TaxTMI 
TaxTMI 
2022 (8) TMI 1464
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....ther on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the assessee is eligible for deduction, even if the claim is not made in its return of income? 2. Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in directing the Assessing Officer to allow deduction claimed by the assessee under Sections 11 and 12 of the Income Tax Act, even though the assessing officer had completed the assessment based on the return through which the assessee did not claim such deductions and did not examine whether the assessee had complied with all conditions necessary for such deduction." TCA Nos.267 to 269 of 2014 1. Whether on the facts and in the circumstances of the case, the Income Tax Tribunal was right in upholding the orders of CIT(A) in granting the benefit of sections 11 and 12 without the assessee satisfying the conditions for claiming the same? 2. Whether on the facts and in the circumstances of the case, the Income Tax Tribunal was right in holding that benefit of section 11 is to be granted to the assessee when no valid return had been filed? 3. The background facts of the appeals are as fol....
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....sessee claimed exemption under section 11 during the assessment years under consideration. However, the assessing officer completed the assessment on 30.12.2008 denying the exemption claimed by the assessee. 3.5. For the assessment year 2005-06, the assessee filed its return of income on 28.10.2005 and revised return on 30.03.2007. Considering the same, the assessing officer passed the assessment order under section 143(3) on 17.12.2007, against which, the assessee preferred an appeal before the CIT(A), which was disposed of on 18.08.2008 with a direction to consider the registration granted to the appellant under section 12AA and pass fresh assessment order. Pursuant to the same and as per the letter dated 31.12.2008, the assessee filed another return of income on 28.01.2009 in Form No.3A and claimed exemption under section 11 of the Act. However, by order dated 01.12.2009, the Assessing Officer passed the assessment order under section 143(3) denying the exemption claimed by the assessee under section 11 of the Act, on the ground that no valid return was filed, as the return filed on 28.01.2009 is a return filed out of time allowed under section 139(1) and 139(5). 3.6. Assailin....
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....i on 16.06.2008, with retrospective effect from 01.04.2002 and without verifying the compliance of other provisions of the Act, erroneously allowed the appeals and directed the assessing officer to grant exemption under section 11 to the assessee, for the assessment years in question. Adding further, the learned Senior Standing Counsel contended that mere grant of exemption by the Director of Income Tax (Exemptions) in favour of the assessee under Section 12AA of the Act does not automatically make them eligible for claiming exemption under Sections 11 and 12 of the Act and the assessee has to satisfy the pre-requisites laid down in the said provisions of the Act. It is also contended that in respect of the assessment years 2005-06 and 2006-2007, the return of income was filed by the assessee beyond the period stipulated under Section 139 (5) of the Act and hence, the same was not valid in law. However, the Tribunal erred in holding that the assessee is entitled to claim exemption under section 11 of the Act. Therefore, the learned senior standing counsel sought to quash the orders of the Tribunal and allow these appeals. 5. Per contra, Mr. G. Baskar, learned counsel appearing for....
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.... by judgment dated 21.03.2018 in WA.No.1037 of 2013. Thus, the learned counsel submitted that the orders of the Tribunal directing the assessing officer to grant exemption to the assessee under sections 11 & 12 of the Act, do not require any interference at the hands of this court. 6. This court heard the submissions made by the learned counsel on either side and also perused the documents enclosed in the typed set of papers. 7. There cannot be any dispute that the assessee was granted registration under section 12AA of the Act with retrospective from 01.04.2002, by the order of the DIT (Exemptions), Chennai, dated 16.06.2008. The assessment years under consideration in these four appeals are AY 2003-04, 2004-05, 2005-06 and 2006-07. It is borne out from the records that in respect of first three assessment years, the assessment was reopened under section 148 in the status of 'Local authority' and the claim of the assessee seeking exemption under section 11 of the Act, by virtue of the registration granted on 16.06.2008, was rejected by the assessing officer, on the ground that the assessee is a local authority and from the assessment year 2003-04 onwards, they are liable....
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....neral Clauses Act. It is after considering all these organizational features, that the assessee has been granted registration under sec. 12AA of the Income Tax Act, 1961. 7. Therefore, the Assessing Officer cannot deny the benefit of sec.11 to the assessee only on the basis of 'status' claimed by the assessee. The exemption can be denied for violation of other conditions laid down in sec. 11, 12 and 13. The assessing authority has no such case. In the facts and circumstances of the case, we find that the Commissioner of Incometax (Appeals) has rightly directed the Assessing Officer to grant the benefit of sec.11 to the assessee." 8. It is also seen that in respect of the assessment year 2006-07, the assessee claimed exemption under section 11 of the Act, in the second revised return of income filed by them belatedly. As per the order of this court dated 11.03.2010 passed in WP.No.2644 of 2010 and MP.No.1 of 2010, the assessing officer continued the assessment proceedings and passed the assessment order under section 143(3) on 29.12.2010, rejecting the claim of exemption made by the assessee on the ground that no valid return was filed by the assessee, in the light of the....
