Income Tax Appellate Tribunal - Bangalore
M/S.Sadiya Educational And Charitable ... vs Commissioner Of Income Tax ... on 18 August, 2017
IN THE INCOME TAX APPELLATE TRIBUNAL
"B" BENCH : BANGALORE
BEFORE SHRI A.K. GARODIA, ACCOUNTANT MEMBER AND
SHRI LALIET KUMAR, JUDICIAL MEMBER
ITA No. 2154/Bang/2016
M/s. Sadiya Educational &
Charitable Trust,
Sadiya Nagar, The Commissioner of
Shiralkoppa, Vs. Income Tax (Exemptions),
Shimoga - 577 428. Bangalore.
PAN: AAKTS 8671H
APPELLANT RESPONDENT
Appellant by : Shri V. Srinivasan, Advocate
Respondent by : Ms Neera Malhotra, CIT(DR)
Date of hearing : 08.08.2017
Date of Pronouncement : 18.08.2017
ORDER
Per Shri A.K. Garodia, Accountant Member
This appeal is filed by the assessee which is directed against the order of ld. CIT(E), Bangalore dated 19.10.2016 u/s. 12AA of the IT Act.
2. The grounds raised by the assessee are as under.
"1. The orders of the authorities below in so far as they are against the appellant are opposed to law, equity, and weight of evidence, probabilities, facts and circumstances of the case.ITA No. 2154/Bang/2016 Page 2 of 6
2. The learned CIT [Exemptions] is not justified in granting recognition u/s. 12AA of the Act while giving effect to the orders of the Hon'ble ITAT under the limb of "AGPU", which is totally opposed to law and facts of the appellant's case.
3. The learned CIT [exemptions] ought to have appreciated that the appellant has objects of medical relief, education, relief to the poor and other objects of general public utility and hence, registration ought to have been granted without any qualifications under the facts and in the circumstances of the appellant's case.
4. For the above and other grounds that may be urged at the time of hearing of the appeal, your appellant humbly prays that the appeal may be allowed and Justice rendered and the appellant may be awarded costs in prosecuting the appeal and also order for the refund of the institution fees as part of the costs."
3. It was submitted by the ld. AR of the assessee that in the first round, the matter was decided by the Tribunal in ITA Nos. 422 and 1632/Bang/2013 dated 04.09.2015 and copy of this tribunal order is available on pages 10 to 25 of paper book. He pointed out that as per this tribunal order, the Tribunal held that the registration u/s. 12AA of IT Act should be granted to the assessee. In particular attention was drawn in Para 6.7 of the Tribunal order available on pages 24 and 25 of the paper book. Thereafter, he pointed out that in the impugned order, registration is granted by the ld. CIT(E) but with this qualification that this registration is under the limb of 'AGPU' in the status of charitable trust. He thereafter pointed out that on pages 1 to 9 of paper book is another ITA No. 2154/Bang/2016 Page 3 of 6 Tribunal order rendered in case of M/s. Rabiya Basari Rahamat-Ulla-Hi Allayha Charitable Trust in ITA No. 2153/Bang/2016 dated 05.07.2017 and in particular, our attention was drawn to Para no. 3.2 of this Tribunal order and it was pointed out that in that case also, the registration was granted by the ld. CIT(E) with the same qualification that registration is granted under the category 'AGPU' and the Tribunal set aside the said order of CIT(E) and directed him to pass a fresh order of registration u/s. 12AA of IT Act without adding his own qualification thereto such as 'AGPU' etc. He submitted that in the present case also, similar direction should be given to ld. CIT(E). The ld. DR of revenue supported the order of CIT(E).
4. We have considered the rival submissions. First of all we reproduce Para no. 6.7 from the Tribunal order in assessee's own case for first round from pages 24 and 25 of paper book. The same is as under.
"6.7 From a perusal of the aforesaid objects extracted by us above, it appears to us that the objects of the assessee trust are charitable in nature, coming under the provisions of Section 2(15) of the Act. The only objection of the ld. CIT for grant of Registration was that the objects of the Trust contained in Deed dt. 4.6.2005 showed that the trust was set up for the benefit of a particular community.
