Income Tax Appellate Tribunal - Hyderabad
Mannan Educational Society, Hyd, ... vs Dit(Exemption), Hyd, Hyderabad on 3 February, 2017
ITA Nos 1245 544 & 545 of 2016 Mannan Educational Society Hyderabad
IN THE INCOME TAX APPELLATE TRIBUNAL
Hyderabad ' B ' Bench, Hyderabad
Before Smt. P. Madhavi Devi, Judicial Member
AND
Shri S.Rifaur Rahman, Accountant Member
ITA Nos.1245/Hyd/2015 & 544 and 545/Hyd/2016
(Assessment Years: NA)
M/s. Mannan Educational Vs Director of Income Tax (E)
Society Hyderabad
Hyderabad
PAN: AAATM 6830 E
For Assessee : Shri K.C. Devdas
For Revenue : Smt. U. Mini Chandran, DR
Date of Hearing: 25.01.2017
Date of Pronouncement: 03.02.2017
ORDER
Per Smt. P. Madhavi Devi, J.M.
All are assessee's appeals against the order of the DIT(E) rejecting the assessee's application for registration u/s 12AA(1)(b)(i) of the I.T. Act, 1961 w.e.f. 31.05.2007 and also for registration u/s 80G of the Act.
2. Brief facts of the case leading to the above appeals are that the assessee, a society, is engaged in carrying out educational activities. It made an application for registration u/s 12AA and also u/s 80G of the Act on 31.5.2007. Since the assessee did not get any communication from the Department about the status of the said application, it filed another application dated 19.03.2011. The DIT (E) considered the same Page 1 of 5 ITA Nos 1245 544 & 545 of 2016 Mannan Educational Society Hyderabad and granted registration u/s 12AA of the Act w.e.f. 1.4.2010 vide proceedings dated 9.8.2011. Thereafter, the assessee claimed exemption u/s 11 of the Act for the A.Ys 2007-08 onwards. The exemption was not granted to the assessee and therefore, the assessee filed an appeal before the CIT (A) who confirmed the disallowance by holding that the assessee has been granted registration only w.e.f. 1.4.2010 and therefore, the assessee is not eligible for exemption for the earlier A.Ys. Aggrieved, the assessee came in appeal before the Tribunal. The Coordinate Bench of this Tribunal in ITA No.428/Hyd/2015, 430/Hyd/2015 and 129/Hyd/2015 for the A.Ys 2007-08 to 2010-11 respectively, has upheld the findings of the CIT (A), observing that the application for registration u/s 12AA w.e.f. 31.5.2007 has to be considered by the DIT (E) and not by the learned CIT (A) and it is for the assessee to pursue the matter with the DIT (E) for grant of registration u/s 12AA of the Act on 31.05.07.
3. After the receipt of the order of the Tribunal, the assessee has filed fresh application for registration u/s 12A as well as 80G of the Act w.e.f. 31.05.2007. The said applications were also rejected for non-appearance of the assessee. It is the claim of the assessee that at this point of time, the assessee has come to know that the assessee's application dated 31.05.2007 has been rejected by the relevant authorities. The assessee, therefore, filed appeal before us in ITA No.1245/Hyd/2015 challenging the order of the DIT (E) dated 29.10.2007 rejecting the assessee's application dated 31.05.2008 along with an application for condonation of delay of 1481 days. The assessee has also challenged the order of the DIT (E) dated 18.03.2016 dismissing Page 2 of 5 ITA Nos 1245 544 & 545 of 2016 Mannan Educational Society Hyderabad the fresh applications filed by the assessee for Registration u/s 12A & 80G of the Act w.e.f. 31.05.2007. Thus, all the 3 appeals are now before us.
4. The learned Counsel for the assessee submitted that the assessee had filed an application dated 31.05.2007 along with the relevant documents before the Revenue authorities and since the assessee did not receive any communication about the status of the said application, it had filed a fresh application and the same was granted to the assessee. It is submitted by the learned Counsel for the assessee that the delay of 1481 days is not intentional or willful as the assessee came to know about the fate of his application dated 31.05.2007 only after the disposal of assessee's appeals by the Tribunal and immediately, the assessee has taken necessary steps to file fresh applications before the DIT(E) for the relief and also the appeal before this Tribunal and therefore, should be condoned and the revenue authorities should be directed to consider the assessee's application afresh.
5. The learned DR, on the other hand, drew our attention to the fact that the application dated 31.05.2007 was not made to the correct authorities and that inspite of the same, the Revenue authorities had considered the said application and because the assessee had not complied with the requirements and also because the assessee had not appeared inspite of service of notice, the said application was rejected. The learned DR therefore, opposed the condonation of delay in the case in ITA No.1245/Hyd/2015. On the other hand, the learned Counsel for the assessee submitted that the assessee was not served with the Page 3 of 5 ITA Nos 1245 544 & 545 of 2016 Mannan Educational Society Hyderabad notices of hearing or the final orders rejecting the assessee's application and therefore, the assessee had made a fresh application and after considering the case on merit, the registration u/s 12AA was granted to the assessee. The learned Counsel therefore, prayed that in the interest of justice, the DIT (E) may be directed to consider the assessee's application for registration w.e.f. 31.05.2007.
6. Having regard to the rival contentions and the material on record, we find that the assessee had made an application on 31.05.2007 which also bears an acknowledgement of the Income Tax Department. We have perused the records of the assessee's appeals in ITA No.482/Hyd/2015 & ITA No.129/Hyd/2015 and find that though the copy of the said order was placed in the earlier proceedings before us, the Tribunal has erroneously observed that the said copy is not placed on record. The learned DR had produced the record also before us in proof of the fact that the said application was considered and rejected and that the order of rejection has been communicated to the assessee through registered post. However, we do not find any acknowledgment in the file. We also find that the order of the DIT (E) rejecting the assessee's application dated 31.05.2007 is only for non- appearance of the assessee and it is not on merits of the application. Even the subsequent applications dated 1.3.2016 are also rejected for non-appearance of the assessee and not on merit. Thus, it is seen that the assessee's case has not been considered on merit at any point of time till 19.03.2011 on which date, it was held that the assessee was eligible for registration. Since it is proved that the assessee has made an application dated 31.05.2007, in Page 4 of 5 ITA Nos 1245 544 & 545 of 2016 Mannan Educational Society Hyderabad the interest of justice, we deem it fit and proper to condone the delay of 1481 days and set aside the order of the DIT (E) dated 29.10.2007 rejecting the assessee's application dated 31.05.2007 for registration u/s 12A and also exemption u/s 80G of the Act and direct the DIT (E) to consider the application afresh on merits in accordance with the law. In view of the same, appeals in ITA No.544 & 545/Hyd/2016 become infructuous and the assessee's appeal in ITA No. 1245/Hyd/2015 is treated as allowed for statistical purposes.
7. In the result, appeals in ITA No.544 & 545/Hyd/2016 become infructuous and are accordingly dismissed and the assessee's appeal in ITA No. 1245/Hyd/2015 is treated as allowed for statistical purposes.
Order pronounced in the Open Court on 3rd February, 2017.
Sd/- Sd/-
(S.Rifaur Rahman) (P. Madhavi Devi)
Accountant Member Judicial Member
Hyderabad, dated 3rd February, 2017.
Vinodan/sps
Copy to:
1 M/s. Mannan Educational Society, H.No. 8-2-684/3/R Road No.12, Banjara Hills, Hyderabad 500034 2 Director of Income Tax (Exemptions) Hyderabad 3 DDIT E) Hyderabad 4 The DR, ITAT Hyderabad 5 Guard File By Order Page 5 of 5