Late Seth Shorabji Jamshedji Watcha Charitable Block (Shorab Manzil), Hyderabad v. Commissioner of Income Tax (Exemption), Hyderabad

ITA 1730/Hyd/2019 | misc
Pronouncement Date: 24-05-2021 | Result: Allowed

Appeal Details

RSA Number 173022514 RSA 2019
Assessee PAN AAATL7645Q
Bench Hyderabad
Appeal Number ITA 1730/Hyd/2019
Duration Of Justice 1 year(s) 5 month(s) 27 day(s)
Appellant Late Seth Shorabji Jamshedji Watcha Charitable Block (Shorab Manzil), Hyderabad
Respondent Commissioner of Income Tax (Exemption), Hyderabad
Appeal Type Income Tax Appeal
Pronouncement Date 24-05-2021
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted DB-B
Tribunal Order Date 24-05-2021
Last Hearing Date 05-04-2021
First Hearing Date 05-04-2021
Assessment Year misc
Appeal Filed On 27-11-2019
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B ' HYDERABAD BEFORE S HRI SATBEER SINGH GODARA JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU ACCOUNTANT MEMBER ITA NO S . 1730 & 1731 /H/201 9 LATE SETH SHORABJI JAMSHEDJI WATCHA CHARITABLE BLOCK (SHORAB MANZIL) HYDERABAD. PAN A AATL 7645Q VS. COMMISSIONER OF INCOME TAX (EXEMPTION) HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: SHRI M.S. DAYAKAR REVENUE BY: SHRI Y.V.S.T. SAI DATE OF HEARING: 05 /0 4 /2021 DATE OF PRONOUNCEMENT: 24 / 0 5 /2021 O R D E R PER L.P. SAHU AM: BOTH T HESE APPEALS FILED BY THE ASSESSEE ARE DIRECTED AGAINST THE CIT( EXEMPTIONS ) HYDERABAD S ORDER S DATED 30 /0 9 /201 9 INVOLVING PROCEEDINGS U/S 12AA AND 80G OF THE INCOME TAX ACT 1961 ; IN SHORT THE ACT . 2. AS REGARDS THE APPEAL IN ITA NO. 1730/HYD/2019 THE ASSESSEE E - FILED APPLICATION IN FORM NO. 10A SEEKING REGISTRATION U/S 12A OF THE ACT ON 23/0 3 /2019. ACCORDINGLY CIT(E) ISSUED NOTICE TO THE APPLICANT TO I.T.A. NO S . 1730 & 1731 /HYD/201 9 LATE SETH SHORABJI JAMSHEDJI WATCHA CHARITABLE BLOCK (SHORAB MANZIL) HYD. 2 APPEAR AND PRODUCE ITS ORIGINAL MEMORANDUM OF AS SOCIATION/TRUST DEED FOR VERIFICATION AND TO FURNISH A DETAILED REPLY ON SPECIFIC POINTS ON OR BEFORE 29/08/2019. HOWEVER THE ASSESSEE FAILED TO FURNISH THE SAME. THEREFORE THE CIT(E) OBSERVED THAT IN THE ABSENCE OF THE BILLS/VOUCHERS AND AUDITED BOOKS OF ACCOUNTS FOR VERIFICATION WHICH IS THE REQUIREMENT AS PER RULE 17A THE GENUINENESS OF THE ACTIVITIES COULD NOT BE VERIFIED AND THEREFORE THE GENUINENESS OF THE OBJECTS AND GENUINENESS OF THE ACTIVITY IS IN DOUBT. IN VIEW OF THE ABOVE OBSERVATIONS T HE CIT(E) HELD THAT THE APPLICANT IS NOT FIT FOR GRANT OF REGISTRATION U/S 12AA OF THE ACT AND HENCE THE APPLICATION IN FORM NO. 10A FILED BY THE APPLICANT WAS REJECTED. 