M/s Association for Awareness on Rural and Tribal Health Institute (AARTHI), Rajahmundry V. The CIT, RAJAHMUNDRY, Rajahmundry

ITA 352/VIZ/2012

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 3738 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 3 year(s) 8 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-06-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 09-11-2015
• Assessment Year: misc
• Appeal Filed On: 24-09-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard
• Section: 80G; 12AA

Judgement Text

ITA NO.352/VIZAG/2012 ASSOCIATION FOR AWARENESS ON RURAL AND TRIBAL HEALTH INSTITUTE, RAJAHMUNDRY 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . , $ BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI G. MANJUNATHA, ACCOUNTANT MEMBER ./I.T.A.NO.352/VIZAG/2012 ( / ASSESSMENT YEAR: NA) ASSOCIATION FOR AWARENESS ON RURAL AND TRIBAL HEALTH INSTITUTE RAJAHMUNDRY VS. CIT, RAJAHMUNDRY [PAN: AABTA 8201C ] ( % / APPELLANT) ( &'% / RESPONDENT) / APPELLANT BY : SHRI G.V.N. HARI, AR / RESPONDENT BY : SHRI G. GURUSWAMY, DR / DATE OF HEARING : 09.06.201 6 / DATE OF PRONOUNCEMENT : 17.06.2016 / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE O RDER OF CIT, RAJAHMUNDRY DATED 16.7.2012. ITA NO.352/VIZAG/2012 ASSOCIATION FOR AWARENESS ON RURAL AND TRIBAL HEALTH INSTITUTE, RAJAHMUNDRY 2 2. FACTS ARE IN BRIEF THAT THE ASSESSEE SOCIETY NAM ELY ASSOCIATION FOR AWARENESS ON RURAL AND TRIBAL HEALTH INSTITUTE (AAR THI) HAS APPLIED FOR REGISTRATION U/S 12AA OF THE INCOME TAX ACT, 19 61 (HEREINAFTER CALLED AS 'THE ACT') AND THE SAME WAS GRANTED BY ORDER DAT ED 30.3.2007. SUBSEQUENTLY, THE ASSESSEE SOCIETY HAS ALSO APPLIED FOR GRANTING RECOGNITION U/S 80G OF THE ACT AND THE SAME WAS ALS O GRANTED BY ORDER DATED 30.3.2007 BY LD. COMMISSIONER, RAJAHMUNDRY. SUBSEQUENTLY, THE ASSESSEE HAS APPLIED FOR RENEWAL TO GRANT RECOGNITI ON U/S 80G OF THE ACT. THE SAME WAS REJECTED BY THE LD. COMMISSIONER , RAJAHMUNDRY. AGAIN, THE ASSESSEE HAS FILED AN APPLICATION IN FOR M NO.10G FOR REGISTRATION U/S 80G OF THE ACT ON 1.2.2012. THE C IT BY ORDER DATED 16.7.2012 REJECTED THE RECOGNITION U/S 80G OF THE A CT ON THE GROUND THAT AS PER THE MEMORANDUM OF ASSOCIATION, THE WIND ING UP CLAUSE IS MISSING, ACCUMULATED INCOME WHICH WAS NOT INVESTED OR DEPOSITED IN THE MANNER LAID DOWN IN SECTION 11(2)(B) OF THE ACT AND HE HAS FURTHER OBSERVED THAT THE ASSESSEE SOCIETY DID NOT MAINTAIN THE FULL ADDRESSES OF THE MAJORITY OF DONORS RELATING TO THE FINANCIAL YE AR 2008-09, 2009-10 & 2010-11. 