M/s Chamber of Commerce and Industries, Tadepallegudem V. The Commissioner of Income Tax, Rajahmundry

ITA 388/VIZ/2010

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 2898 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-08-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 21-06-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D S SUNDER SINGH
• Keywords: Charitable institution
• Section: 80G

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER ITA NO.388/VIZAG/2010 ASSESSMENT YEAR: N.A. M/S. CHAMBER OF COMMERCE AND INDUSTRIES TADEPALLIGUDEM CIT RAJAHMUNDRY (APPELLANT) VS. (RESPONDENT) PAN NO.AAATT 9399R APPELLANT BY: SHRI G.V.N. HARI, CA RESPONDENT BY: SHRI D.S. SUNDER SINGH, DR ORDER PER SHRI S.K. YADAV, JUDICIAL MEMBER:- THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE REJECTION OF THE APPLICATION SEEKING REGISTRATION U/S 80G OF THE I.T. ACT. ON CAREFUL PERUSAL OF THE ORDER, WE FIND THAT THE ITO HAS INTIMATED THE A SSESSEE THAT HIS APPLICATION FOR RENEWAL OF EXEMPTION U/S 80G CANNOT BE ENTERTAINED AS THE ASSESSEE TRUST IS NOT REGISTERED U/S 43(1) OF THE A .P. CHARITABLE AND HINDU RELIGIOUS INSTITUTION AND ENROLMENT ACT, 1987. WE A RE SURPRISED TO NOTE THAT HOW THE A.O. IN THE O/O THE COMMISSIONER OF INCOME T AX GOT THE JURISDICTION TO TAKE A DECISION ON AN APPLICATION FOR EXEMPTION U/S 80G FILED BY THE ASSESSEES. IT IS FOR THE COMMISSIONER OF INCOME TAX TO DECIDE THE APPLICATION OF THE ASSESSEE FOR EXEMPTION U/S 80G. THE OBSERVATION OF THE ITO THAT THE APPLICATION OF THE ASSESSEES IS NON-AD MISSIBLE IS HIGHLY OBJECTIONABLE AND UNCALLED FOR. WE THEREFORE ADVIC E THE COMMISSIONER OF INCOME TAX TO ADJUDICATE THE REQUEST FOR EXEMPTION M OVED BY THE ASSESSEE, HIMSELF AND NOT TO ALLOW HIS SUBORDINATE TO ENCROAC H UPON THE JURISDICTIONS WHICH IS CONFERRED TO HIM. 2. NOW COMING ON MERIT, WE FIND THAT THIS APPLICATI ON FOR EXEMPTION U/S 80G WAS NOT ENTERTAINED ONLY FOR THE REASON THAT AS SESSEE DID NOT HAVE THE REGISTRATION U/S 43(1) OF THE A.P. CHARITABLE AND H INDU RELIGIOUS INSTITUTION 2 AND ENROLMENT ACT, 1987. WE DO NOT FIND ANY SUCH R EQUIREMENT IN THE INCOME TAX ACT WHICH MAKE IT TO BE A CONDITION PRECE DENT FOR THE ASSESSEE FOR GETTING AN EXEMPTION U/S 80G OF THE ACT. THE R EQUIREMENT OF LAW IS THAT THE ASSESSEE SHOULD BE A CHARITABLE SOCIETY AND THI S CAN BE EVIDENCED FROM THE RECITAL PREPARED BY THE ASSESSEE IN THIS REGARD . BEFORE GRANTING A REGISTRATION, IT IS FOR THE COMMISSIONER TO VERIFY FROM THE MATERIAL AVAILABLE ON RECORD WHETHER THE SOCIETY OR A TRUST WAS CREATED F OR THE CHARITABLE PURPOSE. WE THEREFORE, OF THE VIEW THAT REGISTRATION U/S 43( 1) OF THE A.P. CHARITABLE AND HINDU RELIGIOUS INSTITUTION AND ENROLMENT ACT, 1 987 IS NOT REQUIRED BEFORE APPLYING FOR RENEWAL OF EXEMPTION U/S 80G OF THE ACT. WE THEREFORE SET ASIDE THE ORDER OF THE ASSESSING OFFICER PASSED ON BEHALF OF THE CIT AND DIRECT THE CIT TO ADJUDICATE THE ISSUE AFRESH IN TH E LIGHT OF RELEVANT PROVISIONS OF LAW BY PASSING A SPEAKING ORDER. 3. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLO WED FOR STATISTICAL PURPOSE. PRONOUNCED I N THE OPEN COURT ON 26.8.2010 SD/- SD/- (BR BASKARAN) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER VG/SPS VISAKHAPATNAM, DATED 26 TH AUGUST, 2010. COPY TO 1 CHAMBER OF COMMERCE AND INDUSTRIES, D.NO.11-176(1 ), MAIN ROAD, TADEPALLIGUDEM 2 CIT, RAJAHMUNDRY 3 THE CIT(A), RAJAHMUNDRY 4 THE DR, ITAT, VISAKHAPATNAM. 5 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM