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TMI Blog2022 (1) TMI 654X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellate Tribunal, "C" Bench, Bangalore ('Tribunal' for short) relating to the assessment year 2013-14, raising the following substantial questions of law:- 1. Whether on the facts and circumstances of the case, the Tribunal's order can be said as perverse in law in quashing reassessment order by merely relied upon proviso to Section 12A(2) of the Act and Circular No.1 of 2015 to quash the re- assessment order ignoring materials on record and factual matrix of the case? 2. Whether on the facts and circumstances of the case, the Tribunal is right in law in quashing re-assessment order by relying on proviso to Section 12(2) of the Act coupled with Circular No.1 of 2015 issued by CBDT which only clarifies that no case of earlier years sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Revenue. 3. Learned counsel for the Revenue argued that the order passed by the Tribunal is not in conformity with the provisions of Sections 11 and 12 of the Act. Reopening of assessments on noticing that no registration was obtained by the Trust under Section 12A of the Act for the assessment year in question is in accordance with law. Merely placing reliance on the proviso to Section 12A(2) and Circular No.1/2015, the Tribunal proceeded to pass the re-assessment orders ignoring the materials on record. 4. Learned Senior counsel representing the respondent - assessee justifying the impugned order submitted that the provisos to Section 12A(2) of the Act is attracted in the present case. As per the first proviso, where registration has b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the same for such preceding assessment year: Provided further that no action under section 147 shall be taken by the Assessing Officer in case of such trust or institution for any assessment year preceding the aforesaid assessment year only for non-registration of such trust or institution for the said assessment year: Provided also that provisions contained in the first and second proviso shall not apply in case of any trust or institution which was refused registration or the registration granted to it was cancelled at any time under section 12AA." 7. It is not in dispute that the registration under Section 12A of the Act was granted to the assessee on 23.09.2014. In terms of the first proviso, where the registration has been grant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... though they may otherwise be eligible for exemption and fulfil other substantive conditions. However, the power of condonation of delay in seeking registration was not available. 8.3 In order to provide relief to such trusts and remove hardship in genuine cases, section 12A of the Income tax Act has been amended to provide that in a case where a trust or institution has been granted registration under section 12AA of the Income tax Act, the benefit of sections 11 and 12 of the said Act shall be available in respect of any income derived from property held under trust in any assessment proceeding for an earlier assessment year which is pending before the Assessing Officer as on the date of such registration, if the objects and activities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... OR ISSUE OF NOTICE U/S 148 "The Fund was established by virtue of a proceedings of the Government of Karnataka (the then Mysore Govt.). The said fund, was granted registration u/s 12A w.e.f. financial year 2013-14. Information was gathered revealed that the said fund is having taxable surplus/income since quite a number of years. It is also verified from the AST that the said fund had not filed return of income except for the financial year 2008-09 to 2013-14. As the registration was granted only from the assessment year 2014-15 i.e., for the financial year 2013-14, the surplus of earlier years are to be taxed as AOP without extending the benefits of sec. 11 and 12. The present jurisdiction over the case vests within the Charge of CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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