TaxTMI 
TaxTMI 
2022 (2) TMI 162
X X X X Extracts X X X X
X X X X Extracts X X X X
....IT(E) vide orders dated 04.03.2021. Heard both the parties through video conferencing mode. Before we proceed further, it is important to cull out brief facts as well background of the case, as it has important bearing on the decision which we are going to arrive in this appellate order. The assessee i.e. The High Court Bar Association, Allahabad has claimed itself to be a society registered on 07.02.1958, wherein it is claimed that only Advocates having Certificate of Practice with Allahabad High Court are its members. It is claimed that the assessee is association of persons consisting of advocates who have mutually agreed to contribute funds for the common purposes of mutual benefits and there is no element of trade, but with an idea of rendering mutual help at the time of illness or demise. It is also averred during course of hearing that the assessee apart from receiving contribution from its members also received fee per Affidavit, which is as per approval/direction of Hon'ble Allahabad High Court. The assessee has placed its rules on record, and it is claimed that the assessee is working for the development of legal science and studies, assisting in development of progre....
X X X X Extracts X X X X
X X X X Extracts X X X X
....new members managing the society till the next elections. 2. The society is deriving cash primarily from two sources-membership fee taken from the members and cash collection from the members and cash collection from affidavit centre. This duty was given to the bar association by the Hon'ble High Court vide order dated 7.10.2015 in PIL No. 55060 of 2015 in terms of the order enclosed, Thus, the cash deposit related to these collections. 3. The deposit entries pertain to cash deposited and the payment entries pertain to the payments for mutual benefits of the members or administrative expenses. The bank book is being printed and submitted for demonetization period for the nature of the entries in the bank account. 4. The society is deriving cash from two sources-membership fee taken from the members and cash collection from the members and cash collection from the affidavit centre. This duty was given to the bar association by the Hon'ble vide order dated 7.10.2015 in PIL No. 55060 of 2015 in terms of the order enclosed as per para 2 of above, Thus, the cash deposit only related to these collections. 5. Cash is not deposited out of the per....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Revenue, vide separate orders both dated 17.01.2020, and said penalty proceedings attained finality with no prejudice finally being caused to the assessee on that account. 2.6. The assessee on its part did not file any appeal with the ld. Commissioner of Income-tax(Appeals) (hereinafter called "the CIT(A)") under the provisions of Section 246A of the 1961 Act, challenging the assessment order passed by the AO u/s. 144, dated 24.12.2019 for ay: 2017-18. 2.7. The assessee filed an application on 02.07.2020 with ld. CIT(E) seeking registration u/s. 12AA of the 1961 Act. The said application was filed in Form No. 10A under Rule 17A of the Income-tax Rules, 1962. The said application is placed on record at page number 19-21. The ld. CIT(E) accorded opportunity of being heard to the assessee by issuing office letter F. No. ITBA/EXM/F/41/2020-21/1028647226(1), dated 18.11.2020, which was sent by ld. CIT(E) to assessee's address by speed post as well the same was posted at e-filing portal also, wherein specific queries, as many as 26 queries were raised by ld. CIT(E) in connection with the application for registration u/s. 12A of the 1961 Act filed by the assessee on 02.07.2020. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 2021 with the prayers to quash the assessment order dated 24.12.2019 passed by the ITO-1(5), Allahabad assessing the assessee to tax for the assessment year 2017-18 under the provisions of the Section 144 of the 1961 Act. The Hon'ble Jurisdictional High Court observed, inter-alia, in its order dated 09.09.2021 while dismissing writ petition filed by the assessee, that the writ petition appeared to have been filed with latches of more than one and half year. The said writ petition was dismissed by Hon'ble Allahabad High Court, vide orders dated 09.09.2021 as the assessee could not make out exceptional circumstances warranting interference by Hon'ble High Court in exercise of its powers in writ jurisdiction under Article 226 of the Constitution of India. Hon'ble Jurisdictional High Court also observed while dismissing the aforesaid writ petition filed by the assessee that the assessee has already availed alternate remedy by filing revisionary petition u/s. 264 with ld. CIT on 17.12.2020. The Hon'ble Jurisdictional High Court also observed in its order dated 09.09.2021, as under: "As to last submission of learned Senior Counsel that by virtue of proceedin....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed revisionary powers of ld. CIT u/s. 264 as statutory alternate remedy was upheld by Hon'ble High Court in its orders dated 09.09.2021, while dismissing writ petition filed by the assessee. We are saying so because the assessee during the course of proceedings conducted for grant of registration u/s. 12AA with which we are presently seized within our appellate jurisdiction against order passed by ld. CIT(E) rejecting assessee's application for grant of registration u/s. 12AA, the assessee referred to invocation of revisionary powers of ld. Pr. CIT by filing petition u/s. 264 of the 1961 Act, in its reply filed before ld. CIT(E) on 29.12.2020. 2.9. Coming back to the proceedings with which we are presently concerned viz. rejection by ld. CIT(E) of application dated 02.07.2020 filed by the assessee with ld. CIT(Exemptions) for grant of registration u/s. 12AA of the 1961 Act vide orders dated 04.03.2021. The ld. CIT(Exemption) accorded opportunity of being heard to the assessee by issuing office letter F. No. ITBA/EXM/F/41/2020-21/1028647226(1), dated 18.11.2020, which was sent by ld. CIT(E) to assessee's address by speed post as well the same was posted at e-filing po....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ncerned with. On careful perusal of the aforesaid reply dated 29.12.2020 filed by the assessee before ld. CIT(E) as extracted above, we found that this reply dated 29.12.2020 filed by assessee before ld. CIT(E) is not happily worded as it is prone to different interpretation and lacks in clarity, but one thing is clear that the assessee never stated in the aforesaid reply dated 29.12.2020 that it intends to withdraw its application dated 02.07.2020 filed before ld. CIT(E) for seeking registration u/s. 12AA of the 1961 Act, as careful study of the said reply indicates that it merely stated conditional non pressing of its application filed for seeking registration u/s. 12AA until its petition filed u/s. 264 with ld. CIT is disposed off. Further, it is claimed in this reply dated 29.12.2020 itself that the 'High Court Bar Association' is not a taxable entity as per the decision of Hon'ble Supreme Court in the case of High Court Bar Council Maharashtra v. CIT 1981. As we have already seen that the assessee has availed alternate remedy by filing revisionary petition u/s. 264 of the 1961 Act by invoking revisionary powers of ld. CIT, which was also recognized by Hon'ble H....