Grace Gospel Ministries, Hyderabad vs Assessee

Assessee by : Shri T. Chaitanya Kumar Revenue by : Shri D. Sudhakar Rao

Date of hearing 24-03-2015 Date of pronouncement 01-04-2015

O RDE R

PER SAKTIJIT DEY, J.M.:

ITA No. 1755/Hyd/2014 This appeal of the assessee is directed against the order dated 22/05/2013 passed by ld. DIT(Exemptions), Hyderabad u/s 12AA of the IT Act.

2. The only grievance of assessee is with regard to the condition imposed by ld. DIT(E) while granting registration u/s 12AA of the Act by directing assessee to obtain registration from the competent authority of Govt. of AP u/s 43 of the AP Charitable and Hindu Religious Institutions & Endowments Act, 1987 and furnish copy of such order of registration within a period of six months.

3. We have heard the parties and perused the materials on record. Ld. AR submitted before us, the condition imposed by ld. DIT(E) is in 2 ITA Nos. 1755 & 1756 /Hyd/2014 Grace Gospel Ministries, Hyd.

excess of power conferred u/s 12AA of the Act and otherwise contrary to the statutory provisions. In support of such contention, he relied upon a decision of ITAT, Hyderabad Bench in case of M/s Brahma Vidya Yogashramam Sharada Matham, Vs. DIT(E) in ITA No. 6/Hyd/2014 dated 29/04/20145. The ld. DR, on the other hand, relied upon the reasoning of the ld. DIT(E).

4. Having considered the submissions of the parties, we are of the view that condition imposed by ld. DIT(E) by directing assessee to obtain registration u/s 43 of the AP Charitable and Hindu Religious Institutions & Endowments Act, 1987 is not relevant for the purpose of registration u/s 12AA of the Act. On a careful reading of the provision contained u/s 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 u/s 12AA of the Act, a trust or institution has to get itself registered u/s 43 of the AP Charitable and Hindu Religious Institutions & Endowments Act, 1987. The Ld. DR also could not bring to our notice any other provision of the Act imposing such condition. Therefore, as the direction of ld. DIT(E) is not in consonance with the statutory provision, the same is not required to be acted upon. Similar view has also been expressed by the coordinate bench in case of M/s Brahma Vidya Yogashramam Sharada Matham, Vs. DIT(E) (supra). In the aforesaid view of the matter, we direct ld. DIT(E) to modify his order by granting registration to assessee u/s 12AA of the Act without insisting upon registration u/s 43 of AP u/s 43 of the AP Charitable and Hindu Religious Institutions & Endowments Act, 1987.

5. In the result, assessee's appeal is allowed.

ITA No. 1756/Hyd/2014 6. This appeal of the assessee is directed against the order dated 22/05/2014 passed by ld. DIT(E), Hyderabad in not granting approval to assessee u/s 80G(5)(vi) of the Act.

3 ITA Nos. 1755 & 1756 /Hyd/2014 Grace Gospel Ministries, Hyd.

7. There is a delay of 117 days in filing of the appeal. Assessee has filed a petition for condoning the delay. After perusing the reasons shown for belated filing of appeal, we are satisfied that there is a reasonable cause for not filing appeal within time. Accordingly, we condone the delay and admit the appeal for adjudication.

8. At the outset, ld. AR submitted, in the meantime, ld. DIT(E) has granted approval to assessee u/s 80G(5)(vi) vide order dated 16/12/2014. A copy of the order was also submitted for perusal of the Bench. He, therefore, submitted that as relief claimed in the present appeal has already been granted to assessee, appeal has become infructuous. In view of such submission of assessee, we dismiss the appeal as infructuous.

9. In the result, appeal of assessee is dismissed.

10. To sum up, appeal in ITA No. 1755/Hyd/2014 is allowed and appeal in ITA No. 1756/Hyd/2014 is dismissed.

Pronounced in the open court on 1 st April, 2015.

Sd/- Sd/- (B. RAMAKOTAIAH) (SAKTIJIT DEY) ACCOUNTANT MEMBER JUDICIAL MEMBER

Hyderabad, Dated: 1 st April, 2015 kv

Copy to:-

1) Grace Gospel Ministries, C/o T. Chaitanya Kumar, Advocate, Flat No. 409, Metroresidency, Raj Bhavan Road, Somajiguda, Hyderabad.

2) DIT (Exemptions), Hyderabad 3 DDIT(E)-I, , Hyderabad

4) The Departmental Representative, I.T.A.T., Hyderabad.

4 ITA Nos. 1755 & 1756 /Hyd/2014 Grace Gospel Ministries, Hyd.

Description Date Intls 1. Draft dictated on Sr.P.S. 2. Draft placed before author Sr.P.S Draft proposed & placed before AM 3 the second Member 4 Draft discussed/approved by VP second Member 5 Approved Draft comes to the Sr.P.S. Sr.P.S./PS 6. Kept for pronouncement on Sr.P S. 7. File sent to the Bench Clerk Sr.P.S. 8 Date on which file goes to the Head Clerk 9 Date of Dispatch of order