TMI Blog2022 (1) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee. The assessee has claimed that it has surrendered new PAN number. The AO should verify this fact and ensure that the new PAN number is cancelled in the system also. Since the assessee has been granted registration u/s 12AA of the Act under the old PAN number and since the new PAN number has been claimed to have been surrendered, it is appropriate to pass the assessment order under Old PAN number only. Accordingly, the AO may regularize the return filed under new PAN number substituting old PAN number in accordance with the procedure prescribed for dealing with such kind of situation. As noticed earlier that the assessee has filed three returns of income under Old PAN number also. It has filed two returns of income under New PAN number also. Thus, there are five returns in total for the same assessee for the same assessment year. Since all income belonging to the assessee and arising for the same year has to be assessed in a single assessment order, it is necessary for the AO to take cognizance of returns of income filed under Old PAN number also and accordingly pass a single assessment order incorporating income declared in all the returns of income. Assessee h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trust running a church. It filed its return of income on 26.8.2015 for assessment year 2015-16 with PAN No.ABVFS1096C as a charitable trust. Accordingly, in the return of income, the assessee claimed exemption u/s 11 of the Act. The A.O. noticed that there is one more entity with the same name M/s. Stella Maris Church assessed in PAN No.AADTS6161K. Hence the AO asked the assessee to furnish the details of registration granted to it u/s 12AA of the Act. The A.O noticed that the registration u/s 12AA of the Act was granted to the entity having PAN No.AADTS6161K. Accordingly, the AO took the view that the assessee herein has used the registration granted u/s 12AA of the Act to another entity. Accordingly, the A.O. took the view that the assessee is not entitled for deduction u/s 11 of the Act in the absence of registration u/s 12AA of the Act. 4. Before the A.O, the assessee submitted there is no two different entities as presumed by him. It was explained that it has originally obtained PAN No.AADTS6161K. When it wanted to open another bank account, the bankers asked for a copy of PAN number. It was noticed then that PAN card bearing no. AADTS6161K has been misplaced. Hence, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also furnished separate audited statement for building fund before AO on 07.11.2017. However, the AO did not the said explanations and held that the assessee has kept the collection of building fund and the related bank account outside the regular books of account. He also observed that it has incorporated the same in the computation of income only. Accordingly, the A.O. took the view that the assessee has not actually credited the donations to the corpus of the trust in books of account. Hence, the AO held that the assessee is not entitled to exemption u/s 11(1)(d) of the Act in respect of corpus donation collected in the name of building fund. Accordingly, the A.O. determined the total income of the assessee at ₹ 2,46,87,092/- after rejecting exemption u/s 11 11(1)(d) of the Act. 7. During the course of appellate proceedings, the Ld. CIT(A) deputed his inspector of income tax to the field to examine verify the claim of the assessee that both the PAN numbers pertain to same entity (Church), i.e., to examine whether two separate entities (church) are existing or not. The inspector submitted his report on 13.3.2018, wherein he reported that there exists only one entity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed before the due date to avoid the penalty u/s.272(A)(2)(e) used the PAN ABVFS1096C for which date of formation was available. vii) Field inquiries by the Inspector of income tax revealed that there is only one church in existence and there are no two churches. There is only one entity with two PANs. viii) The Appellant received interest income of ₹ 14,20,189/- on the FDRs as per 26AS under PAN: AADTS6161K. The Appellant approached Sri C.B. Suresh Kumar, the then Assistant Commissioner of Income Tax (Exemptions), Mangalore, who verified the Departmental System and provided the date of formation of the trust as per old PAN: AADTS6161. Thereafter, the Appellant filed the return with the old PAN on 03.03.2017 to claim the refund of TDS. 8. The Ld. CIT(A) also noticed that the assessee has filed returns of income under both PAN numbers separately. It has been tabulated as under by Ld CIT(A). PAN Ori. Return filed Return in reply to 139(9) Rev. return filed ABVFS1096C(new) 26.08.2015 --- 02.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rpus donations claimed as exempt u/s 11(1)(d) of the Act, it was submitted by the assessee that it has maintained separate receipts and payment account for new church building and hence the same was not brought to the balance sheet of the Trust. However, the corpus donations were disclosed in the revised return of income filed by the assessee. The Ld. CIT(A) accepted the above explanations of the assessee also. Accordingly, he directed the A.O. to allow exemption u/s 11 of the Act as well as u/s 11(1)(d) of the Act. Aggrieved, the revenue has filed this appeal before us. 11. We heard Ld D.R and perused the record. The Ld D.R submitted that the assessee did not furnish full information before the AO. Further the Ld. CIT(A) has decided all the issues by considering fresh materials and explanations. In fact, the Ld CIT(A) has also conducted field enquiries. He submitted that the first appellate authority did not confront those materials with the A.O. nor did he call for remand report from the A.O. Accordingly, he submitted that the AO should be given an opportunity to examine all these details. Without getting report from the AO, the Ld CIT(A) should not have come to the conclusi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) has observed at page 28 of his order as under with regard to new PAN number:- (vii) The Appellant, vide its letter dated 6th December 2017 (before completion of assessment) surrendered new PAN card ABVFS1096C and requested the assessing officer to treat the return filed (with ABVFS1096C) as return filed under old PAN: AADTS6161K. However, we notice that the present appeal has also been filed by the revenue under new PAN number only. However, it is the case of the assessee that it has surrendered new PAN number before the completion of assessment. Since the AO did not accept the explanations that both PAN numbers belong to same entity (Church), he has passed the assessment order under new PAN number and the present appeal has also been filed under new PAN number. Under these facts, we are of the view that the following action needs to be carried out in order to resolve this controversy. (a) Since the explanations offered by the assessee before Ld CIT(A) as to the necessity of obtaining new PAN number has been accepted by the first appellate authority after carrying out field verification and since the AO has not brought any material on record to controvert t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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