DCIT (E), CIRCLE- GHAZIABAD, GHAZIABAD vs. SHRI BADRI NATH AND SHRI KEDARNATH TEMPLE COMMITTEE, UTTARAKHAND

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ITA 3426/DEL/2018Status: DisposedITAT Delhi08 July 2021AY 2014-157 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The CIT(A) deleted the addition, holding that the assessee had a valid registration under Section 12AA in earlier years and that the delay in obtaining a fresh certificate was due to the loss of documents in the Uttarakhand floods. The Tribunal upheld the CIT(A)'s decision.

What were the facts?

The Assessing Officer denied exemption under Section 11 to the assessee trust, treating a surplus of Rs. 6,43,93,753/- as business income, due to the absence of a valid Section 12A certificate for the year. The assessee claimed the original certificate was lost in the Uttarakhand floods.

What were the issues?

Whether the denial of exemption under Section 11 was justified due to the temporary absence of a valid Section 12A certificate, especially when the original was lost in a natural calamity and the assessee had prior registration.

Which sections of the Income-tax Act were involved?

Section 11,Section 12A,Section 12AA

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, DELHI BENCH ‘B’, NEW DELHI

Before: SH. N. K. BILLAIYA & SH. AMIT SHUKLA

For Appellant: Ms. Nidhi Srivastava, CIT DR
Hearing: 08/07/2021Pronounced: 08/07/2021

This appeal by the revenue is preferred against the order of the CIT(A), Dehradun dated 16.03.2018 pertaining to A.Y. 2014-15.

2.

The only grievance of the revenue read as under :-

1.

The Ld. CIT(A) has erred in law and facts in deleting

the additions of Rs.6,43,93,753/- made by the AO against surplus of income while the assessee was holding a valid certificate u/s. 12 A of the I. T. Act.

3.

Briefly stated the facts of the case are that the assessee was registered under U.P. Act No. XVI of 1939. Originally the society has been granted registration u/s.12AA of the I. T. Act 1961. The society is engaged in the following activities :-

4.

During the course of the scrutiny assessment proceedings the AO noticed that the assessee has claimed exemption u/s. 11 of the IT Act, 1961. However, he could not find certificate u/s. 12A for the year under consideration. The AO found that the certificate u/s. 12A as furnished by the assessee is dated 20.10.2014 and the application for certificate u/s. 12A was made on 09.10.2014. The AO accordingly denied the claim of exemption u/s. 11 of the Act and treated Rs.6,43,93,753/- as business

5.

Assessee agitated the matter before the CIT(A) and furnished all the relevant documents/ certificates for the eligibility of section 11 of the Act. After considering the submissions and the relevant documentary evidences the CIT(A) held as under :-

“15. After going through all the documents, the observations and conclusions of the undersigned are as below. It may also be mentioned that the submissions of the assessee were sent to the AO for remand report. All the conclusions below are after taking the observation of the AO in remand report. i) There is an order on record for A.Y. 2012-13 which refers to registration being granted to #assessee u/s 12A. The order u/s 143(3) also gives a number of the circular of the CIT(Lucknow) which granted the' registration. ii) The assessee has placed on record several other subsequent orders wherein it has been clearly mentionedthat the assessee is a society registered u/s 12AA. There has never been the issue of the assessee not having a valid registration u/s 12AA. iii) The assessee has submitted Form 10 on 29.09.2014 to the ITO, Srinagar, Garhwal, Uttarakhand in manual form. This was also electronically submitted later in December 2016.

16.

There is a decision of the Supreme Court of India in Nagpur Hotel Owners Association 247 ITR 201 saying that delay in submitting Form 10 for claim of exemption u/s 11 can be condoned and the form can be submitted on a later date.

17.

The assessee has regularlyreceived benefit u/s 80G and exemption u/s 10(23C) has also regularly been issued in favour of the assessee. These benefits would not have been extended to the assessee had it not had the valid registration u/s 12A.

18.

The AO in his remand report has also mentioned that the assessee is a renowned place of worship and continuously registered u/s 80G of the I.T. Act, 1961.

19.

With regard to issue of fresh certificate u/s 12AA valid from 20.10.2014, the AO in his remand report submitted that the earlier AO opined that the assessee is not eligible for exemption u/s 11 in the absence of valid certificate u/s 12A. Further, it may be mentioned that there have been no change in the aims and objectives of the assessee and therefore, the fresh registration would even apply to the earlier years. In any case, that the assessee had valid registration u/s 12A in earlier years as apparent from the records (including that of the department itself). The assessee has applied for the fresh registration u/s 12A only because the earlier

order went missing. The Uttarakhand floods are well known natural calamity and that certain documents of the assessee went missing in that, is a completely acceptable explanation. Under these circumstances, the addition made by the AO is deleted.”

6.

Before us though the DR strongly supported the assessment order but could not bring out any factual error in the findings of the CIT(A). The counsel reiterated what has been stated before the CIT(A).

7.

We have given a thoughtful consideration to the orders of the authorities below. It is an undisputed fact that the certificates/ documents were lost in the Uttarakhand floods. It is also not in dispute that the assessee trust has been granted the registration u/s. 12A since 1972. Since all the certificates / documents have been furnished and examined by the CIT(A). We do not find any reason to interfere with the findings of the CIT(A). The appeal filed by the revenue is dismissed.

8.

In the result, the appeal filed by the revenue is dismissed.

9.

Decision announced in the open court in the presence of both the representatives on 08.07.2021.

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