2019 (3) TMI 1160 - AT - Income Tax

Exemption u/s.11 - registration certificate u/s.12A was missing - FIR lodged and informed to department - Trust filing return mentionning certificate no and claiming exemption u/s.11 - Subsequently obtained registration u/s.12A - HELD THAT - The assessee has obtained registration certificate u/s.12A since assessment year 1975-76 onwards through certificate No.1845. The said registration certificate was lost and the assessee has also informed the Department about the same and the assessee filed FIR regarding the missing of the 12A registration certificate. Therefore, legal responsibility has been duly complied with by the assessee. The requirement of law is crystal clear that once registration u/s.12A or even after amendment section 12AA is granted then it is for perpetuity until or unless expressly revoked by the Department as per provisions of law. Through the copies of return acknowledgements filed before us, it is clear that the assessee was claiming the benefit of registration u/s.12A of the Act and subsequently getting benefit u/s.11 of the Act especially from assessment year 2004-05 to 2006-07. The facts further reveal that in order to keep all speculations at rest, the assessee has again applied for fresh registration u/s.12AA of the Act on 17.06.2013 and have got the certificate of registration u/s.12AA of the Act from 10.12.2013. The facts therefore demonstrates that the assessee has all throughout acted in a bona-fide manner and absolutely there is no doubt that it is registered u/s.12A of the Act. That all throughout the returns filed, the assessee has claimed benefit of exemption u/s.11 of the Act being registered u/s.12A of the Act and the Revenue Authorities have accepted such return and there has not been any objection at any point of time from the Revenue Authorities. Taking totality of facts and circumstances into consideration legal right by way of registration u/s.12A of the Act has been bestowed on the assessee trust and therefore the benefit of exemption u/s.11 of the Act should also be provided to the assessee in the relevant assessment year. - Decided in favour of assessee.

Summary

Issues: Denial of benefit of exemption u/s.11 of the Income Tax Act despite being registered u/s.12A/12AA.

Analysis:
1. The only issue in this appeal is the denial of the benefit of exemption u/s.11 of the Income Tax Act to the assessee, despite the fact that the Trust is duly registered u/s.12A/12AA of the Act.

2. The Ld. CIT(Appeals) denied the benefit of exemption u/s.11 to the assessee on the grounds that there was no evidence of registration u/s.12A of the Act. The Ld. CIT(Appeals) mentioned that even though the assessee claimed to have been granted registration by the CIT (Exemptions), the absence of the registration certificate raised doubts. The Ld. CIT(Appeals) suggested that the assessee could have taken steps to obtain a duplicate certificate or lodge an FIR to resolve the issue.

3. The assessee, during the hearing, presented documents to prove that they had informed the Revenue Authority about the missing registration certificate and had filed an FIR regarding the same. The assessee contended that once registration u/s.12A of the Act is granted, it is valid perpetually unless expressly canceled. The assessee provided evidence of possessing registration since assessment year 1975-76 and consistently claiming exemption u/s.11 of the Act.

4. The Tribunal examined the case records and noted that the assessee had obtained registration u/s.12A of the Act since 1975-76, evidenced by certificate No.1845. The Tribunal acknowledged the steps taken by the assessee to address the missing certificate issue, including filing an FIR. The Tribunal emphasized that registration under section 12A or 12AA is valid until expressly revoked by the Department. The Tribunal observed that the assessee had acted in good faith, continuously claimed the benefit of exemption, and subsequently applied for fresh registration u/s.12AA, which was granted.

5. Considering the facts and circumstances, the Tribunal concluded that the assessee had the legal right of registration u/s.12A, and therefore, should be entitled to the benefit of exemption u/s.11 for the relevant assessment year. The Tribunal set aside the order of the Ld. CIT(Appeals) and allowed the appeal of the assessee.

6. In conclusion, the Tribunal ruled in favor of the assessee, emphasizing the continuous compliance with registration requirements and the bona fide actions taken by the assessee to address the missing certificate issue, ultimately entitling them to the exemption u/s.11 of the Income Tax Act.