Mannan Educational Society, Hyd, Hyderabad V. Asst. DIT(Exemptions)-1, Hyd, Hyderabad

ITA 428/HYD/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 98442 (ITAT-HYDERABAD)
• Duration Of Justice: 4 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-08-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 13-08-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 17-04-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RAMAKRISHNA BANDI
• Section: 12A; 12AA; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A : HYDERABAD BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER AND SMT. P. MADHAVI DEVI, JUDICIAL MEMBER ITA.NO. A.Y. APPELLANT RESPONDENT 428/H/2015 2007 - 2008 MANNAN EDUCATIONAL SOCIETY, HYDERABAD PAN AAATM6830E THE ADIT (EXEMPTIONS)-I, HYDERABAD. 429/H/2015 2008 - 2009 430/H/2015 2009 - 2010 129/H/2015 2010 - 2011 FOR ASSESSEE : MR. K.C. DEVDAS FOR REVENUE : MR. RAMAKRISHNA BANDI DATE OF HEARING : 1 3 .0 8 .2015 DATE OF PRONOUNCEMENT : 26 .0 8 .2015 ORDER PER SMT. P. MADHAVI DEVI, J.M. ALL ARE ASSESSEES APPEALS. THE ASSESSEE HAD FILED THE APPEALS FOR THE A.YS. 2007-08, 2008-09, 2 009-10 AGAINST THE ORDER OF THE LD. CIT(A)-IX, HYDERABAD D ATED 06.02.2015 AND THE APPEAL FOR THE A.Y. 2011-12 IS F ILED AGAINST THE ORDER OF LD. CIT(A)-IV, HYDERABAD DATED 14.08.2014. IN ALL THESE APPEALS THE COMMON GROUND RAISED BY THE ASSESSEE IS THAT THE LD. CIT(A) OUGHT TO HAVE APPRECIATED THAT THE ASSESSEE HAS FILED THE APPLICA TION ALONG WITH THE NECESSARY DOCUMENTS SEEKING REGISTRA TION UNDER SECTION 12A OF THE ACT ON 31.05.2007 ITSELF A ND THEREFORE, THE ASSESSEE WAS ELIGIBLE FOR EXEMPTION UNDER SECTION 11 OF THE ACT FROM THE A.Y. 2007-2008 ONWAR DS 2 ITA.NOS.428 TO 430/H/15 & 129/H/15 MANNAN EDUCATIONAL SOCIETY, HYDERABAD AND CIT(A) OUGHT TO HAVE ALLOWED THE EXEMPTION UNDE R SECTION 11 FOR ALL THE ASSESSMENT YEARS. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE TRUST IS ENGAGED IN EDUCATIONAL ACTIVITIES. THE ASS ESSEE IS GRANTED REGISTRATION UNDER SECTION 12AA OF THE ACT W.E.F. 01.04.2010. THE ASSESSEE FILED ITS RETURN OF INCOME FOR ALL THE A.YS. 2007-08 TO 2010-2011 CLAIMING EXEMPTION UNDER SECTION 11 AND THEREBY DECLARING NIL INCOME . THE A.O. OBSERVED THAT THE ASSESSEE HAS BEEN GRANTED REGISTRATION UNDER SECTION 12AA OF THE ACT ONLY W.E .F. 01.04.2010 VIDE ORDER DATED 09.08.2011 AND THEREFOR E, THE ASSESSEE IS NOT ELIGIBLE FOR EXEMPTION UNDER SE CTION 11 OF THE ACT FOR THE EARLIER ASSESSMENT YEARS. HE ACC ORDINGLY DENIED THE BENEFIT OF SECTION 11 FOR ALL THE ASSESS MENT YEARS AND BROUGHT THE INCOME TO TAX. AGGRIEVED, ASS ESSEE PREFERRED AN APPEAL BEFORE THE LD. CIT(A) STATING T HAT SINCE THE ASSESSEE HAS FILED APPLICATION FOR REGIST RATION UNDER SECTION 12AA OF THE ACT ON 31.05.2007 ITSELF AND ONLY DUE TO NON-TRACING OF THE SAID APPLICATION BY THE DEPARTMENT, ASSESSEE HAD FILED A FRESH APPLICATION ON 19.03.2011 AND ON THE SAID FRESH APPLICATION ONLY, THE DIT (EXEMPTIONS) GRANTED REGISTRATION VIDE HIS ORDE R DATED 09.08.2011 W.E.F. 01.04.2010 AND THEREFORE, THE ASS ESSEE IS ELIGIBLE FOR THE EXEMPTION UNDER SECTION 11 FROM 31.05.2007 ITSELF I.E., THE FIRST APPLICATION FILED BY THE ASSESSEE. THE LD. CIT(A) HOWEVER HELD THAT SINCE TH E REGISTRATION WAS GRANTED TO THE ASSESSEE W.E.F. 01.04.2010, THE ASSESSEE IS ELIGIBLE FOR EXEMPTION ONLY 3 ITA.NOS.428 TO 430/H/15 & 129/H/15 MANNAN EDUCATIONAL SOCIETY, HYDERABAD FROM SUCH DATE AND IS NOT ELIGIBLE FOR THE BENEFITS OF SECTION 11 FOR THE EARLIER ASSESSMENT YEARS. AGAINS T THIS FINDING OF THE LD. CIT(A), THE ASSESSEE IS IN APPEA L BEFORE US. 3. THE LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS MADE BEFORE THE AUTHORITIES BELOW WHILE THE LEARNED D.R. SUPPORTED THE ORDERS OF THE AUTHORITIE S BELOW. 4. HAVING REGARD TO THE RIVAL CONTENTIONS AND ALSO MATERIAL ON RECORD, WE FIND THAT THE ASSESSEE IS CL AIMING THAT IT HAS FILED AN APPLICATION FOR REGISTRATION U NDER SECTION 12AA ON 31.05.2007. HOWEVER, NO EVIDENCE IN SUPPORT OF THIS CONTENTION HAS BEEN FILED EITHER BE FORE THE AUTHORITIES BELOW OR BEFORE US. FURTHER, THE APPLIC ATION FOR REGISTRATION IS TO BE CONSIDERED BY THE DIT (EXEMPT IONS) AND NOT THE LD. CIT(A). IT IS FOR THE ASSESSEE TO P URSUE THE MATTER WITH THE DIT (EXEMPTIONS) FOR GRANT OF REGIS TRATION UNDER SECTION 12AA W.E.F. 31.05.2007. THE GRANT OF REGISTRATION UNDER SECTION 12AA IS THE PRE-REQUISIT E FOR THE CLAIM OF EXEMPTION UNDER SECTION 11 AND ALSO FO R GRANT OF THE BENEFIT OF SECTION 11. AS THE REGISTRA TION UNDER SECTION 12AA IS NOT AVAILABLE FOR THE A.YS. 2 007-08 TO 2010-11, BOTH THE A.O. AS WELL AS THE LD. CIT(A) HAVE RIGHTLY REJECTED THE CLAIM OF EXEMPTION UNDER SECTI ON 11 OF THE ACT. THEREFORE, WE SEE NO REASON TO INTERFERE W ITH THE ORDER OF THE LD. CIT(A) ON THIS ISSUE. ACCORDINGLY, WE REJECT THE GROUND RAISED BY THE ASSESSEE IN ALL THE APPEALS. 4 ITA.NOS.428 TO 430/H/15 & 129/H/15 MANNAN EDUCATIONAL SOCIETY, HYDERABAD 5. IN THE RESULT, ALL THE APPEALS OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 26.0 8.2015. SD/- SD/- (P.M. JAGTAP) (SMT. P. MADHAVI DEVI) ACOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED 26 TH AUGUST, 2015 VBP/- COPY TO : 1. MANNAN EDUCATIONAL SOCIETY, HYDERABAD . C/O. B. NARSING RAO & CO. CHARTERED ACCOUNTANTS, PLOT NO.554, ROAD NO.92, JUBILEE HILLS , HYDERABAD 96. 2. THE ASST. DIRECTOR OF INCOME TAX (EXEMPTIONS) - I, HYDERABAD. 3. CIT(A) - IX, HYDERABAD. 4 . CIT (EXEMPTIONS) , HYDERABAD. 5 . D.R. ITAT A BENCH, HYDERABAD. 6 . GUARD FILE