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TMI Blog2024 (6) TMI 1292X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act for A.Y. 2016-17. As relying on Shree Shyam Mandir Committee [ 2017 (10) TMI 1450 - RAJASTHAN HIGH COURT] Assessee is eligible for deduction u/sec. 11 of the Act for A.Y. 2016-17 as assessee had received registration u/sec. 12AA of the Act before the order u/sec. 143(1) for A.Y. 2016-17 was passed by Income Tax Central Processing Centre, Bangalore. Accordingly, grounds of appeal raised by the assessee are allowed. - Dr. Dipak P. Ripote, Accountant Member And Shri Vinay Bhamore, Judicial Member For the Assessee : None For the Revenue : Shri Rajesh Gawali Addl.CIT(DR) ORDER PER DR. DIPAK P. RIPOTE, AM: This is an appeal filed by the assessee against the order of ld. ADDL/JCIT(A)-1, Visakhapatnam under section 250 of the Act dated 31.01.2024 for the A.Y. 2016-17 emanating from the order u/sec. 143(1) of the Act dated 02.01.2018. The assessee has raised the following grounds of appeal: 1. Exemption u/s. 11 : The learned A.O has erred in confirming the total income of the assessee at Rs. 33,84,440/- as against returned income of Rs 31,040/- Exemption u/s. 11 : The learned A.O has erred in denying exemption claimed u/s. 11 of Rs 33,53,400 even though the assessee is register ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er : Improvement of Public Health and Medical Education in India. Upholding the dignity of Medical Profession. Holding periodical meetings, conference of medical professionals. Encourage Research in medical and allied sciences. Provide Scholarships, Prizes for the same. Organize Medical Camps for providing medical reliefs. 7. The assessee filed Return of Income for Assessment Year 2016-17 in ITR-7 and claimed benefit u/sec. 11 of the Act. The assessee had applied for registration u/sec. 12AA of the Act on 15.07.2016. The assessee received registration u/s. 12AA of the Act vide order dated 20th October, 2016. 7.1 As per section 12A(2) of the Act, if any assessment proceeding is pending during the pendency of registration u/sec. 12AA of the Act, then the registration granted shall be applicable to the pending assessment proceedings. The relevant section 12A(2) is reproduced here as under : Quote 12A . Conditions for applicability of section 11 and 12. (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 fina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to remove hardship caused to the genuine trust. In this case, assessee is a Charitable Trust. It has not been alleged by Revenue that assessee s activities/objects are not charitable in nature, rather it is an admitted fact that assessee s objects and activities are charitable in nature. The ld.CIT(E) after examining the objects and activities of the Trust, granted registration u/sec. 12AA of the Act to the assessee trust. The impugned order u/sec. 143(1) was issued on 02.01.2018 and registration u/s. 12AA of the Act was granted 20.10.2016, means at the time of issue of order u/s. 143(1), assessee was already having registration u/s. 12AA of the Act. We have already mentioned that proviso to section 12A(2) was introduced to remove hardship to the genuine trust. Therefore, as per proviso to section 12A(2) of the Act, assessee was eligible for deduction u/sec. 11 of the Act for A.Y. 2016-17. In this context, we find support from the decision of the Hon ble Rajasthan High Court in the case of CIT(Exemptions) Vs. Shree Shyam Mandir Committee [2018] 400 ITR 466 (Raj). 8. Similarly, the Hon ble Kolkatta ITAT in the case of Sree Sree Ramkrishna Samity Vs. DCIT 44 ITR(T) 678 vide order dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at as long as the objects were charitable in nature in the earlier years and in the year in which registration u/s 12AA was granted, the existence of trust for charitable purposes in the earlier years cannot be doubted with. Even otherwise, no adverse findings were given by the revenue with regard to the existence of the assessee society for charitable purposes in the assessment years under appeal . 6.13 We hold that since the only reason for denial of exemption u/s 11 was absence of registration u/s 12AA (which was granted to assessee society on 29.10.2010 with effect from 1.4.2010) for the relevant assessment years and on no other ground, the benefit of change in law as above by Finance Act 2014 should be available and for all the years, the benefit of exemption should be available on the date of registration as all the assessments were pending as shown above. I Unquote. 8.1 Similarly ITAT Pune in the case of Sansthan Shree Eknath Maharaj Vishwastha Mandal Vs. ITO(Exemption) 195 ITD 46 (Pune - Trib.) has held as under : Quote, 4. I have heard both the sides in Virtual Court and gone through the relevant material on record. There is no dispute on the fact that the assessee filed i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nates with the issuance of notice of demand u/s 156 of the Act. It is thus, manifest that the assessment proceedings commence with the filing of return and not when notice is issued for the first time u/s 143(2). Issuance of such a notice and passing of assessment order are parts of entire assessment proceedings which commences with the filing of return. 5. Adverting to the facts of extant case, I find that the assessee filed its return for the year under consideration on 17-1-2017. The approval was granted by the ld. CIT(E) u/s 12AA on 16-5-2017. It is, ergo, glaringly patent that the assessment proceedings for the year under consideration, which commenced with the filing of return on 17-1- 2017, were pending on the date of grant of registration by the ld. CIT(E) on 16-5-2017. I, therefore, hold, in principle, that the assessee is eligible for exemption u/s 11 of the Act. Unquote . 9. No contrary decision of the Hon ble Jurisdictional High Court has been brought to our notice. Therefore, respectfully following the Hon ble Rajasthan High Court and the Hon ble ITAT (supra) it is held that assessee is eligible for deduction u/sec. 11 of the Act for A.Y. 2016-17 as assessee had receiv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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