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2021 (5) TMI 591 - AT - Income TaxExemption u/s 11 - issue of eligible of the registration under section 12A of the Act has not attained finality - CIT-A allowed deduction - HELD THAT - We do not find it necessary to delve into issue raised in these years again, as the Tribunal on similar set of facts in the assessee s own case examined the issue, and allowed claim of the assessee; wherein one of us (Vice-President) was party and author. It is pertinent to mention that, the issue of charitable status of the assessee and allowance of exemption under section 11 has been accepted by the department consistently for the last more than 20 years. In the Asstt.Year 2011-12, when the claim of the assessee rejected by the Department, the same was challenged before the Tribunal, and the Tribunal 2018 (3) TMI 48 - ITAT AHMEDABAD after detailed discussion allowed the claim of the assessee and confirmed by the Hon ble High Court 2018 (9) TMI 1097 - GUJARAT HIGH COURT . The factum of dismissal of appeal of the Revenue for earlier years on the similar issue upto the level of Hon ble Supreme Court 2019 (4) TMI 379 - SC ORDER has not been disputed by the Department. Therefore, the issue attained finality. No material has been brought on record by the ld.DR to demonstrate that the view taken by the Tribunal in the earlier years was on the different set of facts. Admittedly, there is no change in facts and circumstances as compared to the previous years and subsequent years, and therefore, principle of consistency squarely applicable to the present case on hand. Therefore we AO to treat the assessee as a charitable institution and allow exemption under section 11. Decided against revenue.
Issues:
- Whether the assessee is entitled to registration under section 12AA of the Income Tax Act and the consequent benefit of exemption under section 11 of the Act. Analysis: The appeals were filed by the Revenue against the orders of the ld.CIT(A)-9, Ahmedabad for three assessment years, all concerning the same issue. The key issue in all appeals was the allowance of exemption under section 11 of the Income Tax Act, 1961, without the finality of the registration under section 12A. The assessee, a public charitable trust, was engaged in various charitable activities and running a diagnostic center. The registration under section 12A was canceled by the CIT, leading to the rejection of exemption under section 11 by the Assessing Officer. The CIT(A) allowed the claim of the assessee based on the ITAT's previous order and directed the AO to treat the assessee as a registered trust and grant exemption under sections 11 and 12 of the Act. The Revenue challenged this decision before the Tribunal for all three years. The Tribunal considered the consistent view taken by the department over the past 20 years in accepting the assessee as a charitable institution. It noted that the issue had attained finality as the Tribunal, High Court, and Supreme Court had upheld the registration and exemption claims of the assessee in previous years. The principle of consistency was emphasized, stating that the view taken in one year should be followed unless there are material changes in facts or legal positions. Since no such changes were presented, the Tribunal upheld the CIT(A)'s decision and dismissed the Revenue's appeals for all three years. In conclusion, the Tribunal dismissed all appeals of the Revenue, affirming the decision to grant registration under section 12AA and exemption under section 11 to the assessee based on the principle of consistency and the finality of previous judgments up to the Supreme Court level.
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