The Executive Officer, Sri Satyadeva Nitya Annadana Padhakam, run by Sri Veera Venkata Satyanarayana Swamy Devastanam, Annavaram v. The Commissioner of Income Tax, Rajahmundry

ITA 509/VIZ/2010 | misc
Pronouncement Date: 17-02-2011 | Result: Allowed

Appeal Details

RSA Number 50925314 RSA 2010
Assessee PAN AAAJS1594F
Bench Visakhapatnam
Appeal Number ITA 509/VIZ/2010
Duration Of Justice 2 month(s) 25 day(s)
Appellant The Executive Officer, Sri Satyadeva Nitya Annadana Padhakam, run by Sri Veera Venkata Satyanarayana Swamy Devastanam, Annavaram
Respondent The Commissioner of Income Tax, Rajahmundry
Appeal Type Income Tax Appeal
Pronouncement Date 17-02-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted DB
Tribunal Order Date 17-02-2011
Assessment Year misc
Appeal Filed On 22-11-2010
Judgment Text
ITA NO.509/VIZAG/2010 EO SSNAP ANVM PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV JUDICIAL MEMBER AND SHRI BR BASKARAN ACCOUNTANT MEMBER ITA NO.509/VIZAG/2010 ASSESSMENT YEAR: N.A. EXECUTIVE OFFICER SRI SATYADEVA NITYA ANNADANA PADHAKAM RUN BY SRI VEERA VENKATA SATYANARAYANA SWAMY VARI DEVASTANAM ANNAVARAM VS. CIT RAJAHMUNDRY (APPELLANT) PAN NO: AAAJS 1594F (RESPONDENT) APPELLANT BY: SHRI K.S.S. SHARMA CA RESPONDENT BY: SHRI TH.L. PETER CIT(DR) ORDER PER SHRI B. R. BASKARAN ACCOUNTANT MEMBER: THE APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 21-09- 2010 PASSED BY LEARNED CIT RAJAHMUNDRY REJECTING T HE RENEWAL OF EXEMPTION UNDER SECTION 80G(5)(VI) OF THE ACT AND A LSO CANCELING THE CERTIFICATE OF EXEMPTION GRANTED VIDE HIS ORDER DAT ED 13-08-2007. 2. THE FACTS RELATING TO THE ISSUE ARE STATED IN B RIEF. THE ASSESSEE FILED AN APPLICATION FOR RENEWAL OF EXEMPTION UNDER SECTION 80G OF THE ACT IN THE NAME CITED ABOVE. IT WAS SUBMITTED THAT THE CERTIF ICATE OF EXEMPTION WAS GRANTED UP TO 31-03-2010 VIDE THE ORDER OF LEARNED CIT RAJAHMUNDRY DATED 13.08.2007. THE LEARNED CIT ASKED FOR VARIOU S DETAILS FOR PROCESSING THE APPLICATION AND IN RESPONSE THERETO NONE APPEA RED BUT ONLY WRITTEN SUBMISSIONS WERE FILED. ON SCRUTINIZING THE APPLI CATION OF THE ASSESSEE AND THE WRITTEN SUBMISSIONS THE LEARNED CIT NOTICED CE RTAIN INCONSISTENCIES WHICH ARE SUMMARIZED BELOW:- A) THE NAME OF THE TRUST IS SRI VEERA VENKATA SAT YANARAYANA SWAMY VARI DEVASTHANAM. HOWEVER THE PRESENT APPLI CATION WAS ITA NO.509/VIZAG/2010 EO SSNAP ANVM PAGE 2 OF 4 MADE IN THE NAME OF SRI SATYADEVA NITYA ANNADHANA PADHAKAM WHICH IS ONLY A UNIT OR SCHEME OF THE TRUST CITED A BOVE. B) THE OBJECTS OF THE TRUST ARE RELIGIOUS IN NATURE. C) THE ANNADHANA SCHEME OF SRI VEERA VENKATA SATYANAR AYANA SWAMY VARI DEVASTHANAM CONSTITUTES ONLY A