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2022 (3) TMI 290 - AT - Income TaxExemption u/s 11 denied - assessee was not having registration u/s. 12A - AO while passing the re-assessment u/s. 143(3) r.w.s. 147 of the Act, the assessee was not in a possession of registration u/s. 12AA - Scope of amendment brought to the Finance (No. 2), Act, 2014 by inserting first proviso after sub-section (2) to Section 12A of the Act w.e.f. 01.10.2014 - as per revenue first proviso to section 12A(2) of the Act cannot be applied to the present assessee as on the date of grant of registration i.e. on 21.06.2019 no assessment proceedings were pending before the AO, therefore, the registration u/s. 12A of the Act cannot be given effect in A.Y. 2009-2010 - HELD THAT:- Appellate proceedings before the appellate authorities are deemed to be assessment proceedings pending before the Assessing Officer. Accordingly, respectfully following the above order of Amritsar Bench of the Tribunal in the case of St. Joseph's Convent School [2017 (2) TMI 1511 - ITAT AMRITSAR] we hold that the subsequent grant of registration will operate retrospectively for the assessment year under consideration also i.e. A.Y. 2009-2010 as the appeal before the CIT(A) against reassessment order dated 18.07.2011 was pending before CIT(A) which was decided on 29.07.2019 and on the date of grant of registration u/s. 12A of the Act i.e. on 21.06.2013, the first appeal was pending which has to be considered as in continuation of reassessment proceedings. Assessee/appellant trust was entitled to enjoy benefits of registration u/s. 12A of the Act w.e.f. A.Y. 2009-2010 under the benefit of first proviso to Section 12A(2) of the Act inserted by the Finance Act (No. 2), 2014 w.e.f. 01.10.2014. The authorities below have decided the matter considering that the assessee was not having registration u/s. 12A of the Act for A.Y. 2009-2010 but as per foregoing discussion, we have reached to a logical conclusion that the benefit of registration u/s. 12A of the Act is available for the assessee for A.Y. 2009-2010 also after insertion of first proviso to Section 12A(2) of the Act. Therefore, the orders of the authorities below are set aside and the case is restored back to the file of the AO for de novo reassessment keeping in view that the assessee was entitled to have benefit of registration u/s. 12A of the Act for A.Y. 2009-2010 - Appeal of the assessee is allowed for statistical purposes.
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