Delhi Music Society, New Delhi V. DIT (Exemptions), New Delhi

ITA 4065/DEL/2012

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 96985 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-08-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 18-08-2015
• Assessment Year: misc
• Appeal Filed On: 30-07-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MD MOHSIN ALAM
• Section: 80G; 12A; 12

Judgement Text

ITA NO. 4065/DEL/2012 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: B NEW DELHI BEFORE SHRI T.S.KAPOOR, ACCOUNTANT MEMBER AND SH. C.M. GARG, JUDICIAL MEMBER I.T.A. N O. 4065/DEL/2012 (ASSESSMENT YEA R........) DELHI MUSIC SOCIETY 8, NAYAYA MARG, CHANAKYAPURI NEW DELHI. (PAN:AAAAD0090Q) (APPELLANT) VS DIT (EXEMPTIONS) AAYAKAR BHAWAN, 3 RD FLOOR, DISTT. CENTRE, LAXMI NAGAR NEW DELHI PIN : 110092 (RESPONDENT) APPELLANT BY SH.SANJAY JAIN, CA RESPONDENT BY SH.MD. MOHSIN ALAM, CIT DR O R D E R PER C. M. GARG, JM THIS APPEAL BY THE ASSESSSEE HAS BEEN DIRECTED AGA INST THE ORDER OF THE DIRECTOR OF INCOME TAX (EXEMPTION) DELHI DATED 31.5 .2012 BY WHICH THE APPLICATION OF THE APPELLANT SOCIETY FOR GRANT OF R EGISTRATION U/S 12A OF THE INCOME TAX ACT 1961 (FOR SHORT THE ACT) HAS BEEN DISMISSED . DATE OF HEARING 18.08.2015 DATE OF PRONOUNCEMENT 28 .08.2015 ITA NO.4065/DEL/2012 2. THE ASSESSEE HAS RAISED AS MANY AS 20 GROUNDS IN THIS APPEAL BUT EXCEPT GROUND NO. 1 OTHER GROUNDS ARE ARGUMENTATIVE AND SU PPORTIVE TO THE MAIN GROUND NO. 1 WHICH READS AS UNDER:- GROUND NO. 1 1. FOR THAT THE LD. DIRECTOR OF INCOME TAX (EXEMP TIONS) HAS ERRED IN NOT ALLOWING REGISTRATION UNDER SECTION 12 AA TO THE APPELLANT. 3. WE HAVE HEARD ARGUMENTS OF BOTH THE SIDES AND CA REFULLY PERUSED THE RELEVANT MATERIAL PLACED BEFORE US, INTER-ALIA, IMP UGNED ORDER, PAPER BOOK OF THE ASSESSSEE SPREAD OVER 166 PAGES AND ALL RELEVANT JU DGMENTS AND ORDERS. THE LD. ASSESSEES REPRESENTATIVE (THE AR) SUBMITTED THAT T HE ACTIVITIES OF THE APPELLANT SOCIETY WERE HELD TO BE AN EDUCATIONAL INSTITUTION BY HONBLE HIGH COURT OF DELHI IN ORDER DATED 16.12.2011 IN WP (C) 4726/2011 AND S LP FILED BY THE REVENUE BEFORE HONBLE SUPREME COURT HAS BEEN DISMISSED ON 3/7/2013. THE LD. AR FURTHER SUBMITTED THAT THE RENEWAL OF REGISTRATION WAS GRANTED TO THE ASSESSEE FOR EXEMPTION U/S 80G ORDER DATED 18/8/2008 FOR THREE Y EARS W.E.F 1.4.2008 TO 31.3.2011. THE SOCIETY MADE AN APPLICATION DATED 1 .3.2011 FOR RENEWAL OF EXEMPTION U/S 80G OF THE ACT BUT THE SAME WAS DISMI SSED/REJECTED BY THE LD. DIT (E) AND THE DIT(E) DID NOT CONSIDER THE AMENDMENT M ADE IN THE PROVISION OF SECTION 80G(5) (VI) OF THE ACT BY FINANCE ACT (NO. 2), 2009 BY WHICH THE PROVISO TO SECTION 80G (5) (VI) HAS BEEN OMITTED W.E.F. 1.1 0.2009. THE LD. AR ALSO PLACED ITA NO.4065/DEL/2012 COPY OF THE ORDER