BHAUSAHEB HARNARAYAN RATHI BAHUUDDESHIYA VIKAS FOUNDATION,JALGAON vs. INCOME TAX OFFICER (EXEMPTION), NASHIK, NASHIK

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ITA 88/PUN/2023Status: DisposedITAT Pune30 May 2023AY 2019-203 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the appeal against the denial of Section 12A registration was restored to the CIT(Exemption) for fresh consideration. Therefore, the assessment order was also remanded to the Assessing Officer.

What were the facts?

The assessee, a public charitable trust, applied for registration under Section 12A of the Income Tax Act, which was rejected. The Assessing Officer denied exemption under Section 11 during assessment as registration was not granted. The CIT(A) confirmed this.

What were the issues?

Whether exemption under Section 11 can be denied solely on the ground of pending Section 12A registration. The impact of a pending appeal on the Section 12A registration on the ongoing assessment proceedings.

Which sections of the Income-tax Act were involved?

Section 11,Section 12A,Section 143(3),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE BENCH “SMC”, PUNE

Before: SHRI INTURI RAMA RAO

For Appellant: Smt. Deepa Khare

This is an appeal filed by the assessee directed against the order of National Faceless Appeal Centre (NFAC), Delhi dated 24.11.2022 passed u/s 250 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).

2.

Briefly, the facts of the case are as under: The appellant is a public charitable trust which was duly registered under the Bombay Public Trusts Act and the appellant also applied for Bhausaheb Harnarayan Rathi Bahuuddeshiya Vikas Foundation registration u/s 12A of the Act, which came to be rejected by the CIT(Exemption). The return of income was filed for A.Y. 2019-20 on 21.09.2019 declaring income of Rs.6,55,133/- claiming exemption u/s 11 of the Act. Against the said return of income, assessment was completed by the Assessing Officer i.e. National Faceless Assessment Centre, Delhi (hereinafter referred to as ‘the AO") vide order dated 26.08.2021 u/s 143(3) of the Act at a total income of Rs.12,88,800/-. While doing so, the AO had denied the exemption u/s 11 of the Act on the ground that the assessee was not granted registration u/s 12AA of the Act.

3.

Being aggrieved with the above assessment order, an appeal was filed before the CIT(A), who vide impugned order confirmed the action of AO. Being aggrieved with the same, the appellant society is in appeal before this Tribunal.

4.

The ld. AR submits that the appeal filed by the appellant trust against denial of registration u/s 12A of the Act was restored to the file of CIT(Exemption) for de novo consideration by this Tribunal. Thus, she prayed that this assessment order also be restored to the file of AO with a direction to frame fresh assessment considering the outcome of the remand proceedings passed consequent to this Tribunal order on the issue of registration u/s 12A of the Act, for which the ld. Sr. DR has expressed no serious objection. Accordingly, I remand the matter back to the file of AO with a direction that a fresh assessment order shall be framed considering

Bhausaheb Harnarayan Rathi Bahuuddeshiya Vikas Foundation the outcome of the proceedings before the ld. CIT(E) pursuant to the remand order passed by this Tribunal on the issue of 12A registration.

5.

In the result, the appeal filed by the assessee is allowed for statistical purposes.

Order pronounced in the open court on 30th May, 2023.

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