MINISCUL E PERCENTAGE OF TOTAL RECEIPTS AND EXPENSES. D) THE ANNADHANA SCHEME IS CONDUCTED OUT OF CONTRIBUTI ONS RECEIVED FROM PUBLIC. E) THE ERSTWHILE COMMISSIONER OF INCOME TAX RAJAHMUND RY APPEARS TO HAVE ERRONEOUSLY GRANTED A CERTIFICATE OF EXEMPT ION WITHOUT TAKING INTO ACCOUNT ALL THE RELEVANT FACTORS AND WI THOUT APPRECIATING THAT THE ANNADHANA PADHAKAM ITSELF IS NOT AN INDEPENDENT TRUST OR SOCIETY BUT ONLY A BRANCH OF ACTIVITY OF THE TRUST VIZ. SRI VEERA VENKATA SATYANARAYANA SWAMY VARI DEVASTHANAM. ACCORDINGLY THE LEARNED CIT REJECTED THE APPLICATI ON FILED FOR RENEWING THE EXEMPTION. THE LEARNED CIT ALSO CANCELLED THE CERT IFICATE OF EXEMPTION LAST GRANTED ON 13.08.2007. AGGRIEVED THE ASSESSEE IS IN APPEAL BEFORE US. 3. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERU SED THE RECORD. AS PER THE RECORD WE NOTICE THAT THE ASSESSEE SRI VEERA VENKATA SATYANARAYANA SWAMY VARI DEVASTHANAM ANNAVARAM WAS GRANTED RECOGNITION UNDER SECTION 80G OF THE ACT FOR THE PE RIOD FROM 1.4.2000 TO 31.3.2004 VIDE THE RENEWAL CERTIFICATE NO. H.ARS. NO.III/59/88-89 DATED 23.2.2001. AFTER THE EXPIRY OF THE SAID CERTIFICAT E THE RENEWAL OF EXEMPTION WAS GRANTED FOR THE PERIOD FROM 1.4.2004 TO 31.3.20 07 VIDE ORDER NO. H.QRS.NO.III/123/03-04/149/PG.154 DATED 20-8-2004. IN THIS CERTIFICATE THE NAME OF THE ASSESSEE WAS SHOWN AS SRI SATYADEVA NITYA ANNADHANAM SCHEME SREE VVSS DEVASTHANAM ANNAVARAM . AFTER THE EXPIRY OF THE ABOVE SAID CERTIFICATE THE EXEMP TION UNDER SECTION 80G WAS RENEWED FOR THE PERIOD FROM 01-04-2007 TO 31-03 -2010 VIDE ORDER NO.H.ARS./III/123/CIT/RJY/07-08 DATED 13-08-2007 AND IN THIS CERTIFICATE THE NAME OF THE ASSESSEE IS SHOWN AS SRI SATYADEVA NITYA ANNADHANAM SCHEME SRI VEERA VENKATA SATYANARAYANA SWAMY ITA NO.509/VIZAG/2010 EO SSNAP ANVM PAGE 3 OF 4 DEVASTHANAM ANNAVARAM E.G. DIST. AFTER THE EXPIRY OF THIS CERTIFICATE THE IMPUGNED APPLICATION WAS FILED BEF ORE THE LEARNED CIT IN THE NAME OF SRI SATYADEVA NITYA ANNADHANA PADHAKAM RUN BY SRI VEERA VENKATA SATYANAAYANA SWAMY VARI DEVASTHANAM ANNAVARAM . 4. THUS IT CAN BE NOTICED THAT THE NAME OF THE ASSESSEE GOT CHANGED WITH EVERY RENEWAL OF EXEMPTION. THE LEARNED A.R DI D NOT DISPUTE THE FACT THAT THE SRI SATYADEVA NITYA ANNADHANA PADHAKAM OR SCHEME IS ONLY A UNIT OR SCHEME OF THE MAIN TRUST VIZ. SRI VEERA V ENKATA SATYANARAYANA SWAMY VARI DEVASTHANAM. IT WAS NOTICED BY LEARNED CIT THAT THE MAIN TRUST WAS GRANTED REGISTRATION UNDER SECTION 12A(A) OF THE ACT ON 20-01- 1976. IN THE PAPER BOOK THE ASSESSEE HAS FILED A COPY OF NOTIFICATION NOTIFYING THE SRI VEERA VENKATA SATYANARAYANA SWAM Y DEVASTHANAM ANNAVARAM UNDER SECTION 10(23C)(V) OF THE ACT FOR THE