Darul Yatama, Hyderabad V. DIT (Exemptions), Hyderabad

ITA 704/HYD/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 6086 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 8 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-01-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 13-01-2016
• Assessment Year: misc
• Appeal Filed On: 10-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K MYTHILI RANI
• Assessee Lawyers: LAXMINIWAS SHAR MA
• Section: 80G; 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA.NO.704 & 705/HYD/2013 DARUL YATAMA, HYDERABAD. PAN AABTD3907A VS. DIRECTOR OF I NCOME T AX (EXEMPTIONS), HYDERABAD. (APPELLANT) (RESPONDENT) FOR ASSESSEE : MR. LAXMI NIWAS SHARMA FOR REVENUE : SMT. K. MYTHILI RANI DATE OF HEARING : 1 3 .01.2016 DATE OF PRONOUNCEMENT : 20 .01.2016 ORDER PER SMT. P. MADHAVI DEVI, J.M. BOTH ARE ASSESSEES APPEALS AGAINST THE ORDER OF DIT(E) IN REJECTING THE ASSESSEES APPLICATION F OR REGISTRATION UNDER SECTION 12AA AND 80G OF THE I.T. ACT, 1961. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE TRUST, WHICH WAS CREATED IN THE YEAR 1935, HAD FILE D AN APPLICATION SEEKING REGISTRATION UNDER SECTION 12A OF THE ACT AND ALSO UNDER SECTION 80G OF THE ACT. LD. DIT( E) CALLED FOR VARIOUS DETAILS WHICH WERE PRODUCED BY T HE ASSESSEE ON 14.01.2016. THE LD. DIT(E), HOWEVER, FO UND THAT THE ASSESSEE HAS FILED A COPY OF THE TRUST DEE D ALONG WITH FORM 10A AND FOUND THAT THERE ARE DIFFERENT VE RSIONS 2 ITA.NO.704 & 705/HYD/2013 DARUL YATAMA, HYDERABAD. ABOUT THE DETAILS OF CREATION OF THE TRUST IN DIFFE RENT DOCUMENTS. HE FURTHER OBSERVED THAT THE ASSESSEE TR UST HAS NOT BEEN ABLE TO PRODUCE ORIGINAL TRUST DEED FO R THE PURPOSE OF VERIFICATION AND THEREFORE, IT IS NOT PO SSIBLE TO GRANT REGISTRATION UNDER SECTION 12AA OF THE ACT. F URTHER, HE HAS ALSO OBSERVED THAT THE ASSESSEE HAS FAILED T O FURNISH THE COPIES OF ACCOUNTS OF ACCOUNTING YEAR 2 010- 2011 WHICH IS MANDATORILY REQUIRED TO BE FURNISHED AS PER RULE 17A(B), DUE TO WHICH, THE ASSESSEE CANNOT BE GRANTED REGISTRATION UNDER SECTION 12A OF THE ACT. FURTHER, HE ALSO OBSERVED THAT THE ASSESSEE HAS NOT FILED THE RETURNS OF INCOME FOR THE A.YS. 2009-10 AND 201 1-12 AND THEREFORE, THE ASSESSEE CANNOT BE GRANTED REGISTRATION. THE LAST REASON FOR NON-GRANTING OF REGISTRATION WAS THAT THE ASSESSEE HAS NOT FURNISHE D ITS COMPLETE BANK STATEMENT OF THE RELEVANT ACCOUNTING YEAR DURING THE PROCEEDINGS AND SINCE THE DETAILS OF THE ACTUAL FINANCIAL AFFAIRS AND ALSO THE ACTUAL ACTIVITY CARR IED OUT BY THE ASSESSEE TRUST DURING THOSE YEARS NOT BEING KNO WN AND NOT BEING VERIFIABLE, THE REGISTRATION UNDER SE CTION 12AA OF THE ACT CANNOT BE GRANTED. ACCORDINGLY, THE LD. DIT(E) REJECTED ASSESSEES APPLICATION FOR REGISTRA TION BOTH UNDER SECTION 12AA AS WELL AS 80G OF THE ACT. AGAINST SUCH REJECTION, THE ASSESSEE IS IN APPEAL B EFORE US. 