3. AGGRIEVED THE ASSESSEE IS IN APPEAL BEFORE THE ITAT. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD AS WELL AS GONE THROUGH THE ORDER OF CIT(E). ON PERUSAL OF RECORD WE FIND THAT THE ASSESSEE HAS FURNISHED RECEIPTS AND EXPENDITURE ACCOUNT FOR THE PERIOD FROM 31/03/2016 TO 31/03/2019. IN THE YEAR ENDED 31/0 3/2019 THE RECEIPTS & EXPENDITURE ACCOUNT IS NOT TALLIED AND THE ASSESSEE HAS PAID ADVOCATE FEE OF RS. 2 75 000/ - WHICH IS REFLECTED IN THE RECEIPTS & E XPENDITURE ACCOUNT. WE ARE OF THE VIEW THAT THE TRUST WILL HAVE TO SHOW ITS I.T.A. NO S . 1730 & 1731 /HYD/201 9 LATE SETH SHORABJI JAMSHEDJI WATCHA CHARITABLE BLOCK (SHORAB MANZIL) HYD. 3 CHARITABLE ACTIVITIES TO GET REGISTRATION U/S 12AA OF THE ACT. ON CONSIDERING THE TOTALITY OF THE FACTS OF THE CASE IN THE INTEREST OF JUSTICE ONE MORE OPPORTUNITY MAY BE GIVEN TO ASSESSEE TO FURNISH THE COMPLETE BOOKS OF ACCOUNT ALONG WITH THE BILLS AND VOUCHERS FOR VERIFICATI ON BEFORE THE CIT(E) TO GRANT REGISTRATION U/S 12AA OF THE ACT. THE CIT(E) IS DIRECTED TO GIVE ONE MORE OPPORTUNITY TO THE ASSESSEE TO PUT - FORTH THE DOCUMENTARY EVIDENCE AS REQUIRED FOR REGISTRATION U/S 12AA OF THE ACT. 5. AS REGARDS THE APPEAL IN ITA NO. 1731/HYD/2019 THE ASSESSEE FILED APPLICATION IN FORM NO. 10G FOR APPROVAL U/S 80G WHICH WAS REJECTED BY THE CIT(E) ON THE GROUND THAT REGISTRATION U/S 12A IS MANDATORY TO GRANT APPROVAL U/S 80G. SINCE THE REGISTRATION U/ S 12A WAS REJECTED TO ASSESSEE APPROVAL U/S 80G IS ALSO REJECTED. 6. AS WE HAVE REMITTED THE FILE FOR SEEKING REGISTRATION U/S 12A BACK TO THE FILE OF CIT(E) THE APPEAL FOR APPROVAL U/S 80G IS ALSO REMITTED TO THE FILE OF CIT(E) FOR GRANT OF APPROVAL U/S 80G AS PER LAW. I.T.A. NO S . 1730 & 1731 /HYD/201 9 LATE SETH SHORABJI JAMSHEDJI WATCHA CHARITABLE BLOCK (SHORAB MANZIL) HYD. 4 7. IN THE RESULT BOTH THE APPEALS UNDER CONSIDERATION ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSES. A COPY OF THIS ORDER SHOULD BE KEPT IN THE RESPECTIVE FILES. PRONOUNCED IN THE OPEN COURT ON 24 TH MAY 2021. SD/ - ( S.S. GODARA ) JUDICIAL MEMBER SD/ - ( L.P. SAHU ) ACCOUNTANT MEMBER HYDERABAD DATED 24 TH MAY 2021 KV 1 LATE SETH SHORABJI JAMSHEDJI WATCHA CHARITABLE BLOCK (SHORAB MANZIL) C/O GANDHI & GANDHI CAS. 1002 PAIGAH PLAZA BASHEERBAGH HYDERABAD 500 063 2 CIT(E) 2 ND FLOOR AAYAKAR BHAWAN BASHEERBAGH H YDERABAD. 3 ITO (E) 2 HYDERABAD. 4 ITAT DR HYDERABAD. 5 GUARD FILE.