Itta/32/2014 Of The Commr Of Income-Tax [Exemptions] v. Kusumba Dhirajlal Parekh And

IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH ATHYDERABAD THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTAAND THE HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A.No.32 of 2014 Date: 07.02.2014 Between: The Director of Income Tax (Exemptions)Hyderabad. … Appellant And Kusumba Dhirajlal Parekh &Lila Nautamlal Parekh Foundation,Hyderabad. … Respondent This Court made the following: THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTAANDTHE HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. No.32 of 2014 JUDGMENT:(Per the Hon’ble The Chief Justice Sri Kalyan Jyoti Sengupta) This appeal is sought to be preferred and admitted against thejudgment and order dated 12.07.2013 of the learned Tribunal in relation to the assessment year 2008-09 on the following suggested questions of law. “1. Whether on the facts and in the circumstances of the case andwhen the assessee has not commenced any charitable activity bythe date of filing application in Form No.10A, the Tribunal is correct inlaw in holding that the assessee will be entitled for registration u/s.12AA of the Income Tax Act, 1961?” 2. Whether on the facts and in the circumstances of the case andparticularly when the assessee is having both charitable andreligious objects as per the Trust Deed, and also the object of carrying onwidespread business activity, the Tribunal is correct in law in holdingthat the assessee would be eligible for registration u/s. 12AA of theIncome Tax Act, 1961? 3. Whether on the facts and in the circumstances of the case theorder of the Tribunal holding that due opportunity was not given to theassessee and that the order was passed in a mechanical manner isnot perverse and contrary to the evidence on record.” We have heard Mr. Prasad, learned counsel for the appellant, and gone through the impugned judgment and order of the learned Tribunal. The assessee applied for registration under Section 12AA of theIncome Tax Act, 1961. However, the Director of Income Tax (Exemptions)has rejected such application on the ground that the assessee has notcommenced its activities. The learned Tribunal has correctly held thatcommencement of activity is not the pre-condition for consideration of suchapplication. We think that the learned Tribunal has correctly remanded the matter for fresh consideration in the light of the provisions of Section 12AA ofthe Income Tax Act, 1961. We therefore do not find any reason to interferewith the impugned judgment and order. Accordingly, the appeal is dismissed. No costs. ___________________ K.J. SENGUPTA, CJ Date: 07.02.2014ES ___________________ SANJAY KUMAR, J