M/s Mavuleti Madhusudhana Raju Foundation, Eluru v. The Commissioner of Income Tax, Rajahmundry

ITA 428/VIZ/2010 | misc
Pronouncement Date: 07-12-2010 | Result: Allowed

Appeal Details

RSA Number 42825314 RSA 2010
Assessee PAN AACTM0237D
Bench Visakhapatnam
Appeal Number ITA 428/VIZ/2010
Duration Of Justice 4 month(s)
Appellant M/s Mavuleti Madhusudhana Raju Foundation, Eluru
Respondent The Commissioner of Income Tax, Rajahmundry
Appeal Type Income Tax Appeal
Pronouncement Date 07-12-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted DB
Tribunal Order Date 07-12-2010
Date Of Final Hearing 02-12-2010
Next Hearing Date 02-12-2010
Assessment Year misc
Appeal Filed On 06-08-2010
Judgment Text
ITA NO.428 OF 2010 MAVULETI MADHUSUDHANA RAJU FOUND ATION ELURU PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV JUDICIAL MEMBER AND SHRI BR BASKARAN ACCOUNTANT MEMBER ITA NO.428/VIZAG/2010 ASSESSMENT YEAR: NA MAVULETI MADHUSUDHANA RAJU FOUNDATION ELURU VS. COMMISSIONER OF INCOME TAX RAJAHMUNDRY (APPELLANT) PAN NO:AACTM 0237 D (RESPONDENT) APPELLANT BY: SHRI J. RADHAKRISHNA CA RESPONDENT BY: SHRI R.K. SINGH DR ORDER PER SHRI B R BASKARAN ACCOUNTANT MEMBER: THE APPEAL OF THE ASSESSEE IS FILED BY ASSAIL ING THE DECISION OF LEARNED CIT RAJAHMUNDRY IN REJECTING THE APPLICATI ON SEEKING RECOGNITION UNDER SECTION 80G OF THE ACT. WE NOTICE THAT THE I TO (H.QRS.) HAS COMMUNICATED THE ORDER OF REJECTION BY WAY OF A LET TER. 2. WE NOTICE THAT IDENTICAL ISSUE HAS COME UP F OR CONSIDERATION OF THIS BENCH IN THE CASE OF SRI AYYAPPA SEVA SAMITHI TADE PALLIGUDAM IN ITA NO.376/VIZAG/2010 AND THE DECISION OF THIS BENCH V IDE ITS ORDER DATED 19- 8-2010 IS EXTRACTED BELOW FOR THE SAKE OF CONVENIEN CE. THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST T HE REJECTION OF THE APPLICATION SEEKING REGISTRATION U /S 80G OF THE I.T. ACT. ON CAREFUL PERUSAL OF THE ORDER WE F IND THAT THE ITO HAS INTIMATED THE ASSESSEE THAT HIS APPLICA TION FOR RENEWAL OF EXEMPTION U/S 80G CANNOT BE ENTERTAINED AS THE ASSESSEE TRUST IS NOT REGISTERED U/S 43(1) OF THE A .P. CHARITABLE AND HINDU RELIGIOUS INSTITUTION AND ENRO LMENT ACT 1987. WE ARE SURPRISED TO NOTE THAT HOW THE A .O. IN THE O/O THE COMMISSIONER OF INCOME TAX GOT THE JURISDICTION TO TAKE A DECISION ON AN APPLICATION F OR ITA NO.428 OF 2010 MAVULETI MADHUSUDHANA RAJU FOUND ATION ELURU PAGE 2 OF 3 EXEMPTION U/S 80G FILED BY THE ASSESSEES. IT IS FOR THE COMMISSIONER OF INCOME TAX TO DECIDE THE APPLICATIO N OF THE ASSESSEE FOR EXEMPTION U/S 80G. THE OBSERVATIO N OF THE ITO THAT THE APPLICATION OF THE ASSESSEES IS NO N- ADMISSIBLE IS HIGHLY OBJECTIONABLE AND UNCALLED FOR . WE THEREFORE ADVICE THE COMMISSIONER OF INCOME TAX TO ADJUDICATE THE REQUEST FOR EXEMPTION MOVED BY THE ASSESSEE HIMSELF AND NOT TO ALLOW HIS SUBORDINATE TO ENCROACH UPON THE JURISDICTIONS WHICH IS