M.V. Diabetes Health Care, CHENNAI V. ACIT, CHENNAI

ITA 3117/CHNY/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 6183 (ITAT-CHENNAI)
• Duration Of Justice: 10 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-09-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 10-07-2017
• Assessment Year: 2012-2013
• Appeal Filed On: 08-11-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: M PALANICHAMY ACIT
• Assessee Lawyers: M KARUNAKARAN

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: CHENNAI . , ' , % & BEFORE SHRI ABRAHAM P.GEORGE, ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, JUDICIAL MEMBER ./ ITA NO.3117/MDS/2016 %' ' /ASSESSMENT YEAR: 2012-13 M/S.M.V.DIABETES HEALTH CARE, 6, MAIN ROAD, ROYAPURAM, CHENNAI-600 013. VS. THE ASST. COMMISSIONER OF- INCOME TAX, NON-CORPORATE CIRCLE-5(1), CHENNAI-600 034. [PAN: AAIFM 1410 C ] ( ( /APPELLANT) ( )*( /RESPONDENT) ( + / APPELLANT BY : MR.M.KARUNAKARAN, ADV. )*( + /RESPONDENT BY : MR.M.PALANICHAMY, ACIT + /DATE OF HEARING : 19.09.2017 + /DATE OF PRONOUNCEMENT : 19.09.2017 / O R D E R PER GEORGE MATHAN , JUDICIAL MEMBER : ITA NO.3117/MDS/2016 IS AN APPEAL FILED BY THE ASS ESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEAL S)-5, CHENNAI, IN ITA NO.25/CIT(A)-5/15-16 DATED 21.09.2016 FOR THE A Y 2012-13. 2. MR.M.PALANICHAMY, ACIT., REPRESENTED ON BEHALF O F THE REVENUE AND MR. M.KARUNAKARAN, ADV. REPRESENTED ON BEHALF OF TH E ASSESSEE. ITA NO.3117/MDS/2016 :- 2 -: 3. IT WAS SUBMITTED BY THE LD.AR THAT THE ASSESSEE M/S.M.V. DIABETES HEALTH CARE HAD MADE DONATION OF RS.20.00 LAKHS TO M/S.DIABETIC RESEARCH CENTER FOUNDATION AND CLAIMED DEDUCTION U/ S.35(1)(II) OF THE IT ACT. IT WAS A SUBMISSION THAT M/S.DIABETIC RESEARC H CENTER FOUNDATION HAD CHANGED ITS NAME TO PROF.M.VISWANATHAN DIABETIC S RESEARCH CENTER. IT WAS A SUBMISSION THAT M/S.DIABETIC RESEARCH CENT ER FOUNDATION HAD BEEN GRANTED REGISTRATION U/S.35(1)(II) VIDE NOTIFI CATION DATED 28.04.2009. M/S.DIABETIC RESEARCH CENTER FOUNDATION HAD CHANGED ITS NAME TO PROF.M.VISWANATHAN DIABETICS RESEARCH CENTER W.E.F. 01.04.2010. THE LD.AR DREW OUR ATTENTION TO PAGE NO.2 OF THE PAPER BOOK WHICH WAS A COPY OF THE CERTIFICATE OF REGISTRATION OF SOCIETIE S WHEREIN IT WAS MENTIONED THAT M/S.DIABETIC RESEARCH CENTER FOUNDAT ION HAS CHANGED ITS NAME TO PROF.M.VISWANATHAN DIABETICS RESEARCH CENTE R. IT WAS A SUBMISSION THAT THE APPLICATION HAD BEEN MADE BY PR OF.M.VISWANATHAN DIABETICS RESEARCH CENTER TO THE CBDT FOR ISSUANCE OF THE AMENDED NOTIFICATION AFTER INCORPORATING NEW NAME. IT WAS A SUBMISSION THAT TILL DATE NO REPLY HAS BEEN RECEIVED FROM THE CBDT. IT WAS A SUBMISSION THAT AS THE RECEIPTS HAD BEEN ISSUED BY PROF.M.VISWANATH AN DIABETICS RESEARCH CENTER, THE AO DID NOT GRANT THE ASSESSEE THE BENEF IT OF DEDUCTION U/S.35(1)(II) OF THE IT ACT. IT