TaxTMI 
TaxTMI 
TaxTMI 
2025 (11) TMI 1830
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....e proviso inserted w.e.f. 1/10/2014 is applicable only for proceedings u/s 147 of the Income Tax Act 1961." (A.1) In this case assessment order dated 29/12/2016 was passed u/s 143(3) of the Income Tax, 1961 ("the Act" for short) whereby the assessee's total income was determined at Rs. 2,47,69,591/- (rounded off to Rs. 2,47,69,590/-). In the aforesaid assessment order, an addition of Rs. 36,15,491/- was made in excess of receipts over expenditure. A further addition of Rs. 2,11,54,100/- was made u/s 69 of the Act. The relevant portion of the Assessing Officer is reproduced below: (A.2) In the aforesaid assessment order, it has been noted by the Assessing Officer in paragraph No. 2 that the assessee was not registered u/s 12AA of the Act. It is further noted by the Assessing Officer that the assessee's application for exemption u/s 10(23C) had been rejected by the learned CIT (Exemptions), Lucknow vide his order dated 14/10/2016. In the initial paragraph of the assessment order, it has been noted by the Assessing Officer that the assessee's return of income was filed on 22/11/2014, declaring nil income. In the same paragraph the Assessing Officer has given details ....
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....t Bench of the hon'ble ITAT in the case of Adhyakshya Lok Mela Amlikaran Sammittee Vs. ITO in ITA Nos. 424 & 425/Rjt/2018 reported in [2023] 152 taxmann.com 305 (Rajkot - Trib.) / [2023] 201 ITD 606 (Rajkot - Trib.). 4. Copy of judgment dated 22.02.2022 passed by the Chennai Bench of the hon'ble ITAT in the case of C.R. Anand Educational Trust Versus Vs. ITO(E) in ITA No. 2802/Chny/2019 reported in 2022 (3) TMI 290 - ITAT Chennai. 5. Copy of judgment dated 21.01.2020 passed by the Pune Bench of the hon'ble ITAT in the case of Lady Kikabai Premchand Iyambail Trust Vs. ITO(E) in ITA No. 1403/Pun/2019 reported in 2020 (2) TMI 448 - ITAT Pune. 6. Copy of judgment dated 16.11.2022 passed by the Amritsar Bench of the hon'ble ITAT in the case of Leh Nutrition Project Vs. Dy. CIT in ITA No. 364/Asr/2014 reported in [2023] 148 taxmann.com 207 (Amritsar - Trib.)/[2023] 101 ITR(T) 9 (Amritsar - Trib.)/[2023] 199 ITD 732 (Amritsar - Trib.). 7. Copy of judgment dated 20.08.2024 passed by the Indore Bench of the hon'ble ITAT in the case of Akshay Academy Vs. ITO, NFAC, Delhi in ITA No. 199/Ind/2024 reported in [2024] 167 taxmann.com 382 (Indore - Trib.....
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....7] 77 taxmann.com 173 (Amritsar - Trib.)/[2017] 164 ITD 594 (Amritsar - Trib.). 17. Copy of certificate of registration dated 15.02.2017 issued by the ld. CIT(E) in the case of Manager Anglo Sanskrit College under section 12AA(1)(b)(i) of the Act. 18. Copy of certificate of registration dated 27.12.2016 issued by the ld. CIT(E) in the case of Babu Yugraj Singh Sewa Trust under section 12AA(1)(b)(i) of the Act. (C) At the time of hearing, the learned D.R. submitted that the assessee's application u/s 10(23C) of the Act had already been rejected by the CIT vide order dated 14/10/2016 which leads to logical inference that the assessee was not engaged in charitable activities, which is an essential requirement for exemption u/s 10(23C) of the Act. He further submitted that the assessee was not in appeal against the aforesaid order dated 14/10/2016, which implied that the assessee had accepted that the assessee was not engaged in charitable activity. He further submitted that during the pendency of the assessment proceedings, the assessee was not even registered u/s 12A/12AA of the Act. He further submitted that the registration granted to the assessee by learned CIT ....
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....g Officer as on the date of such registration and the objects and activities of such trust or institution remain the same for such preceding assessment year: Provided further that no action under section 147 shall be taken by the Assessing Officer in case of such trust or institution for any assessment year preceding the aforesaid assessment year only for non-registration of such trust or institution for the said assessment year: Provided also that provisions contained in the first and second proviso shall not apply in case of any trust or institution which was refused registration or the registration granted to it was cancelled at any time under section 12AA.] (D.1) The learned Counsel for the assessee also drew our attention to CBDT Circular No. 1/2015, dated 21/05/2015, highlighting the following relevant provisions of the Circular: "8.1 The provisions of section 12A of the Income-tax Act, before amendment by the Act, provided that a trust or an institution can claim exemption under sections 11 and 12 only after registration under section 12AA of the said Act has been granted. In case of trusts or institutions which apply for registration after 1st ....
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....ar - Trib.). Copy of judgment dated 20.08.2024 passed by the Indore Bench of the hon'ble ITAT in the case of Akshay Academy Vs. ITO, NFAC, Delhi in ITA No. 199/Ind/2024 reported in [2024] 167 taxmann.com 382 (Indore - Trib.). Copy of judgment dated 22.01.2025 passed by the Bangalore Bench of the hon'ble ITAT in the case of Magadi Planning Authority Vs. ITO in ITA Nos. 1056, 1352 & 1353/Bang/2024 reported in [2025] 171 taxmann.com 262 (Bangalore - Trib.). Copy of judgment dated 28.01.2021 passed by the Raipur Bench of the hon'ble ITAT in the case of Prem Prakash Mandal Sewa Trust Vs. ITO(E) in ITA Nos. 262 & 263/Rpr/2016 reported in [2021] 132 taxmann.com 269 (Raipur - Trib.)/ [2022] 192 ITD 109 (Raipur - Trib.). Copy of judgment dated 22.02.2016 passed by the Ahmedabad Bench of the hon'ble ITAT in the case of Shree Bhanushali Mitra Mandal Trust Vs. ITO in ITA No. 2515/Ahd/2015 reported in [2016] 68 taxmann.com 250 (Ahmedabad - Trib.). Copy of judgment dated 01.11.2016 passed by the Jaipur Bench of the hon'ble ITAT in the case of ACIT (Exemptions) Vs. Shyam Lal Panwar Anandi Devi Memorial Charitable Trust in ITA No. 110/JP/2015 & CO No. 13/JP/2015 ....
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....elevant to assessment year 2014-15 to which the present appeal pertains. The learned Counsel for the assessee was also requested by the Bench to advise whether the learned CIT(A) was in error in giving the benefit of registration to the assessee u/s 12A/12AA of the Act to the assessee with retrospective effect (i.e. for assessment year 2014-15) when the learned CIT (Exemptions) had specifically granted the registration u/s 12A/12AA of the Act to the assessee with effect from 01/04/2016. The learned Counsel for the assessee submitted that he supported the impugned order of the learned CIT(A). (E) We have heard both sides. We have perused materials on record. It is not in dispute that the registration granted vide order dated 15/02/2017 by the learned CIT (Exemptions) was with effect from 01/04/2016. It is also not in dispute that the assessee did not file any appeal against the aforesaid order dated 15/02/2017 of the learned CIT (Exemptions). Therefore, it logically follows that the assessee accepted that the registration u/s 12A/12AA of the Act was with effect from 01/04/2016 and this attained finality. It is also not in dispute that the assessee's application u/s 10(23C) of....
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....tal Representative relied on the assessment order; no material was brought for our consideration by the assessee's side to assail the aforesaid addition of Rs. 2,11,54,100/-. The addition has been made on the basis of relevant materials contained in paragraph 5 of the assessment order. We have no materials on record to persuade us to interfere with the aforesaid addition of Rs. 2,11,54,100/-. The assessee has neither filed appeal, nor cross-objection with reference to impugned order dated 09/06/2020 of learned CIT(A) in the present appeal before us. In view of the foregoing, there is merit in grounds of appeal. Therefore, both grounds of appeal are allowed. (F) In the result, the appeal is allowed. (Order pronounced in the open court on 31/07/2025) ============= Document 1 The assessee filed return of income in ITR-7 on 22.11.2014 declaring NIL income. The case was selected for scrutiny. Accordingly, notice u/s 143(2) of the income-tax Act, 1961 dated 15.09.2015 fixing the date of compliance 22.09.2015 was issued by the then Income Tax Officer(E), Allahabad which was duly served on the assessee. On the date fixed, Shri Sanjeev Kumar Kushwaha, C.A. attended and filed ....