TMI Blog2022 (1) TMI 654X X X X Extracts X X X X X X X X Extracts X X X X ..... der any of the exceptions carved out in the provisos as contemplated under Section 12A(2) of the Act. Moreover, the interpretation given by the authorities to the Circular issued by the CBDT not being justifiable, the Tribunal has rightly held that the provisos to Section 12A(2) of the Act are applicable to the case on hand. Reasons would indicate that the only reason for reopening of assessment is the absence of registration under Section 12A of the Act. Further, the assessee has not filed return of income for the assessment year in question. A finding has been recorded on the facts of the case by the Tribunal on this aspect and the allegation that the assessee was claiming deductions under Sections 11 and 12 of the Act is held to be ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... BDT which only clarifies that no case of earlier years should be reopened merely for sake of re-opening on the ground that the assessee Trust had accumulated surplus and same becomes taxable on account of non-availability of approval under Section 12AA for earlier years whereas the said proviso and Circular cannot be considered as a bar for such cases of re-opening where the cases of earlier years have been reopened on account of surplus even after allowing the claim of exemptions under Sections 11 and 12 of the Act and when Section 12A registration is granted in subsequent years only? 2. The assessee claims to be a Trust and reassessment order under Section 143(3) read with Section 148 of the Act came to be passed for the assessment ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... present case. As per the first proviso, where registration has been granted to the Trust under Section 12AA, the provisions of Sections 11 and 12 shall apply. Further, as per the second proviso, no action under Section 147 shall be taken by the Assessing Officer only for non-registration of such Trust for the said assessment year. The Tribunal having considered these provisions has rightly allowed the appeal setting aside the re-assessment order. As such, no interference is warranted by this Court. Accordingly, learned Senior counsel argued that no substantial question of law would arise for consideration in this appeal. 5. We have carefully considered the rival submissions of the learned counsel appearing for the parties and perused the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e on 23.09.2014. In terms of the first proviso, where the registration has been granted to the Trust 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. The objects and activities of such Trust remain the same for such preceding assessment year. As per the second proviso, it is clear that no action under Section 147 shall be initiated by the Assessing Officer in case of such Trust for any assessment year preceding such assessment year, only for non-registration of such Trust for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessing Officer as on the date of such registration, if the objects and activities of such trust or institution in the relevant earlier assessment year are the same as those on the basis of which such registration has been granted. 8.4 Further, it has been provided that no action for reopening of an assessment under section 147 of the Income tax Act shall be taken by the Assessing Officer in the case of such trust or institution for any assessment year preceding the first assessment year for which the registration applies, merely for the reason that such trust or institution has not been obtained the registration under section 12AA for the said assessment year. 8.5 However, the above benefits would not be available in case of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... benefits of sec. 11 and 12. The present jurisdiction over the case vests within the Charge of CIT(E), Bengaluru since fund has been granted 12-A registration. As the fund do not have registration u/s 12A, the taxable surplus for the financial years 2008-09 to 2013-14 the taxable surplus needs to be assessed to tax. 11. The aforesaid reasons would indicate that the only reason for reopening of assessment is the absence of registration under Section 12A of the Act. Further, the assessee has not filed return of income for the assessment year in question. A finding has been recorded on the facts of the case by the Tribunal on this aspect and the allegation that the assessee was claiming deductions under Sections 11 and 12 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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