DCIT, Central Circle-1, Hyd, Hyderabad V. J B Educational Society, Hyd, Hyderabad

MA 116/Hyd/2019

• Counselvise Citation: [2019] 113 COUNSELVISE.COM (IT) 6422 (ITAT-HYDERABAD)
• Duration Of Justice: 2 month(s) 10 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 21-11-2019
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 15-11-2019
• Assessment Year: 2012-2013
• Appeal Filed On: 11-09-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: NILANJAN DEY
• Assessee Lawyers: S RAMA RAO
• Keywords: Period of limitation
• Section: 143(3); 12AA; 254(2); 147; 10; 11

Judgement Text

MA 115 AND 116 OF 2019 JOGINPALLY BR EDUCATIONAL SO CIETY HYDERABAD. PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER MA NOS.115 & 116/HYD/2019 (ARISING OUT OF ITA NOS.988 & 990/HYD/2015) ASSESSMENT YEAR: 2012-13 JOGINPALLY BR EDUCATIONAL SOCIETY, HYDERABAD PAN: AAATJ4159P VS. DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1, HYDERABAD (APPELLANT) (RESPONDENT) ASSESSEE BY: SRI S. RAMA RAO REVENUE BY : SRI NILANJAN DEY, DR DATE OF HEARING: 15/11/2019 DATE OF PRONOUNCEMENT: 21/11/2019 ORDER PER SMT. P. MADHAVI DEVI, J.M. BOTH ARE THE APPLICATIONS FILED BY THE ASSESSEE U/S 254(2) OF THE ACT FOR RECTIFICATION OF ALLEGED MIST AKES IN THE ORDER OF THE TRIBUNAL. THE CONTENTS OF THE PETITION ARE A S UNDER: PETITION U /S 254(2) OF THE LT.ACT THE PETITIONER IS A SOCIETY REGISTERED UNDER THE PU BLIC SOCIETIES REGULATION ACT WITH THE MAIN OBJECT OF ESTABLISHING AND MAINTAINING EDUCATIONAL INSTITUTIONS. FOR THE ASSES SMENT YEAR 2012-13, THE PETITIONER FILED THE RETURN OF INCOME ON 30.09.2012 CLAIMING THE INCOME TO BE EXEMPT EITHER U/S 11 OR U/S 10(23C) OF THE I.T.ACT. THE ASSESSING OFFICER V IDE ORDER U/S 143(3) RWS 147 OF THE LT. ACT DATED 10.03.2014 REJECTED THE CLAIM OF THE APPELLANT ON THE GROUND THAT APPRO PRIATE AUTHORITIES DID NOT GRANT REGISTRATION VI] S 12AA O R U/S 10(23C) OF THE I.T.ACT. THE APPELLANT FILED APPEAL BEFORE THE HON'BLE ITAT. THE HON'BLE ITAT VIDE ORDER IN ITA NO.9S&/H/2015 DATED MA 115 AND 116 OF 2019 JOGINPALLY BR EDUCATIONAL SO CIETY HYDERABAD. PAGE 2 OF 4 18.11,20J 5 DISMISSED THE APPEAL. THE HON'BLE ITAT WHILE DISMISSING THE APPEAL, AT PARA 4, HELD AS UNDER: 'WE HAVE HEARD THE ARGUMENTS OF LD. COUNSEL APPEARING ON BEHALF OF THE ASSESSES AS WELL AS THE LD. D.R. AND A LSO PERUSED THE WRITTEN SUBMISSIONS. FIRST PROVISO TO SECTI ON 10(23)(C)(VI) MANDATES THAT AN INSTITUTION HAS TO MAKE A N APPLICATION IN THE PRESCRIBED FORM AND MANNER TO THE PRESCRIBED AUTHORITY FOR THE PURPOSE OF GRANT OF EXEM PTION. 14TH PROVISO THERETO STATES THAT WITH REGARD TO ANY INSTITUTI ON REFERRED TO IN THE FIRST PROVISO IF AN APPLICATION I S MADE AFTER 1 ST DAY OF JUNE, 2006, FOR THE PURPOSE OF GRANT OF EXEM PTION, IT HAS TO BE ON OR BEFORE 30TH DAY OF SEPTEMBER OF THE RELEVANT ASSESSMENT YEAR FOR WHICH EXEMPTION IS SOUGHT . IN THE INSTANT CASE, IN BOTH THE CASES ON HAND, AS COULD B E NOTICED FROM THE WRITTEN SUBMISSIONS FILED ON BEHALF OF THE ASSESSSEES, AN APPLICATION FOR APPROVAL UNDER SECTION 10(23) (C) WAS FILED ON 01.10.2012 AND CERTAINLY NOT BEFORE 30.09.2012 AND THUS FOR BOTH THE YEARS UNDER CONSIDER ATION THE ASSESSES CANNOT CLAIM EXEMPTION IN THIS CASE, ADMITTEDLY, EXEMPTION WAS NOT GRANTED BY THE SPECIFIED AUTHORITY UNDER SECTION 10(23)(C)(VI) OF THE ACT AND I N FACT APPLICATIONS WERE FILED ONLY ON 01. 1 0.2012 AND THE REFORE FOR BOTH THE YEARS UNDER CONSIDERATION ASSESSEES HEREIN ARE NOT ENTITLED TO GRANT OF EXEMPTION. UNDER THESE CIRCUMSTANC ES, WE AFFIRM THE ORDERS PASSED BY THE LD. CIT(A)'. IT IS SUBMITTED THAT 30.09.2012 IS SUNDAY AND IS A HOLIDAY. THEREFORE, THE PETITION WAS FILED ON 01.10.2012. TH E PETITIONER HUMBLY SUBMITS THAT THE APPLICATION FOR APPROVAL U/ S 10(23C) WAS FILED WITHIN THE TIME. THIS IS A MISTAKE APPARE NT FROM RECORD. AS THERE IS A MISTAKE IN THE ORDER OF THE HON'BLE I TAT, THE APPELLANT FILED AN APPLICATION FOR MODIFICATION OF THE ORDER U/ S 254(2) OF THE I.T. ACT. THE HON'BLE ITAT VIDE ORDER IN MA NOS.12 & 13/HYD/20 17 DID NOT CONSIDER THE APPLICAT ION ON THE GROUND THAT THEY WERE BARRED BY LIMITATION AND, THEREFORE, THE APPLICATIONS WERE NOT ADMITTED. THE APPELLANT H UMBLY SUBMITS THAT THE HON'BLE HIGH COURT OF MADHYA PRADE SH IN THE CASE OF DISTRICT CENTRAL CO-OPERATIVE BANK LIMITED VS. UNION OF INDIA REPORTED IN 398 ITR 161 HELD THAT THE AMENDME NT TO SEC.254(2) IS PROSPECTIVE IN NATURE AND NOT RETROSP ECTIVE IN OPERATION. IT IS SUBMITTED THAT THE ORDER OF THE HO N'BLE ITAT WAS PRONOUNCED ON 18.11.2015 AND THERE IS TIME TILL 30.11.2019 TO FILE PETITION U/ S 254(2) OF THE I.T. ACT. THEREFORE, THE APPELLANT IS SUBMITTING THE APPLICAT ION REQUESTING THE HON'BLE ITAT TO PASS APPROPRIATE ORD ERS IN THE MATTER. THE PETITIONER REQUESTS THE HON'BLE ITAT TO KINDLY PASS APPROPRIATE ORDERS RECTIFYING THE ORDER PASSED IN I TA NO.988/H/2015 . SPECIFIED AUTHORITY MAY BE DIRECTED TO MA 115 AND 116 OF 2019 JOGINPALLY BR EDUCATIONAL SO CIETY HYDERABAD. PAGE 3 OF 4 DISPOSE OFF THE VALID PENDING APPLICATION FILED U/S 10(23C)(VI) OF THE I. T. ACT. 2. THE LEARNED COUNSEL FOR THE ASSESSEE REITERATED THE ABOVE SUBMISSIONS AND ALSO PLACED RELIANCE UPON SEC TION 10 OF GENERAL CLAUSES ACT WHICH PROVIDES AS UNDER: 10. COMPUTATION OF TIME (1) WHERE, BY ANY CENTRA L ACT OR REGULATION MADE AFTER THE COMMENCEMENT OF THIS A CT, ANY ACT OR PROCEEDING IS DIRECTED OR ALLOWED TO BE DONE OR TAKEN IN ANY COURT OR OFFICE ON A CERTAIN DAY OR WI THIN A PRESCRIBED PERIOD, THEN, IF THE COURT OR OFFICE IS CLOSED ON THAT DAY OR THE LAST DAY OF THE PRESCRIBED PERIOD, THE ACT OR PROCEEDING SHALL BE CONSIDERED AS DONE OR TAKEN IN DUE TIME IF IT IS DONE OR TAKEN ON THE NEXT DAY AFTERWA RDS ON WHICH THE COURT OR OFFICE IS OPEN: 3. THE LEARNED DR WAS ALSO HEARD. IN VIEW OF SECTIO N 10 TO THE GENERAL CLAUSES ACT, WE AGREE WITH THE LEARN ED COUNSEL FOR THE ASSESSEE THAT WHERE THE LAST DAY OF THE PRESCRI BED PERIOD, IN THIS CASE 30.09.2012 HAPPEN TO BE A SUNDAY, THE VER Y NEXT WORKING DAY I.E. 1.10.2012 SHALL BE TREATED AS THE LAST DAY FOR FILING OF THE APPLICATION FOR APPROVAL U/S 10(23)C OF THE ACT. THIS FACT WAS NOT BROUGHT TO THE NOTICE OF THE TRIBUNAL AT THE TIME OF HEARING AND THEREFORE, THE TRIBUNAL HAD HELD THAT T HE PETITION FILED ON 1.10.2012 WAS BEYOND THE PERIOD OF LIMITATION. I N VIEW OF SECTION 10 OF GENERAL CLAUSES ACT, THE APPLICATION FILED ON 1.10.2012 IS TO BE CONSIDERED TO BE WITHIN THE TIME . HOWEVER, WE FIND THAT THE TRIBUNAL HAS DISMISSED THE ASSESSEES APPEAL HOLDING THAT SINCE THE APPLICATION FOR REGISTRATION U/S 10(23)C(VI) WAS FILED ON 1.10.2012, THE ASSESSEE ARE NOT ENTITL ED FOR GRANT OF EXEMPTION. THIS FINDING OF THE TRIBUNAL IS ERRONEOU S AND THEREFORE, NEEDS TO BE RECONSIDERED IN THE LIGHT OF SECTION 10 OF GENERAL CLAUSES ACT. THEREFORE, WE DEEM IT FIT AND PROPER TO RECALL THE ORDER OF THE TRIBUNAL DATED 18.11.2015 AND RE-F IX THE APPEALS FOR HEARING IN DUE COURSE. MA 115 AND 116 OF 2019 JOGINPALLY BR EDUCATIONAL SO CIETY HYDERABAD. PAGE 4 OF 4 4. IN THE RESULT, M.AS FILED BY THE ASSESSEE ARE AL LOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 21 ST NOVEMBER, 2019. SD/- SD/- (A. MOHAN ALANKAMONY) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 21 ST NOVEMBER, 2019. VINODAN/SPS COPY TO: 1 JOGINPALLY BR EDUCATIONAL SOCIETY, C/O MAHESH VIR ENDER & SRIRAM, C.AS, 6-3-788/36 & 37A, AMEERPET, HYDERABAD 2 DCIT, C.C.-1 HYDERABAD 3 CIT (A)-XI HYDERABAD 4 CIT CENTRAL, HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER