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2016 (6) TMI 1237 - AT - Income TaxBenefit of sec. 11 and 12 denied - appellant trust is not registered u/s 12AA - whether the benefit of exemption was available to the assessee in view of the fact that the assessee trust was registered in subsequent year and appeal was pending before the ld. CIT (A) in respect of the earlier assessment? - Held that:- As decided in in the case of Sree Sree Ramkrishna Samity vs. DCIT (2015 (11) TMI 119 - ITAT KOLKATA ) 678 (Kolkata) since the only reason for denial of exemption u/s 11 was absence of registration u/s 12AA (which was granted to assessee society on 29.10.2010 with effect from 1.4.2010) for the relevant assessment years and on no other ground, the benefit of change in law as above by Finance Act 2014 should be available and for all the years, the benefit of exemption should be available on the date of registration as all the assessments were pending as shown above. In this connection, it requires mention specifically that all the receipts of the donation were proved on enquiry to have been received from the claimed donors and utilized for the specific purpose (construction of old age home) for which they were received. In conclusion, we hold that the insertion of the proviso to section 12A(2) of the Act has to be construed as retrospective in operation.” In the present case also the assessee was granted registration under section 12AA of the Act and assessment was not pending before the AO but appeal against the order of AO was pending before ld. CIT (A). It is a settled position of law that ld. CIT (A) has coterminous power with the AO. The benefit of exemption has been denied solely on the ground that assessee was not registered u/s 12AA of the Act. Thus we set aside the order of ld. CIT (A) and direct the AO to grant the benefit of exemption under section 11 of the Act. This ground of the assessee is allowed.
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