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TMI Blog2011 (9) TMI 222X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee has duly obtained permission of the Committee on Disputes (Cabinet Secretariat), to pursue this litigation before us, in terms of Hon'ble Supreme Court's judgment in the case of .ONGC v. CCE (1992) 104 CTR (SC) 31. 3. The issue in appeal lies in a narrow compass of relevant material facts. The assessee is a major port trust set up by the virtue of Gazette Notification No. 159, dt. 28th May 1982, under the Major Port Trust Act. 1963. Till asst. yr. 2002-03, the assessee was eligible for exemption under s. 10(20) of the Act, as it was covered by the definition of 'local authority' for that purpose. However, the definition of 'local authority' was considerably narrowed down by the legislative amendment in s. 10(20) w.e.f. 1st April, 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esentatives of CBDT stated that the CIT(A) has since granted registration to the JNPT w.e.f. 1st April, 2002 and JNPT should approach AO, under s. 154, for rectification of order. The representative of JNPT expressed the apprehension that the AO may not still grant them the requisite relief." 5. It is in this backdrop that the CoD permitted the JNPT to pursue appeals before us. 6. Learned counsel for the assessee prays that the matter be restored to the file of the AO so that he can examine the matter afresh in the light of the registration under s. 12AA now available to the assessee. He points out that the requisite audit reports and other documents were not before the AO at the stage of original proceedings as at that point of time the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 2003, have faced the same problem. These were the cases in which registration under s. 12A was never sought earlier because the assessees were exempt from tax anyway under s. 10(22), and by the time the registration under s. 12AA was obtained, due to the necessity caused by this change in law, the assessees had already filed the IT returns without complying with the procedural requirements necessary to avail benefit of tax exemption under s. 11 by virtue of registration under s. 12AA. As to what should be done in such situations, we find guidance from Hon'ble Supreme Court's judgment in the case of CIT v. U.P. Forest Corpn. (1998) 230 ITR 945/97 Taxman 259. On materially similar set of facts, their Lordships, inter alia, observed that "In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nity of hearing to the assessee. 10. Having held so, we may also mention that, we are somewhat surprised by the hypertechnical and pedantic stand taken by the learned Departmental Representative, which is in sharp contrast to very fair and reasonable stand of the CBDT representative before the Cabinet Secretariat. While the CBDT is of the view that the relief can perhaps be given even by way of a rectification order, the field authorities are fighting tooth and nail on procedural issues for even examining the claim of the assessee on merits - that too against a public sector undertaking which is fully owned by the Government of India, and when there is a direct Supreme Court decision holding that interest of justice requires such matters t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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