TMI Blog2023 (3) TMI 915X X X X Extracts X X X X X X X X Extracts X X X X ..... S. Sridhar , Advocate For the Respondent : Mr. S. Chandrasekaran , JCIT ORDER This appeal filed by the assessee is arising out of order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi vide appeal No. ITBA/NFAC/S/250/2022-23 / 1043261992(1) dated 31.05.2022. The assessment was completed by the DDIT (Exemptions)-II, Chennai, for the relevant assessment year 2011-12 u/s.143(3) r.w.s 147 of the Income Tax Act, 1961(hereinafter the Act ) vide order dated 24.03.2014. 2. The first jurisdictional issue raised by the assessee is with regard to reassessment and assumption of jurisdiction u/s.147 of the Act. At the outset, learned counsel for the assessee stated that he is not prosecuting this issue and hence, same may be dismissed as not pressed. The DR has no objection for the same and accordingly, the said issue is dismissed as not pressed. 3. The only surviving issue is that the CIT(A) erred in confirming action of the Assessing Officer in not allowing claim of exemption u/s.11 of the Act holding that the assessee trust is not a registered trust u/s.12AA of the Act and treated the assessee as an AOP and taxed income at max ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant's reliance on these notes are misplaced and not relevant. 5.7 In view of the clear judgement of the Supreme Honourable Court in the case of UP Forest Corporation (2007) 165 taxmann 533(SC), in which it held that registration is a condition precedent for availing exemption and similar view was also upheld by the various High Courts, the appeal filed by the appellant is dismissed and the disallowance of Rs.15,78,597/- by the AO is upheld. Aggrieved, now the assessee is in appeal before the Tribunal. 6. Before me, the learned counsel for the assessee argued that the assessee submitted Form No.10A regarding grant of registration u/s.12AA of the Act in the year 1991 and the same has not yet been disposed of. The learned counsel for the assessee relied on Hon'ble Supreme Court judgement in the case of CIT Vs Society for Promotion of Education (2016) 330 ITR 6 (SC) and stated that the Hon'ble Supreme Court has approved deemed registration u/s.12A/12AA of the Act in the event of non-disposal of application by the statutory authority within the statutorily prescribed time limit. The learned counsel for the assessee argued that this aspect was brought to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee, I noted the fact that the assessee is a registered charitable trust running educational institution namely Alpha Matriculation Higher Secondary School. Admittedly, the assessee moved an application for registration before the CIT(Exemptions) in Form No.10A for granting registration u/s.12AA of the Act in the year 1991. This fact is admitted by the Revenue vide letter issued by the Assistant Commissioner (HQ) (Exemptions), O/o.Director of Income Tax (Exemptions), Madras vide letter No.DIT(E)/2(202)/91-92 dated 15.12.1992. Again, the assessee moved before the CIT(Exemptions) by filing 2 nd application u/s.12AA of the Act on 09.03.2012 and this application was acted upon by the Revenue and allowed registration u/s.12AA of the Act by the CIT(Exemptions), Chennai vide order No.UR No.AACTA9230A/05/15-16/T- 0052 dated 28.10.2015. This registration was granted retrospective w.e.f. 01.04.2011. Now, the question arises whether this registration granted is to be read as prospective or retrospective in term of 2nd proviso to section 12A of the Act. The insertion of 2nd proviso to section 12A of the Act has been explained by Explanatory Notes to provisions of Finance (No.2) Act, 2014 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or exemption claimed u/s 11of the Act. 7.3. The explanatory Memorandum to Finance (No.2) Bill, 2014 which sought to amend section 12A explains the objects and reasons for making such amendments. The explanation makes it clear that it was in order to provide relief to such trusts in respect of which, due to absence of registration u/s 12AA tax liability got attached though otherwise they were eligible for exemption by fulfilling other substantive conditions that the amendment was brought in. That being so, denying such benefit to a trust like the assessee who had obtained registration u/s 12AA during the pendency of the appeals filed against the orders of the assessing authority, by narrowly interpreting the term, pending before the assessing officer so as to exclude its pendency before the appellate authority, will be doing violence to the provisions of the Statute and, as such, liable to be interfered with. Moreover, under the Scheme of the Act, sections 11 and 12 are substantive provisions which provide for exemptions to a religious or charitable trust. Sections 12A and 12AA detail the procedural requirements for making an application to claim exemptions under sections 11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in operation with effect from the date when the condition of eligibility for exemption under section 11 12 as mentioned in section 12A provided for registration u/s.12AA as a precondition for applicability of section 12A. Further, the Kolkata Tribunal observed as under: 6.11. We also hold that though equity and taxation are often strangers, attempts should be made that these do not remain always so and if a construction results in equity rather than in injustice, then such construction should be preferred to the literal construction. It is only elementary that a statutory provision is to be interpreted ut res magisvaleat quam pereat, i.e to make it workable rather than redundant. Applying this legal maxim, it would be just and fair to hold that the amendment in section 12A is brought in the statute to confer benefit of exemption u/s 11 of the Act on the genuine trusts which had not changed its objectives and had carried on the same charitable objects in the past as well as in the current year based on which the registration u/s.12AA is granted by the DIT (Exemptions). 10. The facts being identical in the present case also, respectfully following co-ordinate Be ..... 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