2021 (7) TMI 720 - AT - Income Tax

Exemption u/s 11 - Assessment of trust - AO not find certificate u/s. 12A for the year under consideration - additions made by the AO against surplus of income while the assessee was holding a valid certificate u/s. 12A - HELD THAT - It is an undisputed fact that the certificates/documents were lost in the Uttarakhand floods. It is also not in dispute that the assessee trust has been granted the registration u/s. 12A since 1972. Since all the certificates/documents have been furnished and examined by the CIT(A). We do not find any reason to interfere with the findings of the CIT(A). The appeal filed by the revenue is dismissed.

Summary

Issues involved:
Appeal against order of CIT(A) deleting additions made by AO against surplus of income due to absence of valid certificate u/s. 12A for A.Y. 2014-15.

Analysis:
1. Issue: Validity of exemption u/s. 11 without certificate u/s. 12A
- The AO disallowed exemption u/s. 11 amounting to ?6,43,93,753 due to absence of a valid certificate u/s. 12A for the year under consideration.
- The CIT(A) considered the submissions and documentary evidence provided by the assessee. The CIT(A) noted that the society was registered under U.P. Act and had a valid registration u/s. 12AA, with documents lost in Uttarakhand floods.
- The CIT(A) referred to past orders and submissions showing the assessee's eligibility for exemptions under various sections, including u/s. 11. The AO's remand report also acknowledged the assessee's status as a renowned place of worship with continuous registration u/s. 80G.

2. Decision of the Tribunal
- The Tribunal observed that all relevant certificates and documents were lost in the natural calamity and that the trust had been registered u/s. 12A since 1972.
- Despite the revenue's appeal, the Tribunal found no factual errors in the CIT(A)'s findings. The Tribunal noted the absence of any reason to interfere with the CIT(A)'s decision, ultimately dismissing the revenue's appeal.
- The Tribunal emphasized the undisputed facts regarding the loss of documents and the trust's longstanding registration status, leading to the dismissal of the revenue's appeal.

3. Conclusion
- The Tribunal upheld the CIT(A)'s decision to delete the additions made by the AO against the surplus of income. The Tribunal's judgment was based on the trust's historical registration under u/s. 12A, the loss of documents in a natural disaster, and the continuous eligibility for various exemptions, ultimately resulting in the dismissal of the revenue's appeal.

This detailed analysis of the judgment highlights the key issues, the arguments presented, and the Tribunal's decision based on the facts and legal provisions involved in the case.