3. AT THE TIME OF HEARING, LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE TRUST WAS CREA TED IN THE YEAR 1935 AND THE TRUST DEED IS IN URDU. HE HAS 3 ITA.NO.704 & 705/HYD/2013 DARUL YATAMA, HYDERABAD. SUBMITTED THAT THE SAME WAS GOT TRANSLATED INTO ENG LISH AND CERTIFIED COPY OF THE SAME FROM THE CITY CIVIL COURT, HYDERABAD HAS BEEN FILED BEFORE THE LD. DIT(E). HE HAS SUBMITTED THAT DUE TO THE YEAR MENTIONED IN URDU, T HE LD. DIT(E) MUST HAVE BEEN CONFUSED ABOUT THE DATE OF CREATION BUT THE FACT THAT THE TRUST WAS CREATED AN D WAS CARRYING ON THE ACTIVITIES WAS NOT DOUBTED. AS REGA RDS THE NON-PRODUCTION OF ACCOUNTS AND ALSO NON-FILING OF R ETURNS OF INCOME BY THE ASSESSEE FOR THE A.YS. 2009-10 AND 2011-12 AS WELL AS NON-FURNISHING OF THE BANK STATE MENT AND THE DONATIONS RECEIVED BY THE ASSESSEE, THE LD. COUNSEL FOR THE ASSESSEE HAS DRAWN OUR ATTENTION TO VARIOUS DOCUMENTS FILED BY THE ASSESSEE BEFORE THE LD. DIT(E) TO DEMONSTRATE THAT ALL THE RELEVANT MATERIA L WAS FILED BY THE ASSESSEE. 4. WE HAVE GONE THROUGH THE SAID DOCUMENTS AND ARE SATISFIED THAT THE ASSESSEE HAS FILED ALL THE D ETAILS. THE CERTIFIED COPY OF THE TRUST DEED HAS BEEN FILED AT PAGE-35 OF THE PAPER BOOK WHILE THE COPIES OF THE ACCOUNTS ARE FURNISHED AT PAGES 15, 18 AND 19 OF THE PAPER BOOK AND IT IS ALSO MENTIONED IN ASSESSEES REPLY TO THE LD. DI T(E) WHICH HAS BEEN FILED AT PAGE NO.16 OF THE PAPER BOO K THAT ALL THE RELEVANT ACCOUNTS ARE FURNISHED. SIMILARLY, THE RETURNS OF INCOME FOR THE RELEVANT ASSESSMENT YEAR ARE ALSO PART OF THE RECORD. THUS, IT IS CLEAR THAT THE LD. DIT(E) HAS NOT VERIFIED THE DOCUMENTS FILED BY THE ASSESSE E BUT HAS SUMMARILY REJECTED THE ASSESSEES APPLICATIONS ON TECHNICAL GROUNDS. FURTHER, WE ALSO FIND THAT THE L D. 4 ITA.NO.704 & 705/HYD/2013 DARUL YATAMA, HYDERABAD. DIT(E) HAS NOT REALLY EXAMINED THE TRUST DEED AND T HE NATURE OF THE ACTIVITIES CARRIED ON BY THE ASSESSEE AND WHETHER THEY SATISFY THE CONDITIONS LAID DOWN FOR REGISTRATION UNDER SECTION 12AA AND 80G OF THE ACT. IN VIEW OF THE SAME, WE SET ASIDE THE ORDER OF THE LD. DIT(E) AND DIRECT HIM TO RE-CONSIDER ASSESSEES APPLICATIO NS ON MERITS IN VIEW OF THE ACTIVITIES CARRIED ON BY THE ASSESSEE AND AS PER THE AIMS AND OBJECTS OF THE TRUST AS REC ORDED IN THE TRUST DEED. NEEDLESS TO MENTION THAT THE ASS ESSEE SHALL BE GIVEN A FAIR OPPORTUNITY OF HEARING. 5. IN THE RESULT, APPEALS OF THE ASSESSEE ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 20.01.2016 SD/- SD/- (B. RAMAKOTAIAH) (SMT. P. MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED 20 TH JANUARY, 2016 VBP/- COPY TO 1. DARUL YATAMA, HYDERABAD. C/O. M.M. FIRDOS, ADVOCATE, 11-3-942, 1 ST FLOOR, NEW MALLEPALLY, HYDERABAD. 2. THE DIRECTOR OF INCOME TAX (EXEMPTIONS), AAYAKAR BHAVAN, 3 RD FLOOR, BASHIR BAGH, HYDERABAD. 3. ADIT (E) - I, HYDERABAD. 4. D.R. ITAT B BENCH, HYDERABAD 5. GUARD FILE