2017 (11) TMI 1872 - HC - Income Tax

Exemption u/s 11 - restoration of registration granted to the respondent assessee u/s 12A - HELD THAT - By order passed by the Division Bench of this Court in M/s.Cotton Textile Exports 2017 (2) TMI 1444 - BOMBAY HIGH COURT . Admittedly, by the said order, the judgment and order passed by the Appellate Tribunal in 2014 (5) TMI 733 - ITAT MUMBAI and, therefore, the order of restoration of registration granted to the respondent assessee under Section 12A of the Income Tax Act, 1961 has been confirmed. No substantial question of law arises.

Summary

Issues:
1. Restoration of registration u/s. 12A of the Income Tax Act.
2. Allowance of exemption to the assessee.
3. Confirmation of order by the Division Bench.

Restoration of registration u/s. 12A of the Income Tax Act:
The High Court considered the appeal where the Income Tax Appellate Tribunal had set aside the order of the DIT (Exemption) and restored the registration to the assessee granted u/s. 12A of the Act. The Tribunal's decision was based on the restoration of registration, leading to the direction to allow exemption to the assessee. The High Court acknowledged the Tribunal's decision and found no reason to disallow the exemption, ultimately upholding the restoration of registration under Section 12A.

Allowance of exemption to the assessee:
The High Court referred to a previous order by the Division Bench in another case involving the same Appellate Tribunal's decision. The Division Bench had confirmed the restoration of registration granted to the respondent-assessee under Section 12A of the Income Tax Act. The High Court, therefore, found no error in the impugned judgment and order, leading to the dismissal of the appeal. The Court emphasized that no substantial question of law arose in this context, affirming the allowance of exemption to the assessee based on the restoration of registration.

Confirmation of order by the Division Bench:
The Division Bench's order in a related case played a crucial role in confirming the restoration of registration granted to the respondent-assessee under Section 12A of the Income Tax Act. This confirmation by the Division Bench further supported the decision of the Appellate Tribunal, which had set aside the order of the DIT (Exemption) and reinstated the registration. As a result, the High Court dismissed the appeal, highlighting the absence of any substantial question of law and affirming the judgment and order in favor of allowing exemption to the assessee based on the confirmed restoration of registration.