2015 (10) TMI 1412 - AT - Income Tax

Registration under section 12AA - condition imposed by the DIT (Exemptions) while granting registration under section 12AA to obtain registration from the competent authority of the Government of Andhra Pradesh under section 43 of the Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Act, 1987 and furnish copy of such order of registration within a period of six months - Held that - On a careful reading of the provision contained under section 12A read with section 12AA of the Act, we do not find any condition imposed therein to indicate that for the purpose of obtaining registration under section 12AA of the Act, a trust or institution has to get itself registered under section 43 of the Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Act, 1987. The learned Departmental representative also could not bring to our notice any other provisions of the Act imposing such condition. Therefore, as the direction of the learned Director of Income-tax (Exemptions) is not in consonance with the statutory provision, the same is not required to be acted upon. - Decided in favour of assessee.

Summary

Issues:
1. Condition imposed by the Director of Income-tax (Exemptions) under section 12AA of the Income-tax Act, 1961.
2. Approval denial under section 80G(5)(vi) of the Act.
3. Delay in filing appeal and condonation of the same.

Issue 1 - Condition Imposed under Section 12AA:
The appeal challenged a condition imposed by the Director of Income-tax (Exemptions) requiring the assessee to obtain registration under section 43 of the Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Act, 1987, for registration under section 12AA of the Act. The Tribunal held that such a condition was not mandated by the statutory provisions of section 12AA. The Tribunal emphasized that there was no requirement in section 12A or 12AA that necessitated registration under section 43 of the Andhra Pradesh Act. Relying on precedent and statutory interpretation, the Tribunal concluded that the Director's direction was not aligned with the law, directing the Director to modify the order and grant registration under section 12AA without the additional requirement.

Issue 2 - Approval Denial under Section 80G(5)(vi):
The second appeal pertained to the denial of approval under section 80G(5)(vi) of the Act by the Director of Income-tax (Exemptions). The assessee initially filed an appeal against this denial. However, during the proceedings, it was revealed that the Director had subsequently granted approval to the assessee under section 80G(5)(vi). The Tribunal, upon considering this development and the submission by the authorized representative, dismissed the appeal as infructuous since the relief sought had already been granted to the assessee.

Issue 3 - Delay in Filing Appeal and Condonation:
Regarding the delay of 117 days in filing the appeal for the second issue, the assessee filed a petition seeking condonation of the delay. The Tribunal, after examining the reasons provided for the delay, found a reasonable cause for the delay and thus condoned the delay, allowing the appeal to be admitted for adjudication.

In conclusion, the Tribunal allowed the appeal in I. T. A. No. 1755/Hyd/2014 concerning the condition imposed under section 12AA, directing the modification of the order. Simultaneously, the appeal in I. T. A. No. 1756/Hyd/2014 regarding approval denial under section 80G(5)(vi) was dismissed as infructuous due to subsequent approval granted. The Tribunal pronounced the judgment on April 1, 2015.