9911796707
TMI Blog2025 (3) TMI 641X X X X Extracts X X X X X X X X Extracts X X X X ..... the Appellant in the return of income filed for the year. 2. The learned Commissioner of Income-tax (Appeals), Income Tax Department NFAC, Delhi erred in confirming the action of assessing officer in making addition of Rs. 23,98,804/- by treating entire income earned during the year as unexplained money u/s 69A of the Act. 3. The learned Commissioner of Income-tax (Appeals), Income Tax Department NFAC, Delhi failed to appreciate that alternatively, only net income ought to have been taxable as income under the Act and not the gross receipts/income of the Appellant for the year. 4. The appellant craves leave to add, amend, alter and withdraw any ground of appeal anytime up to the hearing of this appeal." 3. Briefly stated, the relevant material facts are as follows. The assessee before us is a trust and filed its income tax return, electronically on 19.01.2021, declaring income at Rs. 2,48,620/-. During the year under consideration, assessee-trust is engaged in the activity to run and maintain temple and Jivdaya activities. The assessee`s case was selected for complete scrutiny, under National Faceless Assessment Centre (NFAC). The reason for compulsory scrutiny with rationa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y to furnish true return during the year under consideration. During the year under consideration, assessee does not hold registration u/s 12A, hence it is not eligible to claim exemption u/s 11 and 12 of the Act, still assessee is claiming the same despite cancellation of 12A registration. Merely holding the registration certificate in past and renewal of certificate from future date does not mean the existence of registration for the year under consideration. No retrospective registration has been granted to the assessee; hence it was held by the assessing officer that assessee is not eligible to claim exemption u/s 11 and 12 of the Act. The assessing officer, also observed that the assessee in its submission has merely presented hand- made vouchers to substantiate its source of receipts and expenses. No valid documentary evidences like bill, invoices and confirmation have been submitted by the assessee, hence the receipts and expenditure claimed by the assessee remains unexplained. Considering the above facts, it was held by the assessing officer that the claim made by the assessee by way of filing of return with respect to receipts shown by the assessee and expenditure claimed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g officer held that since assessee has failed to prove the source of such receipts and the books of the assessee as submitted by it are manipulated to accommodate unaccounted money of the assessee, therefore, the entire receipts of the assessee of Rs. 23,98,804/- was treated as unexplained money u/s 69A r.w.s. 115BBE of the Income Tax Act, 1961 in the hands of the assessee and the same was added to the total income of the assessee for the year under consideration. 8. Aggrieved by the order of the assessing officer, the assessee carried the matter in appeal before the Ld. CIT(A), who has confirmed the action of the assessing officer. The ld CIT(A) observed that during the assessment proceedings and during the appellate proceedings, no details of the nature of receipts and deployment of funds, the objects of the assessee and the nature of activities undertaken have been furnished. In the assessment order the assessing officer has also observed that the new application of the assessee for registration u/s 12AA was rejected by the CIT (Exemption) due to similar attitude and non-disclosure of material facts by the assessee. In view of the repeated non- submission of material facts and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on was granted, hence benefit of first Proviso to section 12A is clearly available, to the assessee, as the assessment was pending, on the date of registration, which was granted by the Department. Even during appeal pendency, benefit of Proviso can be granted. There was no break in registration as the first application under old law, was made to obtain a certificate of an existing number, as the certificate was misplaced, in earthquake tragedy, being a very old Trust. Besides, Section 69A cannot be invoked, by both, CIT(A) and A.O. and Ld. Counsel for the assessee also relied on the Circular No.01/2015, dated 21.01.2015 and stated that assessee is eligible to claim exemptions under sections 10, 11 and 12 of the Act. 11. On the other hand, Ld. DR for the Revenue submitted that first of all copy of the assessment orders submitted by the assessee seems to be fabricated, and it is not certain whether these assessment orders are in the assessee's case under consideration or not. The Ld. DR also took us through paper book Page No.3 and stated that assessee claimed that in 1969, the trust was allotted PAN number. However, in the year 1969, the Income Tax Department had not allotted any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amended to provide that in a case where a trust or institution has been granted registration under section 12AA of the Income-tax Act, the benefit of sections 11 and 12 of the said Act shall be available in respect of any income derived from property held under trust in any assessment proceeding for an earlier assessment year which is pending before 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 obtained the registration under section 12AA for the said assessment year. 8.5 However, the above benefits would not be available in the case of any trust or institution which at any time had applied for registration and the same was refused under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from 01.04.2023, prior to its omission, it reads as follows: "Provided also 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" 17. We find that above provisos, which were omitted by the Finance Act, 2023, are applicable to the assessee under consideration, as the assessee`s assessment year is 2020-21. That is, the said, second proviso, to section 12A of the Act, was effective, for the assessment year under consideration, hence, the assessee is entitled to take the benefit of the above proviso. The same view was taken by the ITAT Ahmedabad Bench, in the case of Shri Bhanushali Mitra Mandal trust, 68 taxmann.com 250, where in, it was held that when the statute provides that registration once granted in subsequent year, the benefit of the same has to be applied in earlier assessment years for which assessment proceedings are pending before the assessing officer, unless the registration granted earlier is cancelled or refused for specific reasons. The statute also goes on to pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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