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2019 (3) TMI 1348 - AT - Income TaxCourse of action by Tribunal - Additional ground raised first time before Tribunal - Denial of exemption u/s 10(23C)(iiiad) - additional ground submitting that the appellant society has been granted registration u/s 12AA subsequently w.e.f. 1.4.2013 and the income of the appellant society would be exempt u/s 11 & 12 for the preceding years also including the year under appeal - HELD THAT:- From perusal of Form No.35 filed by the assessee before CIT(A) we observe that the additional ground raised before us has not been raised before CIT(A). The reason for not raising this additional ground is that the assessee was granted registration u/s 12AA on 11.7.2014 effective from 1.4.2013 whereas the appellate order framed by CIT(A) is dated 23.5.2014, therefore CIT(A) had no occasion to adjudicate this issue as it did not arise till the time of finalisation of appellate order. Before us the revenue has not disputed the objects of the society as mentioned in the bye-laws placed at page 3 to 6 which remain unchanged since its inception. Registration u/s 12AA of the Act have been granted by Ld.CIT, Bhopal on the basis of the objects mentioned in the bye-laws. Therefore following the judgment of CIT V/s Tolaram Somal [2006 (3) TMI 136 - MADHYA PRADESH HIGH COURT] are bound to hold that the additional legal ground which has been taken before us for the first time and which goes to the root of the matter needs to be set aside to the file of Ld. CIT(A) for adjudication in the light of various judgments referred by Ld. Counsel for the assessee as well as the provisions of law and decide accordingly as to whether the assessee in view of being registered u/s 12AA of the Act is eligible for benefit of Section 11 & Section 12 from retrospective effect. We accordingly set aside the additional ground as well as Ground No.2 to 6 relating to denial of exemption u/s 10(23C)(iiiad) of the Act to the file of Ld. CIT(A) for afresh adjudication.- Appeal of the assessee is partly allowed for statistical purposes.
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