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TMI Blog2019 (9) TMI 758X X X X Extracts X X X X X X X X Extracts X X X X ..... /s 12A of the Act or not, could have been easily verified by the Assessing Officer from the record of the Department / from the register containing the entries of registration and from other relevant record. Assessing Officer neither during the original assessment proceedings verified the said facts from the record nor the said record has been verified before reopening of the assessment. Thus, no tangible information had come into the possession of the Assessing Officer to substantiate that the assessee was not registered u/s 12A of the Act for the assessment year under consideration. Therefore, merely on this basis that the assessee has applied for registration afresh subsequently may arise a suspicion or doubt in the mind of the Assessing Officer that the assessee was not registered u/s 12A of the Act, however, on the basis of the mere suspicion or doubt, the reopening of the assessment cannot be held to be justified, especially when, the said doubt could have been clarified by the Assessing Officer by consulting/ verifying from the Department s record. Since the reopening of the assessment for the assessment year under consideration has been made merely on assumption and w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , to the CIT-2, Chandigarh who vide his order dt. 30/12/2013 had not granted the registration. He therefore reopened the assessment under section 147 of the Act, after recording the reasons. The A.O. observed that the assessee had gross receipt of ₹ 1,46,91,272/- out of which a sum of ₹ 11,78,416/- had been applied and as per declaration in Form No. 10 a sum of ₹ 1,35,12,586/- was set apart/accumulated till 31/03/2010. The A.O. held that the assessee failed to produce the copy of certificate under section 12AA of the Act, he therefore made the addition of ₹ 1,35,12,586/-. 5. Being aggrieved the assessee carried the matter to the Ld. CIT(A) and submitted as under: The appellant is a society registered on 06.03.2003 under Society Registration Act. 1860. It has been set up to administer the implementation of E Governance projects for the overall benefits of the citizen and public by setting up the necessary administrative, Financial, Legal and technical frame work. Implementation mechanism resources in the State of Punjab at the State Level under the Chairmanship of Chief Secretary of Government of Punjab. The Assessing Offic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt case appellant has filed Income Tax Return for the Assessment Year 201011 on 01.10.2011. The return was accepted and assessed by then Assessing Officer under section 143(3) of Income Tax Act on 31.10.2013. Subsequently a notice under section 148 claiming income has escaped assessment within the meaning of section 147 of Income Tax Act was issued on 21.05.2014 under sec. 142(1). The notice was replied on 28.05.2014 as under:- a) Your goodself is requested to construe the return of Income filed under sec 139( 1) as return of income in response to notice under section 148 of the Act. b) Your goodself is also requested to provide us with the reasons recorded for purpose of re-opening the case under section 148 of the Act. However the reasons so recorded were not supplied at all the appellant was summoned on 25.03.2015. The appellant appeared before Assessing Officer alongwith Counsel on 25.03.2015 drawn his attention for providing the reasons so recorded for re-opening Assessment in view of his request dated 28.05.2014. Then photocopy of orders dated 28.01.2014 containing reasons passed by DCIT on 28.01.2014 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cer that the assessee society is not registered u/s 12AA of the Act. The appellant itself failed to produce registration certificate u/s 12AA before the A.O and as the society was not registered appellant applied for registration before Commissioner of Income Tax, which was declined vide order dated 31.12.2013. Therefore Assessing Officer has rightly initiated re-assessment proceedings u/s 147 after recording reasons that the income of the society has escaped assessment by treating it as a society registered u/s 12AA of the Act. The appellant's reliance on the case of Hon'ble Supreme Court in the case of Kalvinator India Ltd. (Supra) is misplaced as on the facts, this case is distinguishable from the case of the assessee. In the instant case the information that society is not registered u/s 12AA was not available with the A.O at the time of original assessment and subsequently when A.O came to know that the society has been assessed as a registered society is actually not having certificate of registration u/s 12AA sought to initiate reopening proceedings u/s 147 and therefore it cannot be said as a review or revision of the original assessment. The appellant has also not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12AA of the Act, then subsequently the reopening on this basis that the assessee was not having the registration under section 12AA of the Act was a change of opinion particularly when nothing was brought on record by the Department that the registration earlier granted under section 12AA of the Act was cancelled. He also drew our attention towards page no. 15 to 17 of the assessee s paper book which is the copy of the order of Hon'ble Jurisdictional High Court dt. 21/04/2011 in ITA No. 75 of 2011 for the A.Y. 2006-07 wherein the appeal of the Department was dismissed and it was observed in para 2 of the said order that the assessee society was registered under the Societies Registration Act, 1860 and was also registered under section 12AA of the Act with the Income Tax Department. He therefore submitted that on the basis of change of opinion the reopening was not valid. Reliance was placed on the judgment of the Hon'ble Jurisdictional High Court in the case of Pr. CIT Vs. Anil Nagpal (2017) 291 CTR 272 (P H), copy of the said order was furnished which is placed on record. 9. In his rival submissions the Ld. CIT DR strongly supported the impugned order pass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly. 2. The assessee had applied for registration u/s. 12A before the worthy Commissioner of Income-tax-II, Chandigarh. The Worthy Commissioner of Income-tax-II, Chandigarh vide order u/s. 12AA dated 30/12/2013 has not granted the registration to the assessee. Since, the assessee had not been granted registration and also the fact that the trust applied for registration which has been rejected the case needs to be re-assessed. 3. It is further noticed that the assessee trust received gross receipt of ₹ 1,46,91,272/- for the financial year 2008-09 relevant to A.Y. 2009-10. Out of this, only a sum of ₹ 11,78,416/- has been applied and a declaration in Form 10 was submitted stating that a sum of ₹ 1,35,12,586/- is set apart / accumulated till the previous year ending 31/03/2010. 4. Furthermore the assessee trust has not applied the income to set apart/accumulated within prescribed period as per Form 10(i.e. up to 31/03/2010). 5. In view of the above fact, I have reason to believe that income chargeable to tax has escaped assessment in the case. Issue notice u/s 148. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at since the original certificate issued for registration u/s 12A of the Act was misplaced, hence, the registration was applied for, afresh. 13. In the present case, the claim of the Ld. Counsel for the assessee was that the assessee had been registered u/s 12A with the Department, the register in which the names of the charitable institution are entered lies with the Department and as to whether the assessee had been registered u/s 12A of the Act or not, could have been easily verified by the Assessing Officer from the record of the Department / from the register containing the entries of registration and from other relevant record. However, the Assessing Officer neither during the original assessment proceedings verified the said facts from the record nor the said record has been verified before reopening of the assessment. Thus, no tangible information had come into the possession of the Assessing Officer to substantiate that the assessee was not registered u/s 12A of the Act for the assessment year under consideration. Therefore, merely on this basis that the assessee has applied for registration afresh subsequently may arise a suspicion or doubt in the mind of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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