2015 (7) TMI 1181 - AT - Income Tax

Revision u/s 263 - basis of the order of CIT is this that there is no registration u/s 12AA or approval u/s 10 (23C) of the I. T. Act - Held that - We find that as per the impugned order, the only basis of CIT for holding that the assessment order is erroneous is this that there is no registration certificate u/s 12AA. But we find that as per letter dated 03.06.2015 of CIT, Meerut, this assessee society is enjoying 12A Registration w.e.f. 22.09.1987 and hence, the very basis of the order of CIT is nonexistent. Therefore, the impugned order of CIT u/s 263 is not valid and we quash the same. - Decided in favour of assessee

Summary

Issues:
Validity of order under section 263 for A.Y. 2010-2011 based on absence of registration certificate u/s 12AA.

Analysis:
The appellant challenged the order of Learned CIT (Exemptions) - Lucknow dated 25.03.2015 under section 263 for A.Y. 2010-2011, arguing that the assessment order was not erroneous. The appellant contended that the basis of the CIT's order was the absence of registration under section 12AA or approval under section 10(23C) of the Income Tax Act. The appellant presented evidence, including a letter from CIT Meerut dated 03.06.2015, confirming that the society had 12A Registration since 22.09.1987. The appellant relied on a tribunal order in a similar case to support their argument that the assessment order was not erroneous. The Revenue Department supported the CIT's order.

Upon review, the Tribunal found that the CIT's order was solely based on the absence of a registration certificate under section 12AA. However, the Tribunal noted the letter from CIT Meerut dated 03.06.2015, which confirmed the society's 12A Registration since 22.09.1987. Consequently, the Tribunal concluded that the basis of the CIT's order was invalid, as the society did possess the necessary registration. Therefore, the Tribunal held that the order under section 263 was not valid and quashed it, allowing the appeal of the assessee.

In conclusion, the Tribunal's decision emphasized the importance of valid grounds for invoking section 263. The presence of registration under section 12AA was crucial in determining the validity of the assessment order. The Tribunal's analysis focused on the documentary evidence provided by the appellant to establish the society's registration status, ultimately leading to the dismissal of the CIT's order under section 263.