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TMI Blog2019 (10) TMI 257X X X X Extracts X X X X X X X X Extracts X X X X ..... ration number, but uploaded the return. The CPC, Bangalore processed the same u/sec. 143(1) and considered the entire gross receipts of Rs. 2,23,86,990/- as income liable for tax and determined the tax payable at Rs. 84,07,853/- on the ground that the registration number of the trust has not been mentioned in the return. The CPC processed the return considering the status of the trust as "AOP Trust" as against the claim of "Trust" in the return of income. 3. On being aggrieved, assessee carried the matter in appeal before the ld. CIT(A). The ld. CIT(A) by following the judgment of the Hon'ble Supreme Court in the case of CIT & Ors. Vs. Society for the Promotion of Education [(2016) 382 ITR 06 (SC)] directed the Assessing Authority to grant relief to the assessee. For the sake of convenience, the relevant portion of the order is extracted as under:- "7. I have perused the orders of the Hon'ble Supreme Court of India in the case of Society for the Promotion of Education, Allahabad Vs. Commissioner of Income Tax, Kanpur (CA No. 1478/2016) and Hon'ble ITAT, Ahmedabad Bench in the case of Sri Bhanushali Mitra Mandal Vs. ITO (ITA No. 2515/Ahd/2015) and as per the provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 143(3) of the Act. To support his argument, he placed reliance on the assessment orders for the A.Y. 1997-98 at page No. 5 & 6 and A.Y. 1996-97 at page Nos. 7 & 8 and A.Y. 1993-94 at page No. 9 of the paper book. From the above, it is very clear that the Department is allowing the assessee's income as exempt u/sec. 11 by considering that the assessee is already having a registration u/sec. 12A of the Act. For the assessment year under consideration, the assessee has filed a return of income whereas the CPC, Bangalore processed the return u/sec. 143(1) and considered the entire gross receipts as income liable for tax on the ground that registration number of the Trust was not mentioned in the return form. We find that once the assessee is enjoying the benefit of section 11 by the Department, the subsequent years without scrutiny, it cannot simply reject on the ground that registration number of the Trust is not mentioned. The CPC Bangalore ought to have referred the matter to the Assessing Officer for examination of the entire issue. Without that, the CPC Bangalore added the entire gross receipts as income liable for tax. Under these circumstances, the coordinate bench of the tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turn has been made under section 139, or in response to a notice under sub-section (1) of section 142, such return shall be processed in the following manner, namely:- (a) the total income or loss shall be computed after making the following adjustments, namely:- i. any arithmetical error in the return; [or] ii. an incorrect claim, if such incorrect claim is apparent from any information in the return; (b) the tax and interest, if any, shall be computed on the basis of the total income computed under clause (a); (c) the sum payable by, or the amount of refund due to, the assessee shall be determined after adjustment of the tax and interest, if any, computed under clause (b) by any tax deducted at source, any tax collected at source, any advance tax paid, any relief allowable under an agreement under section 90 or section 90A, or any relief allowable under section 91, any rebate allowable under Part A of Chapter VIII, any tax paid on self-assessment and any amount paid otherwise by way of tax or interest; (d) an intimation shall be prepared or generated and sent to the assessee specifying the sum determined to be payable by, or the amount of refund due to, the assessee u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the time fixed by s. 2AA(2) would result in deemed registration, may at the worst cause loss of some revenue or income-tax payable by the individual assessee. On the other hand, taking the contrary view and holding that not taking a decision within the time fixed by s. 12AA(2) is of no consequence would leave the assessee totally at the mercy of the IT authorities, inasmuch as the assessee as not been provided any remedy under the Act against non-decision. Besides, the above view does not create any irreversible situation, because under s. 12AA(3), the registration can always be cancelled by the CIT, if he is satisfied that the objects of such trust or institution are not genuine or the activities are not being carried out in accordance with the objects of the trust or institution. The only drawback is that such cancellation would operate only prospectively. Therefore, if a view is taken that non-consideration of the registration application within the time fixed by s. 12AA(2) would amount to deemed grant of registration, the only adverse consequence likely to flow from such a view in respect of any case of that assessee arising in future would at best be some loss of revenue fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... application. 3. We see no basis for such 'an apprehension since that is the only logical sense in which the Judgment could be understood. Therefore, in order to disabuse any apprehension, we make it clear that the registration of the application under Section 12AA of the Income Tax Act in the case of the respondent-shall take effect from 24.08.2003." 10. Therefore, respectfully following the judgments of the Hon'ble Supreme Court and the Hon'ble Allahabad High Court in the case of Society for the Promotion of Education Adventure Sport & Conservation of Environment (supra) and also the decision of the coordinate bench of the tribunal in the case of Andhra School of Preaching (supra), we find no merit in the grounds raised by the Revenue. Thus, this appeal filed by the Revenue is dismissed. 11. So far as cross objection filed by the assessee is concerned, it is only supportive to the order of the ld. CIT(A). As no grievance against the order of the ld. CIT(A), the C.O. filed by the assessee has become infructuous and is dismissed accordingly. 12. In the result, appeal filed by the Revenue and the Cross Objection filed by the assessee are dismissed. Order Pronounce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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