Ramoji Foundation, R.R.Dist V. DIT(Exemptions), Hyderabad

MA 142/HYD/2014

• Counselvise Citation: [2014] 124 COUNSELVISE.COM (IT) 2514 (ITAT-HYDERABAD)
• Duration Of Justice: 2 month(s) 3 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 14-11-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 10-09-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: D SUDHAKAR RAO
• Section: 80G; 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA.NO.1471/H/2014 RAMOJI FOUNDATION RAMOJI FILM CITY RANGA REDDY DISTRICT PAN AACTR0087Q VS. DIRECTOR OF INCOME TAX (EXEMPTIONS) HYDERABAD. (APPELLANT) (RESPONDENT) M.A.NO.142/HYD/2014 ARISING OUT OF ITA.NO.400/HYD/2013 RAMOJI FOUNDATION RAMOJI FILM CITY RANGA REDDY DISTRICT PAN AACTR0087Q VS. DIRECTOR OF INCOME TAX (EXEMPTIONS) HYDERABAD. (APPELLANT) (RESPONDENT) FOR ASSESSEE MR. K. GOPAL FOR REVENUE MR. D. SUDHAKAR RAO DATE OF HEARING 11.11.2014 DATE OF PRONOUNCEMENT 14.11.2014 ORDER PER B. RAMAKOTAIAH, A.M. THESE TWO ARE POSTED BEFORE US FOR ADJUDICAT ION WHICH ARISE IN ASSESSEES CASE CONSEQUENT TO THE AP PEALS IN ITA.NO.400/HYD/2013 DISPOSED OFF BY ITAT ON 28.06.2 013. 2. BRIEF FACTS OF THE CASE ARE THAT ASSESSEE RAMOJ I FOUNDATION IS A TRUST FORMED BY A DEED EXECUTED ON 31.07.2012 AND HAD FILED AN APPLICATION BEFORE DIT(EXEMPTIONS) HYD, IN FORM 10A SEEKING REGISTRAT ION UNDER 2 ITA.NO.1471/H/2014 & MA.NO.142/H/2014 RAMOJI FOUNDATION, RANGA REDDY DISTRICT. SECTION 12AA OF THE I.T. ACT, 1961. ALONG WITH THAT ASSESSEE ALSO FILED AN APPLICATION IN FORM 10G SEEKING APPRO VAL UNDER SECTION 80G(5). LD. DIT(E) CONSIDERED SUCH APPLICAT IONS AND REJECTED THEM VIDE ORDER DATED 29.01.2013. FOR THE REASONS CONSIDERED BY HIM, DIT(E) REFUSED TO REGISTER THE T RUST UNDER SECTION 12AA OF THE ACT. CONSEQUENTLY, THE OTHER AP PLICATION IN FORM 10G FILED BY ASSESSEE TRUST SEEKING APPROVAL U NDER SECTION 80G(5) WAS ALSO REJECTED BY THE SAME ORDER. EVEN THOUGH ASSESSEE HAS PREFERRED TWO APPLICATIONS IN F ORM 10A AND 10G FOR SEEKING REGISTRATION UNDER SECTION 12AA AND APPROVAL UNDER SECTION 80G BEING SEPARATE PROCEEDIN GS, THE DIT(E) DISPOSED OF THEM BY COMMON ORDER DATED 29.01 .2013. ASSESSEE PREFERRED AN APPEAL TO THE ITAT IN ITA.NO.400/HYD/2013 WHEREIN ASSESSEE HAS ONLY CHALL ENGED REJECTION OF APPLICATION SEEKING REGISTRATION UNDER SECTION 12AA. ALL THE SIX GROUNDS RAISED THEREIN ARE ONLY O N THE ISSUE OF REGISTRATION UNDER SECTION 12AA. THERE WAS NO AP PEAL PREFERRED ON THE REJECTION OF APPLICATION UNDER SEC TION 80G. ASSESSEE HAS ALSO NOT RAISED ANY GROUND OR ADDITION AL GROUND IN THE APPEAL PREFERRED, EVEN THOUGH DIT(E) REJECT ED BOTH THE APPLICATIONS BY THE SAME ORDER. THE ITAT VIDE ITS O RDER DATED 28.06.2013 DIRECTED THE DIT(E), ON CONSIDERING THE AMENDMENTS MADE TO THE TRUST DEED, TO GRANT REGISTR ATION UNDER SECTION 12AA, WHICH WAS SUBSEQUENTLY GRANTED BY DIT(E). 