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TMI Blog2022 (3) TMI 290X X X X Extracts X X X X X X X X Extracts X X X X ..... onsideration also i.e. A.Y. 2009-2010 as the appeal before the CIT(A) against reassessment order dated 18.07.2011 was pending before CIT(A) which was decided on 29.07.2019 and on the date of grant of registration u/s. 12A of the Act i.e. on 21.06.2013, the first appeal was pending which has to be considered as in continuation of reassessment proceedings. Assessee/appellant trust was entitled to enjoy benefits of registration u/s. 12A of the Act w.e.f. A.Y. 2009-2010 under the benefit of first proviso to Section 12A(2) of the Act inserted by the Finance Act (No. 2), 2014 w.e.f. 01.10.2014. The authorities below have decided the matter considering that the assessee was not having registration u/s. 12A of the Act for A.Y. 2009-2010 but as per foregoing discussion, we have reached to a logical conclusion that the benefit of registration u/s. 12A of the Act is available for the assessee for A.Y. 2009-2010 also after insertion of first proviso to Section 12A(2) of the Act. Therefore, the orders of the authorities below are set aside and the case is restored back to the file of the AO for de novo reassessment keeping in view that the assessee was entitled to have benefit of registratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment year by relying on the Honourable Supreme Court decision and the Honourable Delhi High Court decision cited in the appeal order and, therefore, the assessee preferred the present appeal against the order of the CIT (Appeals) before the Tribunal. 4. The grievances of the assessee in the form of grounds of appeal read as under: 1. The impugned order opposed to the facts and contrary to law and therefore liable to be quashed. 2. The learned CIT (Appeals) failed to consider the amendment by way of insertion of three provisos to section 12A (2) by Finance Act(No. 2) with effect from 1-10-2014, which shall have retrospective effect being a beneficial amendment as explained in various judicial pronouncements. 3. The learned CIT (Appeals) failed to note that the registration granted on 21-06-2013 should be treated as granted on 3-08-2010 as order giving effect to the appeal order modified the earlier order. 4. The learned CIT (Appeals) ought to have held that as the registration was treated as granted on 03.08.2010, the assessing officer could not have reopened the assessment under section 148 on 30-08-2010 by virtue of the second proviso to section 12A(2) w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of order of the ITAT setting aside the order of CIT 14.12.2012 10. Date of order of CIT granting registration w.e.from AY 2010-11 21.06.2013 11. Date of order of CIT(A) dismissing the appeal 29.07.2019 Ld. AR further submitted that when the AO initiated proceedings u/s. 148 of the Act, the registration u/s. 12A of the Act had not been granted to the trust. Even when the AO completed the reassessment proceedings, and passed the assessment order on 18.07.2011 the registration had not been granted. But when the CIT(A) passed the appellate order on 29.07.2019, the registration granted on 21.06.2013, was in place, accordingly the Ld. CIT(A) should have cancelled the reassessment proceedings or at least he should have allowed exemption u/s. 11 12 of the Act. The CIT(A) has relied on the decision of the Hon'ble Supreme Court in the case of U.P. Forest Corporation (2008) 297 ITR 1 and the decision of Hon'ble Delhi High Court in the case of Pt. Kanahya Lal Punj Charitable Trust, 297 ITR 66 but these decisions were rendered before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ust was created on 02.12.2008. Its first assessment was done by Ld. AO u/s. 148 on 18.07.2011, however, while passing the re-assessment u/s. 143(3) r.w.s. 147 of the Act, the assessee was not in a possession of registration u/s. 12AA of the Act. Accordingly, the AO has disallowed the exemption u/s. 11 12 of the IT Act and treated the assessee as an AOP and applied the rates applicable and assessed the income of ₹ 1,43,48,060/- and raised the payment of ₹ 70,58,490/-. Aggrieved thereby the assessee filed an appeal with the CIT(A), Madurai. 9. On perusal of the facts and records available and after considering the contention of the parties, it is clear that CIT, Madurai granted registration on 21.06.2013, it goes to modify his earlier order dated 03.08.2010 in which he rejected the registration, meaning thereby the registration is deemed to have been granted on 03.08.2010 from A.Y. 2010-11. On further perusal of the amendment brought to the Finance (No. 2), Act, 2014 by inserting first proviso after sub-section (2) to Section 12A of the Act w.e.f. 01.10.2014, it is amply clear that the legislature in its wisdom has provided that where the registration has been given ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment proceedings pending before the Assessing Officer. Accordingly, respectfully following the above order of Amritsar Bench of the Tribunal in the case of St. Joseph's Convent School (supra), we hold that the subsequent grant of registration will operate retrospectively for the assessment year under consideration also i.e. A.Y. 2009-2010 as the appeal before the CIT(A) against reassessment order dated 18.07.2011 was pending before CIT(A) which was decided on 29.07.2019 and on the date of grant of registration u/s. 12A of the Act i.e. on 21.06.2013, the first appeal was pending which has to be considered as in continuation of reassessment proceedings. Therefore, respectfully following the order of the ITAT Amritsar Bench in the case of St. Joseph's Convent School. (supra), we hold that the assessee/appellant trust was entitled to enjoy benefits of registration u/s. 12A of the Act w.e.f. A.Y. 2009-2010 under the benefit of first proviso to Section 12A(2) of the Act inserted by the Finance Act (No. 2), 2014 w.e.f. 01.10.2014. The authorities below have decided the matter considering that the assessee was not having registration u/s. 12A of the Act for A.Y. 2009-2010 bu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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