TaxTMI 
TaxTMI 
TaxTMI 
2019 (5) TMI 618
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....f the Act for the year under consideration, i.e. A.Y. 2014-15 in view of the Proviso to Section 12A sub-section (2) and the provisions of Section 11 and 12 would apply accordingly". 3. It is apparent from a perusal of the above ground itself that a legal issue has been raised therein. Since no investigation of fresh facts is necessary to adjudicate this ground, I am, ergo, admitting the same to be taken up for disposal on merits. 4. Succinctly the factual matrix of the case is that the assessee trust filed its return declaring total income at Nil. During the course of assessment proceedings, the Assessing Officer (AO) observed that the assessee was established to maintain, repair, preserve and operate Ghat on the banks of Krishna river, K....
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....d under trust of any assessment year preceding the aforesaid assessment year, for which assessment proceedings are pending before the Assessing Officer as on the date of such registration and the objects and activities of such trust or institution remain the same for such preceding assessment year: (italicized for emphasis) 6. A close scrutiny of the provision indicates that where an assessee has made an application for registration after the date specified in the sub-section (2), the provisions of sections 11 and 12 of the Act shall apply from the assessment year immediately following the financial year in which such application is made. First proviso to this section is relevant for our purpose. This proviso states that where the registr....
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....trictly, then the pendency of the assessment proceedings before the AO is sine qua non for getting the extended benefit of registration in terms of the mandate of the proviso. Section 250 of the Act deals with the procedure in appeal before the CIT(A). Sub-section (4) of section 250 provides that the Commissioner (Appeals) may, before disposing of any appeal, make such further inquiry as he thinks fit. Subsection (5) of this section provides that the Commissioner (Appeals) may, at the hearing of an appeal, allow the appellant to go into any ground of appeal not specified in the grounds of appeal. Section 251 deals with the powers of the CIT(A). Clause (a) of sub-section (1) of section 251 provides that in an appeal against an order of asses....
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....so is available not only when the assessment proceedings are pending before the AO but also when an appeal against the assessment order is pending before the ld. CIT(A). It is so for the reason that the appeal proceedings are nothing but continuation of the assessment proceedings. 8. At this juncture, it would be pertinent to note that the main object of proviso to section 12A(2) is to liberally grant the benefit of registration when the trust is otherwise engaged in genuine charitable activities and the registration has been actually granted albeit after the close of the relevant period. Purpose of this proviso is to benefit assessees in the given circumstances subject to the fulfillment of other conditions. In such a situation, the obje....