Whatever may be the correctness or otherwise of the said findings of the learned CIT, it is only the amended objects that have to be considered for purpose of grant of Registration. Thus, in our view, the objections of the ld. CIT with regard to the provisions of section 13(1)(b) ITA No. 2154/Bang/2016 Page 4 of 6 of the Act, are therefore no longer relevant. In this view of the matter, the CIT is directed to accord the assessee trust Registration under Section 12AA of the Act. In any case, the grant of registration is only a step in the process for claim of exemption under Section 11 to 13 of the Act to enable the Assessing Officer to ensure that the assessee complies with the requirements contained therein to claim exemption."
5. Now we reproduce Para no. 3.2 of the Tribunal order rendered in the case of M/s. Rabiya Basari Rahamat-Ulla-Hi Allayha Charitable Trust(supra) from pages 6 to 8 of the paper book.
"3.2.1 We have heard the rival contentions of both the ld AR for the assessee and the ld DR for Revenue. According to the ld AR, the ld CIT was not justified in granting the assessee registration u/s 12AA of the Income-tax Act, 1961 (in short 'the Act') under the limb 'AGPU' when the objects of the assessee were medical relief, education, relief to the poor and other objects of general public utility. It is contended that Registration ought to have been granted without any qualification as has been made out in the impugned order and that in doing so, the ld CIT had failed to comply with and carry out the directions of the Tribunal as laid out in Para 6.7 of its order in ITA No. 423 & 1631/Bang/2013 dated 6/11/2015.
3.2.2 We have also perused the relevant paras 6.6 and 6.7 of the Tribunal order in ITA No. 423 & 1631/Bang/2013 dated 6/11/2015 (extracted supra at Para 2.1 of this order) and find that the Tribunal had directed the ld CIT to grant the assessee Registration u/s 12AA of the Act. Nowhere in the Tribunal order has the ld CIT been directed to grant the assessee Registration u/s 12AA of the Act in the category of 'AGPU'. In this regard we observed that the ld CIT in order giving effect to ITAT's order granted the assessee trust Registration u/s 12AA of the Act, qualified to be under the category 'AGPU' which in our view is not in keeping with the direction set out in the Tribunal's order (Supra). This observation of our was put to the ld DR during the course of hearing and he was unable to justify the ld CIT's granting of such qualified registration u/s 12AA of the Act while giving effect to the Tribunal's order which contained no such direction. In the facts and circumstances of the matter as discussed above from Para 2.1 to Para 3.2.2 of the order, ITA No. 2154/Bang/2016 Page 5 of 6 we are of the considered view that the ld CIT in his order dated 16/10/2016 has not given effect to the ITA's order dated 6/11/2015 (Supra) as directed therein and has exceeded his brief in granting the assessee qualified registration u/s 12AA of the Act. In this view of the matter, we set aside the impugned order of the ld CIT and direct him to pass a fresh order giving effect, granting the assessee registration u/s 12AA of the Act, as directed in the Tribunal order dated 6/11/2015 (Supra) at Para 6.7 thereof without adding his own qualification thereto such as 'AGPU' etc. We hold and direct accordingly. Consequently, the grounds nos. 2 and 3 raised by assessee are allowed."
6. Since the facts in the present case and in the case of M/s. Rabiya Basari Rahamat-Ulla-Hi Allayha Charitable Trust(supra) are identical, we respectfully follow this Tribunal order and direct the ld. CIT(E) to pass a fresh order for granting the registration u/s. 12AA of IT Act as directed by the Tribunal in the first round as per the Tribunal order dated 04.09.2015 in ITA Nos. 422 and 1632/Bang/2013 without adding his own qualification thereto such as 'AGPU' etc.
7. In the result, the appeal of the assessee is allowed.
8. Pronounced in the open court on this 18th day of August, 2017.
Sd/- Sd/-
(LALIET KUMAR) (A.K. GARODIA)
Judicial Member Accountant Member
Bangalore,
Dated, the 18th August, 2017.
/ MS/
ITA No. 2154/Bang/2016
Page 6 of 6
Copy to:
1. Appellant
2. Respondent
3. CIT
4. CIT(A)
5. DR, ITAT, Bangalore.
6. Guard file
By order
Senior Private Secretary,
Income Tax Appellate Tribunal,
Bangalore.