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2022 (4) TMI 162 - ITAT DELHIExemption u/s 11 & 12 - as per AO assessee society was not registered u/s 12AA of the Act and, therefore, he was of the view that the assessee was not entitled for exemption u/s 11 & 12 - HELD THAT:- Application for registration was made way back in the year 1989 and after ten years the Competent Authority sought explanation regarding the application. Thereafter, claim of exemption was allowed for many years. All of sudden, the Officer wakes up out of slumber, issues notices for reopening of assessment purely on the ground that the assessee could not furnish the requisite certificate of registration u/s 12AA of the Act and proceeded to make assessment. There are divergent views on the issue of deemed registration amongst the Hon’ble High Courts of Allahabad, Madras, Karnataka, Rajasthan and Kerala. The Hon’ble High Court of Karnataka, Rajasthan and Kerala have ruled in favour of the assessee on the other hand Hon’ble High Courts of Gujrat, Madras and Full Bench of Hon’ble Allahabad High Court have ruled against the assessee. Hence, the issue in hand is debatable and two views are possible. The Hon’ble Apex court [2016 (2) TMI 672 - SC ORDER] however affirmed the decision of the Hon’ble Division Bench of Allahabad High Court in the case of Society for Promotion of Education Adventure Sports and Conservation of Environment [2008 (4) TMI 700 - ALLAHABAD HIGH COURT]by declaring that the registration of the application under section 12AA of the Act shall be with effect from 24.08.2003. Case of the assessee stands at better footing as in the present case the Revenue itself has been treating the income of the assessee as exempt treating the assessee as a charitable society. Under these peculiarity of facts and circumstances hereby hold that action of the Assessing Officer for not treating the assessee society eligible for exemption is not justified under the facts and circumstances of the present case. Therefore, direct the Assessing Officer to give benefit available u/s 11 and 12 - Decided in favour of assessee.
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