RESERVE BANK OF INDIA STAFF QUARTERS,CHENNAI vs. ITO(EXEMPTIONS),WARD-4, CHENNAI

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ITA 645/CHNY/2022Status: DisposedITAT Chennai13 September 2022AY 2016-173 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that a co-ordinate bench had set aside the order rejecting the Section 12AA registration and directed the CIT(Exemptions) to decide the application afresh. Therefore, the appeals were restored to the CIT(A) for fresh adjudication.

What were the facts?

The assessee, Reserve Bank Staff Quarters School, had cash deposits during assessment years 2015-16 and 2016-17. The assessee was neither notified under Section 10(23C)(vi) nor registered under Section 12AA of the Income Tax Act.

What were the issues?

The primary issue was the validity of the assessment in the absence of registration under Section 12AA, and whether the pending registration application should affect the assessment proceedings.

Which sections of the Income-tax Act were involved?

Section 12AA,Section 10(23C)(vi),Section 143(3),Section 147,Section 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B/SMC” BENCH, CHENNAI

For Appellant: Mr. D. Hema Bhupal (JCIT) - Ld. DR
For Respondent: Mr. D. Hema Bhupal (JCIT) - Ld. DR

सुनवाई की तारीख/ : 13-09-2022 Date of Hearing घोषणा की तारीख / : 13-09-2022 Date of Pronouncement आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeals by assessee for Assessment Years (AYs) 2015- 16 & 2016-17 arises out of separate orders passed by Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] on 08.06.2022. The Ld. AR drew attention to the order of Tribunal in order dated 24.08.2022 wherein the matter of registration u/s 12AA has been restored back to the file of Ld. CIT (Exemptions). The Ld. AR also sought shelter of 2nd proviso to sub- section (2) of Sec.12A. The Ld. Sr. DR submitted that no deduction could & 645/Chny/2022 - 2 - be granted in the absence of valid registration. Having heard rival submissions, my adjudication would be as under.

2.

Facts in AY 2015-16 are that the assessee was assessed u/s 143(3) r.w.s. 147 on 27.12.2019 since the assessee made cash deposit of Rs.101.36 Lacs. The assessee was neither notified u/s 10(23C)(vi) nor registered u/s 12AA of the Act. Accordingly, the assessable income was determined at Rs.21.08 Lacs.

3.

The Ld. CIT(A) noted that the registration application was filed by the assessee on 11.11.2019 which stood rejected on 31.08.2020. The registration was not granted to the assessee till the pendency of assessment proceedings before AO and therefore, the action of Ld. AO in assessing the income was upheld. Similar are the facts in AY 2016-17. Aggrieved, the assessee is in further appeal before us for both the years.

4.

Upon perusal of para-6.2 of the cited order of Tribunal, it could be seen that the order rejecting registration u/s 12AA has been set-aside by the co-ordinate bench and directions have been given to Ld. CIT(E) to decide the application afresh. I find that the disposal of this application would have material bearing on the assessment of the assessee. The registration application has been restored back to its original position and Ld. CIT(E) has been directed to dispose-of the same after providing opportunity of hearing to the assessee. Therefore, I restore both the appeals back to the file of Ld. CIT(A) for de-novo adjudication after considering the fate of registration application as filed by the assessee before Ld. CIT(Exemptions). & 645/Chny/2022 - 3 -

5.

Both the appeals stand allowed for statistical purposes.

Order pronounced on 13th September, 2022.

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