3. ON BEING AGGRIEVED, ASSESSEE CARRIED MATTER IN A PPEAL BEFORE THE TRIBUNAL. THE LD. COUNSEL FOR THE ASSESSEE HAS SUB MITTED THAT ALL THE ITA NO.352/VIZAG/2012 ASSOCIATION FOR AWARENESS ON RURAL AND TRIBAL HEALTH INSTITUTE, RAJAHMUNDRY 3 ADDRESSES OF THE DONORS ARE AVAILABLE WITH ASSESSEE AND HE MAY BE PERMITTED TO FILE THE SAME BEFORE THE LD. COMMISSIO NER. ON EXAMINATION OF THE SAME, RECOGNITION U/S 80G OF THE ACT MAY BE GRANTED. THE LD. D.R. HAS NOT RAISED ANY OBJECTION . 4. WE HAVE HEARD BOTH THE PARTIES, PERUSED THE MATER IALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHOR ITIES BELOW. THE ASSESSEE IS A CHARITABLE ORGANIZATION AND THE REGIS TRATION U/S 12AA OF THE ACT HAS BEEN GRANTED ON 30.3.2007 AND THE ASSESSEE SOCIETY WAS ALSO GRANTED RECOGNITION U/S 80G OF THE ACT. SUBSEQUENT LY, THE LD. COMMISSIONER HAS REJECTED THE GRANT OF RECOGNITION U/S 80G OF THE ACT CLAIMED BY THE ASSESSEE. THE ASSESSEE SOCIETY AGAI N APPLIED FOR RECOGNITION U/S 80G OF THE ACT IN FORM NO.10G DATED 20.12.2011 FILED ON 1.2.2012. THE LD. COMMISSIONER AFTER CONSIDERING T HE DETAILED SUBMISSIONS FILED BY THE ASSESSEE, HE HAS POINTED O UT THAT IN THE MEMORANDUM OF ASSOCIATION OF ASSESSEE SOCIETY, WIND ING UP CLAUSE WAS MISSING. WE FIND THAT THIS IS NOT MATERIAL TO GRANT RECOGNITION U/S 80G OF THE ACT. SO FAR AS THE ACCUMULATION OF INCOME IS C ONCERNED, WE FIND THAT THERE IS NO ACCUMULATION, THEREFORE, THIS OBJECTION IS NOT CORRECT. WE FIND THAT THE LD. COMMISSIONER RIGHTLY DENIED THE R ECOGNITION U/S 80G OF THE ACT ON THE GROUND THAT THE ASSESSEE SOCIETY IS NOT MAINTAINING THE ITA NO.352/VIZAG/2012 ASSOCIATION FOR AWARENESS ON RURAL AND TRIBAL HEALTH INSTITUTE, RAJAHMUNDRY 4 ADDRESSES OF THE DONORS. BEFORE US, THE LD. COUNSE L FOR THE ASSESSEE HAS FILED ALL THE DETAILS OF THE DONORS. IN VIEW O F THE ABOVE, WE FIND THAT IT IS APPROPRIATE TO REMIT THE MATTER BACK TO THE A .O. TO CONSIDER THE DETAILS OF THE DONORS, TO PASS AN ORDER DE-NOVO, IN ACCORDANCE WITH LAW AFTER BEING GIVEN A REASONABLE OPPORTUNITY OF BEING HEARD. IN VIEW OF THE ABOVE, WE SET ASIDE THE ORDER PASSED BY THE LD. COMMISSIONER AND DIRECT HIM TO CONSIDER THE DETAILS FILED BY THE ASS ESSEE AND PASS ORDERS IN ACCORDANCE WITH LAW. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 17 TH JUN16. SD/- SD/- ( . ) ( . ) (G. MANJUNATHA) (V. DURGA RAO) /ACCOUNTANT MEMBER /JUDICIAL MEMBER ! /VISAKHAPATNAM: % /DATED : 17.06.2016 VG/SPS ITA NO.352/VIZAG/2012 ASSOCIATION FOR AWARENESS ON RURAL AND TRIBAL HEALTH INSTITUTE, RAJAHMUNDRY 5 '! (! /COPY OF THE ORDER FORWARDED TO:- 1. / THE APPELLANT ASSOCIATION FOR AWARENESS ON RUR AL AND TRIBAL HEALTH INSTITUTE (AARTHI), D.NO.78-16-15/1, SYAMALANAGAR, RA JAHMUNDRY 2. / THE RESPONDENT THE CIT, RAJAHMUNDRY 3. ) ( ) / THE CIT(A), RAJAHMUNDRY 4. ! , , , , ! / DR, ITAT, VISAKHAPATNAM 5 . / GUARD FILE / BY ORDER // TRUE COPY // /0 , (SR.PRIVATE SECRETARY) , , ! / ITAT, VISAKHAPATNAM