M/s St. Ann's Society, Visakhapatnam V. The Commissioner of Income Tax, Visakhapatnam

ITA 401/VIZ/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 7105 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 7 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-03-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 15-12-2010
• Assessment Year: misc
• Appeal Filed On: 08-07-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: TH LUCAS PETER
• Assessee Lawyers: C V S MURTHY
• Section: 80G; 12A

Judgement Text

ITA NO 401 OF 2010 ST ANNS SOCIETY VIZAG PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER ITA NO.401/VIZAG/2010 ASSESSMENT YEAR: NA M/S ST. ANNS SOCIETY, VISAKHAPATNAM VS. COMMISSIONER OF INCOME TAX, VISAKHAPATNAM (APPELLANT) PAN NO: AABTS 1287 N (RESPONDENT) APPELLANT BY: SHRI C.V.S. MURTHY, CA RESPONDENT BY: SHRI T.H. LUCAS PETER, CIT (DR) ORDER PER SHRI B. R. BASKARAN, ACCOUNTANT MEMBER: THE APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 11.05.2010 PASSED BY LEARNED CIT-1, VISAKHAPATNAM R EFUSING TO RENEW THE RECOGNITION OF EXEMPTION GRANTED UNDER SE CTION 80G (5)(VI) OF THE ACT. 2. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. WE NOTICE THAT THE ASSESSEE SOCIETY WAS GRANTED REG ISTRATION UNDER SECTION 12A OF THE ACT ON 20.9.1994 BY THE LEARNED CIT VISAKHAPATNAM. THE ASSESSEE SOCIETY WAS ALSO GRANTE D RECOGNITION UNDER SECTION 80G OF THE ACT. IN THE PAPER BOOK OF THE ASSESSEE THE COPY OF THE ORDER OF THE LEARNED CIT-II VISAKHAPATN AM GRANTING ITA NO 401 OF 2010 ST ANNS SOCIETY VIZAG PAGE 2 OF 3 RECOGNITION FROM 1.4.2002 TO 31.3.2005 IS AVAILABLE . THE ASSESSEE FILED AN APPLICATION IN FORM NO.10G ON 21.12.2009 W ITH LEARNED CIT-1 VISAKHAPATNAM SEEKING RENEWAL OF RECOGNITION GRANTE D UNDER SECTION 80G(5) (VI) OF THE ACT. HOWEVER, THE LEARNED CIT, V IDE HIS ORDER DATED 11.5.2010, REJECTED THE APPLICATION OF THE ASSESSEE BY HOLDING THAT THE MEMBERSHIP OF THE ASSESSEE SOCIETY IS NOT ONLY RESTRICTED TO A CERTAIN SECT OF PEOPLE FOLLOWING A PARTICULAR RELIG ION, THE MANAGEMENT OF THE SOCIETY ALSO VEST WITH THEM. FURTHER THE UTI LIZATION OF THE FUNDS IS ALSO DIRECTED TOWARDS THE BENEFIT OF A PARTICULA R RELIGION ONLY. 3. WE NOTICE THAT THE LEARNED CIT HAS ONLY PERUSED THE MEMORANDUM OF ASSOCIATION OF THE ASSESSEE SOCIETY A ND REFERRED TO CERTAIN CLAUSES OF SAID MEMORANDUM TO ARRIVE AT THE CONCLUSIONS REFERRED ABOVE. THE LEARNED CIT DID NOT MAKE ANY RE FERENCE TO THE BOOKS OF ACCOUNT OR OTHER DOCUMENTS, THE NATURE OF ACTIVITIES CARRIED ON BY THE ASSESSEE, THE NATURE OF BENEFICIARIES ETC . TO SUBSTANTIATE HIS CONCLUSIONS. THUS, IN OUR VIEW, PLACING RELIANCE O NLY ON THE MEMORANDUM OF ASSOCIATION OF THE SOCIETY MAY NOT EN ABLE ONE TO ARRIVE AT A RATIONAL CONCLUSION. WE ALSO NOTICE TH AT SEC.80G (5) OF THE ACT PRESCRIBES THE CONDITIONS IN CLAUSE (I) TO CLAUSE (VI) WHICH ARE TO BE FOLLOWED BY A FUND OR INSTITUTION FOR THE PUR POSE OF GETTING RECOGNITION UNDER SECTION 80G OF THE ACT. WE NOTIC E THAT THE LEARNED CIT DID NOT EXAMINE THE APPLICATION OF THE ASSESSEE WITH REFERENCE TO THESE CONDITIONS. HENCE IN OUR VIEW, THE APPLICATIO N OF THE ASSESSEE REQUIRES TO BE RE-EXAMINED IN ACCORDANCE WITH THE P ROVISIONS OF THE ACT. ACCORDINGLY WE SET ASIDE THE ORDER OF THE LEA RNED CIT AND REMIT ITA NO 401 OF 2010 ST ANNS SOCIETY VIZAG PAGE 3 OF 3 THE MATTER TO HIS FILE WITH A DIRECTION TO EXAMINE THE APPLICATION OF THE ASSESSEE IN ACCORDANCE WITH THE LAW. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TRE ATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 7 TH MARCH, 2011. SD/- SD/- (SUNIL KUMAR YADAV) (B R BASKARAN) JUDICIAL MEMBER ACCOUNTANT M EMBER PVV/SPS VISAKHAPATNAM, DATE: 07-03-2011 COPY TO 1 M/S ST. ANNS SOCIETY, 67 KIRLAMPUDI LAYOUT, ARUN ODAYA, VISAKHAPATNAM 2 THE COMMISSI ONER OF INCOME TAX - 1, VISAKHAPATNAM 3 THE DR, ITAT, VISAKHAPATNAM. 4 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM