Income Tax Appellate Tribunal - Hyderabad
Spandana Foundation,, Hyderabad vs Assessee on 17 October, 2012
IN THE INCOME TAX APPELLATE TRIBUNAL
HYDERABAD BENCH "B", HYDERABAD
BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND
SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER
ITA No. 472/HYD/2012
Assessment Year: 2011-12
Spandana Foundation, ... Appellant
Hyderabad.
(PAN - AAEAS9260P)
Vs.
Director of Income-tax(Exemption), ...Respondent
Hyderabad.
Appellant by : Shri K. Chennubotlu
Respondent by : Smt. Amisha S. Gupt
Date of Hearing : 17/10/2012
Date of Pronouncement : 19/10/2012
ORDER
PER ASHA VIJAYARAGHAVAN, J.M.:
This appeal filed by the assessee is directed against the order of DIT(E), Hyderabad dated 29/02/2012 for the assessment year 2011-12.
2. Briefly the facts of the case are that the assessee filed an application in Form No. 10A on 24/08/2011 seeking registration u/s 12A of the Income-tax Act, 1961. The DIT(E) by his order dated held that the application filed by the assessee in Form No. 10A is defective for the following reasons:
1. that there are no witnesses to the Memorandum Association as evident from the copy of the document filed by the assessee society. At page No. 4 of the document, witnesses have not signed against the numbers 1 & 2 and 2 472/Hyd/2012 Spandana Foundation therefore held that the Memorandum of Association cannot be accepted as valid notwithstanding presentation of that document before the concerned Registrar of Societies.
2. The application in Form No. 10A filed by the society does not contain the name of the applicant in the introductory para of the form.
3. Further, as per the requirement below para 5 of the said form, the assessee-society was required to furnish copies of their accounts for the latest 1/2/3 years. However, as verified from the various documents filed by the society in this case, it has not furnished any copy of account for any year. Thus, the assessee-society has not complied with the mandatory requirement, as per the said statutory form 10A, when it is stated that the society was formed/registered on 13/07/2007.
3. Further, the DIT(E) held that as per 'Note on Activities' furnished by the assessee-society, it has incurred the following expenditure during the period 01/04/2011 to 30/11/2011:
Clothes purchased Rs. 45,000/-
Schools bag purchased Rs. 3,000/-
School stationery(geometry boxes) Rs. 20,140/-
Students note books Rs. 46,600/-
Merit students fee reimbursement Rs. 29,100/-
The DIT(E) after comparing the above expenditure with the objects of the society, held that such expenses incurred by the society are not in consonance with such objectives.
3472/Hyd/2012 Spandana Foundation
4. Aggrieved by the order of DIT(E), the assessee is in appeal before us and submitted that the DIT(E) has erred in going through the nature of expenses, which are not under his purview for granting registration u/s 12A of the Act. It is further submitted that the objects of the society are very much comparable in nature and the society was registered under the Registrar of Societies validly. It is also submitted that the delay may be condoned as there has not been any activity undertaken till 31/03/2011 and hence, there was no return of income for previous year. Further, it was submitted that the statement of accounts have been filed for the period from 01/04/2011 to 31/03/2011.
5. We have heard the arguments of both the parties and perused the record. The grievance of the assessee is that the assessee was not given sufficient opportunity to represent its case before the DIT(E) and explain about the charitable nature of its objects. We find from the record that there are certain minor procedural mistakes, which have been pointed out by the DIT(E) and the same can be rectified. In these circumstances, we deem it fit and proper to give one more opportunity to the assessee to correct the mistakes which have crept inadvertently on record and appear before the DIT(E) to establish that the society is entitled for registration u/s 12A of the Act.
6. In the result, appeal of the assessee is allowed for statistical purposes.
Pronounced in the open court on 19/10/2012.
Sd/- Sd/-
(CHANDRA POOJARI) (ASHA VIJAYARAGHAVAN)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Hyderabad, Dated:19 th October, 2012.
4
472/Hyd/2012
Spandana Foundation
kv
Copy to:-
1) Spandana Foundation, Plot No. 13, Sri Ram Nagar,
Vanasthalipuram, Hyderabad - 500 070.
2) DIT(E), Aayakar Bhavan, 3 rd Floor, Hyderabad.
3) The ADIT(E))-1, Guntur
4) The Departmental Representative, I.T.A.T., Hyderabad.