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TMI Blog2022 (11) TMI 1210X X X X Extracts X X X X X X X X Extracts X X X X ..... in the same for such preceding assessment year. The intimation u/s.143(1) does not spell out the reason as to why the benefit of Sec.11 of the Act was not given to the Assessee for AY 2018-19. The submissions of the parties were made on the premise that it is only for want of registration u/s.12A of the Act, that the benefit of exemption u/s.11 was not given to the Assessee. In terms of the 1st proviso to Sec.12A (2) of the Act, the action of the revenue authorities cannot be sustained. DR made reference to CBDT Circular No.1/2015 dated 21.1.2015 wherein the purpose of the first proviso has been explained as a measure to remove hardship in genuine cases, where the application for registration u/s.12A is unduly delayed by the revenue a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Nil income. In the return filed, the Assessee had shown the following in the statement of income: 1. Voluntary contribution forming part of corpus as Per section 11(1)(d) NIL 2. Voluntary Contributions other than corpus 12,27,281-00 3. Aggregate of income referred in section 11 and 12 derived during the previous year excluding voluntary contribution included in 1 and 2 above 14,03,257-00 4. i. Amount applied to charitable purposes in India during the previous year Revenue Account 26,30,538-00 vii. Total (4i) 26,30,538-00 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... NIL 26,30,538-00 6 Aggregate Tax Liability 1,000-00 10,30,513-00 7 TDS 1,21,716-00 1,21,716-00 8 Total Income Tax Refund (7 8) (1,20,720-00) -- 9 Amount Payable (7- 8) -- 9,08,797-00 5. Thus the claim for exemption u/s.11 of the Act, of Rs.26,30,538/- was denied by the AO. The intimation is silent as to the reasons why the exemption was being denied to the Assessee. There is however in mention in page-6 of the intimation in Note (3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he above facts, the learned counsel for Assessee submitted that in terms of the 1st proviso to Sec.12A(2) of the Act, the benefit of registration has to be extended to pending assessment for earlier AY immediately preceding the Assessment year, (i.e., AY 2018-19 in this case) from which registration is granted u/s.12A of the Act. (i.e., AY 2019-20 in this case). The said provisions reads thus: 12A(1) xxxx (2) Where an application has been made on or after the 1st day of June 2007, the provisions of section 11 and 12 shall apply in relation to the income of such trust or institution from the assessment year immediately following the financial year in which such application is made: Provided that where registration has been granted to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act does not spell out the reason as to why the benefit of Sec.11 of the Act was not given to the Assessee for AY 2018-19. The submissions of the parties were made on the premise that it is only for want of registration u/s.12A of the Act, that the benefit of exemption u/s.11 was not given to the Assessee. In terms of the 1st proviso to Sec.12A (2) of the Act, the action of the revenue authorities cannot be sustained. The learned DR however made reference to CBDT Circular No.1/2015 dated 21.1.2015 wherein the purpose of the first proviso has been explained as a measure to remove hardship in genuine cases, where the application for registration u/s.12A of the Act is unduly delayed by the revenue authority and such facts do not exist in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or Form 16A or Form 16 which has not been included in computing the total income in the return: Provided that no such adjustments shall be made unless an intimation is given to the assessee of such adjustments either in writing or in electronic mode: Provided further that the response received from the assessee, if any, shall be considered before making any adjustment, and in a case where no response is received within thirty days of the issue of such intimation, such adjustments shall be made; 11. The only clause that could possibly apply in the present case in clause (ii) of Sec.143(1)(a) of the Act, which says that if an incorrect claim is apparent from any information in the return of income. In the light of the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X
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