Sri Kalluri Lakshmi Vara Prasada Rao Memorial Charitable Trust,, Secunderabad v. DIT (E),, Hyderabad

ITA 597/HYD/2013 | 2010-2011
Pronouncement Date: 29-04-2015 | Result: Allowed

Appeal Details

RSA Number 59722514 RSA 2013
Assessee PAN AAITS0009D
Bench Hyderabad
Appeal Number ITA 597/HYD/2013
Duration Of Justice 2 year(s)
Appellant Sri Kalluri Lakshmi Vara Prasada Rao Memorial Charitable Trust,, Secunderabad
Respondent DIT (E),, Hyderabad
Appeal Type Income Tax Appeal
Pronouncement Date 29-04-2015
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted B
Tribunal Order Date 29-04-2015
Date Of Final Hearing 27-04-2015
Next Hearing Date 27-04-2015
Assessment Year 2010-2011
Appeal Filed On 29-04-2013
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B' HYDERABAD BEFORE SHRI G.C.GUPTA VICE PRESIDENT AND SHRI P.M.JAGTAP ACCOUNTANT MEMBER ITA NO.597/HYD/2013 : ASSESSMENT YEAR 2010 - 11 SRI KALLURI LAKSHMI VARA PRASADA RAO MEMORIAL CHARITABLE TRUST HYDERABAD (PAN AAITS 0009 D) V/S. DIRECTOR OF INCOME - TAX (EXEMPTION) HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI A.V.RAGHU R A M RE SPONDENT BY : SHRI D.SUDHAKAR R AO CIT - DR DATE OF HEARING 27.4.2015 DATE OF PRONOUNCEMENT 29.4.20 15 O R D E R PER G.C.GUPTA VICE PRESIDENT: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE O R DER OF THE DIRECTOR OF INCOME - TAX(EXEMPTION) DATED 27.2.2013 REJ E CTING THE APPLICATION OF TH E ASSESSEE FOR GRANT OF APPROVAL UN D ER S.80G OF THE INCOME TAX ACT 1961. 2 . G ROUNDS OF APPEAL O F TH E ASSESSEE ARE AS UN D ER - 1. ON THE FACTS AND IN THE CIR C UM S TANCES OF THE C A S E THE ORDER O F THE LEARNED DIRECTOR OF INCOME - TAX(EXEMPTION) IS PERVERSE ILLEGAL AND UNSUSTAINABLE IN LAW. 2. THE LEARNED DIRECTOR OF INCOME - TAX(EXEMPTION) ERRED IN HOLDING THAT THE AMENDMENT TO THE TRUST DEED O F THE APPELLAN T I S NO T A VALID DOCUM E N T S FOR THE REASON THAT FOR THE AMENDMENT THERE IS NO DATE ON WHI C H IT IS MADE. THE DITE FAIL E D TO A P P R E CIATE TH A T THE TRUST I S CR E ATED BY A V A LID TRUST DEED DULY REGISTERED WITH APPROPRIATE AUTHORITY AND M E RE NON - MENTIONING OF AMENDMENT DOES NO T MAKE IT INVALID AS LONG AS I TA NO. 597 /H YD/20 1 3 SRI KALLURI LAKSHMI VARA PRASADA RAO MEMORIAL CHARITABLE TRUST HYDERABAD 2 SUCH AN AMENDM E N T IS NO T FATAL TO GRANTING OF REGI S TRATION AN D THEREBY ERRED IN REFUSING TO GRANT APPROVAL U/S. 80G(5)(VI). 3. THE LEARNED DIRECTOR OF INCOME - TAX(EXEMPTION) ERRED IN REFUSING TO GRANT APPROVAL U/S. 80 - G ON TH E GROUND O F NON - PRODUC T ION OF VOUCH E RS HOL D IN G TH A T TH E T RUST HAS NO T COR R ECTLY MAIN T AIN E D R EGULAR ACCOUNT O F ALL ITS EXPENDITURE WHICH IS REL E VANT ONLY FOR ASSESSMENT AND NO T FO R APPROVAL AND TH E REBY ERRED IN HOLDIN G TH A T T H E ASSESSEE DOES NO T FULFILL THE CON D IT I ON STIPULATED IN CLAU S E (VI ) OF SEC.80G ( 5) IN SPITE OF PRODUCING THE ACCOUNTS MAINT AINED REGULARLY. 3. THE LEARNED COUNSEL OR THE ASSESSEE SUBMITTED T H A T IT IS SECOND ROUND OF LITIGATION B E FORE THE TRIBUNAL . IN THE FIRST ROUND O F LITIGATION THE DIRECTOR OF INCOME - TAX(EXEMPTION) REJECTED THE APPLICATION OF THE ASSESSEE UN D ER S.80 - G O N TH E G R OUND THAT THE ORIGINAL T R UST DEED WAS NO T P R O D U C ED BEFORE HIM. HE SUBMI TT ED THAT THE TRIBUNAL VIDE ORD E R DATED 24.3.2010 HAS RESTORED THE IS S UE OF APP R OVAL UN D ER S.80G TO THE FIL E O F THE DIRECTOR OF INCOME - TAX(EXEMPTION) FOR FRESH ADJUDI C ATION AFTER RE - EXAMINATION OF THE SAME IN ACCORDANCE WITH LAW. THE DIRECTOR OF INCOME - TAX(EXEMPTION) VIDE HIS IMPU G N E D ORDER DATED 27.2.2013 HAS AGAIN REJECTED THE APPLICATION OF TH E ASSESSEE FOR