CONFERRED TO HIM. 2. NOW COMING ON MERIT WE FIND THAT THIS APPLICATI ON FOR EXEMPTION U/S 80G WAS NOT ENTERTAINED ONLY FOR THE REASON THAT ASSESSEE DID NOT HAVE THE REGISTRATION U/S 43(1) OF THE A.P. CHARITABLE AND HINDU RELIGIOUS INSTITUT ION AND ENROLMENT ACT 1987. WE DO NOT FIND ANY SUCH REQUI REMENT IN THE INCOME TAX ACT WHICH MAKE IT TO BE A CONDITI ON PRECEDENT FOR THE ASSESSEE FOR GETTING AN EXEMPTION U/S 80G OF THE ACT. THE REQUIREMENT OF LAW IS THAT THE ASSESSEE SHOULD BE A CHARITABLE SOCIETY AND THIS CA N BE EVIDENCED FROM THE RECITAL PREPARED BY THE ASSESSEE IN THIS REGARD. BEFORE GRANTING A REGISTRATION IT IS FOR THE COMMISSIONER TO VERIFY FROM THE MATERIAL AVAILABLE ON RECORD WHETHER THE SOCIETY OR A TRUST WAS CREATED F OR THE CHARITABLE PURPOSE. WE THEREFORE OF THE VIEW THAT REGISTRATION U/S 43(1) OF THE A.P. CHARITABLE AND H INDU RELIGIOUS INSTITUTION AND ENROLMENT ACT 1987 IS NOT REQUIRED BEFORE APPLYING FOR RENEWAL OF EXEMPTION U /S 80G OF THE ACT. WE THEREFORE SET ASIDE THE ORDER OF TH E ASSESSING OFFICER PASSED ON BEHALF OF THE CIT AND D IRECT THE CIT TO ADJUDICATE THE ISSUE AFRESH IN THE LIGHT OF RELEVANT PROVISIONS OF LAW BY PASSING A SPEAKING ORDER. 3. WE ALSO NOTICE THAT THE ITAT NAGPUR BENCH I N THE CASE OF AGRICULTURAL PRODUCE & MARKET COMMITTEE TELHARA & ORS. VS. CIT REPORTED IN (2005) 97 TTJ (NAG) 165 HAS EXPRESSED THAT THERE IS NO REQUIR EMENT TO FILE A CERTIFICATE OF REGISTRATION ISSUED BY THE CHARITY C OMMISSIONER NOR IS THERE ANY NECESSITY THAT THE INSTITUTION CLAIMING REGISTR ATION U/S 12AA SHOULD BE REGISTERED WITH THE CHARITY COMMISSIONER. FOLLOWIN G THE ABOVE SAID DECISION THE HYDERABAD BENCH OF ITAT HAS HELD VID E ITS ORDER DATED 05-3- 2010 IN THE CASE OF M/S KAMALAKAR MEMORIAL CHARITAB LE TRUST HYDERABAD VS. DIT IN ITA NO.1145/HYD/09 THAT MERE FACT THAT T HE ASSESSEE TRUST IS ITA NO.428 OF 2010 MAVULETI MADHUSUDHANA RAJU FOUND ATION ELURU PAGE 3 OF 3 NOT REGISTERED UNDER THE PROVISIONS OF A.P.CHARITAB LE & HINDU RELIGIOUS INSTITUTIONS ENDOWMENT ACT 1987 SHALL NOT RENDER TH E ASSESSEE TRUST AS A NON-CHARITABLE ONE. 4. ACCORDINGLY CONSISTENT WITH THE VIEW TAKEN IN THE ABOVE CITED CASES WE SET ASIDE THE ORDER OF THE INCOME TAX OFFICER PA SSED ON BEHALF OF THE CIT AND DIRECT THE CIT TO ADJUDICATE THE ISSUE AFRE SH IN THE LIGHT OF RELEVANT PROVISIONS OF LAW BY PASSING A SPEAKING ORDER. 5. IN THE RESULT THE APPEAL OF THE ASSESSEE IS TREA TED AS ALLOWED FOR STATISTICAL PURPOSE. PRONOUNCED IN THE OPEN COURT ON 7 TH DECEMBER 2010. SD/- SD/- (SUNIL KUMAR YADAV) (B R BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM DATE:07-12-2010. COPY TO 1 MAVULETI MADHUSUDHANA RAJU FOUNDATION D.NO.24B-1 73 GEETHA SATSANGA NILAYAM PATHEBAD ELURU 534002 2 THE COMMISSIONER OF INCOME TAX RAJAHMUNDRY 3 THE DR ITAT VISAKHAPATNAM. 4 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM