Siddartha Foundation, Hyderabad vs Assessee

The aforesaid appeal of the assessee is directed against the Order dated 16.06.2014 passed by the learned DIT(E), Hyderabad.

2. There is a delay of 04 days in filing of appeal by the assessee. assessee has filed a petition for condoning the delay being supported by an affidavit. After considering the submissions of the assessee and cause of delay as explained in the affidavit, we are inclined to condone the delay and admit the appeal for hearing on merits.

2. Though, the learned DIT(E) has granted registration to the assessee under section 12AA of the Act w.e.f. 29.04.2014, the specific grievance of the assessee is with regard to the direction of the learned DIT(E) for obtaining registration under section 43 of the A.P. Charitable and Hindu 2 ITA.No.1477/Hyd/2014 Siddartha Foundation, Nizamabad.

Religious Institutions and Endowment Act, 1987 and furnished a copy of such registration certificate within a period of six months.

3. Briefly stated facts are, the assessee-trust had filed application seeking registration under section 12A of the Act on 24.02.2012 before the learned DIT(E). The learned DIT(E), however, refused to grant registration vide order dated 29.08.2012. Being aggrieved of such order of the learned DIT(E), assessee approached the ITAT. The ITAT disposed of the appeal of the assessee registered as ITA.No.1410/Hyd/12 vide order dated 18.04.2013 setting aside the order of the learned DIT(E) and remitted the matter back to him with a direction to consider assessee's application for registration afresh. In pursuance to the directions of the ITAT, the learned DIT(E), called upon the assessee to furnish necessary details. In response to the query made by the learned DIT(E), assessee furnished all the details. Being satisfied with the object of the Trust and the information submitted before him, learned DIT(E) passed the impugned order granting registration under section 12AA of the Act w.e.f. 29.04.2014. However, while doing so, the learned DIT(E), directed the assessee to apply for registration under section 43 of the A.P. Charitable and Hindu Religious Institutions and Endowment Act, 1987 and furnish a copy of such order of registration within a period of six months. Being aggrieved with the aforesaid direction of the learned DIT(E), assessee is before us.

4. The learned A.R. submitted that the direction of learned DIT(E) is not only unnecessary but not in accordance with the statutory provisions. The learned A.R. submitted that the provision contained under section 12A read with section 3 ITA.No.1477/Hyd/2014 Siddartha Foundation, Nizamabad.

12AA of the Act, does not require the assessee to obtain registration under section 43 of the A.P. Charitable and Hindu Religious Institutions and Endowment Act, 1987. In this context, the learned A.R. relied on the following two decisions :

(i) M/s. Brahma Vidya Yogashramam Sharada Matham, Tahadpakal (v) vs. DIT(E), Hyderabad.

ITA.No.6/Hyd/2014 dated 29.04.2014.

(ii) The Timbaktu Kutumbam Foundation, Hyderabad vs. DIT(E), Hyderabad ITA.No.1100/Hyd/2014 dated 17.10.2014.

5. The learned D.R. relied on the order of the learned DIT(E).

6. We have considered the submissions of the parties and perused the materials on record. On careful reading of the provisions contained under section 12A and 12AA of the Act, we do not find any condition imposed therein with regard to obtaining of registration under section 43 of the A.P. Charitable and Hindu Religious Institutions and Endowment Act, 1987. Therefore, when the statutory provision does not require any such registration to be obtained mandatorily by a trust or institution the direction of the learned DIT(E) imposing such condition on the assessee in our view, is not only in violation of the statutory provisions but also in excess of his jurisdiction. The Coordinate Bench of this Tribunal in ITA.No.6/Hyd/2014 dated 29.04.2014 (supra) while examining the validity of similar direction in case of M/s. Brahma Vidya Yogashramam Sharada Matham, Tahadpakal (v) vs. DIT(E), Hyderabad has held as under :

"5. We have heard both the parties and perused the material on record. In our opinion, the DIT(E) is not justified 4 ITA.No.1477/Hyd/2014 Siddartha Foundation, Nizamabad.

in directing the assessee to obtain registration from the Competent Authority of Government of Andhra Pradesh u/s. 43 of the A.P. Charitable & Hindu Religious Institutions & Endowments Act, 1987 and furnish a copy of such order of registration in his office for record, within a period of 6 months from the date of receipt of the impugned order. There is no provision u/s.12AA of the Act to seek registration from the Competent Authority of Government of Andhra Pradesh u/s. 43 of the A.P. Charitable & Hindu Religious Institutions & Endowments Act, 1987 so as to grant registration u/s.12AA of the Act by the DIT(E). The judgment relied on by the DIT(E) in his order is not relevant to grant registration u/s.12AA of the Act. Being so, the DIT(E) is not justified in directing the as to obtain such registration.

6. The Tribunal on earlier occasion vide order dated 15.3.2013 in ITA.No.1552/Hyd/2012 in assessee's own case directed the DIT(E) to grant registration u/s. 12AA of the Act. Being so, the DIT(E) cannot sit over the order of the Tribunal and put any condition while granting registration u/s.12AA of the Act. We expunge such direction given by the DIT(E) in his order to obtain registration from the Competent Authority of Government of Andhra Pradesh u/s. 43 of the A.P. Charitable & Hindu Religious Institutions & Endowments Act, 1987."

7. Similar view was expressed in other decisions of the Coordinate Bench also. Therefore, respectfully following the decisions of the Coordinate Bench as cited before us by the learned A.R. we hold that there is no need for the assessee to obtain registration under section 43 of the A.P. Charitable and 5 ITA.No.1477/Hyd/2014 Siddartha Foundation, Nizamabad.

Hindu Religious Institutions and Endowment Act, 1987. Accordingly, the order of learned DIT(E) is modified to this extent by expunging the direction contained in para 10 of the impugned order. Accordingly, ground raised by the assessee is allowed.

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

Order pronounced in the open Court on 21.01.2015

Sd/- Sd/-

(B.RAMAKOTAIAH) (SAKTIJIT DEY) ACCOUNTANT MEMBER JUDICIAL MEMBER

Hyderabad, Dated 21st January, 2015

VBP/-

Copy to

1. Siddartha Foundation, 5-7-622, Khaleelwadi, Nizamabd, C/o. Ch. Parthasarathy & Co., 1-1-298/2/B3, 1st Floor, Sowbhagya Avenue, Street No.1, Ashoknagar, Hyderabad - 500 020.

2. Director of Income Tax (Exemptions), Hyderabad.

3. DDIT(E)-III, Hyderabad

4. D.R. ITAT "A" Bench, Hyderabad.