TMI Blog2019 (5) TMI 618X X X X Extracts X X X X X X X X Extracts X X X X ..... ws is that the benefit of the proviso is available not only when the assessment proceedings are pending before the AO but also when an appeal against the assessment order is pending before the ld. CIT(A). It is so for the reason that the appeal proceedings are nothing but continuation of the assessment proceedings. As at the time of granting registration by the ld. CIT (Exemptions) to the assessee, the appeal of the assessee was pending before the ld. CIT(A), in my considered opinion, the benefit of first proviso to section 12A(2) ought to have been granted. My view is fortified by the judgment of Hon ble Rajasthan High Court in CIT (Exemptions) Vs. Shree Shyam Mandir Committee [ 2017 (10) TMI 1450 - RAJASTHAN HIGH COURT] in which it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e order passed by the CIT(A)-10, Pune on 01-10-2018 in relation to the assessment year 2014-15. 2. The assessee has raised an additional ground, which reads as under : Whether the appellant having been granted registration u/s.12AA of the Income Tax Act vide order dated 28-09-2017, during the pendency of proceedings before CIT(A), would be entitled to exemption u/s.11 of the Act for the year under consideration, i.e. A.Y. 2014-15 in view of the Proviso to Section 12A sub-section (2) and the provisions of Section 11 and 12 would apply accordingly . 3. It is apparent from a perusal of the above ground itself that a legal issue has been raised therein. Since no investigation of fresh facts is nec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n has been made on or after the 1st day of June, 2007, the provisions of sections 11 and 12 shall apply in relation to the income of such trust or institution from the assessment year immediately following the financial year in which such application is made: Provided that where registration has been granted to the trust or institution under section 12AA, then, the provisions of sections 11 and 12 shall apply in respect of any income derived from property held 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 su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... against the said assessment order, which came to be decided by means of impugned order dated 01-10-2018. This manifests that as on the date of grant of registration by the ld. CIT (Exemptions), though the assessment order had already been passed but the appeal of the assessee was pending before the ld. CIT(A). Under such circumstances, a question arises as to whether or not the benefit of first proviso can be extended to the assessee? 7. If we go by the plain language of the provision and interpret it strictly, then the pendency of the assessment proceedings before the AO is sine qua non for getting the extended benefit of registration in terms of the mandate of the proviso. Section 250 of the Act deals with the procedure i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent. It is thus clearly borne out from the above provisions that the CIT(A) has got plenary powers in an appeal before him against an assessment order. What AO can do, can be done by CIT(A) in an appeal before him. Even what the AO could have done but failed to do, can also be done by him. It shows that the powers of a CIT(A) in an appeal against an assessment order are almost similar to those of an AO. If extend this analogy to the provisions of section 12A(2), an irresistible conclusion which follows is that the benefit of the proviso is available not only when the assessment proceedings are pending before the AO but also when an appeal against the assessment order is pending before the ld. CIT(A). It is so for the reason t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for exemption claimed u/s.11 of the Act . The additional ground thus raised is allowed by holding that the assessee would be entitled to exemption u/ss. 11 and 12 of the Act for the year under consideration on the raison d etre that the registration was, in fact, granted to the assessee u/s.12AA during the pendency of proceedings before the ld. CIT(A). 9. In the light of my above conclusion on the additional ground, the impugned order is set-aside and the matter is restored to the file of AO for framing a de novo assessment as per law after allowing a reasonable opportunity of hearing to the assessee. Needless to say, the assessee in such assessment proceedings would be considered to have been granted registration and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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