ST.JOHN'S PARISH SCHOOL SOCIETY,VISAKHAPATNAM vs. CIT (EXEMPTIONS), HYDERABAD

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ITA 516/VIZ/2017Status: DisposedITAT Visakhapatnam18 May 20184 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 assessee's request for one more opportunity to produce the original registration certificate issued by the Registrar of Societies was reasonable. The Tribunal found that the registration was rejected solely on a technical ground. Therefore, the order passed by the Commissioner (Exemptions) dated August 16, 2017, was set aside. The Commissioner was directed to reconsider the application for registration under Section 12AA of the Act, subject to the assessee fulfilling the conditions, specifically by producing the registration certificate. The ratio decidendi is that a reasonable opportunity should be granted for rectifying technical deficiencies in applications for registration under Section 12AA, especially when the assessee demonstrates a willingness to comply. The appeal filed by the assessee was allowed for statistical purposes, with the operative direction being to reconsider the application.

What were the facts?

The assessee, M/s. St. John’s Parish School Society, filed an application in Form No. 10A on February 27, 2017, seeking registration under Section 12AA of the Income Tax Act, 1961. The Commissioner of Income Tax (Exemptions), Hyderabad (the Revenue), scheduled a hearing and requested the assessee to provide its registration certificate from the Registrar of Societies. The assessee failed to submit this document. Consequently, the Commissioner rejected the application for registration. The assessee appealed this order before the Income Tax Appellate Tribunal (ITAT).

What were the issues?

1. Whether the Tribunal should grant the assessee another opportunity to submit the registration certificate issued by the Registrar of Societies, thereby remitting the issue back to the Commissioner (Exemptions)? (Question of mixed law and fact, concerning Section 12AA of the Act). Assessee's Contention: The Id. counsel for the assessee argued that the rejection was based on a technical ground and requested one more opportunity to file the registration certificate with the Commissioner (Exemptions), praying for the matter to be remitted back. The assessee relied on the principle that a reasonable opportunity should be granted. Revenue's Contention: The Id. Departmental Representative strongly opposed granting any further opportunity, stating that the assessee had already been given several opportunities by the Commissioner (Exemptions) which were not utilized. Therefore, the appeal should be dismissed, and the order of the Commissioner (Exemptions) should be upheld.

Which sections of the Income-tax Act were involved?

Section 12AA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM

Before: SHRI V. DURGA RAO, HON’BLE & SHRI D.S. SUNDER SINGH, HON’BLE

For Appellant: Shri G.V.N. Hari - Advocate
For Respondent: Shri Deba Kumar Sonawal - CIT DR
Hearing: 03/05/2018

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO, HON’BLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH, HON’BLE ACCOUNTANT MEMBER ITA No. 516/VIZ/2017 M/s. St. John’s Parish School vs. CIT (Exemptions), Society, D.No.24-3-2, Hyderabad. Thompson Street, Old Post Office, Visakhapatnam. PAN No. AACAS 2455 C (Appellant) (Respondent)

Assessee by : Shri G.V.N. Hari – Advocate. Department By : Shri Deba Kumar Sonawal – CIT DR Date of hearing : 03/05/2018. Date of pronouncement : 18/05/2018. O R D E R PER V. DURGA RAO, JUDICIAL MEMBER

This appeal by the assessee is directed against the order of Commissioner of Income Tax (Exemptions), Hyderabad, dated 16/08/2017. 2. Facts of the case, in brief, are that assessee-society filed an application in Form No. 10A on 27/02/2017 seeking registration under section 12AA of the Income Tax Act, 1961 (hereinafter referred to as 'Act', for short). The Commissioner (Exemptions) by fixing the case for hearing, asked the assessee to file

2 ITA No.516/VIZ/2017 (M/s. St. John’s Parish School Society)

registration done with Registrar of Societies and also asked to produce original copy of registration. The assessee has not filed the society’s registration done with Registrar of Societies, therefore, Commissioner (Exemptions) rejected to grant registration under section 12AA of the Act. 3. On appeal before us, ld. counsel for the assessee has submitted that he may be given one more opportunity to file registration certificate issued by the Registrar of Societies and prayed that issue may be remitted back to the file of the Commissioner (Exemptions). 4. On the other hand, ld. Departmental Representative strongly opposed that no opportunity should be given to the assessee, as the assessee has been granted several opportunities by the Commissioner (Exemptions), but not utilised the same. Therefore, appeal filed by the assessee may be dismissed and strongly supported the order passed by the Commissioner (Exemptions). 5. We have heard both the parties and perused the material available on record. 6. The assessee has filed an application in Form No. 10A seeking registration under section 12AA of the Act. The Commissioner (Exemptions) rejected the registration on the ground that assessee has not filed original registration certificate

3 ITA No.516/VIZ/2017 (M/s. St. John’s Parish School Society)

issued by the Registrar of Societies. Ld. counsel for the assessee has request that registration has been rejected only on technical ground and he may be permitted for one more opportunity to file the registration certificate before the Commissioner (Exemptions). We find that request made by the counsel for the assessee, is reasonable and one more opportunity should be granted to the assessee to produce the original registration certificate issued by the Registrar of Societies. In view of the above, the order passed by the Commissioner (Exemptions), dated 16/08/2017, is set aside and directed him to consider the application for registration under section 12AA of the Act subject to fulfilment of conditions as mentioned above. 7. In the result, appeal filed by the assessee is allowed for statistical purpose. Order Pronounced in open Court on this 18th day of May, 2018.

Sd/- sd/- (D.S. SUNDER SINGH) (V. DURGA RAO) Accountant Member Judicial Member Dated : 18th May, 2018. vr/-

4 ITA No.516/VIZ/2017 (M/s. St. John’s Parish School Society)

Copy to: 1. The Assessee – M/s. St. John’s Parish School Society, D.No.24-3-2, Thompson Street, Old Post Office, Visakhapatnam. 2. The Revenue - CIT (Exemptions), Hyderabad. 3. The D.R., Visakhapatnam. 4. Guard file. By order

(VUKKEM RAMBABU) Sr. Private Secretary, ITAT, Visakhapatnam.

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