The order of the Bench was delivered by
I.T.A. No. 1755/Hyd/2014
Saktijit Dey, Judicial Member - This appeal of the assessee is directed against the order dated May 22, 2013 passed by the learned Director of Income-tax (Exemptions), Hyderabad under section 12AA of the Income-tax Act, 1961.
2. The only grievance of the assessee is with regard to the condition imposed by the learned Director of Income-tax (Exemptions) while granting registration under section 12AA of the Act by directing the assessee 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.
3. We have heard the parties and perused the materials on record. The learned authorised representative submitted before us, the condition imposed by the learned Director of Income-tax (Exemptions) is in excess of power conferred under section 12AA of the Act and otherwise contrary to the statutory provisions. In support of such contention, he relied upon a decision of the Income-tax Appellate Tribunal, Hyderabad Bench in the case of Brahma Vidya Yogashramam Sharada Matham v. DIT(E) [I.T. Appeal No. 6 (Hyd.) of 2014, dated 29-4-2014]. The learned Departmental representative, on the other hand, relied upon the reasoning of the learned Director of Income-tax (Exemptions).
4. Having considered the submissions of the parties, we are of the view that condition imposed by the learned Director of Income-tax (Exemptions) by directing the assessee to obtain registration under section 43 of the Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Act, 1987 is not relevant for the purpose of registration under section 12AA of the Act. 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. Similar view has also been expressed by the co-ordinate Bench in the case of Brahma Vidya Yogashramam Sharada Matham (supra). In the aforesaid view of the matter, we direct the learned Director of Income-tax (Exemptions) to modify his order by granting registration to the assessee under section 12AA of the Act without insisting upon registration under section 43 of the Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Act, 1987.
5. In the result, the assessee's appeal is allowed.
I.T.A. No. 1756/Hyd/2014
6. This appeal of the assessee is directed against the order dated May 22, 2014 passed by the learned Director of Income-tax (Exemptions), Hyderabad in not granting approval to the assessee under section 80G(5)(vi) of the Act.
7. There is a delay of 117 days in filing of the appeal. The 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 the appeal within time. Accordingly, we condone the delay and admit the appeal for adjudication.
8. At the outset, the learned authorised representative submitted, in the meantime, the learned Director of Income-tax (Exemptions) has granted approval to the assessee under section 80G(5)(vi) vide order dated December 16, 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 the assessee, the appeal has become infructuous. In view of such submission of the assessee, we dismiss the appeal as infructuous.
9. In the result, the appeal of the assessee is dismissed.
10. To sum up, the appeal in I.T.A. No. 1755/Hyd/2014 is allowed and the appeal in I.T.A. No. 1756/Hyd/2014 is dismissed.