TaxTMI 
TaxTMI 
TaxTMI 
2019 (5) TMI 2049
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....e order of rejection, ITAT remanded the matter to the DIT(E), who granted registration w.e.f 01/04/2007 vide orders dated 26/05/2008, but did not pass any order with regard to the assessee's request for condonation of delay in granting of registration u/s 12AA of the Act w.e.f 01/04/2003. The assessee filed an appeal to ITAT and, vide order dated 30/03/2009, ITAT directed the DIT(E) to pass appropriate orders in the matter. Meanwhile, the A.O. noticed that the assessee have not filed their returns for the A.Y. 2005-06 and therefore, issued notices u/s 148 on 13/04/09, i.e., after the order of ITAT, dated 30/03/2009. The A.O., thereafter, completed the assessments u/s 143(3) making certain disallowances. The respective assessee filed appeals before the CIT(A) who held that the registration was granted to the assessee only w.e.f 01/04/2007 and therefore, the assessee is not eligible for exemption u/s 11 for the years prior to the said date. Thereafter, he considered the assessee grounds of appeal on merits and confirmed the disallowances made by the A.O. Aggrieved, the respective assessee are in appeal before us by raising the following grounds of appeal which are similar in all the ....
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....or any A.Y. preceding the A.Y. in which Registration is granted only for non-registration of such trust or institution for the said AYs and the third proviso states that the first and second provisos shall not apply in case of any trust or institution which has been refused registration or the registration granted was cancelled at any time u/s 12AA of the Act. The SMC Bench of ITAT at Ahmedabad has considered the effect of these provisos in the case of Shree Bhanushali Mitra Mandal Trust vs. ITO [2016] 68 taxmann.com 250 (Ahmedabad-Trib.) and at paras 7.2 to 7.4 has held as under: "7.2 It is also relevant to reproduce the explanatory notes to the provisions of Finance (No.2) Act, 2014 as given in CBDT Circular No.01/2015 dated 21.01.2015 in reference F. No. 142/13/2014-TPL, which read as follows: "Para 8.2 Non-application of registration for the period prior to the year of registration caused genuine hardship to charitable organizations. Due to absence of registration, tax liability is fastened even though they may otherwise be eligible for exemption and fulfill other substantive conditions. However, the power of condonation of delay in seeking registrati....
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....ch obtained registration u/s 12AA of the Act during the pendency of appeal was entitled for exemption claimed u/s 11 of the Act. 7.4 The explanatory Memorandum to Finance (No.2) Bill, 2014, which sought to amend section 12A explains the objects and reasons for making such amendments. The explanation makes it clear that it was in order to provide relief to such trusts in respect of which, due to absence of registration u/s 12AA tax liability got attached though otherwise they were eligible for exemption by fulfilling other substantive conditions that the amendment was brought in. That being so, denying such benefit to a trust like the assessee who had obtained registration u/s 12AA during the pendency of the appeals filed against the orders of the assessing authority, by narrowly interpreting the term, 'pending before the assessing officer' so as to exclude its pendency before the appellate authority, will be doing violence to the provisions of the Statute and, as such, liable to be interfered with. Moreover, under the Scheme of the Act, sections 11 and 12 are substantive provisions which provide for exemptions to a religious or charitable trust. Sections 12A and 12....
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....was considering the assessee's application afresh, the assessee had filed a letter seeking registration w.e.f. 01-04-2002 and therefore the issue was very much before the CIT(E) while granting registration w.e.f. A.Y 2007-08. He submitted that as per the first proviso of 12A(2) of the IT Act, the registration granted in the subsequent year shall be applied to the earlier assessment years also, wherever the assessment proceedings are pending before the A.O. He submitted that the assessments in the case of the assessee for all the assessment years from 2003-04 on wards were pending before the A.O and hence the proviso was applicable and assessee should be granted registration w.e.f 01-04-2002. 15. The Ld. Sr. Standing Counsel for the Department, on the other hand, submitted that assessee's application was already rejected by the CIT(E) and in the earlier application the assessee had never claimed the exemption w.e.f 01-04-2002 nor has it filed any application for condonation of delay giving reasons as to why the application could not be filed earlier. 16. Having regard to the rival contentions and the material on record, we find that by virtue of remand to the CIT(E....