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2019 (7) TMI 1851 - ITAT RAIPURDisallowance of exemption u/s 11 - assessee trust having been not registered u/s 12A - HELD THAT:- AO and the CIT(A) was not justified in taking a stand that registration u/s 12A was not applicable to the assessee for the assessment years under consideration and that the ratio laid down in the case of U.P. Forest Corporation vs. Dy. CIT [2007 (11) TMI 303 - SUPREME COURT] that registration of a trust u/s 12A is a condition precedent to claim of exemption u/s. 11 and 12 has been is not applicable to the peculiar facts of the case in view of the amendment to the s. 12A(2) by way of inserting proviso through Finance Act, 2014 with retrospective effect and therefore, in view of the statutory provisions and the legal propositions we do not approve finding of the CIT(A). Without prejudice to above, even if the reopening is to be treated valid, then also, the learned CIT(A)/AO has not brought any material evidence on record from which it can be inferred that the objects and activities of the assessee trust for the earlier assessment years i.e.. 2008-09 and 2009-10 has been changed as compared the objects and activities of the subsequent assessment year i.e., 2010-11 onwards for which the AO has allowed the exemption u/s 11 to the assessee trust and in the present case there is no change in the objects and activities of the earlier and subsequent assessment years and further, there was no finding that the assessee has carried on any activity not in accordance with its objectives and therefore, in the absence of any finding of facts being given by the AO or the CIT(A), the exemption under s. 11 of the Act, cannot be denied as held by-apex Court in the case of SURAT CITY GYMKHANA [2008 (4) TMI 16 - SUPREME COURT] and SREE SREE RAMKRISHNA SAMITY [2015 (11) TMI 119 - ITAT KOLKATA] CIT granted registration to the assessee trust before reopening of the assessment which was not disputed by the AO during the course of assessment proceedings and that it is also undisputed that the 'objects and activities', which are charitable in nature, remain unchanged. As such, the aforesaid proviso to s. 12A(2) is squarely applicable. Therefore, we reverse the order of the learned CIT(A) and Accordingly, the AO is directed to grant the benefit of ss. 11 and 12 to the assessee for the asst. yr 2008-09 and 2009-10. Thus, the grounds of appeal are allowed.
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