TMI Blog2017 (12) TMI 989X X X X Extracts X X X X X X X X Extracts X X X X ..... 30.06.2016, which in itself arises from the order passed by the A.O under Sec. 143(3) of the Income Tax Act, 1961, (for short Act ), dated 30.08.2013. The assessee assailing the order of the CIT (A) had raised before us the following grounds of appeal:- 1. On the facts and in the circumstances of the case and in law the ld. CIT(A) erred in confirming an addition of ₹ 34,31,521/- (as surplus of the Society) as the Society is not approved u/s 10(23C)(vi) or (via) of the Act during the period under consideration. 2. On the facts and in the circumstances of the case and in law the ld. CIT(A) erred in holding that the amended provisions of the section 12A/12AA of the Act w.e.f. 01.10.2014 as applicable to pending assessments orders does not have retrospective effect as such confirmed the addition. 3. On the facts and in the circumstances of the case and in law the ld. CIT(A) erred in rejecting the additional ground of appeal that the society which was Registered u/s 12A/12AA of the Act on 03.04.2012, was not registered during the period under consideration. 2. Briefly stated, the facts of the case are that the assessee which is an educational institution h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Commissioner of Income tax- III, Ludhiana on 03.04.2012, and objects and activities of the assessee society during the year under consideration, i.e. AY: 2011- 12 were the same as were there before the A.O at the time of grant of registration, therefore, as per the amended provisions of Sec. 12A/12AA of the Income tax, 1961, as were made available on the statute vide the Finance Act, 2014 with effect from 1st October, 2014, the addition of ₹ 34,31,521/- made by the A.O was liable to be deleted. The assessee submitted before the CIT(A) that the first proviso to Sec. 12A(2) was made available on the statute in order to mitigate the hardships cause to the charitable institutions. It was submitted by the assessee that where registration under Sec. 12AA was granted to an assessee under Sec. 12AA, then the assessee would also be entitled for the benefit of Sec. 11 and 12 in the prior years, subject to satisfaction of two fold conditions, viz. (i) that assessment proceedings in such preceding years was pending before the A.O on the date of grant of registration; and (ii) the objects and activities of the assessee during the said year were the same which had been considered by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in order to drive home his aforesaid contention, drew our attention to the first proviso of Sec. 12A(2), which was made available on the statute vide the Finance (No. 2) Act, 2014 with effect from 01.10.2014. The ld. A.R submitted that as the said statutory provision was made available on the statute to mitigate the hardships being faced by charitable institutions, therefore, the same being a beneficial provision was to be accorded a retrospective applicability. The ld. A.R in order to buttress his aforesaid contention took support of the memorandum explaining the provisions of the Finance (No.2) bill, 2014, in context of the incorporation of the first proviso to Sec.12A(2). The ld. A.R in order to fortify his aforesaid claim that retrospective effect was to be given to the aforesaid statutory provision, therein relied on the judgment of the Hon ble Supreme Court in the case of CIT Vs. Vatika Township Pvt. Ltd. 367 ITR 466 (SC). The ld. A.R submitted that the issue that the first proviso of Sec. 12A(2) was to be given a retrospective effect had already been looked into and adjudicated by the Income Tax Appellate Tribunal, Cochin Bench, Cochin in the following cases:- (i) SNDP Yo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... djudicating as to whether the CIT(A) was right in concluding that the first proviso of Sec.12A(2) would be applicable to the facts of the present assessee before us, or not. We find that the first proviso of Sec. 12A(2) had been made available on the statute vide the Finance (No. 2) Act, 2014, with effect from 01.10.2014. That a perusal of the Explanatory notes of the Memorandum to Finance (No. 2) bill, 2014 explaining the objects and reasons for making available the first proviso to Sec. 12A(2) on the statute reveals that it was in order to mitigate the hardships caused to charitable institutions, which despite having satisfied the substantive conditions rendering them eligible for claim of exemption, however, for technical reasons were saddled with tax liability in the prior years, due to absence of registration under Sec. 12AA. We find that the issue before us, as to whether the beneficial provisions made available on the statute by the legislature in all its wisdom, vide the Finance (No. 2) Act , 2014 with effect from 01.10.2014 were to be given a retrospective effect, or not, had already deliberated upon and adjudicated by this Tribunal in bunch matters of St. Jude St Judes C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erally, and where to confer such benefit appears to have been the legislators object, then the presumption would be that such a legislation, giving it a purposive construction, would warrant it to be given a retrospective effect . 22. In Government of India Vs. Indian Tobacco Association, [2005] 7 SCC 396, the doctrine of fairness was held to be a relevant factor to construe a statute conferring a benefit, in the context of it to be given a retrospective operations. 23. In Vijay Vs. State of Maharashtra , [2006] 6 SCC 286, the Hon ble Supreme Court went to the extent of holding that where a law is enacted for the benefit of the community as a whole, even in the absence of a provision, the statute may be held to be retrospective in nature. 24. Now, undeniably, the assessment of income is a matter of procedure. Even the heading of Chapter (xiv) of the Act, which deals with assessment, itself is PROCEDURE FOR ASSESSMENT . Likewise, grant of registration is also a procedural aspect, since registration is but a step in aid for exemption u/s 11. As such, the provisos to Sec. 12A(2) are also procedural. 25. So far as regards the bringing in of the first provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... natural justice principle of fairness to all. Hence, it has to be presumed and constituted as retrospective in nature, in order to give the section a purposive interpretation. 27. In Shree Shree Ramkrishna Samity Vs. Dy. CIT, [2016] 156 ITD 646 (Kol), the above position has elaborately been considered to hold the first proviso to Section 12A(2) to be retrospectively applicable. The said decision has been followed in SNDP Yogum , (supra). 28. In view of the above discussion and respectfully following these decisions, in the absence of any decision to the contrary having been cited before us by the department, we hold that the first proviso to section 12A(2) of the Act is applicable retrospectively. 8. We have given a thoughtful consideration to the aforesaid observations of the Tribunal and are persuaded to be in agreement with the view taken therein. We thus finding no reason to take a different view, thus, are of the considered view that the first proviso of Sec. 12A(2) as had been made available on the statute vide the Finance (No. 2) Act . 2014, with effect from 01.10.2014, being a beneficial provision intended to mitigate the hardships in case of genuine cha ..... 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