TMI Blog2021 (8) TMI 744X X X X Extracts X X X X X X X X Extracts X X X X ..... tention of the amendment to section 12A of the Act. If no judicious or a liberal view is not taken either by the assessing authority or the appellate authority as in the case under consideration, the very purpose for which such an amendment to section 12A would be defeated. We find that similar view was taken by Coordinate bench in Badhte Kadam [ 2019 (7) TMI 1851 - ITAT RAIPUR] and case of Sree Sree Ramkrishna Samity [ 2015 (11) TMI 119 - ITAT KOLKATA] where it was held that amendment to Section 12A w.e.f. 01.10.2014 is retrospective. Thus considering the facts that assessee was granted registration under s.12AA w.e.f. 01.04.2015, vide order dated 09.05.2016, when the appeal of assessee was pending before learned CIT(A). Therefore we direct the Assessing Officer to grant the benefit of Section 11 12 for AY 2008-09. Appeal of the assessee is allowed. - I.T.A. Nos. 262 & 263/RPR/2016 - - - Dated:- 12-8-2021 - SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER And SHRI PAWAN SINGH, JUDICIAL MEMBER Assessee by : Shri Sunil Agrawal, CA. Department by : Shri G.N. Singh, DR ORDER PER PAWAN SINGH, JUDICIAL MEMBER: 1. These two appeals by the assessee are dir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of exemption u/s 11 by concluding that proviso inserted in sec. 12A(2) through amendment by the Finance (No.2) Act, 2014 is not applicable as the proceedings are not pending before the AO, while, registration was granted on 09/05/16 and on such date, proceedings were pending before the AO and has retrospective effect as held in SNDP Yogam (2016) (Coch-Trib), hence, reassessment made u/s 147 is null void and is liable to be quashed. 3. That the ld. CIT(A) has erred in confirming the action of the AO in denial of expetion claimed u/s 11 without bringing any finding that the objects/activities of the assessee trust for the A.Y. 11-12 has been changed as compared to the objects/ activities for the subsequent AYs, in which the ld AO has allowed the exemption u/s 11, as held in Surat City Gymkhana (2008) (SC), Sree Sree Ramkrishna Samity (2015) (Kol-Trib.). 3. Brief facts of the case are that the assessee is a trust, engaged in social and religious activities. The assessee filed its return of income for the A.Y. 2008-09 on 07/01/2009 declaring NIL income. The return was processed under section 1431 on 21/08/2009. Subsequently, the assessment was reopened under section 147. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmat and furnished all relevant information. The assessee was granted registration under s.12AA on 09.05.2015 w.e.f. 01.04.2015. During the pendency of appeal, the assessee was granted registration, therefore the assessee s case is covered under deemed registration as per the decision of Hon ble Supreme Court in case of Promotion of Education Adventure Sport Conservation of Environment dated 16.02.2016. The learned AR for the assessee further submitted the assessee is granted registration during the pendency before CIT(A), therefore the assessee is entitled for the benefit of first Proviso to Section 12A(2). To support his submission the learned AR for the assessee relied on the decision of SNDP Yogam vs. ADIT 186 TTJ 227 (Cochin) Badhte Kadam 203 TTJ 597 (Raipur Tribunal). 6. On the other hand, the learned DR for the Revenue by referring the provision of Section 12A(2) and its first proviso submits that when assessment was completed the assessee was not having registration under section 12AA. The subsequent registration under s.12AA will not helpful to the assessee. The learned DR for the Revenue prayed for the dismissal of the appeals of the assessee. 7. We have consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to affect genuine charitable trusts and societies carrying on genuine charitable objects in the earlier years and substantive conditions stipulated in section 11 to 13 have been duly fulfilled by the said trust. The benefit of retrospective application alone could be the intention of the legislature and this point is further strengthened by the Explanatory Notes to Finance (No.2) Act, 2014 issued by the Central Board of Direct Taxes vide its Circular No. 01/2015 dated 21.1.2015. Apparently the statute provides that registration once granted in subsequent year, the benefit of the same has to be applied in the earlier assessment years for which assessment proceedings are pending before the ld. A.O., unless the registration granted earlier is cancelled or refused for specific reasons. The statute also goes on to provide that no action under section 147 could be taken by the AO merely for non- registration of trust for earlier years. 10. Now adverting to the facts of the present cases. The ld AR for the assessee vehemently submitted that the assessee is entitled first Proviso to section 12A(2) of the Act. It is admitted position under the law that the appeal is continuation of ori ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
