Andhra Notre Dame Sisters Society , Warangal V. Commissioner Of Income Tax (Exemptions), Hyderabad

ITA 787/Hyd/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 5459 (ITAT-HYDERABAD)
• Duration Of Justice: 8 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-09-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 12-08-2021
• Assessment Year: 2020-2021
• Appeal Filed On: 29-12-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: Y V S T SAI
• Assessee Lawyers: A V RAGHURAM
• Keywords: Charitable institution
• Section: 12A; 12AA

Judgement Text

ITA NO 787 OF 2020 ANDHRA NOTRE DAME SISTERS SOCIE TY WARANGAL PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD (THROUGH VIDEO CONFERENCING) BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER ITA NO.787/HYD/2020 ASSESSMENT YEAR: 2020-21 ANDHRA NOTRE DAME SISTERS SOCIETY, WARANGAL PAN:AAHTA7714N VS. COMMISSIONER OF INCOME TAX (EXEMPTIONS) HYDERABAD (APPELLANT) (RESPONDENT) ASSESSEE BY: SRI A.V. RAGHURAM REVENUE BY : SRI Y.V.S.T. SAI, DR DATE OF HEARING: 12/08/2021 DATE OF PRONOUNCEMENT: 14/09/2021 ORDER PER SMT. P. MADHAVI DEVI, J.M. THIS IS ASSESSEES APPEAL FOR THE A.Y 2020-21 AGAIN ST THE ORDER OF THE CIT (E)- HYDERABAD, DENYING THE RE GISTRATION U/S 12AA OF THE ACT, VIDE ORDERS DATED 10.09.2020. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE SO CIETY FILED AN E-APPLICATION IN FORM NO.10A SEEKING REGIS TRATION U/S 12A OF THE I.T. ACT ON 14.02.2020. THE CIT (E) WHIL E CONSIDERING THE ASSESSEES APPLICATION OBSERVED THAT THE ASSESS EE HAS APPLIED FOR REGISTRATION U/S 12A OF THE ACT AS A CHARITABLE TRUST BUT THE OBJECTS OF THE ASSESSEE CONTAIN BOTH RELIGIOUS AND CHARITABLE OBJECTS. THEREFORE, HE HELD THAT THE SCHEME OF THE ACT DOES NOT PERMIT EXEMPTION TO THE TRUST WHICH IS HAVING MIXED OBJECTS. THUS, HE HELD THAT THE ASSESSEE IS NOT FIT FOR GRAN T OF REGISTRATION U/S 12AA OF THE ACT. AGAINST THIS ORDER OF THE CIT (E), THE ITA NO 787 OF 2020 ANDHRA NOTRE DAME SISTERS SOCIE TY WARANGAL PAGE 2 OF 4 ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL BY RAISIN G THE FOLLOWING GROUNDS OF APPEAL: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTIONS), HYDERABAD IS PERVERSE AND UNSUSTAINAB LE IN LAW. 2. THE FINDING OF THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) THAT THE APPELLANT HAS MIXED OBJECTS A ND HENCE NOT ELIGIBLE FOR REGISTRATION IS PERVERSE AND UNSUSTAINABLE BOTH ON FACTS AND IN LAW. THE COMMISS IONER (EXEMPTIONS) FAILED TO APPRECIATE THAT ALL THE OBJE CTS OF THE APPELLANT ARE DIRECTED TOWARDS EDUCATION AND THERE IS NO OBJECT WHICH IS RELIGIOUS, AND WAS PURSUED BY THE APPELLANT. 