WAS A SUBMISSION T HAT LD.CIT(A) HAD ALSO CONFIRMED THE ORDER OF THE AO. IT WAS A SUBMISSION THAT THERE WAS ONLY A CHANGE IN THE NAME IN SO FAR AS M/S.DIABETIC RESEAR CH CENTER FOUNDATION HAS BEEN RE-NAMED AS PROF.M.VISWANATHAN DIABETICS R ESEARCH CENTER AND ITA NO.3117/MDS/2016 :- 3 -: THE ASSESSEE WAS ENTITLED TO THE BENEFIT OF DEDUCTI ON U/S.35(1)(II) OF THE IT ACT. 4. IN REPLY, THE LD.DR SUBMITTED THAT PROF.M.VISWAN ATHAN DIABETICS RESEARCH CENTER WAS NOT NOTIFIED U/S.35(1)(II) AND CONSEQUENTLY THE ASSESSEE COULD NOT BE GRANTED THE BENEFIT OF DEDUCT ION U/S.35(1)(II) OF THE IT ACT. HE VEHEMENTLY SUPPORTED THE ORDER OF THE A O AND LD.CIT(A). 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. A PER USAL OF THE NOTIFICATION ISSUED BY THE CBDT DATED 28.04.2009 SH OWS THAT M/S.DIABETIC RESEARCH CENTER FOUNDATION, CHENNAI, HAS BEEN GRANT ED THE APPROVAL U/S.35(1)(II) OF THE IT ACT. A PERUSAL OF THE FORM NO.II ISSUED BY THE REGISTRAR OF THE SOCIETIES AS SEEN IN THE PAPER BOO K SHOWS THAT M/S.DIABETIC RESEARCH CENTER FOUNDATION HAS CHANGED ITS NAME TO PROF.M.VISWANATHAN DIABETICS RESEARCH CENTER W.E.F. 08.04.2010. HOWEVER, THE REQUIREMENT U/S.35(1)(II) IS THAT THE ORGANIZATION MUST BE NOTIFIED U/S.35(1)(II) OF THE ACT. NO NEW NOTIFICAT ION HAS BEEN ISSUED BY THE CBDT RECOGNIZING THE CHANGE OF NAME FROM M/S.DI ABETIC RESEARCH CENTER FOUNDATION TO PROF.M.VISWANATHAN DIABETICS R ESEARCH CENTER. A PERUSAL OF THE DETAILS IN THE PAPER BOOK ALSO SHOWS THAT PROF.M.VISWANATHAN DIABETICS RESEARCH CENTER HAS BE EN WRITING LETTERS AND ISSUING REMINDERS TO THE CBDT REQUESTING FOR IS SUANCE OF AMENDED NOTIFICATION IN RESPECT OF THE CHANGE OF THE NAME O F THE SOCIETY. TILL SUCH CHANGE IN THE NAME IS RECOGNIZED BY ISSUANCE OF THE AMENDED NOTIFICATION, ITA NO.3117/MDS/2016 :- 4 -: ADMITTEDLY, IT CANNOT BE SAID THAT PROF.M.VISWANATH AN DIABETICS RESEARCH CENTER IS AN APPROVED ORGANIZATION U/S.35(1)(II) OF THE ACT. HOWEVER, AS THE MATTER IS PENDING BEFORE THE CBDT, WE ARE OF TH E VIEW THAT THE ISSUE MUST BE RESTORED TO THE FILE OF THE AO TO AWAIT THE ORDER OF THE CBDT IN RESPECT OF THE APPLICATION MADE BY PROF.M.VISWANATH AN DIABETICS RESEARCH CENTER TO THE CBDT REQUESTING AMENDED NOTIFICATION IN RESPECT OF THE CHANGE IN THE NAME AND WE DO SO. IN THESE CIRCUMST ANCES, THE ISSUE IS RESTORED TO THE FILE OF THE AO TO AWAIT THE ORDER O F THE CBDT ON THE APPLICATION MADE BY THE PROF.M.VISWANATHAN DIABETIC S RESEARCH CENTER IN RESPECT OF THE CHANGE IN NAME. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON SEPTEMBER 19 , 2017, AT CHENNAI. SD/- SD/- ( . ) ( ABRAHAM P GEORGE, ) /ACCOUNTANT MEMBER ( ' ) (GEORGE MATHAN) % /JUDICIAL MEMBER /CHENNAI, 2 /DATED: SEPTEMBER 19, 2017. TLN + )%34 54 /COPY TO: 1. ( /APPELLANT 4. 6 /CIT 2. )*( /RESPONDENT 5. 4 )%% /DR 3. 6 ( ) /CIT(A) 6. ' /GF