BUT THERE WAS NO RESPONSE FROM THE DEPARTMENT. HENCE, THE ASSESSEE HAS SOUGHT CLARIFICATION FROM THE INCOME TAX DEPARTMENT FOR WHICH THE INCOME TAX DEPARTME NT HAS REPLIED THAT THE REGISTRATION CANNOT BE GRANTED IN THE ASSESSEES CASE. REFERRING TO PAGE NOS. 53 TO 58 OF PAPER BOOK, LD.AR BROUGHT TO OUR NOTICE THAT THE ASSESSING OFFICER HAD ASSESSED THE INCOME BY PASSING ORDERS U/S 143(3) AFTER VERIFICATION OF THE DETAILS FURNISHED BY THE ASSESSEE FOR THE ASSESSMENT ORDER 1993 - 94, 1996 - 97 AND 1997 - 98 AND ALLOWED THE EXEMPTION U/S 11 AND 12. THE ASSESSING OFFICER ALSO HAS ACKNOWLEDGED THE APPLICATION MADE BY THE ASSESSEE FOR GRANT OF REGISTRATION U/S 12A IN THE ASSESSMENT ORDER. THE APPLICATION WAS FILED ON 06.08.1990 . T HE 4 ITA NO. 264/VIZ/2016 RURAL INDIA SELF DEVELOPMWENT TRUS, RAJAHMUNDRY ASSESSING OFFICER HAS REOPENED THE ASSESSMENT U/S 147 FOR THE ASSESSMENT YEAR 2008 - 09 AND IN THE REOPENED ASSESSMENT ORDER ALSO, THE ASSESSING OFFICER ALLOWED THE EXEMPTION U/S 11 AND 12. FRO M THE REFERENCES MADE FROM THE PAPER BOOK, LD.AR ARGUED THAT IT IS ESTABLISHED BEYOND DOUBT THAT THE ASSESSE HAD FILED APPLICATION FOR REGISTRATION AND THE SAME WAS ACKNOWLEDGED BY THE DEPARTMENT AND THE ASSESSEE ALSO CONSTANTLY FOLLOWED UP THE MATTER. IN SPITE OF THE FACT THAT THE ASSESSEE HAS FURNISHED PLETHORA OF INFORMATION AND FURNISHED THE EVIDENCES IN SUPPORT OF ITS CLAIM FOR APPLICATION THE LD.CIT(EXEMPTIONS ) REJECTED THE GRANT OF REGISTRATION STATING THAT NO INFORMATION WAS AVAILABLE AS PER THE REC ORD. LD.AR FURTHER , RELIED ON THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF CIT KANPUR & ORS VS. SOCIETY FOR THE PROMOTION OF EDUCATION, ALLAHABAD IN CIVIL APPEAL NO.1478 OF 2016 DATED 16/02/2016 WHER E IN THEIR LORDSHIPS AFFIRMED THE ORDER O F HONBLE ALLAHABAD HIGH COURT. HONBLE HIGH COURT HELD THAT ONCE AN APPLICATION IS MADE UNDER THE PROVISIONS OF I.T.ACT AND IN CASE, THE SAME IS NOT RESPONDED WITHIN SIX MONTHS IT WOULD BE TAKEN THAT THE APPLICATION IS REGISTERED UNDER THE 5 ITA NO. 264/VIZ/2016 RURAL INDIA SELF DEVELOPMWENT TRUS, RAJAHMUNDRY PROVISIONS OF I.T.ACT. ACCORDINGLY, LD.AR ARGUED THAT SINCE THE DEPARTMENT HAS NOT RESPONDED TO THE APPLICATION MADE BY THE ASSESSEE, THE REGISTRATION DEEMED TO HAVE BEEN GRANTED AND IT IS ILLEGAL AND ARBITRARY FOR THE DEPARTMENT TO REJECT THE GRANT OF REGISTRATION. 4. ON THE OTHER HAND, LD.DR SUPPORTED THE ORDERS OF THE CIT. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL PLACED ON RECORD. IT IS ESTABLISHED BY THE ASESSEE VIDE LETTER DATED 13.12.91 OF ACIT RAJAHMUNDRY, ENCLOSED IN PAGE NO.7 OF PAPER BOOK THAT THE ASSESSEE HAD FILED APPLICATION FOR REGISTRATION U/S 12A. REFERRING TO THE APPLICATION MADE BY THE ASSESSEE, THE ASSESSING OFFICER HAS SOUGHT CERTAIN INFORMATION WHICH WAS ALSO FURNISHED BY THE ASS ESSEE VIDE LETTER DATED 23.01.92 . THE DEPARTMENT ALSO ALLOWED EXEMPTION U/S 11 AND 12 IN THE SCRUTINY ASSESSMENTS MADE U/S 143(3) FOR THE ASSESSMENT YEAR 1993 - 94, 1996 - 97, 1997 - 98 AND 2008 - 09. IN THE CIRCUMSTANCES, W E COULD NOT UNDERSTAND THE REASONS FOR REFUSING 6 ITA NO. 264/VIZ/2016 RURAL INDIA SELF DEVELOPMWENT TRUS, RAJAHMUNDRY T HE REGISTRATION U/S 12A WITH A REASON THAT THERE WAS NO INFORMATION OR CORRESPONDENCE AVAILABLE TO THE DEPARTMENT. IT IS ESTABLISHED BEYOND DOUBT THAT THE ASSESSEE HAD FILED THE APPLICATION FOR REGISTRATION WHICH IS PENDING BEFORE THE INCOME TAX DEPARTMENT FOR A LONG TIME WITHOUT ANY ACTION . THEREFORE, WE ARE OF THE CONSIDERED OPINION THAT THE ISSUE SHOULD BE REMITTED BACK TO THE FILE OF THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) TO VERIFY THE FACTUAL INFORMATION REGARDING THE SUBMISSION OF APPLICATION FOR REGISTRATION AND OTHER RELEVANT MAT ERIAL MADE AVAILABLE BY THE ASSESSEE IN THE FORM OF PAP ER BOOK BEFORE US AND CONSIDER THE REQUEST FOR GRANT OF REGISTRATION ON MERITS. LD.CIT ALSO DIRECTED TO CONSIDER THE DECISION OF HONBLE SUPREME COURT RELIED UPON BY THE ASSESSE CITED (SUPRA) . IT IS N EEDLESS TO MENTION THAT THE LD.CIT SHOULD GIVE AN OPPORTUNITY TO THE ASSESSEE. 6. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE . 7 ITA NO. 264/VIZ/2016 RURAL INDIA SELF DEVELOPMWENT TRUS, RAJAHMUNDRY T HE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 6 TH SEP 20 17 . SD/ - SD/ - ( . ) ( . . ) (V. DURGA RAO) ( D.S. SUNDER SINGH ) /JUDICIAL MEMBER /ACCOUNTANT MEMBER /VISAKHAPATNAM /DATED : 06 . 0 9 .2017 L. RAMA, SPS /COPY OF THE ORDER FORWARDED TO: - 1. / THE APPELLANT RURAL INDIA SELF DEVELOPMENT TRUST, SWARAJ NAGAR, A.C.GARDENS, RAJAHMUNDRY 2 . / THE RESPONDENT THE C.I.T. (EXEMPTIONS), HYDERABAD 3 . THE ACIT CIRCLE - 1, RAJAHMUNDRY 4 . , , / DR, ITAT, VISAKHAPATNAM 5 . / GUARD FILE / BY ORDER // TRUE COPY // SR. PRIVATE SECRETARY ITAT, VISAKHAPATNAM