TaxTMI 
TaxTMI 
2022 (3) TMI 290
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....ust Act and running an engineering college by name C.R. Anand Engineering College at Madurai. The assessee filed a return of income on 09.05.2011 admitting Nil income. The trust also applied for registration under section 12AA of the Act on 05.02.2010 and the same was rejected by CIT by the order dated 03.08.2010. On appeal, the ITAT set aside the above order for reconsideration by CIT. The learned CIT again rejected the application on the ground that the assessee did not respond to notices. Again on appeal before the ITAT, the Tribunal set aside the above order back to the file of the CIT. The learned CIT granted registration under section 12AA on 21-06-2013 with effect from AY 2010-11. In the meantime the assessing officer reopened the as....
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.... insertion of three provisos to section 12A (2) by Finance Act(No. 2) with effect from 1-10-2014, which shall have retrospective effect being a beneficial amendment as explained in various judicial pronouncements. 3. The learned CIT (Appeals) failed to note that the registration granted on 21-06-2013 should be treated as granted on 3-08-2010 as order giving effect to the appeal order modified the earlier order. 4. The learned CIT (Appeals) ought to have held that as the registration was treated as granted on 03.08.2010, the assessing officer could not have reopened the assessment under section 148 on 30-08-2010 by virtue of the second proviso to section 12A(2) which barred the reopening merely because registration was not ....
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....istration by CIT 03.08.2010 4. Notice u/s.148 issued by AO 30.08.2010 5. Reassessment Order u/s.143(3) r.w.s147 passed on 18.07.2011 6. Date of order of the ITAT setting aside the order of CIT 01.08.2011 7. Date of filing of appeal against reassessment order 23.08.2011 8. Date of order of CIT again rejecting the registration 21.10.2011 9. Date of order of the ITAT setting aside the order of CIT 14.12.2012 10. Date of order of CIT granting registration w.e.from AY 2010-11 21.06.2013 11. Date of order of CIT(A) dismissing the appeal 29.07.2019 Ld. AR further submitted that when the AO initiated proceedings u/s. 148 of the Act, the registration u/s. 12A of the Act ha....
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....ve cancelled the reassessment proceedings. Finally, ld. AR submitted that the impugned order deserves to be quashed. 6. On the other hand, ld. Sr. DR relied on the orders of the authorities below and pointed out that the reassessment order u/s. 143(3) r.w.s. 147 of the Act was passed on 18.07.2011 and registration u/s. 12A of the Act was granted to assessee on 21.06.2013 w.e.f. A.Y. 2010-2011, therefore, in the year under consideration i.e. A.Y. 2009-10, the assessee was not having registration u/s. 12A of the Act. He also contended that the first proviso to section 12A(2) of the Act cannot be applied to the present assessee as on the date of grant of registration i.e. on 21.06.2019 no assessment proceedings were pending before the AO, t....
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....ontention of the parties, it is clear that CIT, Madurai granted registration on 21.06.2013, it goes to modify his earlier order dated 03.08.2010 in which he rejected the registration, meaning thereby the registration is deemed to have been granted on 03.08.2010 from A.Y. 2010-11. On further perusal of the amendment brought to the Finance (No. 2), Act, 2014 by inserting first proviso after sub-section (2) to Section 12A of the Act w.e.f. 01.10.2014, it is amply clear that the legislature in its wisdom has provided that where the registration has been given to the trust or institution u/s. 12AA of the Act, then, the provisions of Sections 11 & 12 shall apply in respect of any income derived from property held under trust of any assessment yea....
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....ending before the Assessing Officer" within the meaning of Section 12A. 'SNDP Yogum', (supra), is to the same effect. Again, no contrary decision has been brought to our notice. Accordingly, it is held that the appellate proceedings before the appellate authorities are deemed to be assessment proceedings pending before the Assessing Officer. 31. In all these cases, the impugned orders were passed after the respective dates of grant of registration. Thus, we hold that subsequent grant of registration in all these cases operate retrospectively for all the relevant years under consideration. 11. In the instant case also the appellate proceedings before the appellate authorities are deemed to be assessment proceedings pendin....