OF THE I.T ACT, DELHI B BENCH D ATED 14/9/2012 AND SUBMITTED THAT THE TRIBUNAL IN ITA NO. 5061/D/2011 HAS SET AS IDE THE ORDER OF DIT(E) AND HAS RESTORED THE ISSUE OF GRANT OF REGISTRATION U/S 80G (5) (VI) OF THE ACT TO THE FILE OF DIT(E) FOR A FRESH ADJUDICATION IN THE LIGHT OF AMENDED PROVISIONS OF SECTION 80G (5) (VI) OF THE ACT. THE LD. DR LASTLY SUBMITT ED THAT THE ASSESSEE MAY KINDLY BE ALLOWED REGISTRATION U/S 12 A OF THE ACT OR ALTE RNATIVELY, THE ISSUE OF GRANT OF REGISTRATION U/S 12 A OF THE ACT MAY KINDLY BE REST ORED TO THE FILE OF DIT(E) FOR A FRESH ADJUDICATION IN THE LIGHT OF RELEVANT AMENDED PROVISION, ORDER OF HONBLE HIGH COURT OF DELHI DATED 16.12.2011 AND ORDER OF THE TRIBUNAL (SUPRA). 4. THE LD. DR SUPPORTED THE IMPUGNED ORDER OF DIT(E ) AND SUBMITTED THAT THE DIT(E) PASSED IMPUGNED ORDER ON 31.5.2012 AND THE O RDER OF HONBLE SUPREME COURT DISMISSING THE SLP OF THE REVENUE WAS PASSED ON 13.7.2013 AND ORDER OF THE TRIBUNAL (SUPRA) DATED 14/9/2012 WAS ALSO PASSED SU BSEQUENT TO THE IMPUGNED ORDER AND HENCE, THE DIT(E) HAD NO OCCASION TO CONS IDER THESE ORDERS/JUDGMENTS. HOWEVER, THE LD. DR FAIRLY ACCEPTED THAT AFTER ORDE R OF HONBLE APEX COURT (SUPRA) AND THE TRIBUNAL (SUPRA), THE ISSUE OF GRAN T OF REGISTRATION U/S 12A OF THE ACT REQUIRES REVIEW AT THE END OF DIT(E). 5. IN VIEW OF ABOVE SUBMISSIONS OF THE BOTH THE SID ES, WE ARE OF THE CONSIDERED OPINION THAT THE DIT(E) REJECTED APPLICATION OF THE APPELLANT SOCIETY ON THE GROUND ITA NO.4065/DEL/2012 THAT THE SLP AT THE SAME WAS PENDING BEFORE THE HON BLE SUPREME COURT BUT WHEN THE SLP HAS BEEN DISMISSED BY THE HONBLE APEX COUR T, THEN THE ISSUE HAS ATTAINED FINALITY. THE ISSUE OF EXTENSION OF REGISTRATION U /S 80G (5) (VI) OF THE ACT HAS BEEN RESTORED TO THE FILE OF DIT(E) FOR A FRESH ADJUDICA TION AND HENCE, WE FIND IT APPROPRIATE TO RESTORE THE ISSUE TO THE FILE OF DIT (E) FOR A FRESH ADJUDICATION AFTER AFFORDING DUE OPPORTUNITY OF HEARING FOR THE APPELL ANT SOCIETY. HENCE, IMPUGNED ORDER IS SET ASIDE AND THE ISSUE OF GRANT OF REGIST RATION U/S 12A OF THE ACT IS RESTORED TO THE FILE OF THE AO FOR FRESH ADJUDICATION IN THE LIGHT OF SUBSEQUENT ORDERS OF HONBLE APEX COURT DATED 13.7.2013 (SUPRA) AND ORDE R OF THE TRIBUNAL DATED 14.9.2012 (SUPRA). 6. WE ORDER ACCORDINGLY AND SOLE MAIN GROUND OF THE APPLICANT SOCIETY IS DEEMED TO BE ALLOWED FOR STATISTICAL PURPOSES IN TH E MANNER AS INDICATED ABOVE. 7. IN THE RESULT, APPEAL OF THE APPELLANT SOCIETY I S ALLOWED FOR STATISTICAL PURPOSES. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 28 TH AUGUST 2015. SD/- SD/- (T.S.KAPOOR) (C. M. GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 28TH AUGUST 2015 GS ITA NO.4065/DEL/2012 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR BY ORDER ASSISTANT REGI STRAR