2021 (11) TMI 215 - AT - Income Tax

Exemption u/s 11 - exemption u/s 12AA - Seeking benefit of registration granted under section 12AA of the Act with retrospective effect from assessment year under consideration - HELD THAT - CIT(A) observed that, due to the removal of section 10(22) with effect from 01/04/1999, the entitlement of exemption and under the relevant provisions was not available to assessee he has also observed that assessee has not made any application seeking exemption under section 10(23C) of the act. And subsequently assessee applied for exemption under section 12 AA of the Act vide application dated 21/09/2006 with effect from 10/01/1980. CIT(A) observed that due to the intervention of this Tribunal which was also approved by Hon'ble High Court the exemption was granted from assessment a 2002-03 onwards. The Ld. CIT(A) also denied exemption claimed under section 11 of the act for year under consideration. Before as also assessee seeking retrospective effect of the exemption granted with effect from assessment a 2002-03, for the relevant assessment years. This in our view is a far-fetched argument that cannot be entertained such tests by this forum. There is no fault in the view taken by the Ld. CIT(A). Assessee has been rightly sent under the normal provisions of the act by the authorities Assessee appeal dismissed.

Summary

Issues:
1. Grounds related to assessment year 1999-2000.
2. Grounds related to assessment year 2000-01.
3. Seeking benefit of registration under section 12AA with retrospective effect.

Analysis:
1. For the assessment year 1999-2000, the appellant raised general grounds challenging the reopening of the assessment. The appellant argued that the reasons for reopening were based on an unsustainable order and lacked a rational connection with income escaping assessment. However, the appellant chose not to press these grounds, and they were dismissed accordingly.

2. Regarding the assessment year 2000-01, the appellant raised various grounds, including issues related to the Assessing Officer's order, service of notice under section 148, and compliance with procedural requirements. The appellant contended that the assessment was invalid due to non-compliance with notice provisions and inadequate reasons for reopening. Despite these arguments, the grounds were dismissed as not pressed by the appellant.

3. The main issue in both assessment years concerned the appellant seeking the benefit of registration under section 12AA of the Act with retrospective effect. The appellant claimed exemption under section 10(22) for previous years and later applied for registration under section 12AA. However, the Tribunal noted that the appellant's request for retrospective exemption was unfounded and not permissible. The Tribunal upheld the decision of the CIT(A) to deny the exemption claimed under section 11 of the Act for the relevant years.

4. The Tribunal found no fault in the CIT(A)'s decision and affirmed that the appellant had been rightly assessed under the normal provisions of the Act. The Tribunal dismissed the grounds raised by the appellant for both assessment years, leading to the dismissal of the appeals for those years.

In conclusion, the Tribunal upheld the denial of retrospective exemption and dismissed the appellant's grounds challenging the assessments for both assessment years. The appeals filed by the appellant were consequently dismissed.