9911796707
TMI Blog2021 (6) TMI 574X X X X Extracts X X X X X X X X Extracts X X X X ..... also placed on record the reply of CPIO and the order of First Appellate Authority under RTI. Moreover, on further filing fresh application for registration under section 12AA, the assessee was granted fresh registration. The grounds of appeal raised by the assessee required fresh consideration by the ld.AO in view of the decisions of Mayur Foundation [ 2004 (12) TMI 48 - GUJARAT HIGH COURT] . Therefore, the appeal is restored back to the file of ld.AO to consider the claim of assessee afresh by considering the various decisions as referred above and pass the order afresh in accordance with law without being influence of any of our observation. The assessee is also directed to provide complete details, evidences and information to the ld.Assessing Officer. Appeal of the assessee is allowed for statistical purpose. - ITA No.149/SRT/2017 - - - Dated:- 9-6-2021 - Shri Pawan Singh, Judicial Member And Dr. Arjun Lal Saini, Accountant Member For the Assessee : Shri Tejas Gandhi CA For the Revenue : Ms Anupama Singla Sr. DR ORDER UNDER SECTION 254(1) OF INCOME TAX ACT PER PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by Assessee is directed against the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... strative expenses of ₹ 13,13,184/- including 15% accumulation under section 11 of the Act was disallowed. On further appeal before the ld.CIT(A), the order of assessing officer was upheld. Thus, further aggrieved, the assessee filed the present appeal before this Tribunal. 3. We have heard the submission of ld. Authorised Representative (AR) of the assessee and the Ld. Senior Departmental Representative (Sr. DR) for the Revenue and perused the order of lower authorities. The ld.AR of the assessee submits that assessee-institution is a charitable trust registered with the Assistant Charity Commissioner, Surat, since 1953. The assessee was granted registration under section 12AA of the Act in 1974 vide Registration No. CITII/ 8/44/SRT dated 03.10.1974. During the assessment, the ld.AO asked the assessee to produce the registration certificate. The assessee filed detailed reply and explained that registration certificate is destroyed in heavy floods in 2006 in Surat. The assessee further explained that assessee is regularly filing return and always treated as registered under section 12AA of the Ac and granted benefits thereof. The assessee also filed assessment order for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 20 and Kota Loins Charitable Society Vs CIT (ITA no. 93 /JP/2012 dated 11.09.2014. 6. The ld.AR for the assessee further submits that the Hon ble Gujarat High Court in Mayur Foundation (supra) held that proceedings before the Tribunal are meant to correctly assess the tax liability of an assessee. Further in ITO vs. CCMP (Supra) the Co-ordinate Bench of Tribunal by referring the decision of Hon ble Rajasthan High Court held that when registration under section 12AA of the Act was granted during the pendency of appeal, and the appeal is continuation of original assessment before the Appellate Authorities, the assessee is covered by the Proviso to sub-section (2) of section 12A of Income Tax Act. On the basis of aforesaid case laws, the ld.AR prayed that thought he registration granted to the assessee in 1974, was still in existence as it was neither cancelled nor revoked, yet for abundant action, the assessee obtained fresh registration. Since the appeal of assessee when registration was granted to assessee up pending, thus, the assessee is entitled for exemption under section 11 of the Act. 7. In without prejudice in an alternative submission, the ld.AR for the assessee submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... officer. The proceedings pending before Tribunal cannot be construed as pending before assessing officer. 9. The ld. Sr DR for the revenue further submits that the assessee has filed copy of the assessment order for AY 2004-05 and alleged that assessing officer considered the status of assessee as a trust registered under section 12AA and exemption was allowed to the assessee. The contention of the AR for the assessee is not correct. In the assessment order, the assessing officer nowhere mentioned that the assessee is registered under section 12AA. The ld. Sr.DR, accordingly submits that in absence of valid registration under section 12AA of the Act, the assessee is not entitled for any relief for the ld.Sr.DR submits that case laws relied by ld.AR is not applicable on the facts and case of the assessee as the same are based on some different facts. The ld Sr DR for the revenue also filed her written submission dated 04.06.2021 narrating all the above submission. 10. We have considered the rival submission of both the parties and perused the record carefully. We find that the ld.AO disallowed the claim of expenditure by taking view that the assessee failed to produce the regi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal is given effect to by the assessing authority by computing the correct tax liability of an assessee. The Hon'ble Court not accepted the contention of the revenue that the assessment proceedings came to an end when the assessment is framed. Thus, the objection of the Ld. Sr DR that the assessee cannot take the benefit of Proviso of section 12A(2) is not acceptable in view of the decision of Hon ble High Court. 13. Further, the Co-ordinate Bench of Bangalore Tribunal in ITO Vs CCMP (supra) by referring the decision of Hon ble Rajasthan High Court held that when registration under section 12AA of the Act and appeal in continuation of original assessment before the Appellate Authorities is also covered by the Proviso sub-section (2) of section 12A of Income Tax Act. 14. Further, we find that the assessee claim was not considered on merit in absence of production of registration under section 12AA of the Act and considering the fact that the assessee was granted registration dated 26.06.2018, though it is effective from 15.10.2017. Further, the contention of the assessee throughout the assessment proceedings and at the first appeal as well as before this Tribunal is tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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