ASSESSMENT YEARS 1985-86 TO 1987-88. IT IS NOT KNOWN WHETHER THE NO TIFICATION UNDER SECTION 10(23C)(V) OF THE ACT WAS RENEWED THERE AFTER. TH US WE NOTICE THAT THE MAIN TRUST ONLY IS HAVING REGISTRATION UNDER SECTIO N 12A(A) OF THE ACT AND IT WAS ALSO NOTIFIED UNDER SECTION 10(23C)(V) OF THE A CT FOR SOME PERIOD. WHEN IT WAS POINTED OUT LEARNED A.R SUBMITTED THAT HE COULD OFFER NECESSARY EXPLANATIONS TO LEARNED CIT IF ONE MORE OPPORTUNITY IS GIVEN TO THE ASSESSEE. 5. WE ALSO NOTICE THAT THE ASSESSEE DID NOT REPRES ENT BEFORE LEARNED CIT BUT ONLY FILED WRITTEN SUBMISSIONS. THE LEARNED C IT DID ASK FOR ONLY THE DETAILS OF AUDITED ACCOUNTS AND A COPY OF INSTRUMEN T/DEED OF TRUST. WE NOTICE THAT THE LEGAL POINTS DISCUSSED BY THE LEARN ED CIT IN HIS ORDER WERE NOT BROUGHT TO THE NOTICE OF THE ASSESSEE AND HENCE THE ASSESSEE DID NOT GET AN OPPORTUNITY TO OFFER ITS EXPLANATIONS ON ALL THE LEGAL POINTS THAT HAVE BEEN RAISED BY LEARNED CIT. THE ASSESSEE ALSO COUL D NOT HAVE VISUALIZED THE SAID LEGAL COMPLICATIONS SINCE THE CERTIFICATE OF EXEMPTION WAS GRANTED ON EARLIER TWO OCCASIONS IN THE NAME OF ANNADHANA SCHEME. BESIDES ITA NO.509/VIZAG/2010 EO SSNAP ANVM PAGE 4 OF 4 REJECTING THE APPLICATION FOR RENEWAL OF EXEMPTION THE LEARNED CIT HAS ALSO CANCELLED THE EXEMPTION CERTIFICATE DATED 13-08-200 7 AND FOR THAT PURPOSE ALSO THE ASSESSEE WAS NOT GIVEN SUFFICIENT OPPORTU NITY. HENCE IN THE INTEREST OF NATURAL JUSTICE WE ARE OF THE VIEW THA T THE LEARNED CIT SHOULD HAVE DISPOSED OF THE APPLICATION AFTER HEARING THE ASSESSEE. SIMILARLY WE ARE OF THE VIEW THAT THE LEARNED CIT SHOULD HAVE GI VEN OPPORTUNITY TO THE ASSESSEE BEFORE CANCELING THE CERTIFICATE OF EXEMPT ION DATED 13.08.2007. ACCORDINGLY WE ARE OF THE VIEW THAT BOTH THE ISSUE S SHOULD BE EXAMINED AFRESH BY LEARNED CIT AFTER AFFORDING NECESSARY OP PORTUNITY OF BEING HEARD TO THE ASSESSEE. ACCORDINGLY WE SET ASIDE THE ORD ER OF IMPUGNED LEARNED CIT AND DIRECT HIM TO ADJUDICATE THE ISSUES AFRESH AFTER AFFORDING NECESSARY OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THE AS SESSEE IS ALSO DIRECTED TO CO-OPERATE WITH THE LEARNED CIT IN ITS INTEREST. 6. IN THE RESULT THE APPEAL OF THE ASSESSEE IS TREA TED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 17 TH FEBRUARY 2011. SD/- SD/- (SUNIL KUMAR YADAV) (B R BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM DATE:17-02-2011 COPY TO 1 THE JOINT COMMISSIONER & EXECUTIVE OFFICER SRI S ATYADEVA NITYA ANNADANA PADHAKAM RUN BY SRI VEERA VENKATA SATYANAR AYANA SWAMY VARI DEVASTHANAM ANNAVARAM E.G. DIST. 2 THE CIT RAJAHMUNDRY 3 THE DR ITAT VISAKHAPATNAM. 4 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM