Spandana Foundation, Hyderabad V. DIT(Exemptions), Hyderabad

ITA 472/HYD/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 66373 (ITAT-HYDERABAD)
• Duration Of Justice: 6 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-10-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 30-03-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMISHA S GUPT
• Assessee Lawyers: K CHENNUBOTLU
• Section: 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER ITA NO. 472/HYD/2012 ASSESSMENT YEAR: 2011-12 SPANDANA FOUNDATION, ... APPELLANT HYDERABAD. (PAN AAEAS9260P) VS. DIRECTOR OF INCOME-TAX(EXEMPTION), RESPONDENT HYDERABAD. APPELLANT BY : SHRI K. CHENNUBOTLU RESPONDENT BY : SMT. AMISHA S. GUPT DATE OF HEARING : 17/10/2012 DATE OF PRONOUNCEMENT : 19/10/ 2012 ORDER PER ASHA VIJAYARAGHAVAN, J.M.: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF DIT(E), HYDERABAD DATED 29/02/2012 FOR TH E ASSESSMENT YEAR 2011-12. 2. BRIEFLY THE FACTS OF THE CASE ARE THAT THE ASSES SEE FILED AN APPLICATION IN FORM NO. 10A ON 24/08/2011 SEEKING R EGISTRATION U/S 12A OF THE INCOME-TAX ACT, 1961. THE DIT(E) BY HIS ORDER DATED HELD THAT THE APPLICATION FILED BY THE ASSESS EE IN FORM NO. 10A IS DEFECTIVE FOR THE FOLLOWING REASONS: 1. THAT THERE ARE NO WITNESSES TO THE MEMORANDUM ASSOCIATION AS EVIDENT FROM THE COPY OF THE DOCUMEN T FILED BY THE ASSESSEE SOCIETY. AT PAGE NO. 4 OF THE DOCUM ENT, WITNESSES HAVE NOT SIGNED AGAINST THE NUMBERS 1 & 2 AND 2 472/HYD/2012 SPANDANA FOUNDATION THEREFORE HELD THAT THE MEMORANDUM OF ASSOCIATION C ANNOT BE ACCEPTED AS VALID NOTWITHSTANDING PRESENTATION O F THAT DOCUMENT BEFORE THE CONCERNED REGISTRAR OF SOCIETIE S. 2. THE APPLICATION IN FORM NO. 10A FILED BY THE SOC IETY DOES NOT CONTAIN THE NAME OF THE APPLICANT IN THE INTROD UCTORY PARA OF THE FORM. 3. FURTHER, AS PER THE REQUIREMENT BELOW PARA 5 OF THE SAID FORM, THE ASSESSEE-SOCIETY WAS REQUIRED TO FUR NISH COPIES OF THEIR ACCOUNTS FOR THE LATEST 1/2/3 YEARS . HOWEVER, AS VERIFIED FROM THE VARIOUS DOCUMENTS FILED BY THE SOCIETY IN THIS CASE, IT HAS NOT FURNISHED ANY COPY OF ACCO UNT FOR ANY YEAR. THUS, THE ASSESSEE-SOCIETY HAS NOT COMPLIED W ITH THE MANDATORY REQUIREMENT, AS PER THE SAID STATUTORY FO RM 10A, WHEN IT IS STATED THAT THE SOCIETY WAS FORMED/REGIS TERED ON 13/07/2007. 3. FURTHER, THE DIT(E) HELD THAT AS PER NOTE ON AC TIVITIES FURNISHED BY THE ASSESSEE-SOCIETY, IT HAS INCURRED THE FOLLOWING EXPENDITURE DURING THE PERIOD 01/04/2011 TO 30/11/2 011: CLOTHES PURCHASED RS. 45,000/- SCHOOLS BAG PURCHASED RS. 3,000/- SCHOOL STATIONERY(GEOMETRY BOXES) RS. 20,140/- STUDENTS NOTE BOOKS RS. 46,600/- MERIT STUDENTS FEE REIMBURSEMENT RS. 29,100/- THE DIT(E) AFTER COMPARING THE ABOVE EXPENDITURE W ITH THE OBJECTS OF THE SOCIETY, HELD THAT SUCH EXPENSES INC URRED BY THE SOCIETY ARE NOT IN CONSONANCE WITH SUCH OBJECTIVES. 3 472/HYD/2012 SPANDANA FOUNDATION 4. AGGRIEVED BY THE ORDER OF DIT(E), THE ASSESSEE I S IN APPEAL BEFORE US AND SUBMITTED THAT THE DIT(E) HAS ERRED I N GOING THROUGH THE NATURE OF EXPENSES, WHICH ARE NOT UNDER HIS PURVIEW FOR GRANTING REGISTRATION U/S 12A OF THE ACT. IT I S FURTHER SUBMITTED THAT THE OBJECTS OF THE SOCIETY ARE VERY MUCH COMPARABLE IN NATURE AND THE SOCIETY WAS REGISTERED UNDER THE REGISTRAR OF SOCIETIES VALIDLY. IT IS ALSO SUBMITTE D THAT THE DELAY MAY BE CONDONED AS THERE HAS NOT BEEN ANY ACTIVITY UNDERTAKEN TILL 31/03/2011 AND HENCE, THERE WAS NO RETURN OF I NCOME FOR PREVIOUS YEAR. FURTHER, IT WAS SUBMITTED THAT THE S TATEMENT OF ACCOUNTS HAVE BEEN FILED FOR THE PERIOD FROM 01/04/ 2011 TO 31/03/2011. 5. WE HAVE HEARD THE ARGUMENTS OF BOTH THE PARTIES AND PERUSED THE RECORD. THE GRIEVANCE OF THE ASSESSEE I S THAT THE ASSESSEE WAS NOT GIVEN SUFFICIENT OPPORTUNITY TO RE PRESENT ITS CASE BEFORE THE DIT(E) AND EXPLAIN ABOUT THE CHARIT ABLE NATURE OF ITS OBJECTS. WE FIND FROM THE RECORD THAT THERE ARE CERTAIN MINOR PROCEDURAL MISTAKES, WHICH HAVE BEEN POINTED OUT BY THE DIT(E) AND THE SAME CAN BE RECTIFIED. IN THESE CIRCUMSTANC ES, WE DEEM IT FIT AND PROPER TO GIVE ONE MORE OPPORTUNITY TO T HE ASSESSEE TO CORRECT THE MISTAKES WHICH HAVE CREPT INADVERTENTLY ON RECORD AND APPEAR BEFORE THE DIT(E) TO ESTABLISH THAT THE SOCI ETY IS ENTITLED FOR REGISTRATION U/S 12A OF THE ACT. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 19/10/2012. SD/- SD/- ( CHANDRA POOJARI) (ASHA VIJAYARAGHAVAN) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED:19 TH OCTOBER, 2012. 4 472/HYD/2012 SPANDANA FOUNDATION KV COPY TO:- 1) SPANDANA FOUNDATION, PLOT NO. 13, SRI RAM NAGAR, VANASTHALIPURAM, HYDERABAD 500 070. 2) DIT(E), AAYAKAR BHAVAN, 3 RD FLOOR, HYDERABAD. 3) THE ADIT(E))-1, GUNTUR 4) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDERABA D.