Baba Sahed Dr. B.R.Ambedkar Memorial Society, Visakhapatnam V. THE CIT (EXEMTIONS), Hyderabad

ITA 99/VIZ/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8670 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 year(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-03-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 04-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DEBA KUMAR SONAWAL
• Keywords: Opportunity of being heard
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI B.R. BASKARAN, HONBLE ACCOUNTANT MEMBER & SHRI DUVVURU R.L. REDDY, HONBLE JUDICIAL MEMBER ITA NO. 99/VIZ/2016 M/S. BABA SAHEB DR. B.R. AMBEDKAR MEMORIAL SOCIETY, D.NO. 52 - 14 - 80, D.R. AMBEDKAR BHAVAN, SRINAGAR, VISAKHAPATNAM. VS. CIT (EXEMPTIONS) HYDERABAD. PAN NO. AACAB 0283 F (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI G.V.N. HARI ADVOCATE. DEPARTMENT BY : SHRI DEBA KUMAR SONAWAL CIT DR DATE OF HEARING : 19/03/2018. DATE OF PRONOUNCEMENT : 21 /03/2018. O R D E R PER B.R. BASKARAN , ACCOUNTANT MEMBER THE ASSESSEE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 28/09/2015 PASSED BY THE LD. CIT (EXEMPTIONS), HYDERABAD REJECTING THE APPLICATION FILED BY THE ASSESSEE SEEKING REGISTRATION UNDER SECTION 12A OF THE ACT. 2 2. THE FACTS RELATING TO THE ISSUE STATED IN BRIEF ARE THAT THE ASSESSEE HEREIN WAS REGISTERED AS A SOCIETY ON 13/04/1977. THE ASSESSEE WAS FORMED WITH THE FOLLOWING OBJECTS: - 1. TO RAISE A MEMORIAL BUILDING IN THE NAME OF DR. B.R.AMBEDKAR AT VISAKHAPATNAM CONSISTING OF A MEETING HALL, LIBRARY AND GUEST HOUSE. 2. TO PROPAGATE THE SOCIAL, CULTURAL AND EDUCATIONAL PHILOSOPHY OF DR. B.R. AMBEDKAR. 3. FOR DIFFUSION OF USE FUL KNOWLEDGE FOR THE BENEFIT OF THE MEMBERS OF THE SOCIETY. 3 . THE ASSESSEE MOVED AN APPLICATION IN PRESCRIBED FORM NO. 10A BEFORE THE LD.CIT(EXEMPTIONS), HYDERABAD SEEKING REGISTRATION UNDER SECTION 12AA OF THE ACT. THE LD.CIT(EXEMPTIONS), HOWEVER, REFUSED TO GRANT REGISTRATION ON THE FOLLOWING REASONS: - 3. IT IS NOTICED THAT INCOME & EXPENDITURE A/C, RECEIPTS & PAYMENTS A/C. ETC. FOR THE YEAR ENDED 31/03/2012, 31/03/2013, & 2013 - 14 HAVE BEEN FILED. HOWEVER, NO EVIDENCE OF HAVING FILED INCOME TAX RETURNS WERE FURNISHED. 4. THE OBJECT CLAUSE 3 SAYS FOR DIFFUSION OF USEFUL KNOWLEDGE FOR THE BENEFIT OF THE MEMBERS OF THE SOCIETY WHICH SHOWS THAT THE INTENTION OF THE SOCIETY IS TO WORK FOR MEMBERS I.E. FOR MUTUAL BENEFIT NATURE. 5. THOUGH THE SOCIETY WAS STARTED IN THE MONTH OF MAY, 1990, IT HAS NOT FILED NOTES ON ACTIVITIES DURING THE LAST 3 YEARS AS REQUIRED UNDER RULE 11AA(2) OF I.T. RULES, 1962 AND EVIDENCE THEREOF. 6. FURTHER, ON VERIFICATION OF INFORMATION, IT IS NOTICED THAT AS PER PAN CARD, DA TE OF INCORPORATION IS 23/04/2013, WHEREAS AS PER MEMORANDUM OF ASSOCIATION, THE DATE OF INCORPO0RATION IS IN 23/05/1990. HENCE, IT IS NOT POSSIBLE TO PROCEED WITH THE SAID APPLICATION IN FORM NO. 10A. 3 4. AGGRIEVED BY THE ORDER PASSED BY THE LD. CIT(EX EMPTIONS), THE ASSESSEE HAS FILED THIS APPEAL BEFORE US. 5. WE HEARD BOTH THE PARTIES AND PERUSED THE RECORDS. 