M/S CHOUHAN EDUCATION SOCIETY,BHOPAL vs. COMMISSIONER OF INCOME TAX (EXEMPTION), BHOPAL

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ITA 633/IND/2017Status: DisposedITAT Indore30 June 20226 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 initial application was filed on March 31, 2000, and the subsequent refiling of documents was merely to facilitate the process. Therefore, the CIT should have granted registration from the date of the original application, April 1, 1999.

What were the facts?

The assessee society applied for registration under Section 12AA on March 31, 2000. Despite multiple notices and submissions, the CIT granted registration only from April 1, 2003, rejecting the assessee's request for it to be effective from April 1, 1999. This led to multiple rounds of appeals.

What were the issues?

Whether the registration under Section 12AA should be granted from the date of the initial application or from a later date determined by the CIT, considering the prolonged processing time and procedural delays.

Which sections of the Income-tax Act were involved?

Section 12A,Section 12AA,Section 254,Section 154

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, INDORE BENCH, INDORE

Before: MS. MADHUMITA ROY & SHRI B.M. BIYANI

For Appellant: Ms. Nisha Lahoti, AR
For Respondent: Shri P.K. Mitra, CIT-DR
Hearing: 20.06.2022Pronounced: 30.06.2022

आदेश / / O R D E R O R D E R / / O R D E R O R D E R

Per B.M. Biyani, A.M.:

1.

This appeal filed by assessee is directed against the order dated 11.08.2017 of learned Commissioner of Income-Tax, Bhopal [“Ld. CIT”] u/s 12A(1) read with section 254 of Income-tax Act, 1961 [“the act”].

2.

The assessee is a society incorporated under M.P. Societies Registration Act, 1973 engaged in imparting education and vocational training. On 31.03.2000, the assessee filed application to Ld. CIT in Form No. 10A for grant of registration u/s 12AA of the Act whereupon the Ld. CIT called for certain details and documents vide notices dated 14.06.2000, 08.07.2000, 04.09.2000, 15.05.2001 and 09.05.2002. In response, the Chouhan Education Society ITA No. 633/Ind/2017 assessee submitted details and documents on 31.07.2000, 15.06.2001 and 10.06.2002. During the proceeding, the authorized representative of assessee also appeared before ITO, Ward-2 on 10.06.2002, 27.06.2002 and 03.07.2002. Thereafter on 22.07.2002, the assessee got information that the jurisdiction for registration had been transferred to Circle 1(1). Subsequently there was no communication by revenue to the assessee. Therefore, lastly vide letter dated 07.01.2004, the assessee re-filed three sets of documents consisting of the copy of Form No. 10A, brief note on activities, copy of registration-certificate, bye-laws, details of members, audited financial statements, certain declarations, letter for condonation of delay, etc. to Ld. CIT and requested the Ld. CIT to grant registration from financial year 1999- 2000. However, vide order dated 11.02.2004, the Ld. CIT granted registration from 01.04.2003. The assessee filed rectification-application u/s 154 of the act to Ld. CIT with a request to rectify his order dated 11.02.2004 so as to make the registration effective from 01.04.1999, but vide order dated 29.02.2008, the Ld. CIT rejected the rectification-application too. Against the order dated 29.02.2008, the assessee filed appeal to this Bench which was registered as ITA No. 118/Ind/2008. The appeal was decided on 15.10.2008 wherein the Bench held as under:

“The Commissioner of Income-tax is, therefore, directed to pass the reasoned order after considering the view already taken by this Bench of the Income-tax Appellate Tribunal. In the result, the matter is set-aside and restored to the file of the CIT, Bhopal, who after providing adequate opportunity to the assessee, will decide the issue de novo.” Following this order of ITAT, the Ld. CIT passed order dated 11.08.2017 u/s 12A(1) read with section 254. But still the Ld. CIT did not grant registration w.e.f. 01.04.1999. Against the order dated 11.08.2017, the assessee has once again approached this Bench. Therefore, this is second round of litigation before us on the same issue.

Chouhan Education Society ITA No. 633/Ind/2017

3.

The grievance of assessee is very limited i.e. the registration as applied for vide application dated 31.03.2000 must be granted from 01.04.1999 and the Ld. CIT is not justified in granting registration from 01.04.2003.

4.

Ld. AR submitted that the assessee filed application in Form No. 10A on 31.03.2000 and it is the application dated 31.03.2000 on the basis of which the Ld. CIT issued various notices calling for details and documents and the assesssee also made compliances from time to time. Drawing our attention to the assessee’s letter dated 07.01.2004 placed at Page No. 13 of the Paper-Book, Ld. AR pointed out that the assessee had to re-submit copies of Form No. 10A and all documentary evidences once again just because no communication was coming from the office of Ld. CIT despite of the proceedings conducted from time to time. Ld. AR submitted that the copies of Form 10A and documents submitted on 07.01.2004 is a mere re-filing of what had already been filed on 31.03.2000 and it was not a fresh application by assessee. According to Ld. AR, therefore, there was no justification in granting registration from 01.04.2003 in place of 01.04.1999.

