Association for Regional Tribal Development, Narsipatnam V. CIT - 1, Visakhapatnam

ITA 423/VIZ/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 2129 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 year(s) 8 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-02-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 10-12-2015
• Assessment Year: misc
• Appeal Filed On: 31-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 12A; 12AA

Judgement Text

ITA NO.423/VIZAG/2013 ASSOCIATION FOR REGIONAL TRIBAL DEVELOPMENT, NARSIP ATNAM 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . , $ BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI G. MANJUNATHA, ACCOUNTANT MEMBER ./I.T.A.NO.423/VIZAG/2013 ( / ASSESSMENT YEAR: NA) ASSOCIATION FOR REGIONAL TRIBAL DEVELOPMENT NARSIPATNAM VS. CIT - 1 VISAKHAPATNAM [PAN: AACAA6025A ] ( % / APPELLANT) ( &'% / RESPONDENT) / APPELLANT BY : SHRI C. SUBRAHMANYAM,AR / RESPONDENT BY : SHRI TH.LUCAS PETER, DR / DATE OF HEARING : 10.12.2015 / DATE OF PRONOUNCEMENT : 04.02.2016 / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF CIT-1, VISAKHAPATNAM DATED 24.1.2013. 2. THE FACTS ARE IN BRIEF THAT THE ASSESSEE SOCIETY I.E. ASSOCIATION FOR REGIONAL TRIBAL DEVELOPMENT, CHETTUPALLI VILLAGE & PO NARSIPATNAM ITA NO.423/VIZAG/2013 ASSOCIATION FOR REGIONAL TRIBAL DEVELOPMENT, NARSIP ATNAM 2 MANDALAM, VISAKHAPATNAM, REGISTERED UNDER THE SOCIE TIES REGISTRATION ACT, CAME INTO EXISTENCE W.E.F. 23.8.2001. THE ASS ESSEE SOCIETY FILED AN APPLICATION IN FORM NO.10A SEEKING GRANT OF REGISTR ATION U/S 12AA OF THE INCOME TAX ACT, 1961 (HEREINAFTER CALLED AS 'THE AC T') ON 6.7.2012 WITH THE FOLLOWING OBJECTS SUCH AS WOMENS EDUCATION, HE ALTH, EMPOWERMENT AND UPLIFTMENT ETC. BESIDES OTHER GENERAL OBJECTS O F DEVELOPMENT OF TRIBAL AREAS, PROVIDING RELIEF DURING TIMES OF NATU RAL CALAMITIES ETC. IT HAS ALSO SUBMITTED BEFORE THE LD. COMMISSIONER THAT THE SOCIETY HAS BEEN RUNNING A NIGHT SHELTER FOR HOMELESS PERSONS A T BHEEMNAGAR KALYANAMANDAPAM IN WARD NO.27 UNDER UCD SCHEME OF G VMC, VISAKHAPATNAM, WHICH PROVIDES A MONTHLY GRANT OF ` 35,000/- TOWARDS SHELTER MAINTENANCE. 3. DURING THE COURSE OF HEARING, THE COMMISSIONER E XAMINED ONE MR. P. SRINIVASU, SECRETARY WHEN QUERIED WITH REGARD TO LIVELIHOOD OF THE COMMITTEE MEMBERS OF THE SOCIETY AND IT WAS EXPLAIN ED BEFORE THE COMMISSIONER THAT THEY DEPEND ON THE FUNDS OF THE S OCIETY FOR THEIR LIVELIHOOD AND OTHER AGRICULTURAL INCOME FOR THEIR DAY TO DAY SUBSISTENCE. BY CONSIDERING THE REPLY, THE COMMISSIONER HAS CAME TO A CONCLUSION THAT ASSESSEE IS NOT CARRIED ANY CHARITABLE ACTIVIT IES AND THE ASSESSEE SOCIETY MEMBERS CARRYING THEIR LIVELIHOOD BY RUNNIN G THE SOCIETY AND THEREFORE DENIED THE REGISTRATION U/S 12A OF THE AC T. ITA NO.423/VIZAG/2013 ASSOCIATION FOR REGIONAL TRIBAL DEVELOPMENT, NARSIP ATNAM 3 4. ON BEING AGGRIEVED, ASSESSEE CARRIED MATTER IN A PPEAL BEFORE THE TRIBUNAL. THE