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Anjana Patel Seva Sangha Versus The Commissioner of Income Tax, Hubli

2015 (10) TMI 473 - ITAT BANGALORE

Registration granted u/s. 12AA withdrawn - derecognizing approval granted u/s. 80G(5) - Held that:- There was no requirement of making an application for renewal of recognition granted u/s. 80G of the Act, as the recognition granted to the assessee will hold good in perpetuity. In such circumstances, the proper course to have been adopted by the CIT was to have filed the application of the assessee seeking extension of recognition u/s. 80G(5) of the Act. The action of the CIT in further withdraw .....

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aside the orders of the CIT and remand the issue of withdrawing recognition u/s. 12AA of the Act for fresh consideration by the CIT. As far as recognition u/s. 80G(5) of the Act is concerned, we hold that the recognition already granted will continue to operate and the order passed by the CIT provided the registration u/s.12AA of the Act continues. Insofar as order passed u/s. 12AA(3) is concerned, the issue will be considered afresh by the CIT after affording the assessee opportunity of being h .....

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ORDER Per N.V. Vasudevan, Judicial Member Both these appeals are filed by the assessee against the separate orders, both dated 20.09.2011 of the Commissioner of Income-tax, Hubli. ITA 1615/B/13 is an appeal against the order withdrawing the registration granted u/s. 12AA of the Income-tax Act, 1961 [ the Act ] . ITA 1616/B/13 is an appeal against the order derecognizing approval granted u/s. 80G(5) of the Act. 2. There is a delay of about 730 days in filing these appeals by the assessee. The as .....

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of the impugned orders, the assessee met tax consultant at Bangalore, who advised the assessee to file appeals before the Tribunal. The appeal memo was drafted by the tax consultant and sent to the assessee for signature and onward filing of appeals before the ITAT. It has further been stated that the docket containing the appeal papers were received by the earlier accountant of the assessee, who left the job without any prior notice. The earlier accountant also did not intimate the assessee re .....

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office and found that the sealed cover sent by the tax consultant to the assessee containing the appeal memo was lying in the accountant s drawer. Thereafter, the petitioner reverted to the tax consultant and filed the present appeals. The facts stated in the petition for condonation of delay have been verified by Shri Kangaram Choudhary, Secretary of the assessee. 3. The ld. counsel for the assessee submitted before us that the reasons given by the assessee are bona fide and that there was no m .....

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bile & General Finance (P) Ltd. v/s. CIT [2013] 35 taxmann.com 520 (Allahabad) / [2013] 218 Taxman 39 (Allahabad) (MAG.) 4. Sreenivas Charitable Trust v/s. DCIT [2006] 154 TAXMAN 377 (MAD.) 4. The ld. DR, however, opposed the prayer for condonation of delay and submitted that assessee has been negligent and the delay should not be condoned. 5. We have given a very careful consideration to the rival submissions. We are satisfied that the delay in filing the appeals has occasioned on account o .....

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ver technical considerations. The Court has also explained that a litigant does not stand to benefit by lodging the appeal late. The Court has also explained that every day s delay must be explained does not mean that a pedantic approach should be taken. The doctrine must be applied in a rational common sense and pragmatic manner. In the case of Shakuntala Hegde, L/R of R.K. Hegde v. ACIT, ITA No.2785/Bang/2004 for the A.Y. 1993-94, the Hon ble Tribunal condoned the delay of about 1331 days in f .....

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very liability of the assessee was non-existent and therefore condoned the delay in filing appeal. 14. Keeping in mind the aforesaid principles, we shall consider the claim of the assessee in the present case. Admittedly the advice was given by the counsel who appeared on behalf of the Assessee before the Hon ble High Court. The decision of the Hon ble High Court was rendered on 28.2.2012. The appeal has been filed by the Assessee before the Tribunal on 26.3.2012. Hence, we find that there has .....

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ordingly condoned. 6. Keeping in mind the principle laid down in the aforesaid decision, we will examine the present case. It may be true that the reasons given for the delay are self-serving, but there is no reason for the assessee delaying the filing of appeals before the Tribunal. In the circumstances, we accept the reasons given by the assessee for delay in filing the appeals. Accordingly, the delay in fling the appeals is condoned. 7. As far as merits of the appeals are concerned, the factu .....

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viso to section 80G(5)(vi) provided that approval granted shall be in effect for such assessment year or years, not exceeding five assessment years, as may be specified in the approval. This proviso was omitted by the Finance Act, 2009 and therefore the approval once granted shall continue to be valid in perpetuity. 9. It can be seen from the aforesaid Circular and the statutory amendment that there was no necessity for the assessee to make any application for continuation of recognition granted .....

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AO opined that request for continuance of recognition u/s. 80G should be rejected. The CIT therefore called upon the assessee to produce books of accounts and list of addresses of donors and provide proof for having conducted charitable activities. According to the CIT, the assessee failed to produce the required information. Thereafter, the CIT observed as follows:- The details on record and the report of the AO were perused. It is observed on verification of the balance sheet as on 31.03.2010 .....

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nd also failed to explain as to whether the activities are in accordance with the objects and also whether the same are charitable in nature. Therefore, it cannot be ascertained that the activities come under the definition of charitable purposes as per sec 2(15) of the Income-tax Act 1961. Under the circumstances, the Trust cannot be said to have satisfied the conditions required to be eligible for continuation of registration u/s 12AA. Therefore, the registration granted u/s 12AA is withdrawn .....

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ready seen that there was no requirement of making an application for renewal of recognition granted u/s. 80G of the Act, as the recognition granted to the assessee will hold good in perpetuity. In such circumstances, the proper course to have been adopted by the CIT was to have filed the application of the assessee seeking extension of recognition u/s. 80G(5) of the Act. The action of the CIT in further withdrawing registration already granted to the assessee u/s. 12AA of the Act is also not pr .....

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