Divyavani Trust, Hyderabad V. ITO, Ward-4(2), Hyderabad

ITA 307/Hyd/2021

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 0281 (ITAT-HYDERABAD)
• Duration Of Justice: 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-01-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: DB-B
• Assessment Year: 2019-2020
• Appeal Filed On: 25-07-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUBBARAJU PENMETAA
• Assessee Lawyers: A.V. RAGHURAM K.C
• Section: 12AA; 143(1); 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH “B”, HYDERABAD (Through Virtual Hearing) BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SRI S.S. GODARA, JUDICIAL MEMBER ITA No. 307/Hyd/2021 A.Y. 2019-20 Divyavani Trust, Hyderabad. PAN: AADTD 2316 F VS. Income Tax Officer, Ward-4(2), Hyderabad. (Appellant) (Respondent) Assessee by Sri A.V. Raghuram for CA K.C. Devdas Revenue by Sri Subbaraju Penmetaa, Sr. AR Date of hearing: 14/12/2021 Date of pronouncement: 11/01/2022 ORDER PER A. MOHAN ALANKAMONY, A.M: This appeal is filed by the assessee against the order of the Ld. CIT(A), National Faceless Assessment Centre (NFAC), Delhi in DIN No. ITBA/NFAC/S/250/2021-22/1033600885(1), dated 22/06/2021 passed U/s. 143(1) r.w.s 250(6) of the Act for the A.Y. 2019-20. 2. The assessee has raised three grounds in its appeal and they are extracted herein below for reference: 1. “The order of the Ld. CIT (A), National Faceless Appeal Centre (NFAC), Delhi arising from an order passed by the 2 CPC, Bengaluru U/s. 143(1) of the Income Tax Act, 1961 (Act) and in holding that the appellant Trust was not registered U/s. 12AA of the Income Tax Act, 1961 and therefore it cannot claim the benefits of section 11(1)(a) of the Act is totally unsustainable in law and on facts. 2. The Ld. CIT (A) (NFAC) has merely rejected the appellant’s status solely on the ground that the appellant was denied registration by an order dated 25/11/2019 passed U/s. 12AA(1)(b)(ii) of the Act in respect of which an appeal is pending before the ITAT, A-Bench, Hyderabad in ITA No.50/Hyd/2020 and which is posted for hearing on 30/08/2021. 3. The Ld. CIT(A) erred in holding that the appellant was not eligible to claim the benefit of section 11(1)(a) of the Act. 4. Any other ground(s) that may be argued at the time of hearing.” 3. At the outset, the Ld. AR submitted before us that the Ld. CIT (A) (NFAC), Delhi had confirmed the order of the Ld. AO passed U/s. 143(1) of the Act who had denied the benefit U/s.11 of the Act because the assessee’s application for registration U/s. 12AA of the Act was rejected by the CIT(E). the Ld. AR further submitted that the appeal against the order of the Ld. CIT (E) is pending before the Tribunal in ITA No. 50/Hyd/2020 which was posted for hearing on 30/08/2021. The Ld. AR further requested that the appeal of the assessee may be remitted back to the file of the Ld. AO in order to pass appropriate order in the light of the order passed by the Tribunal. Ld. DR on the other hand vehemently objected to the submission of the Ld. AR and prayed for confirming the order of the Ld. Revenue Authorities. 3 4. We have heard the rival submission and carefully perused the materials on record. On verifying our record, we find that the assessee’s appeal in ITA NO. 50/Hyd/2020 was disposed off by the Tribunal vide order dated 15/12/2021 wherein the appeal was remitted back with the following observation. “5. We have heard the rival submissions and carefully perused the materials on record. On examining the paper book filed by the assessee we find that the assessee Trust has not produced before us the statement of accounts of the assessee for the AY 2020-21 i.e, during the period when the Ld. CIT (E) has examined the affairs of the assessee. The assessee has filed its receipts and payments account for the period 1/4/2018 to 31/3/2019 relating to the AY 2019-20. On examining the receipts and payments for the AY 2019- 20, we do not find any expenditure incurred by the assessee which is not for the mixed objects of the assessee-Trust. Further, as held by the Hon’ble Jurisdictional Hon’ble Andhra Pradesh High Court in the case CIT vs. Social Service Centre reported in 250 ITR 39 (AP) the Assessee-Trust’s application in Form 10A cannot be rejected for the sole reason that the assessee Trust is having both religious and charitable objects. On perusing the objects of the assessee-Trust which are extracted in the order of the Ld. CIT (E), We find that the objects of the assessee Trust are both religious activity as well as charitable activity, in the nature of advancement of any other objects of general public utility. However, the scope of the objects in the clauses viz., “(c) to provide clean entertainment that inspires proclamation of good news to all Telugu Speaking people by using all forms of media based on values of justice and morals, and “(g) to produce audio and video productions like films, documentaries, docudramas, short films, Tele-serials, TV Shows and Public Service Announcements”, appears to be have elusive meaning and therefore it requires further explanation. Hence, in the interest of justice, We hereby remit the entire matter back to the file of the Ld. CIT(E) in order to re-examine the issues in detail and also to examine the financials of the assessee Trust for the assessment year 2020-21 & onwards and thereafter decide the matter afresh in accordance with merit and law.” 5. Since the order of the Tribunal in ITA No. 50/Hyd/2021 dated 15/12/2021 is relevant for making assessment in the case of the 4 assessee, we hereby remit back the appeal of the assessee to the file of the Ld. AO for de novo consideration and to pass appropriate order in accordance with law and merit in the light of the order of the Tribunal dated 15/12/2021 cited supra. 6. In the result, appeal of the assessee is allowed for statistical purposes as indicated herein above. Pronounced in the open Court on the 11 th January, 2022. Sd/- Sd/- (S.S. GODARA) (A. MOHAN ALANKAMONY) JUDICIAL MEMBER ACCOUNTANT MEMBER Hyderabad, Dated: 11 th January, 2022. OKK Copy to:- 1) Appellant: Divyavani Trust, 3-4-97, St. Johns Reginal Seminar, Ramanthapur, Amberpet, Hyderabad – 500 013. 2) Respondent: Income Tax Officer, Ward-4(2), Hyderabad. 3) The CIT(A), National Faceless Assessment Centre (NFAC), Delhi. 4) The DR, ITAT, Hyderabad 5) Guard File 6)