TaxTMI 
TaxTMI 
2021 (8) TMI 744
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....see has raised certain common grounds of appeal, fact in both the years are almost similar except variation of figure of corpus donation, therefore with the consent of parties, both the appeals were clubbed, heard and are decided by common order. For appreciation of facts, the appeal for A.Y. 2008-09 was treated as lead case. The assessee raised the following grounds of appeal:- "1. The ld.AO erred in not granting exmpetion u/s11 of I.T. Act 1961 and determining total income at Rs. 2,90,700/- and levying tax there upon as AOP. 2. The Hon'ble CIT(A) erred in holding that assessee is not eligible for benefit of income being exempted u/s 11 of I.T. Act 1961. 3. The ld.AO ought to have accepted income returned at ....
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....by concluding that 'proviso' inserted in sec. 12A(2) through amendment by the Finance (No.2) Act, 2014 is not applicable as the proceedings are not pending before the AO, while, registration was granted on 09/05/16 and on such date, proceedings were pending before the AO' and has retrospective effect as held in SNDP Yogam (2016) (Coch-Trib), hence, reassessment made u/s 147 is null & void and is liable to be quashed. 3. That the ld. CIT(A) has erred in confirming the action of the AO in denial of expetion claimed u/s 11 without bringing any finding that the objects/activities of the assessee trust for the A.Y. 11-12 has been changed as compared to the objects/ activities for the subsequent AYs, in which the ld AO has allowed the ex....
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.... section 12AA and the assessee was granted registration vide order dated 09.05.2016 with effect from 01.04.2015. Before, ld CIT(A) the assessee pleaded that the assessee as per the Proviso to section 12AA(2), when the application of the trust is pending registration, the registration will apply to the pending assessment. The plea of the assessee was not accepted by the ld CIT(A) by taking view that before granting the registration under section 12AA, the assessment for AY 2008-09 was completed on 31.03.2015 and for AY 2011-12 assessment completed on 27.03.2015. Further aggrieved the assessee has filed present appeal before Tribunal. 5. We have heard the submission of learned AR for the assessee and the learned CIT-DR for the Revenue. The....
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.... when assessment was completed the assessee was not having registration under section 12AA. The subsequent registration under s.12AA will not helpful to the assessee. The learned DR for the Revenue prayed for the dismissal of the appeals of the assessee. 7. We have considered the rival submissions of the parties and have gone through the orders of the lower authorities. In our view the short question for our consideration is whether the ld. CIT (A) is justified in confirming the AO action, for both the assessment years under consideration, in assessing the corpus of building donation as incomes of the assessee. For appreciation of facts the same is reproduced below: "[(2) Where an application has been made on or after the 1st da....
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....d prior to the year of registration caused genuine hardship to charitable organizations. Due to absence of registration, tax liability is fastened even though they may otherwise be eligible for exemption and fulfill other substantive conditions. However, the power of condonation of delay in seeking registration was not available." 9. The first proviso to section 12A(2) was brought in the statute only as a retrospective effect, with a view not to affect genuine charitable trusts and societies carrying on genuine charitable objects in the earlier years and substantive conditions stipulated in section 11 to 13 have been duly fulfilled by the said trust. The benefit of retrospective application alone could be the intention of the legislature....
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....ection 11of the Act. 11. Thus taking the above facts and circumstances of the issue, we are of the view that the ld CIT(A) was also not justified in taking a similar stand that of the AO, without taking cognizance and intention of the amendment to section 12A of the Act. If no judicious or a liberal view is not taken either by the assessing authority or the appellate authority as in the case under consideration, the very purpose for which such an amendment to section 12A would be defeated. 12. We find that similar view was taken by Coordinate bench in Badhte Kadam Vs DCIT (2020) 203 TTJ (Raipur) 597 and Kolkata Bench of Tribunal in case of Sree Sree Ramkrishna Samity vs D CIT [2016] 156 ITD 646/[2015] 64 taxmann.com 330 where it was h....