Ramanuja Sahasrabdi, Hyd, Hyderabad V. CIT(Exemptions), Hyd, Hyderabad

ITA 476/HYD/2015

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 0407 (ITAT-HYDERABAD)
• Duration Of Justice: 2 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-07-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 27-04-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S NARASAMMA
• Assessee Lawyers: S RAMA RAO
• Section: 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NO. 476/HYD/2015 SRI RAMANUJA SAHASRABDI, HYDERABAD. VS. COMMISSIONER OF INCOME-TAX, (EXEMPTION), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI S. RAMA RAO REVENUE BY : SMT. S. NARASAMMA DATE OF HEARING 07-07-2015 DATE OF PRONOUNCEMENT 10-07-2015 O R D E R PER SAKTIJIT DEY, J.M.: THIS APPEAL BY ASSESSEE IS DIRECTED AGAINST THE OR DER DATED 10/02/2015 PASSED BY LD. DIT(E), HYDERABAD GRANTING APPROVAL U/S 80G(5)(VI) OF THE IT ACT. 2. ASSESSEE IS BASICALLY AGGRIEVED WITH THE ACTION OF LD. DIT(E) IN GRANTING APPROVAL WITH EFFECT FROM 10/02/2015 IN ST EAD OF FROM THE DATE OF APPLICATION. 3. BRIEFLY THE FACTS ARE, ASSESSEE IS A SOCIETY REG ISTERED UNDER A.P. SOCIETIES REGISTRATION ACT, 2001. ASSESSEE WAS ALSO GRANTED REGISTRATION U/S 12A OF THE ACT VIDE ORDER DATED 28 /08/2014. HOWEVER, ASSESSEES APPLICATION DATED 10/03/14 FOR GRANT OF APPROVAL U/S 80G(5)(VI) WAS REJECTED BY LD. DIT(E) VIDE ORDER DA TED 21/10/14. BEING AGGRIEVED OF SUCH REFUSAL OF APPROVAL, ASSESS EE PREFERRED APPEAL BEFORE ITAT. ITAT VIDE ORDER DATED 05/12/14 IN ITA NO. 2 ITA NO. 476 /HYD/2015 SRI RAMANUJA SAHASRABDI 1709/HYD/14, SET ASIDE THE ORDER OF LD. DIT(E) AND DIRECTED HIM TO GRANT APPROVAL TO ASSESSEE U/S 80G(5)(VI). 4. IN PURSUANCE TO THE DIRECTION OF ITAT, THOUGH, L D. DIT(E) UNDER THE IMPUGNED ORDER GRANTED APPROVAL U/S 80G(5)(VI) BUT HE MADE SUCH APPROVAL EFFECTIVE FROM 10/02/15 ONWARDS. 5. WE HAVE HEARD THE PARTIES AND PERUSED THE MATERI ALS ON RECORD. IT IS THE CONTENTION OF LD. AR THAT APPROVAL U/S 80 G(5)(VI) SHOULD HAVE BEEN EFFECTIVE FROM THE DATE OF APPLICATION IN FORM 10G.I.E. 10/03/14. FOR EXAMINING THE AFORESAID CLAIM OF LD. AR REFEREN CE TO THE RELEVANT STATUTORY PROVISIONS TO BE MADE AT THIS STAGE. SUB- CLAUSE (VI) OF SECTION 80G(5) POSTULATES THAT ANY DONATION TO AN I NSTITUTION OR FUND WILL BE QUALIFIED FOR DEDUCTION IF SUCH INSTITUTION OR FUND IS APPROVED BY COMMISSIONER IN ACCORDANCE WITH THE RULES PRESCRIBE D THEREIN. ON A REFERENCE TO THE CORRESPONDING RULE, WHICH IS RULE 11AA AND MORE SPECIFICALLY SUB-RULE (4) OF THE SAID RULE, IT IS S EEN THAT APPROVAL TO BE GRANTED IN TERMS WITH SECTION 80G(5)(VI) BY THE COM MISSIONER BY SPECIFYING AY OR AYS FOR WHICH THE APPROVAL IS VALI D. THEREFORE, ON A PLAIN READING OF THE STATUTORY PROVISION, IT IS VER Y MUCH CLEAR THAT NO SUCH REQUIREMENT OR MANDATE FOR APPROVAL U/S 80G(5) (VI) HAS TO BE GRANTED FROM THE DATE OF APPLICATION IN FORM 10G. H OWEVER, AT THE SAME TIME WE ALSO CANNOT APPRECIATE THE ACTION OF L D. DIT(E) IN GRANTING APPROVAL FROM 10/02/15 ONWARDS, WHICH IS N OT IN CONFORMITY WITH RULE 11AA(4) OF THE ACT. WHEN THE SAID RULE PR ESCRIBES THAT APPROVAL HAS TO BE GRANTED SPECIFYING AY OR AYS TO WHICH IT WILL APPLY, LD. DIT(E) WAS NOT JUSTIFIED IN MAKING APPROVAL EFF ECTIVE FROM 10/02/15 WITHOUT SPECIFYING AY. HOWEVER, CONSIDERING THE FAC T THAT HE HAS GRANTED APPROVAL W.E.F. 10/02/15 WHICH FALLS IN FY 2014-15 CORRESPONDING TO AY 2015-16, WE MODIFY THE ORDER OF LD. DIT(E) BY OBSERVING THAT THE APPROVAL GRANTED U/S 80G(5)(VI) SHOULD BE EFFECTIVE FROM AY 2015-16. OTHER CONDITIONS IMPOSED BY LD. DI T(E) REMAINS UNALTERED. 3 ITA NO. 476 /HYD/2015 SRI RAMANUJA SAHASRABDI 6. IN THE RESULT, ASSESSEES APPEAL IS PARTLY ALLOW ED. PRONOUNCED IN THE OPEN COURT ON 10 TH JULY, 2015. SD/- SD/- (B. RAMAKOTAIAH) (SAKTIJIT DEY) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED: 10 TH JULY, 2015 KV COPY TO:- 1) SRI RAMANUJA SAHASRABDI, SRI S. RAMA RAO, ADVOC ATE, FLAT NO. 102, SHRIYAS ELEGANCE, H. NO. 3-6-643 , ST. NO. 9, HIMAYAT NAGAR, , HYDERABAD 500 029 2)CIT(EXEMPTIONS), HYDERABAD 3 ITO(EXEMPTIONS), HYDERABAD 5) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDE RABAD.`