BANGIYA SANGIT PARISHAD,HOWRAH vs. I.T.O., WARD - 29(1) , KOLKATA

Facts in brief are that the assessee filed its return of income on 30.03.2022 within the extended due date i.e. 31.12.2021. The AO/CPC while processing the return of income u/s.143(1) of the Act noted that the assessee has not registered u/s.12A of the Act and consequently disallowed the expenses thereby assessing the gross receipts of the assessee. In the appellate proceedings, the Id.CIT(A) also dismissed the appeal of the assessee, wherein the Id.CIT(A) noted that the assessee has not filed the income tax return and audit report within the extended time limit for which the assessee has not given any plausible explanation.

After hearing the rival contentions and perusing the material available on record, we find that the assessee trust is registered u/s.12A of the Act by provisional registration granted on 22.05.2021 whereas the order u/s.143(1) of the Act was passed by the AO/CPC on 27.05.2021. Similarly the Id.CIT(A) passed the appellate order on 10.01.2025 by ignoring the fact that the assessee is enjoying the provisional registration u/s.12A of the Act. We note that both the authorities below have wrongly decided the issue. In our opinion, the order passed by the AO/CPC is totally incorrect as has completely overlooked the provisional registration u/s.12AA of the Act as referred to above and assessed the gross receipt as income of the trust. Thus, we set aside the order of the Id. CIT(A) and direct the AO/CPC to examine the issue afresh considering the fact that the assessee has registration u/s.12AA of the Act.