2022 (11) TMI 1344 - AT - Income Tax

Exemption u/s 11 - eligibility to get registration u/s 12AA - HELD THAT - Pune Bench of the Tribunal in 2021 (6) TMI 811 - ITAT PUNE has remanded the matter back to the file of the ld. CIT (Exemption). Therefore, it has to be seen what exactly is the status determined by the CIT(Exemption) as regards to the assessee and whether the ld. CIT(Exemption) would grant registration u/s 12AA of the Act to the assessee or not. This decision thus certainly has a bearing on all these appeals placed before us. Therefore, we remand all these matters to the file of the ld. A.O to re-adjudicate the issue as per law on the basis of the findings of the ld. CIT (Exemption) determining the issue of grant of registration u/s 12AA of the Act vis- -vis the assessee. The ld. A.O shall comply with the provisions of natural justice. Accordingly all the grounds of appeal in respect of these appeals are allowed for statistical purposes.

Summary

Issues:
- Eligibility for registration under section 12AA of the Income-tax Act, 1961.

Analysis:
1. The batch of seven appeals by the assessee arose from separate orders of the ld. CIT(A)-7 and CIT(A)-9 for different assessment years. The facts and issues in all appeals were identical, leading to a consolidated order.

2. The ld. Counsel argued that a previous Tribunal order remanded the issue of registration under section 12AA back to the ld. CIT for re-adjudication. The outcome of this registration would impact all the pending cases. Thus, requested a remand for re-evaluation based on the registration status determination.

3. The Pune Tribunal in a related case observed that the appellant company did not meet the criteria for charity due to clauses in the Memorandum of Association allowing profit distribution among members. The ld. CIT (Exemption) was directed to reconsider the application in light of legal precedents, granting the appeal partly for statistical purposes.

4. Considering the above decision, all pending appeals were remanded to the ld. A.O for re-evaluation based on the ld. CIT (Exemption)'s determination regarding registration under section 12AA. The ld. A.O was instructed to follow natural justice principles in the reassessment process.

5. Ultimately, all appeals were allowed for statistical purposes, emphasizing the significance of the registration status determination by the ld. CIT (Exemption) in relation to the eligibility under section 12AA.

This detailed analysis encapsulates the key aspects and implications of the legal judgment regarding the eligibility for registration under section 12AA of the Income-tax Act, 1961, as discussed in the appellate tribunal's decision.