3. WITHOUT PREJUDICE, THE COMMISSIONER (EXEMPTIONS) ERRED IN NOT APPRECIATING THAT APPELLANT IS ENTITLED FOR REGISTRATION EVEN IF IT WERE TO CONTAIN MIXED OBJECTS, SO FAR SE PARATE BOOKS ARE MAINTAINED FOR THE RESPECTIVE OBJECTS. FOR THESE AND OTHER GROUNDS THAT MAY BE URGED AT TH E TIME OF HEARING, IT IS PRAYED THAT THE APPEAL MAY BE ALL OWED. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE ASSESSEE HAS BEEN CARRYING ON ONLY CHARITABLE A CTIVITIES AND THERE WAS NO RELIGIOUS ACTIVITIES CARRIED ON BY THE ASSESSEE. IN SUPPORT OF HIS CONTENTION THAT EVEN WHERE THERE ARE MIXED OBJECTS, THE ASSESSEE IS ELIGIBLE FOR EXEMPTION FOR CHARITAB LE PURPOSES IF THE ASSESSEE MAINTAINS SEPARATE BOOKS OF ACCOUNT, HE PL ACED RELIANCE UPON THE DECISION OF THE HON'BLE SUPREME COURT IN T HE CASE OF E CASE OF CIT VS. DAWOODI BOHRA JAMAT (CIVIL APPEAL) NOS. 2492 TO 2571/2014, DATED 20.02.2014. HE, THEREFORE, PRAYED FOR RECONSIDERATION OF THE ISSUE IN ACCORDANCE WITH SUC H DECISION. 4. THE LEARNED DR, ON THE OTHER HAND, RELIED UPON T HE ORDERS OF THE AUTHORITIES BELOW AND ALSO THE RECITA LS IN THE BYELAWS OF THE SOCIETY TO DEMONSTRATE THAT THE ASSESSEE SOC IETY IS SET UP ITA NO 787 OF 2020 ANDHRA NOTRE DAME SISTERS SOCIE TY WARANGAL PAGE 3 OF 4 FOR RELIGIOUS ACTIVITIES AS WELL. THEREFORE, HE SUB MITTED THAT THE CIT(E) HAS RIGHTLY DENIED THE EXEMPTION TO THE ASSE SSEE. 5. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE M ATERIAL ON RECORD, WE FIND THAT THE HON'BLE SUPREME COURT I N THE CASE OF CASE OF CIT VS. DAWOODI BOHRA JAMAT (CIVIL APPEAL) NOS. 2492 TO 2571/2014, DATED 20.02.2014 HAS HELD THAT EVEN IF T HE OBJECTIVES OF AN ASSESSEE TRUST ARE MIXED I.E. BOTH RELIGIOUS AND CHARTIABLE, THE ASSESSEE IS ELIGIBLE FOR REGISTRATION U/S 12AA OF THE ACT IN RESPECT OF THE CHARITABLE ACTIVITIES IF THE ASSESSE E IS ABLE TO DEMONSTRATE THAT IT IS MAINTAINING SEPARATE BOOKS O F ACCOUNT FOR BOTH THE ACTIVITIES. THEREFORE, WE DEEM IT FIT AND PROPER TO REMAND THE ISSUE TO THE FILE OF THE CIT (E) TO CONSIDER TH E ISSUE AFRESH IN ACCORDANCE WITH THE DECISION OF THE HON'BLE SUPREME COURT (CITED SUPRA). 6. IN THE RESULT, ASSESSEES APPEAL IS TREATED AS A LLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 14 TH SEPTEMBER, 2021. SD/- SD/- (LAXMI PRASAD SAHU) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 14 TH SEPTEMBER, 2021. VINODAN/SPS ITA NO 787 OF 2020 ANDHRA NOTRE DAME SISTERS SOCIE TY WARANGAL PAGE 4 OF 4 COPY TO: S.NO AD DRESSES 1 M/S. ANDHRA NOTRE DAME SISTERS SOCIETY, D.NO.3-19 5/1-2 THEEGARAJUPALLY, SAGEM MANAL, THEEGARAJUPALLE, WARA NGAL 506310 2 CIT(EXEMPTIONS), 2 ND FLOOR, AAYAKAR BHAVAN, BASHEERBAGH, HYDERABAD 3 ADD. CIT ( E ) - HYDERABAD 4 INCOME TAX OFFICER (E) - 4, HYDERABAD 5 DR, ITAT HYDERABAD BENCHES 6 GUARD FILE BY ORDER