2019 (1) TMI 1979

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....he Assessing Officer. The Revenue Department also filed an appeal i.e. ITA No.638/Asr/2014 while challenging the action/order dated 21.08.2014 passed by the Ld. CIT(A)-II, Ludhiana, whereby the Ld.CIT(A) deleted the penalty of Rs.1,25,90,681/- for A.Y.2009- 10 imposed by the Assessing Officer. 2. As the ITA No.1318/Chd/2012 & ITA No.366/Asr/2014 involved the similar and identical issue, therefore, for the sake of convenience and brevity, the facts of ITA No.1318 of 2012 have been taken into consideration and decision of the same should also be applicable mutatis mutandis to ITA No.366/Asr/2014. 3. In brief the facts of the case are that the Appellant had filed its return of income declaring taxable income at Rs. (Nil). During the course ....

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.... assessee. The Appellant assailed the assessment order before the Ld. CIT(A), who categorically held that the Appellant is neither registered u/s 12A of the Act, nor yet even applied for registration for the financial year 2008-09, therefore, the exemption as provided in Sec.11(1)(d) would not be available to the voluntary contribution received by the Appellant . Finally the Ld. CIT(A) confirmed the addition on the basis of nonregistration of the Appellant u/s 12AA of the Act. 4. We have heard the rival submissions of the parties and perused the material available on record. It is admitted fact that during the assessment years 2009-10 & 2010-11, the Appellant had no registration u/s 12AA of the Act. It is brought to our knowledge that the ....

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....income of any trust or institution unless the following conditions are fulfilled, namely:- (a) the person in receipt of the income has made an application for registration of the trust or institution in the prescribed form and in the prescribed manner to the [***] Commissioner before the 1st day of July, 1973, or before the expiry of a period of one year from the date of the creation of the trust or the establishment of the institution, [whichever is later and such trust or institution is registered under section 12AA ] : [Provided that where an application for registration of the trust or institution is made after the expiry of the period aforesaid, the provisions of sections 11 and 12 shall apply in relation to the income of such trus....

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....forth such particulars as may be prescribed.] (c)[******] (2) Where an application has been made on or after the 1st day of June, 2007 the provisions of sections 11 & 12 shall apply in relation to the income of such trust or institution from the assessment year immediately following the financial year in which such application is made.] [Provided that where registration has been granted to the trust or institution under section 12AA, then, the provisions of section 11 & 12 shall apply in respect of any income derived from property held under trust of any assessment year preceding the aforesaid assessment year, for which assessment proceedings are pending before the Assessing Officer as on the date of such registration and the objects ....

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....of the Act shall be construed retrospectively in operation because the legislators in their wisdom have brought this proviso to prevent genuine hardship which could be caused on the assessee(s) due to nonregistration u/s 12A of the Act. 4.5 Even otherwise the Apex Court in the case of 'CIT vs. Vatika Township Pvt. Ltd. [2014] 236 ITR 466(SC) clearly held "if a legislation confers a benefit on some persons but without inflicting a corresponding detriment on some other person or on the public generally, and where to confer such benefit appears to have been the legislator's, object, then the presumption would be that such a legislation, giving it a purposive construction, would warrant it to be given a retrospective effect". 4.6 The ....