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Facts
The assessee filed its return of income and the case was selected for scrutiny. The Assessing Officer made several additions to the income, treating the assessee as a company and not an exempt entity, leading to a higher tax liability. The assessee applied for registration under Section 12A but did not receive a response.
Held
The Tribunal held that the assessee is entitled to registration under Section 12A of the Act, following the rule of consistency and relying on its own previous judgment for subsequent assessment years. The additions made by the Assessing Officer were based on the incorrect premise that the assessee was not eligible for exemption.
Key Issues
Whether the assessee is entitled to registration under Section 12A of the Income Tax Act for the assessment year 2010-11, considering its previous registration and the nature of its objects and activities.
Sections Cited
143(1), 143(2), 142(1), 12A, 234B, 234C, 2(15), 11
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘SMC’ BENCH, KOLKATA
Before: Shri Duvvuru RL Reddy, Vice-(KZ)
Appearances by: Shri S.K. Tulsiyan, Advocate and Ms. Puja Somani, CA & Shri Vivek Jalan, appeared on behalf of the assessee Shri Mrinmay Basak, Sr. D.R., appeared on behalf of the Revenue Date of concluding the hearing: October 14, 2025 Date of pronouncing the order: October 30, 2025 O R D E R
The present appeal is directed at the instance of assessee against the order of Id. Additional /Joint Commissioner of Income Tax (Appeals)-2, Ahmedabad dated 12.02.2025 passed for Assessment Year 2010-2011.
(A.Y. 2010-2011) The Bengal Chamber of Commerce And Industry 2. Facts in brief are that the appellant-assessee filed its return of income on 30.09.2010 declaring total income of Rs.31,783/-. The case was processed as per section 143(1) of the Act on 30.03.2012. This case was selected for scrutiny and notice under section 143(2) was issued on 15.09.2011 and served on 23.09.2011. Subsequently, notice under section 142(1) of the Act dated 13.09.2012 requiring the assessee to furnish certain particulars and details, was served by registered post. In the course of scrutiny proceeding, the assessee in its letter dated 14.01.2013 submitted that it had applied for registration under section 12A of the Act on 28.06.1973, but not received any communication thereafter. As it is confirmed that the assessee is not registered as an exempt entity and it is now assessed as a company and directed to file its return in the Company jurisdiction. After scrutiny, the ld. Assessing Officer added Rs.11,19,035/- towards contribution to provident fund and superannuation fund to the income of the assessee-company. Similarly, the ld. Assessing Officer added Rs.4,86,731/- towards Gratuity, repairs to building amounting to Rs.2,13,314/-, provident for doubtful debts amounting to Rs.6,62,200/- and donation for relief of Ayela amounting to Rs.8,88,002/- to the income of the assessee. The ld. Assessing Officer computed total income chargeable to tax at Rs.26,70,949/- and finally determined the tax payable at Rs.8,00,400/-.
On being aggrieved, the assessee preferred an appeal before the ld. CIT(Appeals). The ld. Addl./JCIT(Appeals) partly allowed the appeal of the assessee by dismissing the grounds of appeal bearing (A.Y. 2010-2011) The Bengal Chamber of Commerce And Industry grounds nos. 1,2 saying that assessee should be treated as registered under section 12A. In Grounds No.8 & 9, the ld. Add./JCIT(Appeals) dismissed the grounds by saying that sections 234B and 234C is automatic and compensatory in nature. With regard to Grounds No. 3,4,5,6 & 7, the ld. CIT(Appeals) allowed for statistical purposes saying that the ld. Assessing Officer is directed to give effect to this expenditure as per applicable law and evidence of payment made in this regard.
4. On being aggrieved, the assessee preferred an appeal before the Tribunal. It was the submission of the ld. Counsel for the assessee that during the appellate proceedings, various notices were issued to the appellant for furnishing written submission and in response to the same, the appellant furnished its written submission from time to time. Therefore, he pleaded to set aside the orders passed by the revenue authorities.
5. On the other hand, ld. Departmental Representative pleaded before the Bench to uphold the order passed by the ld. Addl./JCIT(Appeals).
I have heard both the sides and perused the material available on record. It was the submission of the assessee that the assessee’s registration was granted under section 12A for the assessment years 2011-12 and 2012-13. So far as the present case on hand is concerned pertaining to the assessment year 2010-11, the matter was pending before the ld. CIT(Appeals) and the assessee filed an appeal before the ITAT for the assessment years (A.Y. 2010-2011) The Bengal Chamber of Commerce And Industry 2011-12 and 2012-13. The Coordinate Bench of this Tribunal has considered the submissions made by the assessee and granted 12A registration for the assessment years 2011-12 and 2012-13. On the other hand, ld. Departmental Representative submitted that each assessment year is independent and the assessee is not entitled for 12A registration.
I have considered all the facts and circumstances of the case and the Hon’ble ITAT in its judgment dated 20th September, 2019 for the assessment years 2011-12 and 2012-13 in assessee’s own case bearing & 706/KOL/2019 held that “since the facts of the appellant’s case are admittedly analogous to the facts involved in the case of Indian Chamber of Commerce (supra), we hold that no material change took place in the legal position even after the amendment was brought in section 2(15) by the Finance Act, 2008. W, therefore, do not find merit in the findings of the ld. CIT(A) that the assessee would not be eligible for exemption u/s 11 because it is primarily set up with the object of promoting trade & commerce. Since we find that the objects and the activities of the appellant were for charitable purpose, then there should be no reason for the revenue to reject the appellant’s application for registration under section 12A of the Act and thereby deny the benefit of section 11 which was admittedly granted till AY 2009-10”.
By considering the totality of the facts and circumstances of the case, I do not find any merit in the findings of ld. Addl./JCIT(Appeals). I am of the view that in order to follow the rule of consistency, I have no hesitation to come to the conclusion (A.Y. 2010-2011) The Bengal Chamber of Commerce And Industry that the assessee is entitled for grant of registration under section 12A of the Act. Hence, the grounds raised by the assessee are allowed.
In the result, the appeal of the assessee is allowed. Order pronounced in the open Court on 30/10/2025.