2013 (6) TMI 913 - AT - Income Tax

Summary

Issues involved: Appeal against the order of CIT(A) directing grant of exemption u/s 11 of the I.T. Act to the assessee trust and challenge regarding the status of the assessee as AOP.

Appeal against CIT(A) order for exemption u/s 11:
The appeal pertained to the CIT(A) directing the AO to grant exemption under section 11 of the I.T. Act to the assessee trust. The assessee trust had been regularly assessed to tax as a registered trust and was granted registration under section 12A of the Income Tax Act. Subsequently, the CIT, C-III, Kolkata cancelled the registration under section 12AA(3), but the Tribunal quashed this order and allowed the assessee's appeal. However, the AO denied exemption under section 11, citing the status of the assessee as AOP. The CIT(A) considered the Tribunal's orders for previous assessment years and directed the AO to grant exemption under section 11, as the registration of the trust was restored.

Challenge to assessee's status as AOP:
The AO assessed the assessee as an AOP instead of a trust due to the earlier cancellation of registration by the CIT, C-III, Kolkata. However, the Tribunal's order quashed this cancellation, thereby restoring the trust's registration. Consequently, the status for assessment should be as a trust and not as an AOP. The Revenue's appeal against this direction was dismissed, and the AO was directed to assess the assessee trust as a trust.

Conclusion:
The Revenue's appeal was dismissed as there was no evidence presented to show that the Tribunal's order had been reversed by the High Court or stayed. The CIT(A)'s direction to grant exemption under section 11 was upheld, and the status of the assessee as a trust was confirmed for assessment purposes.