LD. COUNSEL FOR THE ASSESSEE HAS SUB MITTED THAT THE ASSESSEE SOCIETY EXISTED ONLY FOR CHARITABLE PURPOS E AND THE OBJECTS OF THE ASSESSEE SOCIETY IS ALSO CHARITABLE IN NATURE A ND THE ASSESSEE SOCIETY IS IN ITS BEGINNING STAGE AND THEREFORE REQUESTED F OR GRANT OF PERMISSION U/S 12AA OF THE ACT. 5. ON THE OTHER HAND, THE LD. COUNSEL FOR THE DEPAR TMENT HAS SUBMITTED THAT THE ASSESSEE SOCIETY HAS NOT CARRIED OUT ANY CHARITABLE ACTIVITIES. THEREFORE IT IS NOT ENTITLED FOR GRANT OF REGISTRATION U/S 12AA OF THE ACT. 6. WE HAVE HEARD BOTH THE PARTIES, PERUSED THE MATER IALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHOR ITIES BELOW. IT APPEARS THAT THE ASSESSEE SOCIETY IS EXISTED IN THE YEAR 2001 FOR THE PURPOSE OF WOMENS EDUCATION, HEALTH, EMPOWERMENT A ND UPLIFTMENT, ETC. BESIDES OTHER GENERAL OBJECTS OF DEVELOPMENT O F TRIBAL AREAS PROVIDING RELIEF DURING THE NATURAL CALAMITIES, ETC . THE COMMISSIONER HAS EXAMINED THE SECRETARY OF THE SOCIETY AND HE CA ME TO THE CONCLUSION THAT THE ASSESSEE IS NOT CARRYING ANY CH ARITABLE ACTIVITIES AND WHATEVER THE AMOUNTS RECEIVED FROM THE GVMC THAT IS USED FOR THE LIVELIHOOD OF THE MEMBERS OF THE SOCIETY DENIED THE REGISTRATION U/S 12AA OF THE ACT. AFTER CAREFUL CONSIDERATION OF TH E ORDER OF THE ITA NO.423/VIZAG/2013 ASSOCIATION FOR REGIONAL TRIBAL DEVELOPMENT, NARSIP ATNAM 4 COMMISSIONER AND OTHER DETAILS FILED BY THE ASSESSE E IT IS NOT CLEAR THAT WHAT ARE THE ACTIVITIES CARRIED BY THE ASSESSEE SIN CE 2001. IT IS NOT CLEAR FROM THE DETAILS AVAILABLE FROM THE RECORD THAT FOR THE PURPOSE FOR WHICH FUNDS RECEIVED BY THE ASSESSEE FROM GVMC AND HOW TH E FUNDS ARE UTILIZED. UNDER THESE FACTS AND CIRCUMSTANCES OF THE CASE, WE ARE OF THE OPINION THAT THIS ISSUE HAS TO BE REMITTED BACK TO THE FILE OF THE COMMISSIONER TO EXAMINE AFRESH. ACCORDINGLY, WE SE T ASIDE THE ORDER PASSED BY THE COMMISSIONER AND WE DIRECT THE ASSESS EE TO FILE ALL THE DETAILS IN RESPECT OF THE SOURCE OF INCOME AND ALSO EXPENDITURE AND OTHER DETAILS IN RESPECT OF NIGHT SHELTER MAINTAINE D BY THE ASSESSEE. THE COMMISSIONER AFTER RECEIVING THE DETAILS FROM THE A SSESSEE DIRECTED TO PASS THE ORDER IN ACCORDANCE WITH LAW AFTER BEING G IVEN A REASONABLE OPPORTUNITY TO THE ASSESSEE. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT O N 4 TH FEB16. SD/- SD/- ( . ) ( . ) (G. MANJUNATHA) (V. DURGA RAO) /ACCOUNTANT MEMBER /JUDICIAL MEMBER ! /VISAKHAP A TNAM: % /DATED : 4.2.2016 VG/SPS ITA NO.423/VIZAG/2013 ASSOCIATION FOR REGIONAL TRIBAL DEVELOPMENT, NARSIP ATNAM 5 '! (! /COPY OF THE ORDER FORWARDED TO:- 1. / THE APPELLANT ASSOCIATION FOR REGIONAL TRIBAL DEVELOPMENT, CHETTUPALLI (VILLAGE & POST), NARSIPAT NAM (MANDAL), VISAKHAPATNAM-531 116. 2. / THE RESPONDENT THE CIT-1, VISAKHAPATNAM 3. ) ( ) / THE CIT(A), VISAKHAPATNAM 4. ! , , , , ! / DR, ITAT, VISAKHAPATNAM 5 . / GUARD FILE / BY ORDER // TRUE COPY // /0 , (SR.PRIVATE SECRETARY) , , ! / ITAT, VISAKHAPATNAM