TaxTMI 
TaxTMI 
2019 (3) TMI 1888
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.... similar issue were heard together and are being disposed of by this consolidated order for the sake of convenience. However, in order toadjudicate the issues, we are making reference to the facts and issues in ITA No.987/PUN/2016, relating to assessment year 2009-10. 3. The assessee in ITA No.987/PUN/2016, relating to assessment year 2009-10 has raised the following grounds of appeal:- The following grounds are taken without prejudice to each other - On facts and in law, 1] The learned CIT(A) erred in holding that the assessee trust was not entitled to claim exemption u/s 11 since it was not registered u/s 12A of the Act. 2] The learned CIT(A) erred in holding that the assessee trust was granted registration u/s 12A w.e.f A.Y. 201....
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....eration in view of the proviso inserted to sub-section (2) of section 12A of the Act." 5. The issue raised vide additional ground of appeal is legal issue and does not require any investigation into the facts and hence, we admit the same and proceed to address the said issue first. 6. Briefly, in the facts of the case, the assessee was charitable trust and had for the year under consideration furnished return of income within stipulated time declaring nil income. Thereafter, the Assessing Officer issued notice under section 148 of the Act to the assessee. In response, the assessee submitted that original return of income filed by the trust, may be treated as return filed in response to notice issued under section 148 of the Act. Thereafte....
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....tive from financial year 2014-15. The assessee also pointed out that the Commissioner had issued 80G certificate during earlier years regularly including the year under consideration and such action of the Department proves that the assessee was charitable trust even prior to assessment year 2015-16. However, the CIT(A) did not accept the said plea of assessee on the ground that the Commissioner (Exemption), Pune had taken into consideration this aspect also and had accordingly decided the issue. Since the assessee was not registered as charitable trust under section 12A of the Act during the year, the CIT(A) upheld the order of Assessing Officer in denying exemption claimed under section 11 of the Act. 8. With regard to second claim under....
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....e initiated under section 148 of the Act on the ground that the assessee was not entitled to the exemption under sections 11 and 12 of the Act in the absence of any registration under section 12A or 10(23C) of the Act. The issue which is raised before us by way of additional ground of appeal is that the benefit of exemption under section 11 of the Act should be granted to the assessee, in view of proviso inserted to section 12A(2) of the Act once the order granting registration under section 12AA of the Act has been passed by the Commissioner on 18.08.2015. 12. The proviso under section 12A(2) of the Act has been inserted by the Finance (No.2) Act, 2014 w.e.f. 01.10.2014. The said proviso lays down that where registration has been granted ....
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....rty under the trust. The relevant findings are in paras 11 to 15 of the said order. In the facts of the case before Pune Bench of Tribunal in Carmel Haven Vs. ITO (supra), assessment proceedings were pending and hence, the issue was decided in line with the proviso inserted under section 12A(2) of the Act. 15. Further, the Tribunal in ITO Vs. Shri Vishwakalyan Jivraksha Pratishthan (supra) vide order dated 22.07.2016 also, on similar facts wherein the application for registration was made on 16.01.2013 and registration was granted by the Commissioner on 25.03.2014, however notice under section 148 of the Act was issued to the assessee on 22.03.2013. The Tribunal in such circumstances, held that the provisions of amended sub-section (2....
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....jurisdiction to entertain new ground and further held that where an assessee is required to pay tax or becomes entitled to refund, would be ascertained by the assessing authority after giving effect to the order of Tribunal. 17. Applying the said ratio to the facts of the present case, the assessee was granted registration on 18.08.2015 i.e. the date on which appellate proceedings were pending before the CIT(A). In number of judicial precedents, it has been held that the proceedings before the CIT(A) are continuation of assessment proceedings and once the assessee has been granted registration, then the conditions prescribed in the proviso to section 12A(2) of the Act need to be applied and the assessee in such circumstances, is entitled t....