TaxTMI 
TaxTMI 
2022 (11) TMI 1018
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....Payments A/c does not show any profits & is a summarized Cash and Bank book for a given period. 3. That both the Id A.O & CIT(A) has to make correct assessment and wrongly ignored that appellant is a NGO, maintaining "Receipts & Payment A/c" and working as "Postman" for different projects with specific grants having execution work for many years, to come, hence there is no surplus of Rs.26,75,553 available for taxation and also not creating any assets on its own name or doing any revenue expenditure, hence there is no surplus of Rs.26,75,553 available for Taxation. 4. That the Id. CIT(A) has blown Hot & Cold, as in one hand, he is passing benefit by taxing Receipts, after allowing all Expenditure, On other hand, he is not allowing benefit of specific grants / donations received for work to be executed in many years, to come ahead, as such grants can neither form part of Corpus nor Income of appellant. 5. That the Id CIT(A) has wrongly ignored the following certificates indicating the amount remained unspent in the Receipts & Payments A/c, which will be adjusted towards the grants-in-aid payable in the next A.Y. 2011-12 and shown as Closing Balance of cash....
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.... benefit of such exemption should be granted for the year under consideration also, in view of the amendmentinsection12A(2)vide financeAct,2014. Argument:- i) Return Filed dtd.24-03-11(As per A.O.'s order -Para1) ii) Application for registration u/s12AA(1)filed dtd.18-03-11(ReferPB-498) iii) Registration for Financial Year 2010-11 Granted dtd.20-07-11(ReferPB-498) iv) Notice u/s143(2)given by A.Odtd.22-09-11 (ReferPara-1ofA.O'sorder) v) Date of Assessment Order=31-01-13(as per Point-12,page1ofassessmentorder) Pleaserefersec.12AProviso1, which is explained as under, which came into effect from01-10-14:- "Where registration is provided u/s12AA, then the provision of sec.11&12 shall apply in respect of any income held under the trust of any assessment year preceding the aforesaid assessment year, for which assessment proceeding are pending before assessment officer and on the date of such registration." In this case the registration was received on 20-07-11 and date of the order of A.O is 31.01.13. Hence when the A.O issued notice dtd. 22-09-11, the assessee was already having registration. Once the registration is ther....
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....assed to the appellant, as per the following case laws of Amritsar Bench :- Saint Jute's Convent School vs. ACIT (ITAT, Asr) ITA NO- 749/Asr/13, A.Y 2010- 11 dated 26-9-16 Copy enclosed at PB- 461 to 486. [Para 18 to 21, PB- 476 onwards, Para- 39, PB-485] Baba amaranth educational society vs. ITO (ITAT Asr) ITA NO-1318/12, A.Y 2009- 10 dated 31-3-19 Copy enclosed at PB- 487 to 495. [Para 4.4= PB=492 Para 4.6, 4.7] Case Law 4 Amendment when curative in nature is required to be given retrospectively :- CIT vs. Calcutta Exports Company (2018) 404 ITR 654 (SC) Enclosed at page 526 to 532. [Refer Para 28 & 29 at PB 532] Case Law 5 Even the Honorable Supreme Court has said the circular beneficial to the assessee shall be applicable retrospectively : Director of Income Tax vs. SRMB Dairy Farming (P)(Ltd.) (2018) 65 IT Reps 1 (SC) (refer Para _23 at page 544 ) Enclosed at page 533 to 544. Distinguishing of the case laws referred by DR during the last hearing dtd. 18-04-22 Case Laws CIT Exemptions vs. Shiv Kumar Sumitra Devi Smarak Shikshan Sansthan ITA ....
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....ground taken as additional ground filed on 18-05-19 "1. In this case registration was granted for A.Y 2011-12 but the case pending before A.O was AY 2010-11. But the registration was there at the time of reopening of the case by A.O, secondly the assessment proceedings were pending before AO because the return was filed on 24-03-11, order passed on 31-01-13 and registration granted on 20-07-11. In this case, section 12A-Provisol, comes into picture, which was inserted to cover the genuine hardship to the trusts for preceding years assessment after receiving the registration. The Proviso said, when the registration is granted and any proceedings pending before A.O relating to the previous/preceding year of the date of registration, the registration will applicable to the preceding year also and this issue was discussed by the Pune Bench under this case law Sansthan Shree Eknath Maharaj Vishwastha Mandal vs. ITO (Exemption) ITA No. 288/Pun/2020 (AY- 2016-17) Copy enclosed at page 508 to 512 (Refer Para 3, 4 and 5) and the Pune Bench quoted the case law Auto and Metal Engineers and Others vs. Union of India and Others 229 ITR 399 (SC). Copy....
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.... 01/04/1981.'' 7. The Ld. DR stands by the impugned order. 8. Heard both the sides on the issue, and perused material documents on record. Admittedly, the appellant Trust is continuing the charitable work in Leh region in India and duly granted registration u/s 12AA(1) of the Act, dated. 18-03-11 (APB, Pg.-498). The Ld. AR argued that that the appellant trust having been granted registration u/s 12A vide order dated 21/07/11, therefore, the benefit of such exemption should be granted for the year under consideration also, in view of the amendment in section 12A(2) vide finance Act, 2014. 9. The ITAT, Pune Bench, in the case of Sansthan Shree Eknath Maharaj Vishwastha Mandal vs. ITO, ITA No. 288/Pun/2020, vide order pronouncement on 03-02-22, vide para 4 and 5, on similar facts observed as under: 4. "I have heard both the sides in Virtual Court and gone through the relevant material on record. There is no dispute on the fact that the assessee filed its return of income on 17.01.2017 for the year under consideration. The approval was granted by the ld. CIT(E) u/s 12AA on 16.05.2017. At this stage, it is relevant to take note of the mandate of sub-section (2) of sect....