TMI Blog2023 (7) TMI 506X X X X Extracts X X X X X X X X Extracts X X X X ..... ion u/s 147 for any preceding year, in which the registration was granted - HELD THAT:- As in the present case, once reply filed by the petitioner pursuant to the notice dated 16.03.2022 (Annexure P-3) had been rejected vide order dated 29.03.2022 (Annexure P-5) without examining the 3rd proviso to Section 12A(2), relegating the petitioner to take alternative remedy would not be appropriate. Registration of the petitioner-trust was granted on 30.09.2016 (Annexure P-1), which was applicable from the assessment year 2016-17. As such, said registration was valid for claiming the benefit under Sections 11 and 12 of the Act. Ii\n the present case, as per the ratio of the judgment passed in Karnataka State Students Welfare Fund s case [ 202 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nket exemption from income tax in terms of clause (iiiab) of section 10 (23C) of the Act. The petitioner applied for registration under Section 12AA of the Act in Form No.10A on 28.03.2016 before the competent authority. This step was taken keeping in view the insertion of Rule 2BBB by the Income Tax 13th amendment Rules 2014 w.e.f. 12.12.2014, which prescribed the percentage of Government Grant for considering an institution as substantially financed to be not less than 50% of its total receipts. Apprehending that it may not invariably fulfill this condition, the above said application for registration under Section 12AA of the Act was made. As per order dated 30.09.2016 (Annexure P-1), applicable from the assessment year 2016-17 onward ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... han, (2020) 422 ITR 468 (All) (Annexure R-1) and by this Court in Gian Castings Private Limited vs. Central Board of Direct Taxes and others, CWP-9142-2022 (decided on 02.06.2022) (Annexure R- 2) and order passed by Hon ble the Supreme Court in SLP (C) No.10762 of 2022 (Annexure R-3). Further reference has been made to the judgments passed by Hon ble the Supreme Court in Phool Chand Bajrang Lal vs. ITO, 2003 ITR 456 (SC); Raymond Woolen Mills Ltd. vs. ITO, 236 ITR 34 (SC) and Shri Krishna Pvt. Ltd. vs. ITO, 221 ITR 538 (SC) (16.07.1996), whereby consistently, it has been held that re-assessment can be carried out or initiated where the assessee had failed to disclose the material facts, which were necessary for assessment. The taxpayer cann ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act with respect to the preceding assessment year, for which, the registration had been given. She has finally, argued that the judgments (Annexures R-1 and R-2) relied upon by the respondents had not examined proviso to Section 12A(2) of the Act. Hence, the said judgments cannot be made applicable to the facts of the present case. Heard, learned counsel for the parties. At the outset, reference can be made to the judgment passed in Shiv Kumar Sumitra Devi Smarak Shikshan Sansthan s case (supra), whereby the Allahabad High Court was examining the case of a trust, which had made application under Section 12AA of the Act on 15.12.2014 and the registration was given on 08.06.2015. The Tribunal allowed retrospective coverage to the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee from the following financial year of the date of application. Taking the aforesaid into mind, we find reasons to allow the appeal preferred by the Revenue and the substantial questions of law framed hereinabove are answered in favour of the Revenue and thereby we set aside the order passed by the Tribunal. Gian Castings Private Limited s case (supra) (Annexure R-2), this Court was examining the provisions of Amending Act, 2021, whereby provisions contained in Sections 147 and 148 of the Act had undergone change. Section 148A of the Act was added for conducting enquiry, providing opportunity before issuance of notice under Section 148. The said petition was dismissed by observing that proceedings had not even been conclud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 and the objects and activities of such trust or institution remain the same for such preceding assessment year:- Provided further that no action under section 147 shall be taken by the Assessing Officer in case of such trust or institution for any assessment year preceding the aforesaid assessment year only for non-registration of such trust or institution for the said assessment year: Provided also that provisions contained in the first and second pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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