Zoos and Parks Authority of Telangana Vs DCIT (ITAT Hyderabad)
Income Tax Appellate Tribunal (ITAT) in Hyderabad has delivered a significant ruling, clarifying that a charitable society undergoing a name change, particularly if it also obtains a new Permanent Account Number (PAN), is required to obtain fresh registration under Section 12A of the Income Tax Act, 1961, to continue claiming tax exemptions. The decision came in the case of Zoos and Parks Authority of Telangana Vs. DCIT, involving the successor entity to the erstwhile Zoo Authority of Andhra Pradesh.
The Tribunal’s ruling, which addressed appeals for assessment years 2016-17, 2018-19, and 2019-20 to 2021-22, concluded that while the assessee’s delay in filing appeals before the Commissioner of Income Tax (Appeals) [CIT(A)] should be condoned, the fundamental requirement of fresh registration under Section 12A for the newly named entity with a new PAN cannot be overlooked. However, the ITAT also directed the Assessing Officer (AO) to tax only the net surplus, rather than gross receipts, if the exemption is denied.
Background of the Case
The dispute arose after the bifurcation of the erstwhile state of Andhra Pradesh, which led to the formation of Telangana. “The Zoo Authority of Andhra Pradesh” had previously enjoyed registration under Section 12A and approval under Section 80G of the Income Tax Act, effective from April 1, 2010. Following the state’s reorganization, the Government of Telangana approved a name change for the entity to “The Zoos and Parks Authority of Telangana” (ZAPAT), with the aim of continuing wildlife and environmental conservation activities.
