TMI Blog2018 (8) TMI 1050X X X X Extracts X X X X X X X X Extracts X X X X ..... Mandal (2016 (4) TMI 578 - ITAT AHMEDABAD) that the appeal is the continuation of the assessment proceedings and going by the principle of purposive interpretation of statues, an assessment proceeding which is pending in appeal before the appellate authority should be deemed to be 'assessment proceedings pending before the assessing officer' within the meaning of that term as envisaged under the first proviso to Sub-section (2) of Section 12A. It follows therefrom that the assessee which obtained registration u/s. 12AA of the Act during the pendency of appeal was entitled for exemption u/s 11 of the Act. - Decided in favor of assessee. - S.P. No.13/CTK/2018 ITA No.76/CTK/2018 - - - Dated:- 10-8-2018 - S/Shri N. S. Saini, Accountant M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TA No.487/CTK/2012 for the assessment year 2008-2009 order dated 4.10.2013 and pointed therefrom that the Tribunal in that case has held that even if the assessee trust is not entitled for exemption u/s. 11 13 of the Act, it is only the net income, which can be brought to tax. For this, the Tribunal has relied on the decision of Hyderabad Bench of the Tribunal in the case of Normal Agricultural Society vs ITO, 71 ITD 152 (Hyd). 7. On the other hand, the ld D.R. supported the orders of the lower authorities. 8. We heard the rival submissions, perused the orders of lower authorities and materials available on record. In the instant case, the undisputed facts of the case are that the assessee filed e-return of income on 27.11.2014 for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eld under trust of any assessment year preceding the aforesaid assessment year, for which assessment proceedings are pending before the Assessing Officer as on the date of such registration and the objects and activities of such trust or institution remain the same for such preceding assessment year. 14. We find that the Ahmedabad Bench of the Tribunal in the case of Shri Bhabushali Mitra Mandal vs ITO in ITA No.2515/Ahd/2015 for the assessment year 2011-12 order dated 22.2.2016 has held as under: 7.1 To examine the first issue, necessarily I have to analyze the relevant provision, namely, the amendment to Section 12A by Finance Act, 2014 w.e.f. 01.10.2014 by way of insertion of provisos to Section 12A(2) of the Act which is repr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 21.01.2015 in reference F. No. 142/13/2014-TPL, which read as follows: Para 8.2 Non-application of registration for the period prior to the year of registration caused genuine hardship to charitable organizations. Due to absence of registration, tax liability is fastened even though they may otherwise be eligible for exemption and fulfill other substantive conditions. However, the power of condonation of delay in seeking registration was not available. This clearly goes to prove that the first proviso to section 12A(2) was brought in the statute only as a retrospective effect with a view not to affect genuine charitable trusts and societies carrying on genuine charitable objects in the earlier years and substantive conditio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .e.f. the assessment year 2013-14. The appeal is the continuation of the original proceedings and that the power of the Commissioner of Income-tax was co-terminus with that of the assessing officer were two well established principles of law. In view of the above and going by the principle of purposive interpretation of statues, an assessment proceeding which is pending in appeal before the appellate authority should be deemed to be 'assessment proceedings pending before the assessing officer' within the meaning of that term as envisaged under the proviso. It follows there-from that the assessee which obtained registration u/s 12AA of the Act during the pendency of appeal was entitled for exemption claimed u/s 11 of the Act. 7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oceedings pending before the assessing officer' within the meaning of that term as envisaged under the first proviso to Sub-section (2) of Section 12A . it follows therefrom that the assessee which obtained registration u/s. 12AA of the Act during the pendency of appeal was entitled for exemption u/s 11 of the Act. 16. For the reasons quoted above, we set aside the orders of lower authorities and remand matter back to the file of the Assessing Officer to compute the income of the assessee afresh after allowing exemption u/s.11 12 of the Act to the assessee. Hence, the grounds of appeal of the assessee are allowed. 17. The assessee had filed stay petition for stay of demand. As we have heard and decided the appeal of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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