M/S SRI KUMARAN EDUCATIONAL TRUST, CHENNAI V. ITO (EXEMPTIONS) WARD 3, CHENNAI

ITA 601/CHNY/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 6863 (ITAT-CHENNAI)
• Duration Of Justice: 10 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-01-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 20-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R V AROON PRASAD
• Assessee Lawyers: S SRIDHAR
• Keywords: Charitable institution
• Section: 12AA; 92

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI . . . , . !' , $ % BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ ITA NO.601/CHNY/2018 ' (' / ASSESSMENT YEAR : N.A. M/S SRI KUMARAN EDUCATIONAL TRUST, NO.1, MTH ROAD, VILLIVAKKAM, CHENNAI - 600 049. PAN : AAITS 0011 K V. THE INCOME TAX OFFICER (EXEMPTIONS), WARD 3, CHENNAI. (*+/ APPELLANT) (,-*+/ RESPONDENT) *+ . / / APPELLANT BY : SHRI S. SRIDHAR, ADVOCATE ,-*+ . / / RESPONDENT BY : SHRI R.V. AROON PRASAD, JCIT 0 . 1$ / DATE OF HEARING : 26.12.2018 2!( . 1$ / DATE OF PRONOUNCEMENT : 02.01.2019 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER : THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE DIRECTOR OF INCOME TAX (EXEMPTIONS), CHENNAI, D ATED 27.11.2012 REJECTING THE APPLICATION FILED BY THE A SSESSEE FOR REGISTRATION UNDER SECTION 12AA OF THE INCOME-TAX A CT, 1961 (IN SHORT 'THE ACT') AS CHARITABLE INSTITUTION. 2 I.T.A. NO.601/CHNY/18 2. THERE WAS A DELAY OF 25 DAYS IN FILING THIS APPE AL BY THE ASSESSEE. THE ASSESSEE HAS FILED A PETITION FOR CO NDONATION OF DELAY. WE HAVE HEARD THE LD.COUNSEL FOR THE ASSESS EE AND THE LD. D.R. WE FIND THAT THERE WAS SUFFICIENT CAUSE FOR N OT FILING THE APPEAL BEFORE THE STIPULATED TIME. THEREFORE, WE CONDONE THE DELAY AND ADMIT THE APPEAL. 3. SHRI S. SRIDHAR, THE LD.COUNSEL FOR THE ASSESSEE , SUBMITTED THAT THE DIRECTOR OF INCOME TAX (EXEMPTIONS) REJECT ED THE APPLICATION OF THE ASSESSEE FOR REGISTRATION UNDER SECTION 12AA OF THE ACT ON THE GROUND THAT THE TRUST DEED WAS AMEND ED WITHOUT THE APPROVAL OF THE COMMISSIONER OF INCOME TAX. REFERR ING TO THE CLAUSE 17 OF THE TRUST DEED, THE LD.COUNSEL SUBMITT ED THAT THE TRUST DEED CAN BE AMENDED WITH THE APPROVAL OF THE COMMISSIONER OF INCOME TAX. SINCE THE APPROVAL WAS NOT SOUGHT B Y THE ASSESSEE, ACCORDING TO THE LD. COUNSEL, THE DIRECTO R OF INCOME TAX (EXEMPTIONS) REJECTED THE APPLICATION. SUBSEQUENTL Y, IN THE YEAR 2015, ACCORDING TO THE LD. COUNSEL, THE ASSESSEE HA D FILED AN APPLICATION FOR REGISTRATION ONCE AGAIN AND THE DIR ECTOR OF INCOME TAX (EXEMPTIONS) GRANTED REGISTRATION FROM THE DATE OF APPLICATION. ON A QUERY FROM THE BENCH, THE LD.COUNSEL CLARIFIED THAT THE OFFICER 3 I.T.A. NO.601/CHNY/18 WHO GRANTED REGISTRATION IS DIFFERENT FROM THE ONE WHO REJECTED THE APPLICATION BY THE IMPUGNED ORDER. 