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TMI Blog2019 (9) TMI 758X X X X Extracts X X X X X X X X Extracts X X X X ..... ide Ground No. 1(a) the assessee has challenged the validity of the proceedings under section 147/148 of the Income Tax Act, 1961 (hereinafter referred to as 'Act'). 4. Facts of the case in brief are that the assessee society was registered on 06/03/2003 with "The Registrar of Firms & Societies". The Assesee filed its return of income on 01/10/2010, showing NIL income. The A.O. completed the assessment under section 143(3) of the Act on 31/10/2013, accepting the NIL income. Later on the A.O. observed that in the assessee's case for the A.Y. 2006-07 the ITAT observed that the assessee was registered with Commissioner of Income Tax under section 12AA of the Act, however if it is found subsequently that the assessee does not have registration under section 12AA of the Act, the case may be assessed accordingly. The A.O. further observed that the assessee had applied for registration under section 12AA of the Act, to the CIT-2, Chandigarh who vide his order dt. 30/12/2013 had not granted the registration. He therefore reopened the assessment under section 147 of the Act, after recording the reasons. The A.O. observed that the assessee had gross receipt of Rs. 1,46,91,272/- out of whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... registration during the assessment proceedings. He further observed that as the assessee was not registered under section 12AA of the Act, it had applied for registration before the CIT-2 Chandigarh who had not granted the registration and rejected the application vide order dt. 30/12/2013. Therefore, the A.O. had rightly reassessed the assessee under section 143(3) read with section 147 of the Act as an unregistered society. Accordingly the action of the A.O. was upheld. The Assessee also raised the grounds before the Ld. CIT(A) that opportunity of being heard for filing the objection to the notice under section 147 of the Act and copy of the reasons recorded were not given timely and that the assessment order had been reopened on wrong facts. The assessee furnished the written submission before the Ld. CIT(A) as under: "In the present case appellant has filed Income Tax Return for the Assessment Year 201011 on 01.10.2011. The return was accepted and assessed by then Assessing Officer under section 143(3) of Income Tax Act on 31.10.2013. Subsequently a notice under section 148 claiming income has escaped assessment within the meaning of section 147 of Income Tax Act was issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re-opening of assessment just to review its old decision is bad in law. The respondent Assessing Officer passed unjust/unlawful orders dated 30.03.2015 under sec 143(3) of the Act and the same was received on 06.04.2015, without giving proper opportunity of being heard as far objections to the reopening of case are concerned." 6.1 The Ld. CIT(A) however do not find merit in the aforesaid submissions of the assessee by observing as under: The submission of the appellant that the re-opening of assessment has been made on wrong facts is totally devoid of merits. The re-assessment proceedings were initiated on the basis of information with the assessing officer that the assessee society is not registered u/s 12AA of the Act. The appellant itself failed to produce registration certificate u/s 12AA before the A.O and as the society was not registered appellant applied for registration before Commissioner of Income Tax, which was declined vide order dated 31.12.2013. Therefore Assessing Officer has rightly initiated re-assessment proceedings u/s 147 after recording reasons that the income of the society has escaped assessment by treating it as a society registered u/s 12AA of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herefore had applied for fresh registration to the Ld.CIT who rejected the same vide order dt. 30/12/2013 and the assessee challenged the action of the Ld. CIT before the ITAT wherein vide order dt. 31/03/2015 in ITA No. 198/Chd/2014 the matter was set aside to the Ld. CIT for reconsideration. It was pointed out that the Department had not brought any material on record that the assessee was not having the registration for the year under consideration, therefore when the A.O. while framing the assessment under section 143(3) of the Act, vide order dt. 31/01/2013 was satisfied that the assessee was having the registration under section 12AA of the Act, then subsequently the reopening on this basis that the assessee was not having the registration under section 12AA of the Act was a change of opinion particularly when nothing was brought on record by the Department that the registration earlier granted under section 12AA of the Act was cancelled. He also drew our attention towards page no. 15 to 17 of the assessee's paper book which is the copy of the order of Hon'ble Jurisdictional High Court dt. 21/04/2011 in ITA No. 75 of 2011 for the A.Y. 2006-07 wherein the appeal of the Dep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ide F. No. 225/127/2011/ITA-II dated 0209-2011. During scrutiny the assessee has not furnished copy of certificate of registration granted u/s 12AA but stated that it has been granted registration and no certificate is available with it at present. The Hon'ble ITAT in assessee's own case for the AY 2006-07 wherein the Hon'ble ITAT has mentioned that the assessee is registered with the Commissioner of Income-tax u/s. 12AA of the Income Tax Act. However, if in future it is found that the assessee does not have registration u/s. 12AA the case may be reassessed accordingly." 2. The assessee had applied for registration u/s. 12A before the worthy Commissioner of Income-tax-II, Chandigarh. The Worthy Commissioner of Income-tax-II, Chandigarh vide order u/s. 12AA dated 30/12/2013 has not granted the registration to the assessee. Since, the assessee had not been granted registration and also the fact that the trust applied for registration which has been rejected the case needs to be re-assessed. 3. It is further noticed that the assessee trust received gross receipt of Rs. 1,46,91,272/- for the financial year 2008-09 relevant to A.Y. 2009-10. Out of this, only a sum of Rs. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Its object is to promote the implementation of E-Governance using Information Technology in the state of Punjab." 12. The Assessing Officer in this case has taken note of the fact that the assessee has applied for registration afresh and assumed that the assessee was earlier not having any registration u/s 12A of the Act. On the other hand, the counsel for the assessee has explained that since the original certificate issued for registration u/s 12A of the Act was misplaced, hence, the registration was applied for, afresh. 13. In the present case, the claim of the Ld. Counsel for the assessee was that the assessee had been registered u/s 12A with the Department, the register in which the names of the charitable institution are entered lies with the Department and as to whether the assessee had been registered u/s 12A of the Act or not, could have been easily verified by the Assessing Officer from the record of the Department / from the register containing the entries of registration and from other relevant record. However, the Assessing Officer neither during the original assessment proceedings verified the said facts from the record nor the said record has been verified bef ..... X X X X Extracts X X X X X X X X Extracts X X X X
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