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.... the permissible period specified in section 139(1) and 139(5) and hence, the revised returns so filed cannot be treated as valid returns. Therefore, the assessing officer correctly rejected the claim of the assessee seeking exemption under section 11 of the Act, for the assessment years in question. However, the Tribunal erroneously reversed the same and decided the issue in favour of the assessee. On the other hand, it is submitted on the side of the respondent/ assessee that in respect of the assessment year 2005-06, the CIT(A) accepted the stand of the assessee that after getting registration under section 12AA, audit report was filed on 28.01.2009 well before completing the subject assessment on 01.12.2009 as well as considering the Board's circular no.14(XL-35) dated 11.04.1955, and accordingly, allowed the appeal and directed the assessing officer to grant exemption to the assessee under section 11 of the Act and the said order of the CIT(A) was affirmed by the Tribunal. In respect of assessment year 2006-07, the Tribunal was of the view that the exemption is automatic and the same cannot be denied citing technical reason and accordingly, directed the assessing officer t....
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....respondent / assessee, the Tribunal was justified in directing the assessing officer to grant exemption under sections 11 and 12 of the Act to the assessee. 11. Before rendering a finding qua the second contention raised on the side of the appellant / Revenue, this court now proceeds to discuss the first contention. Concededly, the assessee was granted registration under section 12AA of the Act for claiming exemption under section 11 of the Act, with retrospective effect from 01.04.2002, by order dated 16.06.2008. However, mere registration would not entitle the assessee to claim exemption under sections 11 and 12 of the Act and they have to fulfil the other re-requisite conditions stipulated thereon, according to the learned senior standing counsel for the appellant / Revenue. He also placed reliance on the decision of the Hon'ble Supreme Court in U.P. Forest Corpn. v. CIT, [(2007) 14 SCC 610], wherein it was held that registration under section 12A is a condition precedent for availing benefit under sections 11 and 12 of the Act. 12. The provisions of law also make it clear that Section 12A provides for 'conditions for applicability of sections 11 and 12' which provides, th....
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....rial Research and Development Centre v Income Tax Appellate Tribunal & Ors., [2001] 251 ITR 852 (Bom) agreed with the judgment of this Court in New Life in Christ Evangelistic Association v. CIT [(2000) 246 ITR 532 (Mad), and held as follows: "5. ........In the circumstances, it cannot be said that the certificate has not been issued in this case. However, as stated in the above judgment of the Madras High Court, issuance of the certificate does not prevent an Assessing Officer from considering whether in a given assessment year the assessee was entitled to claim benefits under Sections 11 and 12 or, as the case may be, under Section 80G of the Income Tax Act. In the present matter, this aspect has not been gone into by the Tribunal. In the circumstances, we remand the matter back to the Tribunal on this second point also, viz., whether the assessee has applied its income for earmarked purposes and whether the assessee was entitled to claim benefits under the aforestated sections during the assessment years 1989-90 and 1990-91. In the present matter, there are numerous other points on which the Tribunal has given its findings. We do not wish to disturb those findings at this stag....
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....h exemption. We have already stated that the observations in Krishi Upaj Mandi Samiti, Morena (supra) are of prima facie in nature. The Bench at Indore has followed the said judgment. It is absolutely unambiguous that Section 11 is independent of Sections 12A and 12AA. In fact, it has been held by the apex Court in the case of Gujarat Maritime Board (supra) that Section 12A and Section 12AA are in the nature of Explanation to Section 11. The apex Court after expressing the said opinion has held that the respondent assessee was a charitable trust and held that it is entitled to registration. The lis in the present appeal was whether the Tribunal was justified in directing the CIT (Administration) to register the Krishi Upaj Mandi Samitis. Appeals are restricted to that. Thus, by grant of mere registration to the assessee, ipso facto, they cannot claim exemption. They have to satisfy the conditions precedent enumerated in the said provision. In this context we may usefully refer to the decision rendered by a Division Bench of High Court of Punjab & Haryana in CIT v. Market Committee, Dhariwal and Ors. (2008) 166 Taxman 392 (P & H), wherein the Bench has expressed the view as under: ....