SHRI JAIN SHWETAMBER MURTIPUJAK SUKRAT FUND KAODA COMMITTEE,INDORE vs. CIT (EXEMPTION) BHOPAL, BHOPAL

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ITA 849/IND/2018Status: DisposedITAT Indore28 September 202013 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee had consistently been treated as a charitable trust since 1973, as evidenced by assessment orders. Therefore, the registration should be effective from the original date of 13.08.1973.

What were the facts?

The assessee, a charitable trust registered since 1973, sought a duplicate registration certificate as the original was lost. The CIT denied registration initially, then granted it prospectively from AY 2019-20, leading to withheld refunds and demands.

What were the issues?

Whether the CIT erred in granting registration prospectively when the trust had been recognized as charitable since 1973. The issue also concerns the denial of benefits for preceding assessment years due to the prospective registration.

Which sections of the Income-tax Act were involved?

Section 12AA,Section 12A,Section 11

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, INDORE BENCH, INDORE

For Appellant: Shri Narendra Kumar Jain, CA
For Respondent: Smt. Ashima Gupta, CIT
Hearing: 15.09.2020Pronounced: 29.09.2020

Against this order instant appeal was filed but in the meantime assessee again filed fresh application in Form 10A on 28.2.2019 submitting necessary documentary evidences but Ld. CIT (Exemption) granted the registration u/s 12AA of the Act with effect from Assessment Year 2019-20.

12.

Now whether Ld. CIT (Exemption) should have granted registration certificate u/s 12AA of the Act w.e.f. 13.8.1973 or has rightly granted prospectively from 2019-20 needs to be examined.

13.

We find that in the paper book running from page 1 to 123, in page 24 to 32 various assessment orders in the case of the assessee are placed. We find that for Assessment Year 1975-76 the assessment order u/s 143(3) of the Act was framed on 10.10.1977 and in the assessment order the Ld. A.O has accepted that the assessee is a charitable trust. For Assessment year 1974-75 dated 26.12.77 also shows that the department has accepted the assessee as a charitable trust and benefit u/s 11 has been allowed. Similar assessment orders have been framed for Assessment Year 1976-77 to Assessment Year 1983-84 u/s 143(3) of the Act and the department has consistently accepted that the assessee trust is a charitable trust. Along with the copy of assessment order referred above assessee has also filed copies of computation of income and audit report as and where applicable.

14.

In our considered view all the documents are sufficient enough to prove that the claim of the assessee being registered u/s 12A of 11 the Act is a charitable trust since 13.8.1973 has sufficient merit.

Ld. Departmental Representative failed to rebut these facts.

Therefore there remains no dispute to the fact that the assessee trust was enjoying the benefit u/s 12A of the Act as a charitable trust and other benefits available to the charitable trusts u/s 11 of the Act since it is running for charitable purpose. In these given facts and circumstances of the case, we are of the considered view that the assessee trust should be granted the registration u/s 12AA of the Act w.e.f. 13.8.1973 in place of the registration granted from assessment year 2019-20 onwards. Ld. CIT (Exemption) is directed to amend his order dated 20.8.2019 and issue a fresh order of registration certificate u/s 12AA of the Act effective from 13.8.1973 so that the assessee could claim the benefits of the provision of Section 11 & 12 of the Act as and where applicable for the preceding Assessment Years. Once Ld. CIT (Exemption) grants the registration certificate u/s 12AA of the Act w.e.f. 13.8.1973 the assessee shall have liberty to move application before Ld. A.O for rectification of the assessment orders for various Assessment Years in order to avail the benefit of Section 11 of the Act available for charitable trust registered u/s 12AA of the Act so that the Ld. A.O could decide accordingly for various assessment years wherein assessee have been denied the benefit of exemption u/s 11 of the Act. We thus allow the additional grounds raised by the assessee as per the terms indicated above.

15.

In the result appeal of the assessee is allowed.

The order pronounced in the open Court on 29.09.2020.

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