9911796707
TMI Blog2019 (10) TMI 257X X X X Extracts X X X X X X X X Extracts X X X X ..... ax. As in the case of Society for the Promotion of Education Adventure Sport Conservation of Environment [ 2008 (4) TMI 700 - ALLAHABAD HIGH COURT] has held that non-consideration of the application for registration u/sec. 12A within the time fixed u/sec. 12AA(2) would be a deemed grant of registration. - Decided against revenue. - ITA No. 378/VIZ/2018, C.O.No.117/VIZ/2018 (Arising out of ITA No. 378/VIZ/2018) - - - Dated:- 4-10-2019 - Shri V. Durga Rao, Hon ble Judicial Member And Shri D.S. Sunder Singh, Hon ble Accountant Member For the Assessee : Shri C. Subrahmanyam, FCA. For the Department : Shri T.S.N. Murthy, Sr.DR ORDER PER V. DURGA RAO, JUDICIAL MEMBER This appeal by the Revenue and the Cross Objection by the assessee are directed against the order of Commissioner of Income Tax (Appeals), Rajamahendravaram, dated 27/04/2018 for the Assessment Year 2013-14. 2. Facts of the case, in brief, are that assessee is a registered trust, registered under the Society Registration Act on 12/03/1985. The assessee has filed its return of income admitting NIL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Assessing Authority is directed to grant relief to the appellant. 9. In the result, the appeal of the appellant for the Asst. Year 2013-14 is ALLOWED. 4. On being aggrieved, Revenue carried the matter in appeal before this Tribunal. 5. Ld.AR has submitted that the assessee-trust applied for registration u/sec. 12A on 06/08/1990 and thereafter exemption u/sec.11 was allowed year after year till the impugned assessment year. He pointed out from the page Nos. 8 9 of the paper book to support his argument. He also further submitted that as per section 12AA(2), if the application is pending with the authorities, registration u/sec. 12A has to be granted before the expiry of six months otherwise it is deemed registration. For this he relied on the judgment of the Hon'ble Allahabad High Court in the case of Society for the Promotion of Education Adventure Sport Conservation of Environment Vs. CIT Ors. [(2015) 372 ITR 222 (All.)] and also the judgment of the Hon'ble Apex Court in the case of Society for the Promotion of Education (supra). 6. On the other hand, ld.DR strongly supported the order of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ities below. The assessee is a society registered under the Societies Act. The society has applied for registration u/s 12AA of the Act, which was evident from the scrutiny assessment order passed by the A.O., for the assessment year 1996-97 vide order dated 29.12.1998. The A.O. has allowed the exemption u/s 11A of the Act. Further, the assessee placed evidences of having filed the returns of income for earlier years and the intimations were issued by the Income Tax Department u/s 143(1) and the exemption u/s 11 of the Act, was allowed by the revenue. Though assessee has not mentioned the registration number, equal responsibility casts up on the revenue to maintain proper records and to trace the registration number and to determine the correct status of the assessee before making any such adjustment. In this case, there was an evidence having filed application for registration but there was no evidence with the income tax department to show whether the revenue has rejected the assessee s application for registration or not but allowed the exemption claimed by the assessee. Therefore, it is evident that the society has been granted the registration or deemed to h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Explanation-For the purpose of this sub-section,-- (a) an incorrect claim apparent from any information in the return shall mean a claim, on the basis of an entry, in the return,-- (i) of an item, which is inconsistent with another entry of the same or some other item in such return; (ii) in respect of which the information required to be furnished under this Act to substantiate such entry has not been so furnished; or (iii) in respect of a deduction, where such deduction exceeds specified statutory limit which may have been expressed as monetary amount or percentage or ratio or fraction; (b) the acknowledgement of the return shall be deemed to be the intimation in a case where no such is payable by, or refundable to, the assessee under clause (c), and where no adjustment has been made under clause (a). 6. Since the adjustment made by the AO is debatable, which requires verification from the assessment records and there was no evidence to show that the registration applied for was rejected or cancelled, we hold that the adjustment made by the revenue in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich gives effect to the legislative purpose/intendment, if necessary must be followed and applied. Considering the pros and cons of the two views by far the better interpretation would be to hold that the effect of non-consideration of the application for registration within the time fixed by s.12AA(2) would be a deemed grant of registration. There is no good reason to make the assessee suffer merely because the IT Department is not able to keep its officers under check and control, so as to take timely decisions in such simple matters such as consideration of - applications for registration even within the large six month period provided by s. 12AA(2). Accordingly the respondents are directed, subject to any order which may be passed under s. 12AA(3), to treat the petitioner society as an institution duly approved and registered under s. 12AA and to recompute its income by applying the provision of s. 11. Accordingly, a formal certificate of approval will be issued forthwith to the petitioner by the respondent No. 2.-Chet Ram Vashist vs. Municipal Corporation AIR 1981 SC 653 distinguished; R. (Haw) vs. Secretary of State for the Home Departmen ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
