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2016 (11) TMI 1443 - AT - Income TaxEligible to claim of deduction u/s 11(1)(d) - assessee was not registered u/s 12AA or u/s 10(23C)(vi) - whether the assessee trust can be held eligible to benefit of registration under section 12AA in terms of non-applicability of section 11 and 12? - Held that:- In the present case, when the amendment was made in section 12A of the Act by the FA, 2014, the appeal was pending before the ld CIT(A). During such pendency, the assessee was granted registration u/s 12AA of the Act on 8.8.2014 by CIT-I, Jaipur w.e.f. 26.03.2014. Thus, in view of the above discussions, ld CIT(A) has rightly exercised his power whereby he has considered and taken into consideration the grant of registration to assessee u/s 12AA for the impugned assessment year as appeal was pending before him and an assessment proceeding which is pending in appeal before the appellate authority should be deemed to be assessment proceedings pending before the AO within the meaning of the term as envisaged under the proviso to section 12A(2) of the Act. It is not the case of the Revenue that there is any change in the objects and activities of the assessee trust and these objects/activities are not the same as those on the basis of which registration under section 12AA has been granted. Further, it is also not the case of the Revenue that assessee trust was refused registration or registration granted earlier was cancelled at anytime. In our view, the assessee trust duly registered under section 12AA of the Act is thus held eligible to claim benefits of section 11 and 12 of the Act for the impunged assessment year. Whether building fund received by the assessee trust, can it be held eligible to claim benefit of section 11(1)(d)? - Held that:- What is relevant to determine is whether there is a voluntary contribution/donations by the students/parents with a direction to utilise the same towards construction of the building infrastructure and secondly, how the same has been accounted for and utilised by the assessee trust. However, given the contradictory position taken by the assessee and the Revenue and in absence of any tangible material on record produced by either of the two parties, it would be in interest of justice and fair play that the matter is remanded back to the Assessing officer who shall taking into consideration the legal propositions as laid down by the various Courts as discussed above, will examine the matter a fresh. We accordingly set-aside the matter relating to eligibility to claim benefit of section 11(1)(d) of the Act to the file of the Assessing officer. As we have held above, the assessee trust is held eligible for the benefits of section 11 and 12 as it is duly registered under section12AA of the Act, we do not see any infirmity in the order of the ld CIT(A).
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