SRI KALYANA VENKATARAMANA SWAMY TEMPLE,CHITTOOR vs. COMMISSIONER OF INCOME TAX, (EXEMPTIONS), HYDERABAD

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ITA 760/HYD/2019Status: DisposedITAT Hyderabad15 October 20193 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the CIT(E)'s reason for rejection was irrelevant and that the focus should be on the charitable objectives of the trust. The Tribunal set aside the CIT(E)'s order and granted registration under Section 12A.

What were the facts?

The assessee temple applied for registration under Section 12A. The CIT(E) rejected the application because the assessee failed to file income tax returns for certain assessment years, deeming it an offense under Section 276CC.

What were the issues?

Whether failure to file income tax returns is a valid ground for rejecting an application for registration under Section 12A, and whether the charitable objectives of the trust were properly examined.

Which sections of the Income-tax Act were involved?

Section 12A,Section 276CC

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, HYDERABAD BENCH “B”, HYDERABAD

Before: SHRI V. DURGA RAO & SHRI D. S. SUNDER SINGH

For Appellant: Shri E. Phalguna Kumar
For Respondent: Shri Y.V.S.T. Sai
Hearing: 15/10/2019

PER V. DURGA RAO, J.M.:

This appeal by the assessee is directed against the order of Commissioner of Income Tax (Exemptions), Hyderabad, dated 27/03/2019.

2.

Brief facts of the case are that the assessee filed application in form No. 10A seeking registration u/s 12A of the Act on 30/09/2018. The assessee temple is being managed by the Endowments Department of State Govt. of AP and it was created on 20/11/2009. The CIT(E) asked the assessee to furnish the income tax returns for the AYs 2016-17, 2017-18 and 2018-19 vide letter dated 07/02/2019. However, the assessee failed to furnish the same and hence, CIT(E) asked the assessee to show cause as to why the application in Form No. 10A shall not be rejected in view of non filing of income tax returns. In response thereto, the AR of the assessee furnished certain written submissions dated 24/03/2019.

2 ITA No. 760/H/19 Sri Kalyana Venkatramana Swamy Temple, Chittoor 2.1 After considering the submissions of the assessee, the CIT(E) observed that not filing return of income is an offence u/s 276CC of the Act and hence, an entity committing offence cannot be eligible for exemption. He, accordingly, rejected the application filed by the assessee in Form 10A seeking registration u/s 12A of the Act.

3.

Considered the rival submissions and perused the material on record. We find that the reason given by the CIT(E) for rejecting the assessee’s application is not at all a reason to consider the application for registration u/s 12A of the Act. What is relevant is that the objectives of the assessee trust are charitable or not and without examining the same, the CIT(E) considering the irrelevant aspects rejected the assessee’s application, which is not proper and accordingly, we set aside the order of CIT(E). On considering the entire facts of the case, we find that it is a fit case to grant registration and u/s 12A of the Act and accordingly, we hereby grant the registration u/s 12A of the Act to the assessee. We order accordingly.

4.

In the result, appeal of the assessee is allowed. Order Pronounced in open Court on this 25th day of October, 2019.

Sd/- Sd/- (D.S. SUNDER SINGH) (V. DURGA RAO) ACCOUNTANT MEMBER JUDICIAL MEMBER Hyderabad, Dated: 25th October, 2019. kv Copy to: 1. Sri Kalyana Venkataramana Swamy Temple, Bye-Pass Road, Punganur (Rural), Chittoor. 2. CIT(E), 2nd Floor, Aayakar Bhawan, Basheerbagh, Hyderabad. 3. ITO (E), Tirupathi 4. Add. CIT(E), Vijayawada 5. The D.R., ITAT, Hyderabad. 6. Guard file.

3 ITA No. 760/H/19 Sri Kalyana Venkatramana Swamy Temple, Chittoor

S.No. Description Date Intls

1.

Draft dictated on Sr.P.S./P.S

2.

Draft placed before author Sr.P.S/PS

Draft proposed & placed before the second JM/AM Member 3

4 Draft discussed/approved by second JM/AM Member

5 Approved Draft comes to the Sr.P.S./PS Sr.P.S./P.S

6.

Kept for pronouncement on Sr. P.S./P.S.

7.

File sent to the Bench Clerk Sr.P.S./P.S

8 Date on which file goes to the Head Clerk

9 Date of Dispatch of order

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