Social Outreach Foundation, New Delhi V. DIT(E), New Delhi

ITA 4210/DEL/2011

• Counselvise Citation: 421020114 RSA 2011
• Duration Of Justice: 2 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 21-11-2011
• Assessment Year: misc
• Appeal Filed On: 20-09-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S MOHANTHY
• Assessee Lawyers: K P GARG
• Section: 80G

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : G NEW DELHI BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMEBR AND SHRI K.G. BANSAL, ACCOUNTANT MEMBER I.T.A NO. 4210/DEL/2011 SOCIAL OUTREACH FOUNDATION N-128, PANCHSHEEL PARK, NEW DELHI 110 017 AACTS9373G VS. DIT (E), AAYAKAR BHAWAN, DISTT. CENTRE LAXMI NAGAR, NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI K.P. GARG, CA RESPONDENT BY: SMT. S. MOHANTHY, DR ORDER PER RAJPAL YADAV, JM: THE ASSESSEE IS IN APPEAL BEFORE US AGAINST THE OR DER OF LD. DIRECTOR OF INCOME TAX (EXEMPTION), DELHI DATED 1 ST SEPTEMBER, 2011. THE GROUNDS OF APPEAL TAKEN BY THE ASSESSEE ARE NOT IN CONSONANCE WITH RULE 8 OF ITAT RULES. TH EY ARE DESCRIPTIVE AND ARGUMENTATIVE IN NATURE. IN BRIEF, THE GRIEVANCE OF ASSESSEE IS THAT LD. DIT OUGHT TO HAVE DISMISS I TS APPLICATION FILED FOR RENEWAL OF EXEMPTION U/S 80G INSTEAD OF C ANCELING THE REGISTRATION. ITA NO. 4210/DEL/2011 2 2. THE BRIEF FACTS OF THE CASE ARE THAT ASSESSEE FI LED AN APPLICATION ON 4 TH MARCH, 2011 IN FORM NO. 10G FOR SEEKING EXEMPTION U/S 80G OF THE INCOME TAX ACT. THE ASSESS EE IS A REGISTERED SOCIETY. IT IS HAVING REGISTRATION U/S 1 2A OF THE INCOME TAX ACT WHICH WAS GRANTED TO IT ON 24 TH JANUARY, 2001. IT HAS APPLIED FOR GRANT OF EXEMPTION U/S 80G AND SUCH EXEMPTION WAS GRANTED TO THE ASSESSEE VIDE ORDER DATED 5 TH MARCH, 2008. THIS EXEMPTION WAS GRANTED FROM 1.4.2008 TO 31 ST MARCH, 2011. THE ASSESSEE HAD MOVED AN APPLICATION FOR RENEWAL O F THIS REGISTRATION ON 14 TH MARCH, 2011. HOWEVER, SUBSEQUENTLY IT REALIZED THAT SECTION 80G (5) HAS BEEN AMENDED BY F INANCE ACT 2009 WHEREBY IT HAS BEEN PROVIDED THAT EXEMPTION GR ANTED U/S 80G (5) ON OR AFTER 1.10.2009 WOULD BE ON ONE TIME APPROVAL WHICH WOULD BE VALID TILL ITS WITHDRAWAL. THE BOARD HAS ISSUED A CIRCULAR BEARING NO. 7/2010 ON 27.10.2010 WHERE THE BOARD HAS EXPLAINED THIS POSITION. WHEN ASSESSEE MADE THE APP LICATION FOR RENEWAL OF EXEMPTION, IT FAILED TO TAKE NOTE OF THIS AMENDMENT AS WELL AS THE CIRCULAR ISSUED BY THE BOA RD. THEREFORE, ASSESSEE FILED AN APPLICATION ON 28 TH JUNE, 2011 AND REQUESTED THAT ITS APPLICATION FILED FOR RENEWAL FO R REGISTRATION MAY BE DISMISSED AS WITHDRAWN. ITA NO. 4210/DEL/2011 3 3. LD. COMMISSIONER INSTEAD OF ACTING ON THIS APPLI CATION CONTINUED WITH THE PROCEEDING AS IF ASSESSEE HAS AP PLIED FOR RENEWAL OF EXEMPTION AND ULTIMATELY, HE REJECTED TH IS APPLICATION ON MERIT. ASSESSEE HAS AN APPREHENSION THAT REJECTION OF THIS APPLICATION WOULD AMOUNT THE DISC ONTINUATION OF THE EXEMPTION ALREADY GRANTED TO IT VIDE ORDER D ATED 5 TH MARCH, 2008 WHICH OTHERWISE WOULD BE CONSTRUED AS C ONTINUED, IN VIEW OF THIS SUBSEQUENT AMENDMENT, TILL IT IS WI THDRAWN. THEREFORE, IT HAS FILED THE PRESENT APPEAL. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE R ECORD. THE MOVEMENT ASSESSEE HAS FILED THE APPLICATION FOR WITHDRAWAL OF ITS RENEWAL APPLICATION, TO OUR MIND LD. COMMISSIONER OUGHT TO HAVE DISMISSED THE APPLICATIO N AS WITHDRAWN. LD. DIT IF WANTS TO CANCEL THE EXEMPTION GRANTED TO THE ASSESSEE U/S 80G AND HE HAS ANY MATERIAL TO THA T EFFECT WHICH CAN ENABLE HIM TO WITHDRAW SUCH EXEMPTION THE N HE HAS TO INITIATE THE PROCEEDING AT HIS OWN FOR WITHDRAWA L OF SUCH EXEMPTION. THE RENEWAL APPLICATION WAS SUBMITTED BY THE ASSESSEE. IT DOES NOT WANT TO PROSECUTE SUCH APPLIC ATION. THEREFORE, IT OUGHT TO HAVE BEEN DISMISSED AS WITHD RAWAN. ON DUE CONSIDERATION OF ALL THESE FACTS AND CIRCUMSTAN CES, WE ITA NO. 4210/DEL/2011 4 ACCEPT THE APPLICATION OF ASSESSEE DATED 28 TH JUNE, 2011 AND DISMISS THE APPLICATION SUBMITTED FOR RENEWAL OF EX EMPTION AS WITHDRAWN. OUR OBSERVATION IN THIS APPEAL WOULD NO T BE CONSIDERED AS IF WE HAVE RECOGNIZED THE CONTINUATIO N OF REGISTRATION GRANTED TO ASSESSEE VIDE ORDER DATED 5 TH MARCH, 2008 IF IN THE AMENDED PROVISION ITS CONTINUATION I S VALID THEN ASSESSEE WILL AVAIL SUCH BENEFIT. SIMILARLY, OUR OR DER WILL NOT IMPAIR OR INJURE THE CASE OF REVENUE IF IT INITIATE ANY PROCEEDING FOR WITHDRAWAL OF EXEMPTION GRANTED TO ASSESSEE U/S 80G. THIS ORDER IS SIMPLY CONFINED TO THE DISMISSAL OF ASSESS EES APPLICATION FOR RENEWAL OF EXEMPTION AND SUCH DISMI SSAL IS ON ACCOUNT OF WITHDRAWAL OF THIS APPLICATION BY THE AS SESSEE VIDE APPLICATION DATED 28 TH JUNE, 2011 WHOSE COPY IS AVAILABLE ON PAGE 14 OF THE PAPER BOOK. 5. IN VIEW OF THE ABOVE DISCUSSION, THE APPEAL OF T HE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH NOVEMBER,2011. SD/- SD/- [K.G. BANSAL] [RAJPAL YADAV] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 30.11.2011 VEENA ITA NO. 4210/DEL/2011 5 COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, DEPUTY REGISTRAR, ITAT