M/s Cherukuri Venkata Nrusimha Raju & Lakshmi Narasayamma Charitable Trust, V. The Commisioner of Income Tax, Rajahmundry

ITA 414/VIZ/2010

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 2773 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-10-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 06-10-2010
• Assessment Year: 2009-2010
• Appeal Filed On: 26-07-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D S SUNDER SINGH
• Assessee Lawyers: S RAMA RAO
• Keywords: Charitable institution
• Section: 12AA

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. 414 /VIZAG/ 20 10 ASSESSMENT YEAR : 2009 - 10 M/S. CHERUKURI VENK ATA NRUSIMHA RAJU & LAKSHMI NARASAYAMMA CHARITABLE TRUST, PALAKOL CIT RAJAHMUNDRY (APPELLANT) VS. (RESPONDENT) PAN NO. AABTC 1575F APPELLANT BY: SHRI S. RAMA RAO, ADVOCATE RESPONDENT BY: SHRI D.S. SUNDER SINGH, DR ORDER PER SHRI S.K. YADAV, JUDIC IAL MEMBER : - THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT REFUSING THE REGISTRATION U/S 12AA OF THE ACT ON THE GROUND THAT THE ASSESSEE SOCIETY WAS NOT REGISTERED UNDER A.P. CHARITABLE AND HINDU RELIGIOUS INSTITUTIONS AND ENDOWMEN TS ACT, 1987. 2. DURING THE COURSE OF HEARING, OUR ATTENTION WAS INVITED TO THE ORDER OF THE TRIBUNAL IN THE CASE OF M/S. SRI SARASWATHI EDUCATIONAL SOCIETY, AMALAPURAM VS. CIT IN ITA NO.390/VIZAG/2010 IN WHICH IDENTICAL ISSUE WAS EXAMINED AND THE MATTE R WAS RESTORED TO THE FILE OF THE CIT WITH THE DIRECTION TO RE - ADJUDICATE THE ISSUE BY PASSING A REASONED ORDER WITH REFERENCE TO THE PROVISIONS UNDER WHICH ASSESSEE IS REQUIRED TO HAVE REGISTRATION U/S 43(1) UNDER THE A.P. CHARITABLE AND HINDU RELIGIOUS I NSTITUTIONS AND ENDOWMENTS ACT, 1987. FOR OBTAINING A REGISTRATION U/S 12AA OF THE I.T. ACT WITH THE SUBMISSION THAT SINCE THE ISSUE IS SQUARELY COVERED BY THE AFORESAID ORDER, THE ORDER OF THE CIT BE SET ASIDE AND MATTER BE RESTORED TO HIS FILE FOR RE - ADJ UDICATION OF THE ISSUE. 2 3 . WE HAVE CAREFULLY PERUSED THIS ORDER OF THE TRIBUNAL IN THE CASE OF M/S. SRI SARASWATHI EDUCATIONAL SOCIETY, AMALAPURAM VS. CIT IN ITA NO.390/VIZAG/2010, IN WHICH THE TRIBUNAL HAS HELD AS UNDER: - ON PERUSAL OF THE ORDER OF THE CIT, WE FIND THAT CIT HAS DENIED THE REGISTRATION ON THE GROUND THAT THE ASSESSEE TRUST WAS NOT REGISTERED U/S 43(1) OF THE A.P. CHARITABLE AND HINDU RELIGIOUS INSTITUTIONS AND ENDOWMENTS ACT, 1987 SO AS TO CONFER A FULL - FLEDGED LEGAL STATUS UPON SUCH SOC IETIES/TRUSTS IN THE EYES OF THE RELEVANT LAWS REGULATING THEIR ACTIVITIES. IN HIS ORDER THE CIT THOUGH ADMITTED THAT THE ASSESSEE TRUST WAS REGISTERED UNDER THE INDIAN TRUST ACT BUT HE DID NOT GRANT REGISTRATION U/S 12AA OF THE I.T. ACT. DURING THE COUR SE OF HEARING, A SPECIFIC QUERY WAS RAISED FROM THE LD. D.R. THAT WHETHER IT IS A REQUIREMENT OF LAW TO HAVE THE TRUST REGISTERED WITH THE A.P. CHARITABLE AND HINDU RELIGIOUS INSTITUTIONS AND ENDOWMENTS ACT FOR REGISTRATION U/S 12AA OF THE INCOME TAX ACT. THE LD. D.R. SOUGHT TIME FOR VERIFICATION. HE HOWEVER AGREED WITH THE PROPOSAL THAT LET THE MATTER BE SENT BACK TO THE CIT WITH A SPECIFIC DIRECTION TO FIND OUT WHETHER IS IT A REQUIREMENT OF LAW TO HAVE THE TRUST REGISTERED UNDER A.P. CHARITABLE AND HIN DU RELIGIOUS INSTITUTIONS AND ENDOWMENTS ACT FOR OBTAINING A REGISTRATION U/S 12AA OF THE ACT. BOTH THE PARTIES TO THE APPEAL HAVE AGREED TO THE PROPOSAL AND WE ACCORDINGLY SET ASIDE THE ORDER OF CIT AND RESTORE THE MATTER TO HIS FILE WITH THE DIRECTIO NS TO ADJUDICATE THE ISSUE BY PASSING A REASONED ORDER IN THIS REGARD. A REFERENCE OF THE SPECIFIC PROVISIONS UNDER WHICH THE ASSESSEE IS REQUIRED TO HAVE A REGISTRATION U/S 43(1) UNDER THE A.P. CHARITABLE AND HINDU RELIGIOUS INSTITUTIONS AND ENDOWMENTS A CT, 1987 FOR OBTAINING A REGISTRATION U/S 12AA OF THE I.T. ACT SHOULD ALSO BE MADE. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 4 . SINCE THE TRIBUNAL HAS TAKEN A PARTICULAR VIEW IN A SIMILAR SET OF FACTS, WE FIND NO R EASON TO TAKE A CONTRARY VIEW IN THIS APPEAL. WE THEREFORE, FOLLOWING AFORESAID ORDER OF THE TRIBUNAL, SET ASIDE THE ORDER OF CIT AND RESTORE THE MATTER TO HIS FILE WITH A DIRECTION TO RE - ADJUDICATE THE ISSUE BY PASSING A REASONED ORDER WITH REFERENCE TO THE SPECIFIC PROVISIONS UNDER WHICH THE ASSESSEE IS REQUIRED TO HAVE A REGISTRATION U/S 43(1) UNDER A.P. CHARITABLE AND HINDU RELIGIOUS INSTIT UTIONS AND ENDOWMENTS ACT, 1987 FOR OBTAINING REGISTRATION U/S 12AA OF THE I.T. ACT. 3 5 . IN THE RESULT, THE APPEA L OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 8.10.2010 SD/ - SD/ - (BR BASKARAN) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER VG/SPS VISAKHAPATNAM, DATED 8 TH OCTOBER, 2010. COPY TO 1 M/S. CHERUKURI VENKATA NRUSIMHA RAJU & LAKSHMI NARASAYAMMA CHARITABLE TRUST, D.NO.1 - 15, MAIN ROAD, PALAKOL - 534 260, W.G. DIST. 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