Income Tax Appellate Tribunal - Hyderabad
Association Of Indian Management ... vs Ddit (Exemptions)-Ii, Hyd, Hyderabad on 29 March, 2021
IN THE INCOME TAX APPELLATE TRIBUNAL
HYDERABAD BENCHES "A" : HYDERABAD
(THROUGH VIDEO CONFERENCE)
BEFORE SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER
AND
SHRI S.S.GODARA, JUDICIAL MEMBER
ITA No. A.Y. Appellant Respondent
Deputy Director of Income
Tax,
46/Hyd/16 2010-11 Exemptions-II,
Hyderabad
Asst. Director of Income
Tax,
47/Hyd/16 2011-12 Exemptions-I,
Hyderabad
Income Tax Officer
(Exemptions)
48/Hyd/16 2012-13 Association of Indian
Ward-2,
Management Schools,
Hyderabad
Hyderabad
Commissioner of Income
[PAN: AAAAA2599R]
49/Hyd/16 2014-15 Tax (Exemptions),
Hyderabad
Income Tax Officer
2137/Hyd/18 2014-15 (Exemptions)-1,
Hyderabad
Asst. Commissioner of
2138/Hyd/18 2015-16 Income Tax (OSD)
(Exemptions),
Hyderabad
Income Tax Officer
1158/Hyd/19 2017-18 (Exemptions), Ward-1(2),
Hyderabad /
DCIT (CPC), Bangalore
For Assessee : Shri Samuel Nagadesi, AR
For Revenue : Smt. Nivedita Biswas, DR
Date of Hearing : 02-03-2021
Date of Pronouncement : 29-03-2021
ORDER
PER S.S.GODARA, J.M. :
The instant batch of seven cases pertains to a single assessee M/s.Association of Indian Management Schools. It :- 2 -:
Association of Indian Management Schools (Group cases) has filed the appeals ITA Nos.46 to 48/Hyd/2016 for AYs.2010-11, 2011-12 & 2012-13 against the CIT(A)-9, Hyderabad's common order dated 30-10-2015 in case Nos.0101, 0096/DDIT (Exemptions)-113/2014-15 and 0032/ITO(Exe), Ward-2/2015-16/CIT(A)-9, Hyd/2015-16 involving proceedings u/s.143(3) of the Income Tax Act, 1961 [in short, 'the Act']. The assessee's fourth appeal ITA No.49/Hyd/2016 is directed against the DCIT(HQ) (Exemptions), Office of CIT(E) Hyderabad's order dt.30-11- 2015 passed in the name of CIT(Ex), Hyderabad in file No.CIT(E) / Hyd / 24(5) / 12A / 2014-15 involving proceedings u/s.12AA of the Act. The assessee's next three appeals ITA Nos.2137/Hyd/18, 2138/Hyd/18 & 1158/Hyd/19 for AYs.2014-15, 2015-16 & 2017-18 have been preferred against the CIT(A)-9, Hyderabad's common order dt.12-10-2018 (in former two) in case Nos.10596/CIT(A)-9/Hyd/2017-18 involving proceedings u/s.143(3) of the Act and dt.26-06-2019 (in last year) in case No.10022/CIT(A)-9/Hyd/2019-20 in proceedings u/s.143(1) of the Act; respectively.
Heard both the parties. Case files perused.
2. We notice at the outset during the course of hearing that the assessee's six appeals except ITA No.49/Hyd/2016 are directed against the learned lower authorities' action denying u/s.11 exemption for want of Section 12AA registration by quoting hon'ble apex court's decision in UP Forest Corporation Vs. DCIT [297 ITR 1] (SC) that such a registration is a must so as to be eligible for Section 11 relief. The sole exception herein is assessee's appeal ITA No.49/Hyd/2016 wherein it has :- 3 -:
Association of Indian Management Schools (Group cases) challenged the DCIT, HQrs, Exemptions, O/o.CIT(Ex), Hyderabad's order dt.30-11-2015 reading as under:
"Sub: Application for grant of Registration u/s.12A - M/s.Association of Indian Management Schools, Rekha Deluxe Enclave, Punjagutta, Hyderabad - Reg.
