TaxTMI 
TaxTMI 
2020 (12) TMI 550
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.... Without prejudice to the foregoing and in the alternative: 2.0 Re; computation of income by incorrect application of the principle of mutuality; 2.0 The CIT(A) has erred in not directing the A.O to compute the appellant's income by correctly applying the principle of mutuality. 3.0 Re.: General; 3.1 The Appellant craves leave to add, alter, amend, substitute and / or modify in any manner whatsoever all or any of the foregoing grounds of appeal at or before the hearing of the appeal". 2. The brief facts of the case are that the assessee is a trust registered with the Charity Commissioner of Mumbai and filed the return of income on 28.09.2012 with total income of Rs.Nil. Subsequently, the case was selected for scrutiny and notice u/s 143(2) and 142(1) of the Act along with annexure were issued. In compliance, the Ld.AR of the Assessee appeared from time to time and submitted the details. The LdA.O perused the income and expenditure, balance sheet, books of accounts, profit and loss account, audit report. Further and also find that the registration u/s 12A of the Act with the Director of Income-Tax (Exemptions), Mumbai has been cancelled by DIT(E) Mumbai order dated 08.12.....
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....he assessee's own case for the A.Y 2009-10 and further relied on the predecessor order and accepted the view of the A.O on denial of exemption u/sec11 of the Act and partly allowed the appeal of the assessee. Aggrieved by the order of the CIT(A), the assessee has assailed an appeal before the Hon'ble Tribunal. 4. At the time of hearing, the Ld. AR submitted that the CIT(A) has erred in not considering the facts, provisions of law and the decision of the Hon'ble ITAT. Where as the Hon'ble ITAT has set aside the cancellation order of registration u/sec12A of the Act. In the present appeal the only issue agitated being, granting of exemption u/s 11 of the Act. The assessee has been granted Registration from the year 1974 onwards and was withdrawn and cancelled by the DIT(E) vide order dated 08.12.2011.The Ld. AR submitted that the A.O has overlooked the provisions of law and dealt on the instructions of CBDT circular, where the benefit of exemption has to be granted to the institutions both mutual and charitable. While passing the order, the A.O has not followed the CBDT circular and denied exemption u/s 11 of the Act. The Ld.AR emphasized that the assessee's activities are charit....
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....mstances of the present case, we are of the considered view that the orders passed by the DIT exemption to the effect that the activities of the assessee trust has become non genuine are without any basis or foundations therefore, we hold the cancellation of registration w.e.f . 2009-10 is bad in law and the same is set aside, and the only ground of appeal raised by the assessee is allowed". 7. Further, the Ld. AR also relied on the order of the Hon'ble ITAT in the assessee's own case ITA No. 48/Mum/2013 &195/Mum/2013 for the A.Y 2009-10 and ITA 5610/Mum/2015 for the 2011-12 dated 13.01.2020. Where the assessee has challenged the order of the CIT(A) denying the claim of exemption u/s 11 of the Act for the A.Y 2009-10 and A.Y 2011- 12. The Hon'ble Tribunal considered the facts and the earlier order of Tribunal dated 03.03.2016 setting aside the order of DIT(E) and restoration of registration u/s 12A of the Act. Further, the Tribunal observed that the CIT(A) in the appeals for AY 2009- 10 and AY 2011-12 upheld the rejection of exemption u/s11 of the Act due to cancellation of registration granted u/s 12A of the Act by DIT(E) vide order dated 08.12.2011. On appeal to the Hon'ble ITAT....
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....earned Commissioner (Appeals) in rejecting assessee's claim of exemption under section 11 of the Act cannot be upheld. It is relevant to observe, in case of another assessee, viz. Cotton Textile Promotion Council, learned Commissioner (Appeals) had upheld rejection of claim of exemption under section 11 of the Act on identical reasoning for the very same assessment year. However, while deciding the appeal of the assessee in ITA no.317/ Mum./2013, dated 28th January 2015, the Tribunal having taken note of the fact that the registration granted under section 12A of the Act has been restored by the Tribunal, allowed assessee's claim of exemption under section 11 of the Act by setting aside the order of learned Commissioner (Appeals). Against the order of the Tribunal, though, the Revenue went in appeal before the Hon'ble Jurisdictional High Court in ITA no.1250/2015, however, in order dated 29th November 2017, the Hon'ble Jurisdictional High Court upheld the decision of the Tribunal. Facts in the present case are identical as the only reasoning on the basis of which learned Commissioner (Appeals) has upheld the rejection of exemption under section 11 of the Act is due to cance....