TMI Blog2020 (2) TMI 448X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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. Ground thus raised is allo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2AA of the Income Tax Act vide Order dated 30.09.2015, by CIT (Exempt) 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. AY 2012-13 in view of the Proviso to Sub-Section (2) of Sec 12 and the provisions of Section 11 and 12 would apply accordingly. 2) In view of the facts on record that when the application u/s 12AA was made by the assessee trust assessment proceedings for Asst. year 2012-13 were pending before Assessing officer and when CIT (Exempt) granted registration u/s 12AA to the trust the CIT (A) 10 should have directed Assessing officer to rectify the Asst. order of 2012-13 which was passed subsequently by A.O by applying provisions of Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nath Temple Trust and both the trusts were granted registration certificate by CIT on the same day. It was also submitted that the Department does not possess old records wherein details of registration are maintained. It was therefore, submitted that the assessee be considered to be a registered trust and be granted exemption u/s 11 and 12 of the Act. It was further submitted that as the original certificate u/s 12AA was not traceable the assessee had made a separate application for registration and CIT(Exemption) vide certificate issued u/s 12A of the Act on 30.09.2015 w.e.f. A.Y. 2015-16 had granted certificate. It was submitted that since the assessee has been granted certificate, therefore in view of the proviso to section 12A(2) of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m of exemption u/s 11 and 12 of the Act was never denied to assessee and for the first time the benefit was denied in the year under consideration. As an alternate contention, she submitted that the assessee be granted exemption in view of proviso to section 12A(2) of the Act. She submitted that since assessee had filed appeal against the order of Assessing Officer, the pendency of appeal before CIT(A) be considered to be a case where assessment proceedings are pending. In support of aforesaid contention, she placed reliance on the decision of Pune Tribunal SMC Bench in the case of Shri Krishnabai Ghat Trust Vs. ITO (Exemptions) in ITA No.44/PUN/2019, for A.Y. 2014-15, order dated 03.05.2019. She also placed on record the copy of aforesaid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns 11 and 12 of the Act shall apply from the assessment year immediately following the financial year in which such application is made. First proviso to this section is relevant for our purpose. This proviso states that where the registration has been granted to the assessee u/s.12AA, then the provisions of sections 11 and 12 shall apply to 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 remained the same for such preceding assessment year . Crux of the provision is that if registration has been granted subsequently and the proceedings for some earlier year are pending befor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngs, being, the proceedings before CIT(A). 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 (2018) 400 ITR 466 (Raj.) in which it has been held that an assessment proceedings which is pending in appeal before the appellate authority should be deemed to be assessment proceedings pending before the AO. within the meaning of the term as envisaged under the proviso. It follows there from that the assessee which obtained regist ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
