9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (9) TMI 1019 - AT - Income TaxExemption claimed u/s 11/12 - Claim denied on the ground that the Pr.CIT has cancelled the registration granted u/s 12AA - HELD THAT - Since the Tribunal by order 2020 (9) TMI 196 - ITAT DELHI cancelled the order of the Ld. PCIT passed on 01/03/2016 and 27/10/2017 withdrawing the registration u/s 12AA the reassessments made by the AO u/s 147/143 on the ground that the PCIT had withdraw the registration u/s 12AA of the Act will not stand and there has to be a fresh assessment in the light of the order of the Tribunal restoring the registration u/s 12AA - Thus, we set aside the order of the Ld. CIT(Appeals) and restore all these assessments to the file of the AO for denovo assessments in the light of the decision of the Tribunal in restoring the registration granted to the assessee u/s 12AA - Appeals of the assessee are allowed for statistical purpose.
Issues Involved:
1. Denial of exemption claimed u/s 11/12 of the Act. 2. Cancellation of registration u/s 12AA by the PCIT. Summary: Issue 1: Denial of exemption claimed u/s 11/12 of the Act The assessee, a charitable trust, filed appeals against the orders of the Ld. Commissioner of Income Tax (Appeals)-26, New Delhi, which sustained the action of the Assessing Officer in denying the exemption claimed by the assessee u/s 11/12 of the Act for the assessment years 2009-10 to 2013-14. The denial was based on the cancellation of the registration u/s 12AA by the Pr.CIT (Central)-3, New Delhi. Issue 2: Cancellation of registration u/s 12AA by the PCITThe Ld. Counsel for the assessee argued that the cancellation of registration u/s 12AA by the PCIT was held illegal and not valid by the Tribunal in ITA No. 6054/Del/2018 dated 03/09/2020. Consequently, the registration granted u/s 12AA to the assessee was restored, and thus, the reassessments made by the Assessing Officer u/s 143 r.w.s. 147 denying exemption u/s 11/12 would not survive. The Tribunal had previously set aside the PCIT's order dated 01/03/2016 and directed a fresh decision. The PCIT's subsequent order on 27.10.2017, which cancelled the registration u/s 12AA since inception, was also challenged and held invalid by the Tribunal on 03/09/2020. The Tribunal observed that the PCIT's cancellation was based on alleged nefarious activities and violations of the trust deed and Section 2(15) of the Act, which were not substantiated with concrete evidence. The Tribunal emphasized that the trust's activities were in line with its charitable objectives and provisions of the Act. The Tribunal concluded that the PCIT's order dated 27.10.2017 cancelling the registration u/s 12AA(3) since inception was legally not valid. The Tribunal revoked the cancellation order and clarified that the decision was in accordance with the Income Tax Act, 1961, without affecting proceedings under other Acts. The revenue was granted liberty to approach the Tribunal if the trial against Sh. Ketan Desai recommenced. As the Tribunal restored the registration u/s 12AA, the reassessments made by the Assessing Officer u/s 147/143, based on the PCIT's withdrawal of registration, were set aside. The Tribunal directed the Assessing Officer to conduct denovo assessments for the assessment years 2009-10 to 2013-14, providing adequate opportunity of being heard to the assessee. The Ld. Counsel for the assessee only argued on the restoration of registration u/s 12AA, and no other arguments were advanced. Consequently, the appeals were allowed for statistical purposes. Order pronounced in the open court on 21.04.2023.
|
