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2021 (5) TMI 945 - AT - Income TaxExemption u/s 11 - tax liability has been raised on the assessee trust on the premise of non-availability of registration u/s 12A - admission of additional evidence - HELD THAT - We find merit in the plea of the assessee for admission of additional evidence in the circumstances narrated above. It is a matter of fact that the Income Tax Department itself has issued certificate under s. 12AA of the Act registering the assessee for the purposes of Section 11/12 of the Act. The delinquency in non-production of registration before CIT(A) is therefore viewed benignly. The additional evidence in the form of order under s. 12AA of the Act dated 31.10.2017 is therefore admitted by the Tribunal for adjudication of dispute. Having regard to the fact that the order under s. 12AA of the Act was not presented before the first appellate authority for its consideration, we refrain ourselves from expressing our view on merits of the eligibility of deduction under s. 11/12 - Appeals of the assessee are allowed for statistical purposes.
Issues:
Appeals against order of CIT(A) concerning tax liability based on registration under s. 12A of the Income Tax Act, 1961 for AYs 2014-15 & 2015-16. Analysis: The appeals were filed by the assessee against the CIT(A)'s order raising tax liability due to the absence of registration under s. 12A of the Act. The trust claimed exemption under s. 11/12, which was denied by the Revenue. The Revenue treated the unregistered trust as an Association of Person (AOP) for tax purposes. The assessee, a society registered under Societies Registration Act, 1960, highlighted its charitable objectives and the denial of exemption due to lack of s. 12A registration. The assessee sought admission of additional evidence, a registration under s. 12AA dated 31.10.2017, before the Tribunal. The Tribunal allowed the additional evidence, noting the importance of the registration certificate for claiming benefits under s. 11/12. The Tribunal set aside the CIT(A)'s orders and remanded the issue for fresh adjudication considering the registration under s. 12AA. The assessee was given the opportunity to provide necessary evidence and explanations before the CIT(A) for reevaluation. The Tribunal refrained from expressing a view on the merits of the deduction under s. 11/12 due to the absence of the s. 12AA order before the CIT(A). Both appeals of the assessee were allowed for statistical purposes, emphasizing the importance of the registration under s. 12AA for claiming tax benefits. The matter was remanded to the CIT(A) for fresh consideration in light of the registration granted. This detailed analysis of the judgment highlights the issues, arguments presented, the Tribunal's decision on admitting additional evidence, and the subsequent remand of the matter for fresh adjudication.
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