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Income Tax Appellate Tribunal, “SMC” BENCH, PUNE
Before: SHRI R.S.SYAL, VP & SHRI PARTHA SARATHI CHAUDHURY, JM
आदेश / ORDER
PER PARTHA SARATHI CHAUDHURY, JM : This appeal preferred by the assessee emanates from the order of the Ld. CIT(Appeals), Pune-10 dated 08.10.2018 for the assessment year 2010-11 as per grounds of appeal on record.
The only grievance of the assessee in the present appeal is denial of benefit of exemption u/s.11 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) despite the fact that the Trust is duly registered u/s.12A/12AA of the Act.
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The brief facts in this case as appearing in the order of the Ld.
CIT(Appeals) wherein he observes that the assessee is not registered u/s.12A
of the Act. The Ld. CIT(Appeals) further states that it does not appear that
even the application for registration u/s.12A of the Act was made before
prescribed authority by the assessee trust. Merely because of the statement
that the registration u/s.12A of the Act was granted by the CIT (Exemptions)
but the same is missing, in no way proves that the assessee was actually
registered under the said section which is a condition precedent for eligibility
of benefit of exemption u/s.11 of the Act. When it was contended by the
assessee before the Assessing Officer that such certificate was missing an FIR
could have been lodged to the Police Station by the assessee and so also the
Income Tax Department could have been approached by the assessee for
issuing a duplicate/fresh certificate of registration by furnishing any evidence
in support of the assessee’s contention that it was granted registration
already by the CIT(Exemptions). With these observations, the Ld. CIT(Appeals)
has denied the benefit of exemption u/s.11 of the Act to the assessee.
At the time of hearing the Ld. AR of the assessee vehemently argued
that all throughout they have appraised the Revenue Authority through
various letter on different dates intimating them that registration certificate
u/s.12A of the Act of the assessee has been lost and that duplicate copy of
the 12A registration certificate may be issued. This is evident from page No. 3,
4 and 6 of the paper book filed before us. That in page No. 4 which is the copy
of FIR filed with the Shivaji Nagar Police Chowki regarding missing document
of the assessee i.e. 12A registration certificate No.1845. The said letter is
addressed to the ACIT, Pune. Through these documents, the Ld.AR of the
assessee demonstrated that they have fairly intimated and informed the
Department regarding missing of 12A registration certificate and they have
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lodged FIR to that effect. The Ld. AR of the assessee further invited our
attention to pages 35, 40 and 44 of the paper book wherein the copies of
acknowledgements of return filed for the various assessment years have been
enclosed and from there it is evident that the assessee was already registered
u/s.12A of the Act.
4.1 The Ld. AR further submitted that once the registration certificate
u/s.12A of the Act has been granted, there is no need for any kind of renewal
application or any kind of application for continuance of such registration
certificate even after the amendment coming into effect of section 12AA of the
Act. Once registration u/s.12A/12AA of the Act is granted, it goes on for
perpetuity until and unless expressly canceled as per provisions of law by the
Issuing Authority. In the case of the assessee nothing as such happened and
the assessee has possessed registration u/s.12A of the Act vide Certificate
No.1845 right from assessment year 1975-76 onwards and it had been filing
its return of income for past 5 decades and been claiming exemption u/s.11
of the Act since assessment year 1975-76 onwards. These documents have
been annexed at page No. 8 to 63 of the paper book filed before us. The
certificate No.1845 u/s.12A of the Act and the date of its effect has been duly
mentioned in the relevant column of the income tax return as required for
assessment year 2004-05 to 2006-07 which are annexed at page No. 35 to 44
of the paper book filed before us.
4.2 The Ld. AR further submitted that since the assessee was having
registration u/s.12A of the Act from assessment year 1975-76 onwards,
therefore, they should get benefit of exemption u/s.11 of the Act even in the
relevant assessment year also.
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The Ld. DR, per contra has placed reliance on the order of the Ld.
CIT(Appeals).
We have perused the case record and have given considerable thought
to the relevant documents and evidences placed on record. We observe that
the assessee has obtained registration certificate u/s.12A of the Act since
assessment year 1975-76 onwards through certificate No.1845. The said
registration certificate was lost and the assessee has also informed the
Department about the same and the assessee filed FIR regarding the missing
of the 12A registration certificate. Therefore, legal responsibility has been
duly complied with by the assessee. The requirement of law is crystal clear
that once registration u/s.12A or even after amendment section 12AA is
granted then it is for perpetuity until or unless expressly revoked by the
Department as per provisions of law. Through the copies of return
acknowledgements filed before us, it is clear that the assessee was claiming
the benefit of registration u/s.12A of the Act and subsequently getting benefit
u/s.11 of the Act especially from assessment year 2004-05 to 2006-07. The
facts further reveal that in order to keep all speculations at rest, the assessee
has again applied for fresh registration u/s.12AA of the Act on 17.06.2013
and have got the certificate of registration u/s.12AA of the Act from
10.12.2013. The facts therefore demonstrates that the assessee has all
throughout acted in a bona-fide manner and absolutely there is no doubt that
it is registered u/s.12A of the Act. That all throughout the returns filed, the
assessee has claimed benefit of exemption u/s.11 of the Act being registered
u/s.12A of the Act and the Revenue Authorities have accepted such return
and there has not been any objection at any point of time from the Revenue
Authorities.
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That taking totality of facts and circumstances into consideration legal right by way of registration u/s.12A of the Act has been bestowed on the assessee trust and therefore the benefit of exemption u/s.11 of the Act should also be provided to the assessee in the relevant assessment year. In view of the matter, we set aside the order of the Ld. CIT(Appeals) and allow the appeal of the assessee.
In the result, appeal of the assessee is allowed. 8. Order pronounced on 19th day of March, 2019. Sd/- Sd/- R.S.SYAL PARTHA SARATHI CHAUDHURY VICE PRESIDENT JUDICIAL MEMBER
पुणे / Pune; �दनांक / Dated : 19th March, 2019. SB आदेश क� ��त�ल�प अ�े�षत / Copy of the Order forwarded to :
अपीलाथ� / The Appellant. 1. ��यथ� / The Respondent. 2. 3. The CIT(Appeals), Pune-10. 4. The CIT(Exemptions), Pune �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, “एक-सद�य” ब�च, 5. पुणे / DR, ITAT, “SMC” Bench, Pune. गाड� फ़ाइल / Guard File. 6.
// True Copy //
आदेशानुसार / BY ORDER,
�नजी स�चव / Private Secretary आयकर अपील�य अ�धकरण, पुणे / ITAT, Pune.
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Date 1 Draft dictated on 19.03.2019 Sr.PS/PS 2 Draft placed before author 19.03.2019 Sr.PS/PS 3 Draft proposed and placed JM/AM before the second Member 4 Draft discussed/approved by AM/JM second Member 5 Approved draft comes to the Sr.PS/PS Sr. PS/PS 6 Kept for pronouncement on Sr.PS/PS 7 Date of uploading of order Sr.PS/PS 8 File sent to Bench Clerk Sr.PS/PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R 11 Date of dispatch of order