6 . LD. AUTHORISED REPRESENTATIVE OF THE ASSESSEE SUBMITTED THAT THE L D . CIT(EXEMPTIONS) HAS REJECTED THE APPLI C ATION OF THE ASSESSEE WITHOUT PROPER REASONING. HE SUBMITTED THAT THE ASSESSEE HAS RESPONDED TO VARIOUS QUERIES RAISED BY LD CIT BY FILING ITS REPLY ON 21 - 09 - 2015. HE SUBMITTED THAT THE ASSESSEE HAS REPLIED THAT IT DID NOT FILE RETURN OF INC OME FOR THE YEARS 31/03/2012 TO 31/03/2014. HE SUBMITTED THAT THE ASSESSEE WAS NOT HAVING TAXABLE INCOME. HE FURTHER SUBMITTED THAT THE MEMBERS OF THE SOCIETY ARE THE PERSONS OF SCHEDULED CASTE, RESIDING IN THE AREA OF THE OPERATION OF THE ASSESSEE - SOCIET Y AND HENCE, DIFFUSION OF USEFUL KNOWLEDGE FOR THE BENEFIT OF THE MEMBERS OF THE SOCIETY WOULD ALSO AMOUNT TO CHARITABLE ACTIVITY. HE FURTHER SUBMITTED THAT THE DATE OF INCORPORATION OF THE ASSESSEE HAS WRONGLY BEEN MENTIONED IN THE PAN CARD, AND THE SAME CANNOT BE A GROUND FOR REJECTION OF APPLICATION OF THE ASSESSEE WHEN THE REGISTRATION GIVEN BY THE REGISTRAR OF SOCIETIES IS AVAILABLE ON RECORD. HE FURTHER SUBMITTED THAT THE ASSESSEE HAS BEEN CARRYING ON ACTIVITIES RELATING TO ITS OBJECTS AND HAS REPLIE D THE SAME TO LD . CIT, VIDE LETTER DATED 21/09/2015. ACCORDINGLY, THE LD. AUTHORISED REPRESENTATIVE OF 4 THE ASSESSEE CONTENDED THAT THE LD. CIT (EXEMPTIONS) WAS NOT JUSTIFIED IN REJECTING THE APPLICATION FILED BY THE ASSESSEE. ACCORDINGLY HE PRAYED THAT T HE LD CIT MAY BE DIRECTED TO GRANT REGISTRATION TO THE ASSESSEE. 7 . ON THE CONTRARY, LD. DEPARTMENTAL REPRESENTATIVE STRONGLY SUPPORTED THE ORDER PASSED BY THE LD. CIT(EXEMPTIONS). 8 . HAVING HEARD THE RIVAL CONTENTIONS, WE FIND MERIT IN THE CONTENTIONS OF THE ASSESSEE THAT REASONING GIVEN BY LD.CIT(EXEMPTIONS) FOR REJECTING THE APPLICATION OF THE ASSESSEE ARE NOT ADEQUATE TO WARRANT REGISTRATION. FROM THE SUBMISSIONS MADE BY THE LD. AUTHORISED REPRESENTATIVE OF THE ASSESSEE, WE NOTICE THAT THE ASSESSEE HA S FURNISHED ITS REPLIES TO VARIOUS QUERIES RAISED BY THE LD . CIT. SINCE THE MEMBERS OF THE TRUST BELONG TO SCHEDULED CASTE, EXPLANATION 2 TO SEC. 13 OF THE ACT WILL COME TO THE PROTECTION OF THE ASSESSEE. THE DATE OF FORMATION OF THE TRUST MENTIONED IN TH E PAN CARD WAS A MISTAKE, SINCE THE DATE OF FORMATION OF THE ASSOCIATION IS THE DATE ON WHICH THE INCORPORATION CERTIFICATE IS GIVEN BY THE REGISTRAR OF SOCIEITES. THE ASSESSEE HAS FURNISHED REASONS FOR NON - FILING OF RETURN OF INCOME FOR FY ENDED 31.3.201 2 TO 31.3.2014 AND, IN FACT, DURING THAT PERIOD, NO REGISTRATION U/S 12AA WAS AVAILABLE. SINCE THE ASSESSEE HAS FILED FORM NO.10A ON 31.3.2015, IT APPEARS THAT THE 5 ASSESSEE IS SEEKING REGISTRATION FOR SUBSEQUENT YEARS ONLY. THOUGH THE ASSESSEE HAS MENTIO NED SOME OF THE ACTIVITIES UNDERTAKEN BY IT IN THE REPLY FILED TO LD . CIT, PROBABLY, THE LD . CIT MAY BE EXPECTING DETAILED REPORT ON THE ACTIVITIES. 9. UNDER THE SET OF FACTS, WE ARE OF THE VIEW THAT THE APPLICATION FILED BY THE ASSESSEE SHOULD BE PROCES SED AFRESH IN ACCORDANCE WITH LAW. ACCORDINGLY, WE SET ASIDE THE ORDER PASSED BY THE LD.CIT(EXEMPTIONS) AND RESTORE ALL THE ISSUES TO HIS FILE WITH A DIRECTION TO PROCESS THE APPLICATION OF THE ASSESSEE AFRESH, IN ACCORDANCE WITH LAW AFTER AFFORDING ADEQU ATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. WE ALSO DIRECT THE ASSESSEE TO FURNISH ALL THE DETAILS THAT MAY BE CALLED FOR BY LD . CIT IN THIS REGARD. 10. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON THIS 2 1 S T DAY OF MARCH, 2018. S D / - S D / - ( DUVVURU R.L. REDDY ) ( B.R. BASKARAN ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 2 1 S T MARCH, 2018. VR/ - 6 COPY TO: THE ASSESSEE - M/S. BABA SAHEB DR. B.R. AMBEDKAR MEMORIAL SOCIETY, D.NO. 52 - 14 - 80, D.R. AMBEDKAR BHAVAN, SRINAGAR, VISAKHAPATNAM. THE REVENUE CIT (EXEMPTIONS), HYDERABAD. THE D.R., VISAKHAPATNAM. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SR. PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.