*** You have filed a letter dt.15-05-2015 before the CIT(E), Hyderabad. It is mentioned therein that the above Society is registered u/s.12AA of the Act, 1961 before the DIT(E)/Bangalore vide No.AACTS-718-10A- VOL-AI-A665. It is also stated therein that the Society was shifted to Hyderabad subsequently. As per the applicant society, they have noticed that copy of the proceedings granting approval u/s.12AA was not available in their records and that they have made a request to issue a certified copy of the same before the DIT(E), Bangalore vide their letter dt.15-05-2007. Thus, as per the information filed by the applicant, it appears that they have misplaced the copy of registration purported to have been granted u/s.12AA of the Act. The above Society has now filed what is called by them a curative application in Form No.12A. However, there is no such provision like granting curative registration under the Act. Under the circumstances, the present application in Form No.10A cannot be acted upon. This is for your information".
3. Learned counsel's only case at this stage is that the DCIT does not have any jurisdiction to deal with its Section 12AA registration and therefore, the same is not sustainable in law thereby conferring the assessee automatic registration as it had prayed for by way of filing the corresponding application.
4. Learned departmental representative fails to dispute that the jurisdiction whether or not to accept the application in Section 12AA process has only been conferred on the CIT(E) as per the legislative scheme in the Act.
5. The Revenue's next vehement contention is that the assessee has claimed itself to be an already registered institution u/s.12AA in Bangalore and therefore its curative :- 4 -:
Association of Indian Management Schools (Group cases) application seeking very relief is not maintainable. We are of the view that such a course of action does not deserve to be agreed with per se. We notice from a perusal of the Revenue's paper book in Pages 1 to 3 that the CIT(E), Hyderabad has filed his clarification that the assessee's returns/acknowledgments upto AY.2005-06 bear registration number u/s.12A 2B- ACCTS-718-10A-VOL-AI-0665 which could not be traced despite the best of the efforts made from the departmental authorities' side. The fact also remains that this is not the Revenue's case that there has been any change in assessee's activity undertaken all along. We therefore reverse the DCIT's order under challenge in the instant 12AA registration process for want of jurisdiction and restore Section 12AA issue back to the CIT(Exemptions) for his appropriate adjudication as per law within three effective opportunities of hearing. It is made clear that assessee shall be at liberty to file all the relevant evidence not only qua to its activities carried out throughout but also that pertaining to the exemption relief granted in the preceding assessment years. This assessee's appeal ITA No.49/Hyd/2016 is accepted for statistical purpose in above terms.
6. Coming to assessee's Section 11 exemption appeals ITA Nos.46, 47 and 48/Hyd/2016, 2137 & 2138/Hyd/2018 and 1158/Hyd/2019, we hold that the same deserve to be restored back to the CIT(A) to grant the final outcome of CIT(E)'s adjudication on assessee's Section 12AA registration issue so as to avoid mutually contradictory findings. Ordered accordingly. It is made clear that the delay; if any called in all :- 5 -:
Association of Indian Management Schools (Group cases) this process shall not be attributable to the department authorities in any manner; whatsoever.
7. These assessee's appeals are treated as allowed for statistical purposes in above terms. A copy of this common order be placed in the respective case files.
Order pronounced in the open court on 29 th March, 2021 Sd/- Sd/-
( A. MOHAN ALANKAMONY ) ( S.S. GODARA )
ACCOUNTANT MEMBER JUDICIAL MEMBER
Hyderabad,
Dated: 29-03-2021
TNMM
:- 6 -:
Association of Indian Management Schools (Group cases) Copy to :
1.Association of Indian Management Schools, C/o.
Shri Samuel Nagadesi, Chartered Accountant, 408, Sri Ramakrishna Towers, Besides Image Hospitals, Nagarjuna Nagar, Ameerpet, Hyderabad.
2.Commissioner of Income Tax(Exemptions), Hyderabad.
3.Deputy Director of Income Tax(Exemptions)-II, Hyderabad.
4.DCIT(CPC), Bangalore.
5.Assistant Director of Income Tax(Exemptions)-I, Hyderabad.
6.Assistant Commissioner of Income Tax (OSD) (Exemptions)-Hyderabad.
7.Income Tax Officer (Exemptions), Ward-2, Hyderabad.
8.Income Tax Officer (Exemptions)-1, Hyderabad.
9.Income Tax Officer (Exemptions), Ward-1(2), Hyderabad.
10.CIT(Appeals)-9, Hyderabad.
11.CIT(Exemptions)-Hyderabad.
12.D.R. ITAT, Hyderabad.
13.Guard File.