4. SHRI S. SRIDHAR, THE LD.COUNSEL FOR THE ASSESSEE FURTHER SUBMITTED THAT THE AMENDMENT WAS NOT APPROVED BY TH E COMPETENT CIVIL COURT. ACCORDING TO THE LD. COUNSEL, SINCE T HE OBJECT OF THE TRUST DEED WAS NOT AMENDED AND ONLY A COSMETIC CHAN GE WAS MADE WITH REGARD TO THE NAME OF THE TRUST, ETC., TH E PROVISIONS OF SECTION 92 OF CODE OF CIVIL PROCEDURE MAY NOT BE AP PLICABLE. MOREOVER, WHEN THE DIRECTOR OF INCOME TAX (EXEMPTIO NS) GRANTED APPROVAL IN THE YEAR 2015, THERE WAS NO REASON FOR REJECTING THE APPLICATION FILED EARLIER. REFERRING TO THE IMPUGN ED ORDER OF THE DIRECTOR OF INCOME TAX (EXEMPTIONS), THE LD.COUNSEL SUBMITTED THAT WITH REGARD TO NON-PRODUCTION OF MATERIAL EVIDENCE, THE MATTER MAY BE REMITTED BACK TO DIRECTOR OF INCOME TAX (EXEMPTI ONS) FOR RECONSIDERATION. 5. ON THE CONTRARY, SHRI R.V. AROON PRASAD, THE LD. DEPARTMENTAL REPRESENTATIVE, SUBMITTED THAT THE ASS ESSEE HAS NOT FILED DOCUMENTS REQUIRED BY THE DIRECTOR OF INCOME TAX (EXEMPTIONS) FOR REGISTRATION. MOREOVER, ACCORDING TO THE LD. D.R., THE TRUST DEED WAS AMENDED WITHOUT PERMISSION OF CO MMISSIONER 4 I.T.A. NO.601/CHNY/18 OF INCOME TAX AS REQUIRED UNDER THE TRUST DEED. ON A QUERY FROM THE BENCH HOW THE SUBSEQUENT APPLICATION OF THE ASS ESSEE WAS ENTERTAINED AND DIRECTOR OF INCOME TAX (EXEMPTIONS) GRANTED REGISTRATION IN THE YEAR 2015 WHEN THE ORDER PASSED IN THE YEAR 2012 ATTAINED FINALITY? THE LD. D.R. COULD NOT CLAR IFY UNDER WHAT CIRCUMSTANCE THE DIRECTOR OF INCOME TAX (EXEMPTIONS ) ENTERTAINED THE SUBSEQUENT APPLICATION OF THE ASSESSEE AND GRAN TED REGISTRATION. 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. VIDE THE IMPUGNED ORDER, THE DIRECTOR OF INCOME TAX (EXEMPTI ONS) REJECTED THE APPLICATION FILED BY THE ASSESSEE FOR REGISTRAT ION UNDER SECTION 12AA OF THE ACT. THE ASSESSEE NOW CLAIMS BEFORE TH IS TRIBUNAL THAT IN THE YEAR 2015 ANOTHER APPLICATION WAS FILED FOR REGISTRATION UNDER SECTION 12AA OF THE ACT AND THE DIRECTOR OF INCOME TAX (EXEMPTIONS) GRANTED REGISTRATION. IT IS NOT KNOWN UNDER WHAT CIRCUMSTANCE THE DIRECTOR OF INCOME TAX (EXEMPTIONS ) GRANTED SUCH REGISTRATION. THE COPY OF THE SAID APPLICATION AND THE ORDER WAS NOT FILED BEFORE US. THEREFORE, WE ARE UNABLE TO APPRE CIATE THE REASONS FOR GRANTING SUCH REGISTRATION IN THE YEAR 2015. S INCE THE 5 I.T.A. NO.601/CHNY/18 REGISTRATION WAS GRANTED IN THE YEAR 2015, THIS TRI BUNAL IS OF THE CONSIDERED OPINION THAT THE PRESENT ISSUE NEEDS TO BE RECONSIDERED BY THE DIRECTOR OF INCOME TAX (EXEMPTIONS). ACCORD INGLY, THE ORDER OF THE DIRECTOR OF INCOME TAX (EXEMPTIONS) IS SET A SIDE AND THE ISSUE OF REGISTRATION UNDER SECTION 12AA OF THE ACT IS REMITTED BACK TO HIS FILE. THE DIRECTOR OF INCOME TAX (EXEMPTION S) SHALL RE- EXAMINE THE MATTER IN THE LIGHT OF THE MATERIAL THA T MAY BE FILED BY THE ASSESSEE AND THEREAFTER DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW, AFTER GIVING A REASONABLE OPPORTUNITY TO THE ASSESSEE. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 2 ND JANUARY, 2019 AT CHENNAI. SD/- SD/- (. !' ) ( . . . ) (A. MOHAN ALANKAMONY) (N.R.S. GANESA N) $ / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 4 /DATED, THE 2 ND JANUARY, 2019. KRI. 6 I.T.A. NO.601/CHNY/18 . ,156 76(1 /COPY TO: 1. *+ /APPELLANT 2. ,-*+ /RESPONDENT 3. DIT(E), CHENNAI 4. 68 ,1 /DR 5. 9' : /GF.