Pragathi Nagar Educational Society, Hyderabad V. DIT(Exemptions), Hyderabad

ITA 711/HYD/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 66134 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-08-2012
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 07-05-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: V V RAMANA RAO
• Assessee Lawyers: T CHAITANYA KUMAR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER AND SHRI D.KARUNAKARA RAO, ACCOUNTANT MEMBER ITA NO.711/HYD/2012 M/S. PRAGATHI NAGAR EDUCATIONAL SOCIETY, HYDERABAD (PAN - AABTP 2949 Q ) (APPELLANT) V/S DIRECTOR OF INCOME - TAX(EXEMPTION), HYDERABAD. (RESPONDENT) APPELLANT BY : SHRI T.CHAITANYA KUMAR RESPONDENT BY : SHRI V.V.RAMANA RAO DATE OF HEARING 08.08.2012 DATE OF PRONOUNCEMENT 10. 0 8.2012 O R D E R PER D.KARUNAKARA RAO, ACCOUNTANT MEMBER: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE DIRECTOR OF INCOME-TAX(EXEMPTION) HYDERABAD DAT ED 27.2.2012, PASSED UNDER S.12AA(1(B)(II) OF THE INCOME-TAX ACT, 1961, REJECTING THE APPLICATION OF THE ASSESSEE IN FORM 10A FOR REGISTR ATION UNDER S.12A OF THE ACT. 2. AT THE OUTSET, THE LEARNED COUNSEL FOR THE ASSE SSEE MENTIONED THAT THE IMPUGNED ORDER OF THE DIRECTOR OF INCOME-T AX(EXEMPTION) HAS TO BE SET ASIDE, SINCE THE DIRECTOR OF INCOME-TAX(EXEM PTION) HAS NOT TAKEN INTO ACCOUNT THE AMENDED REGULATIONS AND THE LIST O F NEWLY ELECTED BODY OF THE SOCIETY SENT TO THE REGISTRAR OF SOCIETIES ON 15.4.2010. THOUGH THERE IS REFERENCE IN PARA 2 OF HIS ORDER, HE FAILE D TO TAKE INTO ACCOUNT THE FACT ABOUT THE SUBMISSION OF THE LIST OF THE ELECTE D BODY TO ANOTHER GOVERNMENT AUTHORITY, WHICH ACCEPTED THE CHANGES. IF THE SAME IS CONSIDERED THE APPLICATION FILED BY THE ASSESSEE IN FORM 10A IS VALID. ITA NO.711/HYD/2012 M/S. PRAGATHI NAGAR EDUCATIONAL SOCIETY, HYD 2 3. THE LEARNED DEPARTMENTAL REPRESENTATIVE, PER CO NTRA, SUPPORTED THE IMPUGNED ORDER OF THE DIRECTOR OF INC OME-TAX(EXEMPTION), REJECTING REQUEST OF THE ASSESSEE FOR REGISTRATION UNDER S.12A OF THE ACT.. 4. WE HEARD BOTH SIDES AND PERUSED THE IMPUGNED OR DER OF THE DIRECTOR OF INCOME-TAX(EXEMPTION) AND OTHER MATERIA L AVAILABLE ON RECORD. WE FIND MERIT IN THE ARGUMENT OF THE LEARNE D COUNSEL. ACCORDINGLY, WE SET ASIDE THE IMPUGNED ORDER OF THE DIRECTOR OF INCOME- TAX(EXEMPTION) AND RESTORE THE MATTER TO THE FILE O F THE DIRECTOR OF INCOME-TAX(EXEMPTION) TO TAKE INTO ACCOUNT THE ABO VE FACTS AS TO THE AMENDED REGULATIONS AND THE NEWLY ELECTED BODY OF T HE SOCIETY AND REDECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW BY PASSING A SPEAKING ORDER, AFTER GIVING REASONABLE OPPORTUNITY OF HEARI NG TO THE ASSESSEE. 5. BEFORE PARTING, IT IS PERTINENT TO MENTION THAT THE LEARNED COUNSEL FURTHER MADE A STATEMENT AT BAR THAT THE AS SESSEE IS READY TO FURNISH THE FURTHER INFORMATION REQUIRED BY THE DIR ECTOR OF INCOME- TAX(EXEMPTION) TO VERIFY THE UNSECURED LOAN CREDITO RS AND OTHER LIABILITIES DISCUSSED IN PARAS 3 TO 5 OF THE IMPUGNED ORDER. FU RTHER, THE LEARNED COUNSEL ALSO MADE A STATEMENT AT THE BAR THAT IN THE SECOND ROUND OF PROCEEDINGS BEFORE THE DIRECTOR OF INCOME-TAX(EXEMP TION), HE SHALL DEMONSTRATE TO THE SATISFACTION OF THE DIRECTOR OF INCOME-TAX(EXEMPTION) THAT THE EXPENDITURE INCURRED BY THE ASSESSEE SOCIE TY IS WHOLLY FOR ACTIVITIES OF CHARITABLE NATURE, WHICH, IN THE EA RLIER ROUND, WAS NOT ACCEPTED, AS PER THE DISCUSSION GIVEN IN PARAS 6 AN D 7 OF THE IMPUGNED ORDER. CONSIDERING THE TOTALITY OF FACTS AND CIRCU MSTANCES OF THE CASE AND THESE STATEMENTS OF THE LEARNED COUNSEL BEFORE US, WE DIRECT THE DIRECTOR OF INCOME-TAX(EXEMPTION) TO GIVE REASONABLE OPPORTU NITY TO THE ASSESSEE TO FURNISH ALL THE REQUISITE INFORMATION CALLED FOR BY HIM EARLIER AND ALSO ALL SUCH OTHER EVIDENCE AS THE ASSESSEE MAY FEEL RELEVA NT, TO DEMONSTRATE ITS CASE AS TO THE CHARITABLE NATURE OF THE ASSESSEES ACTIVITIES AND THE ITA NO.711/HYD/2012 M/S. PRAGATHI NAGAR EDUCATIONAL SOCIETY, HYD 3 ENTITLEMENT OF THE ASSESSEE TO REGISTRATION UNDER S .12A OF THE ACT, AND THEREAFTER PASS APPROPRIATE SPEAKING ORDERS THEREON , WHILE DISPOSING AFRESH THE APPLICATION OF THE ASSESSEE UNDER S.10A FOR REGISTRATION UNDER S.12A OF THE ACT, AS DIRECTED BY US IN THE PRECEDIN G PARA. . 6. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 10.08.2012 SD/- SD/- ( ASHA VIJAYARAGHAVAN) (D.KARUNAKARA RAO) JUDICIAL MEMBER. ACCOUNTANT MEMBER. DT/- 10TH AUGUST, 2012 COPY FORWARDED TO: 1. M/S. PRAGATHI NAGAR EDUCATIONAL SO CIETY, C/O. SHRI S.RAMA RAO, FLAT NO.102, SHIRYA'S ELEGANC E, NO.3-6-643, STREET NO.9, HIMAYATNAGAR, HYDERABAD 500029 2. 3. DIRECTOR OF INCOME - TAX(EXEMPTION) HYDERABAD ASSTT. DIRECTOR OF INCOME-TAX(EXEMPTION), HYDERABAD 4. DEPARTMENTAL REPRESENTATIVE ITAT, HYDERABAD B.V.S.