5.

Ld. AR further carried our attention to the direction given by this Bench in its order dated 15.10.2008 in the first round of litigation i.e. in (supra) where this Bench had directed the Ld. CIT to pass a reasoned order on the basis of the view already taken by this Bench in its earlier decision in MAA Bagula Mukhi Shakti Peeth Charitable Trust Vs. CIT, ITA No. 597/Ind/2006 dated 23.2.2007. Ld. AR submitted that firstly despite the direction given by this Bench as early as on 15.10.2008, the Ld. CIT did not make rectification for several years and it was only on 11.08.2017 that the rectification-order was passed. Secondly, the Ld. AR pointed out that the Ld. CIT has himself admitted in Para No. 3 / Page No. 2 of the order dated 11.08.2017 that the records were mis-placed. Ld. AR submitted that these basic flaws in the order dated 11.08.2017 are sufficient enough to demonstrate that the order dated 11.08.2017 is not passed in a just manner. Be that as it may be, the Ld. AR further submitted that even while passing order dated 11.08.2017, the Ld. CIT has not followed the Page 3 of 6

Chouhan Education Society ITA No. 633/Ind/2017 direction of this Bench properly. Ld. AR referred to Page No. 32 of the order dated 15.10.2008 and argued that the Bench has given direction on the basis of its earlier decision in MAA Bagula Mukhi Shakti Peeth Charitable Trust Vs. CIT, dated 23.2.2007 in which it was held as under:

“6. Considering the above discussion and the decision referred to above including the judgement of Hon’ble Jurisdictional High Court, the impugned order of the CIT, Ujjain, dated 31st July, 2006 is set aside to the extent of grant of registration with effect from 01.04.2006 and the matter in issue is restored to the file of the CIT, Ujjain, with the direction to grant registration to the assessee u/s 12A / 12AA of the Act, from the date of 14.12.2002 as requested by the Trust. The Commission of Income-tax, Ujjain, shall grant reasonable opportunity of being heard to the assessee. The CIT, Ujjain, is directed to grant registration to the assessee as expeditiously as possible within 2 months of the receipt of this order”. Ld. AR submitted that the effect of MAA Bagula Mukhi Shakti Peeth Charitable Trust (supra) is very clear and to be precise it holds that the registration ought to be granted from the date requested by the assessee, which is 01.04.1999 in the present appeal. With these submissions, the Ld. AR requested to give a clear-cut direction to the Ld. CIT to grant registration from 01.04.1999 since the assessee has already suffered two rounds of litigation and the matter is also quite old.

6.

Ld. DR though supported the order of Ld. CIT yet could not controvert the submissions of Ld. AR.

7.

We have considered the rival arguments of both sides, perused the material held on record and also examined the direction given by this Bench in the first round of litigation. After a careful consideration, we observe that the assessee filed application in Form No. 10A on 31.03.2000 for grant of registration and on the basis of this application, the procedure of registration was set in motion. We observe that the Ld. CIT issued certain notices to the assessee on the basis of the application dated 31.03.2000 and the assessee too complied with those notices. However, realizing that no decision was Chouhan Education Society ITA No. 633/Ind/2017 coming from Ld. CIT and more particularly being aware of the fact that there was a change in jurisdiction from ITO, Ward-2 to Circle-1(1), the assessee re- filed a copy of the original application alongwith documentary evidences on 07.01.2004. Ld. AR has pointed out that the filing on 07.01.2004 is a mere re-filing of documents to facilitate the registration process and there was no fresh application. Thus, we observe that the application was in fact filed on 31.03.2000 and not on 07.01.2004. We also find that it is not a case of revenue that the application dated 31.03.2000 was rejected by Ld. CIT as there is no such material produced before us. In such circumstances, therefore, there is no justification to grant registration from 01.04.2003. In fact, the Ld. CIT ought to have granted registration from 01.04.1999. We also observe that the decision of this Bench in MAA Bagula Mukhi Shakti Peeth Charitable Trust Vs. CIT (supra) also supports assessee’s claim. Therefore, we are persuaded to direct the Ld. CIT(E) to rectify his order and grant registration from 01.04.1999.

8.

In the result, this appeal of assessee is allowed.

Order pronounced as per Rule 34 of I.T.A.T. Rules 1963 on 30.06.2022.

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