TaxTMI 
TaxTMI 
2025 (8) TMI 1714
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....Since common issues are involved, both the appeals were heard together and are disposed off by this common order for the sake of convenience and brevity. 3. We have heard the parties on the facts of AY 2015-16. The grievance of the revenue for AY 2015-16 reads as under:- "1. " Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) was justified in deleting the addition made by the Assessing Officer on account of dividend income ignoring the fact that dividend income was claimed exempt u/s 10(34)/10(35) of the Act despite the fact that the assessee's registration u/s 12A was in force during the previous year relevant to AY 2015-16 and thus contravene the provisions of section 11(7) of the Act ?" ....
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....ssee was asked to justify its claim of exemption of dividend income. In its reply, the assessee strongly contended that since it has surrendered its registration u/s 12A of the Act and no longer claimed exemption, it is assessable as an AOP and has accordingly filed its return of income as an AOP. Being an AOP, the assessee is required to file its return of income in Form ITR-5 and not in ITR-7, which is applicable to charitable trust registered u/s 12A of the Act and for claiming exemption u/s 11/12 of the Act. The AO was not convinced with the explanation of the assessee. The AO was of the opinion that even if the assessee has surrendered its registration u/s 12A of the Act suo moto, it does not entitle the assessee to be out of the regis....
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....A) that the Tribunal in ITA No. 7329/Mum/2019, held that the order cancelling the registration granted to the assessee trust will have effect from the date on which the hearing on the first show-cause notice requiring the assessee to show-cause as to why the registration u/s 12A of the Act should not be cancelled, therefore, in effect, the order of the Tribunal gave the effect of date of cancellation of registration w.e.f. 20/03/2015 relevant to FY 2014- 15 i.e. AY 2015-16 which is under consideration. 7. Considering the order of the Tribunal, the ld. CIT(A) held that the assessee's case has to be considered for AY 2015-16 as if the assessee was an AOP without having any registration u/s 12A as a trust and automatically becomes eligible ....
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....view, an assessee unwilling to avail the "benefit" of registration "obtained" under section 12A cannot be, directly or indirectly and by actions or by inactions, compelled by the revenue authorities, to continue with the said registration "obtained' by the assessee, particularly when it pertained to the registration obtained in a period prior to the insertion of section 12AA. The present cancellation of registration under section 12A must, therefore, be held to be effective from 20th March 2015. To this limited extent, we uphold the plea of the assessee. 69. We have noted that many other peripheral issues, with regard to the conduct of the assessee trust and compliance with the statutory provisions under section 11 to 13, are r....