ASSISTANT COMMISSIONER OF INCOME TAX, (EXEMRTION), BHUBANESWAR vs. SHRI JAGANNATH EDUCATION & CHARITABLE TRUST, BHUBANESWAR

It was the submission by the ld. Sr. DR that the assessee was granted registration u/s.12A of the Act on 12.02.2020. It was submitted that no proceedings were pending in the case of the assessee for the assessment year 2018-2019 insofar as the intimation in respect of the assessment year 2018-2019 had already been issued to the assessee as early as on 17.10.2019. It was the submission that as no proceedings were pending before the AO in respect of the impugned assessment year, 2 the ld. CIT(A) erred in granting the assessee the benefit of registration u/s.12A of the Act and directing the AO to allow the claim of the assessee after verifying the objects and activities of the trust in relevant assessment year as to whether the same were for which the registration has been granted. He placed reliance on the decision of the Hon’ble Allahabad High Court in the case of M/s Shiv Kumar Sumitra Devi Smarak, passed in Income Tax Appeal No.11 of 2019, dated 6th August, 2019, wherein the Hon’ble High Court has categorically held that the assessment proceedings for the year 2011-12 were not pending before the Assessing Officer, but before the Tribunal and, therefore, the assessee was not entitled to the benefit of registration u/s.12A of the Act. It was the submission that the order of the ld. CIT(A) is liable to be reversed.

In reply, ld. AR of the assessee vehemently supported the order of the ld. CIT(A) and submitted that the proceedings before the ld. CIT(A) were extension of the assessment proceedings, therefore, the order of the ld. CIT(A) deserves to be upheld.

We have considered the rival submissions. A perusal of the proviso to Section 12A of the Act categorically mentions that where the registration has been granted to the trust or institution u/s.12AA of the Act, then, the provisions of Sections 11 and 12 of the Act shall apply in respect of any income derived from property held under trust of any assessment year preceding the aforesaid assessment year, for which assessment proceedings are pending before the Assessing Officer as on the date of such registration and the objects and activities of such trust or institution 3 remain the same for such preceding assessment year. The notice u/s.143(1) of the Act has been issued in the case of the assessee on 17.10.2019. The assessee has filed appeal against the said order before the ld. CIT(A) on 09.03.2020 Thus, the proceedings in respect of the said assessment year 2018-2019 were very much open before the ld. CIT(A). The proceedings before the ld. CIT(A) admittedly are proceedings open before the AO because the proceedings before the ld. CIT(A) are considered to be an extension of the assessment proceedings. The Hon’ble Allahabad High Court had categorically denied the registration because the appeal thereon was pending before the ITAT. The appellate proceedings before the ITAT are not an extension of the assessment proceedings. In these circumstances, the decision relied upon by the ld. Sr. DR will not have any bearing on the facts of the present case. In view of the above, we find no error in the order of the ld. CIT(A) in directing the AO to grant the assessee the benefit of the provisions of Section 11 & 12 of the Act. Thus, the order of the ld. CIT(A) stands upheld.

In the result, appeal of the revenue is dismissed. Order dictated and pronounced in the open court on 12/10/2023. (राजेश कुमार) (जाजज माथन) (RAJESH KUMAR) (GEORGE MATHAN) ऱेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER कटक Cuttack; ददनाांक Dated 12/10/2023 Prakash Kumar Mishra, Sr.P.S.