T.ABDUL WAHID EDUCATIONAL SOCIETY,CHENNAI vs. DDIT, CHENNAI

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ITA 2186/CHNY/2014Status: DisposedITAT Chennai10 April 20154 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 amended bye-laws relate back to the date of the society's establishment, making it eligible for registration from that date, not from the date of amendment. Therefore, the DIT(E)'s grant of registration from a later date was incorrect.

What were the facts?

The assessee society applied for registration under Section 12AA. Initially, the application was rejected due to objects violating Section 13(1)(b) and later for benefiting a particular religion. The society amended its bye-laws, and the Tribunal directed registration.

What were the issues?

The key issue was whether the registration under Section 12AA should be granted from the date of the society's establishment or from the date of amendment of its bye-laws.

Which sections of the Income-tax Act were involved?

Section 12AA,Section 13(1)(b)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘ B’ BENCH : CHENNAI

Before: SHRI N.R.S. GANESAN & SHRI A. MOHAN ALANKAMONY]

For Respondent: Shri S.Balasubramaniam, CIT

आदेश / O R D E R

PER N.R.S.GANESAN, JUDICIAL MEMBER

1.

This appeal of the assessee was earlier disposed of by an order dated 10.4.2015. However, on the miscellaneous petition filed by the Revenue, the order of this Tribunal dated 10.4.2015 was recalled and the appeal was restored on file. Accordingly, the appeal is posted for final disposal.

2.

Shri G. Baskar, ld. Counsel for the assessee submitted that in the earlier round of litigation, this Tribunal, by an order dated

ITA No. 2186/14 :- 2 -:

5.12.2013, the copy of which is available at page 23 of the paper book, directed the DIT(E) to grant registration u/s 12AA of the Act.

Consequent to the direction, the DIT(E) granted registration with effect from 2.5.2013. The ld. Counsel clarified that the assessee- society was established by a Memorandum and bye-laws dated 19.7.2012 and the application for registration u/s 12AA was filed on 5.9.2012. Initially, the DIT(E) rejected the application of the assessee on the ground that the object of the society was in violation of sec.

13(1)(b) of the Act. The ld. Counsel further submitted that the bye- laws was amended on 2.7.2013. Further, considering the amended bye-laws of the society, this Tribunal directed the DIT(E) to grant registration. Once the bye-laws was amended, according to the ld. Counsel, the DIT(E) has to grant registration from the date of its establishment and not from the date of amendment of bye-laws.

3.

On the contrary, Shri S.Balasubramaniam, ld. Departmental Representative submitted that initially the assessee-society filed an application for registration on 5.9.2012. The DIT(E) by an order dated 28.3.2013 rejected the same on the ground that the assessee may not get the benefit of sec. 11 since the society was established for the benefit of a particular religion. Subsequently, the assessee amended the bye-laws of the society on 2.7.2013. After considering the amended bye-laws, this Tribunal by an order dated 5.12.2013 directed

ITA No. 2186/14 :- 3 -: the DIT(E) to grant registration u/s 12AA of the Act. Therefore, the assessee is eligible for registration only from the date on which the bye-laws was amended enabling the assessee-society to extend its benefit to all sections of the society. Therefore, the DIT(E) has rightly granted registration with effect from 2.5.2013.

We have considered the rival submissions on either side and 4. also perused the material available on record. Admittedly, the assessee filed an application for registration u/s 12AA of the Act on 5.9.2012 i.e within two months period from its establishment. The application of the assessee was rejected by the DIT(E) on the ground that the benefit of the society was for a particular religious community.

Subsequently, the assessee-society amended the bye-laws and after considering the amendment made by the assessee, this Tribunal directed the DIT(E) to grant registration u/s 12AA of the Act. The fact remains that the subject matter of appeal before this Tribunal in the earlier round of litigation is on application filed on 5.9.2012. After considering the amendment made in the bye-laws, this Tribunal directed the DIT(E) to grant registration only on the application made by the assessee on 5.9.2012. It is not in dispute that the society was established on 19.7.2012. The object clause in the bye-laws was amended by the assessee-society on 2.7.2013. Therefore, this Tribunal is of the considered opinion that when the amendment was ITA No. 2186/14 :- 4 -: made in the bye-laws of the assessee-society it relates back to the date of original establishment, hence the amended bye-laws would be applicable from 19.7.2012. Since the assessee has filed the application within one year from the date of its establishment, this Tribunal is of the considered opinion that the assessee is eligible for registration with effect from 19.7.2012. Therefore, the DIT(E) is not correct in granting registration with effect from 2.5.2013. Accordingly, the impugned order of the DIT(E) granting registration with effect from 2.5.2013 is modified and the DIT(E) is directed to grant registration with effect from 19.7.2012 i.e the date of establishment of the assessee-society.

In the result, the appeal of the assessee is allowed. 5.

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