APPROVAL U N DER S.80G ON THE GROUND THAT THE ASSESSEE HAS EX ECUTED AN AMENDED DEED OF TRUST WHEREIN NO DATE WAS MENTION E D AND THE STAMP PAPER O F THE SAID D OCUMEN T WAS PU RC HASED ON 15.4.2009 MUCH AFTER THE ORIGINAL DEED OF TRU S T MADE ON 5.11.2008. THE SECOND G R OUN D OF DIRECTOR OF INCOME - TAX(EXEMPTION) FOR REJ E CTIN G THE APPROVAL UN D ER S.80G WAS THAT THERE WERE NO BILLS AND VOUCH E RS FOR THE ACCOUN T IN G Y E AR 2009 - 10 ALTHOUGH THE ASSESSEE HAS CLAIMED A SUM O F R S .5 000 TO W AR D S DONATION. HE RELIED ON THE DECISION OF HON'BLE ANDHRA PRADESH HIGH COURT IN THE CA S E OF NEW NOBLE EDUCATIONAL SOCIETY AND OTHERS V/S. CCIT ( 334 ITR 303 ) . I TA NO. 597 /H YD/20 1 3 SRI KALLURI LAKSHMI VARA PRASADA RAO MEMORIAL CHARITABLE TRUST HYDERABAD 3 4. THE LEARNED DEPARTMENTAL REPRESENTATIVE ON THE OTHER HAND HAS RELIE D ON THE ORDER OF THE DIRECTOR OF INCOME - TAX(EXEMPTION) . HE SUBMITTED THAT THE ASSESSEE W AS NOT MAIN TA INING THE BOOKS O F AC C OUN T AND ITS EXPENSE ARE NO T VOUCHED. HE RE FE RRED TO THE REL EV AN T PO R TION OF TH E ORDER OF THE DIRECTOR OF INCOME - TAX(EXEMPTION) IN SUPPO R T OF TH E CA S E OF THE R EV ENUE. 5. WE HAVE CON S I D ERED THE RIVAL SUBMI S SION S AN D HAVE PERUSED THE O RDE R OF THE DIRECTOR OF INCOME - TAX(EXEMPTION) . W E FIND THAT TH E RE SE E MS TO BE NO VALID REASON FOR NOT GRANTING THE APP R O V AL UN D ER S.80G OF THE ACT TO THE ASSESSEE T R UST. TH E ASSESSEE HAS ALREADY BEEN GRANTED REGISTRATION UN D ER S.12AA OF THE ACT BY THE DIRECTOR OF INCOME - TAX(EXEMPTION) VIDE ORDER DATED 17.4.2009. IT I S NOT THE CA S E O F THE RE VENUE THAT THE OBJECTS OF THE ASSESSEE WERE NOT CHARITABLE IN NATURE. TH E ASSESSEE HAS PRODUCED THE ORIGINAL T R UST DEED BEFORE THE DIRECTOR OF INCOME - TAX(EXEMPTION). COPY O F T HE AMENDED TRUS T DEED HAS BEEN FIL E D IN THE COMPILATION B E FORE THE TRIBUNAL . W E FIND THAT THE DATE OF AMENDMENT TO THE TRUST DEED IS NO T DECISIVE TO THE I S SUE OF THE GRANT OF AP PR OVAL UN D ER S.8 0 - G OF THE A C T. WITH REGARD TO T HE OTHER OBJECTION OF THE REVENUE THAT THE ASSESSEE COULD NO T PRODUCE THE VOUCH E RS FOR THE EXPENSES OF R S .5 000 SPENT DURING THE FINAN C IA L YEAR 2009 - 10 WE FIND THAT THE ASSESSEE HAS CLAIMED TO HAVE MADE A DONATION O F RS.5 000 DURIN G THE REL E VANT PERIOD . EV EN IF THE ASSESSEE COUL D NO T P R O D U C E THE VOUCH E R FOR SUCH DONATION THAT CAN B E CONSIDERED WHIL E FRAMING THE ASSESSMENT FOR THE REL E VANT Y E AR BY THE ASSESSING OFFICER AND IS NO T A RELEVANT CON S I D ERATION WHILE DECI D ING THE ISSUE OF GRANT O F APPROVAL UN D E R S.80G O F TH E ACT TO T HE ASSESSEE TRUST. NO OTHER CON D I TI ON MATERIAL FOR TH E GRANT OF APP R O V AL UN D ER S.8 0 G COULD BE SHOWN BY THE REVENUE AS NO T FULFILLED BY THE ASSESSEE. IN TH E SE F A CTS OF TH E C A S E WE ARE O F THE VIEW THAT T HE ASSESSEE TRUST WAS ENTITLED TO AP P ROVAL UN D ER S.80G I TA NO. 597 /H YD/20 1 3 SRI KALLURI LAKSHMI VARA PRASADA RAO MEMORIAL CHARITABLE TRUST HYDERABAD 4 OF TH E AC T AND THE SAME IS ACCORDINGLY GRANTED TO THE ASSESSEE. GROUN D S OF APPEAL O F TH E ASSESSEE ARE ALLOWED. 6. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 29 TH APRIL 2015 SD/ - SD/ - ( P.M.JAGTAP ) ( G.C.GUPTA) ACCOUNTANT MEMBER VICE PRESIDENT D T/ - 29 TH APRIL 201 5 COPY FORWARDED TO: 1. SRI KALLURI LAKSHMI VARA PRASADA RAO MEMORIAL CHARITABLE TRUST C/O. M/S. K.VASANT KUMAR & A.V.RAGHURAM ADVOCATES 610 BABUKHAN ESTATES BASHEERBAGH HYDERABAD 500 001. 2 . DIRECTOR OF INCOME - TAX(EXEMPTION) HYDERABAD 3. ASST. DIRECTOR OF INCOME - TAX(EXEMPTION) II HYDERABAD 4. DEPARTMENTAL REPRESENTATIVE ITAT HYDERABAD. B.V.S