3. ASSESSEE VIDE ITS LETTER DATED 07.05.2014 REFER RING TO THE ORDER OF ITAT REQUESTED THE DIT(E) TO CONSID ER THE APPLICATION MADE UNDER SECTION 80G. DIT(E) VIDE LE TTER DATED 09.07.2014 INFORMED ASSESSEE THAT ON THE SPECIFIC D IRECTION OF ITAT IN THEIR ORDER IN ITA.NO.400/HYD/2013 DATED 28 .06.2013 3 ITA.NO.1471/H/2014 & MA.NO.142/H/2014 RAMOJI FOUNDATION, RANGA REDDY DISTRICT. AND IN STRICT COMPLIANCE TO THE SAID ORDER OF TRIBU NAL, AN ORDER GRANTING ONLY REGISTRATION UNDER SECTION 12AA(1)(B) (I) OF THE I.T. ACT HAS BEEN PASSED. THE DIT(E) FURTHER INFORMED TH AT IT IS NOT POSSIBLE TO PASS FURTHER ORDERS UNDER 80G AND SUGGE STED THAT ASSESSEE MAY FILE FRESH APPLICATION IN FORM 10G FOR PROCESSING THE SAME EXPEDITIOUSLY. ASSESSEE CHOOSE TO FILE APP EAL ON THIS COMMUNICATION WHICH IS THE PRESENT APPEAL ITA.NO.14 71/HYD/ 2014 CONTESTING IN THREE GROUNDS REGARDING NON-GRAN TING OF 80G, CONSEQUENT TO GRANTING REGISTRATION UNDER SECT ION 12AA. ASSESSEE ALSO PREFERRED MA.NO.142/HYD/2014 IN THE E ARLIER APPEAL SEEKING DIRECTION TO DIT(E) TO GRANT REGISTR ATION UNDER SECTION 80G AS THE REGISTRATION UNDER SECTION 12AA HAS ALREADY BEEN GRANTED. SINCE BOTH PROCEEDINGS ARE INTER-LINK ED, WE HEARD THEM TOGETHER AND CONSIDERED BY THIS COMMON O RDER. 4. LD. COUNSEL SUBMITTED THAT ITAT IS COMPETENT TO PASS ORDERS AS IT DEEMS FIT AND SINCE DIT(E) REJE CTED THE APPLICATION CONSEQUENT TO HIS FINDING THAT APPLICAT ION UNDER SECTION 12AA CANNOT BE ENTERTAINED, NOW THAT REGIST RATION UNDER SECTION 12AA WAS GRANTED, CONSEQUENTIAL APPRO VAL UNDER SECTION 80G SHOULD BE GRANTED. LD. COUNSEL RE QUESTED FOR EITHER DIRECTION IN ITA.NO.1471/HYD/2014 OR MOD IFYING THE ORDER ALREADY PASSED BY ENTERTAINING THE MISCELLANE OUS APPLICATION. 5. LD. D.R. OBJECTED TO THE SAME. 6. WE HAVE CONSIDERED THE ISSUE AND PERUSED THE DOCUMENTS ON RECORD INCLUDING THE ORDERS OF THE AUT HORITIES. AS BRIEFLY STATED EARLIER, ASSESSEE PREFERRED TWO A PPLICATIONS FOR SEEKING REGISTRATION UNDER TWO DIFFERENT SECTIONS. LD. DIT(E) HOWEVER DISPOSED OF THEM BY COMMON ORDER IN WHICH M OST OF 4 ITA.NO.1471/H/2014 & MA.NO.142/H/2014 RAMOJI FOUNDATION, RANGA REDDY DISTRICT. THE DISCUSSION IS ON GRANTING REGISTRATION UNDER SE CTION 12AA WHICH HE REJECTED. HOWEVER, SINCE REGISTRATION UNDE R SECTION 12A WAS NOT GRANTED CONSEQUENTLY, HE ALSO REJECTED THE APPLICATION UNDER SECTION 80G. ASSESSEE CHOOSE TO PREFER APPEAL ONLY ON THE ISSUE OF REGISTRATION UNDER SECT ION 12AA. AS ALREADY STATED, ASSESSEE NEITHER RAISED ANY GROUND ON ISSUE OF 80G NOR PREFERRED ANY APPEAL ON THE REJECTION OF AP PLICATION UNDER SECTION 80G. THEREFORE, ITAT HAD NO OCCASION TO CONSIDER OR EXAMINE THE ISSUE OF 80G. EVEN THOUGH, THE STATUTE PERMITS ITAT TO PASS ORDERS AS IT DEEMS FIT, HOWE VER, ITAT CANNOT PASS ORDERS BEYOND THE SCOPE OF APPEAL. THE SCOPE OF APPEAL CONSIDERED IN ITA.NO.400/HYD/2013 AS CONTEST ED BY ASSESSEE IN ITS GROUNDS IS ONLY WITH REFERENCE TO G RANTING OF REGISTRATION UNDER SECTION 12AA, WHICH ITAT ALLOWED THE CONTENTIONS AND DIRECTED THE DIT(E) TO GRANT REGIST RATION UNDER SECTION 12AA. TO THAT EXTENT, THERE IS NO ERROR IN THE ORDER OF ITAT AND THEREFORE, M.A. PREFERRED BY ASSESSEE SEEK ING DIRECTION FOR GRANT OF REGISTRATION UNDER 80G, WHIC H WAS NOT SUBJECT MATTER OF APPEAL CANNOT BE CONSIDERED AT AL L. THEREFORE, WE ARE OF THE OPINION THAT THERE IS NO MERIT IN M.A . PREFERRED BY ASSESSEE. ACCORDINGLY, THE SAME IS REJECTED. 7. NOW COMING TO THE APPEAL IN ITA.1471/HYD/2014, HEREIN ALSO ASSESSEE IS SEEKING DIRECTIONS FOR APPR OVAL UNDER 80G. ASSESSEES APPLICATION IN FORM 10G WAS ALREADY DISPOSED OF BY DIT(E) VIDE HIS COMMON ORDER DATED 29.01.2013 AND SO NO APPLICATION WAS PENDING BEFORE HIM. WHATEVER MAY BE THE REASON FOR REJECTION OF THE APPROVAL, THE FACT IS T HAT THE SAID APPLICATION MADE BY ASSESSEE WAS DISPOSED OFF AND A SSESSEE HAS NOT CHOSEN TO PREFER ANY APPEAL ON THAT ISSUE. THEREFORE, WHEN SOUGHT A SIMILAR APPROVAL UNDER SEC. 80G, WE A RE OF THE 5 ITA.NO.1471/H/2014 & MA.NO.142/H/2014 RAMOJI FOUNDATION, RANGA REDDY DISTRICT. OPINION THAT DIT(E) IS CORRECT IN COMMUNICATING TH AT HE CANNOT PASS ANY ORDERS, AS THERE IS NO DIRECTION FR OM HIGHER AUTHORITY ON THAT APPLICATION. IN THE ABSENCE OF A NY APPLICATION PENDING BEFORE DIT(E), HE CANNOT GRANT ANY RELIEF AS SOUGHT BY ASSESSEE. SINCE THE PRESENT APPEAL SEE KING DIRECTION TO GRANT 80G CANNOT BE ENTERTAINED BY ITA T IN THE ABSENCE OF PENDING APPLICATION BEFORE DIT(E), WE AR E OF THE OPINION THAT ASSESSEES GROUNDS CANNOT BE CONSIDERE D. MOREOVER THE TERMS AND CONDITIONS FOR GRANTING APPR OVAL UNDER SEC.80G ARE REQUIRED TO BE EXAMINED IN DETAIL BY TH E DIT(E). 8. ASSESSEE HOWEVER, IS FREE TO MAKE AN APPLICATIO N AFRESH AS INTIMATED BY DIT(E). SINCE THE ISSUE OF 8 0G WAS NOT AN ISSUE CONTESTED BEFORE THE ITAT IN EARLIER PROCE EDINGS AND AS THERE IS NO DIRECTION TO DIT(E) WITH REFERENCE T O ISSUE OF APPROVAL UNDER SEC.80G IN THOSE ORDERS, THIS FORUM CANNOT GIVE ANY DIRECTION ON THE ISSUE AS THERE ARE NO PEN DING PROCEEDINGS BEFORE THE DIT(E) ON THAT. ACCORDINGLY, APPEAL ITA.NO.1471/HYD/2014 IS ALSO DISMISSED. 9, IN THE RESULT, ITA.NO.1471/HYD/2014 AND MA.NO.142/HYD/2014 IN ITA.NO.400/HYD/2013 OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 14.11.2014. SD/- SD/- (SAKTIJIT DEY) (B.RAMAKOTAIAH) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED 14 TH NOVEMBER, 2014 VBP/- 6 ITA.NO.1471/H/2014 & MA.NO.142/H/2014 RAMOJI FOUNDATION, RANGA REDDY DISTRICT. COPY TO 1. RAMOJI FOUNDATION, RAMOJI FILM CITY, RANGA REDDY DISTRICT. PIN 501 512. 2. DIRECTOR OF INCOME TAX (EXEMPTIONS), 3 RD FLOOR, ANNEXE BUILDING, AAYAKAR BHAVAN, BASHEERBAGH, HYDERABAD 500 004. 3. THE ADIT(E)-II, HYDERABAD 4. D.R. ITAT B BENCH, HYDERABAD.