SRI SAHASRALINGESWARA SWAMY TEMPLE,PONNUR vs. INCOME TAX OFFICER, EXEMPTIONS WARD, GUNTUR
Facts
The assessee, a religious trust, was denied 15% exemption for Assessment Year 2014-15 by the AO because it lacked Section 12A registration for that year, though registration was obtained effective from A.Y. 2017-18. Reassessment proceedings under Section 147 were initiated, and the entire surplus was taxed. The Ld. CIT(A) granted partial relief but upheld the validity of the assessment.
Held
The Tribunal held that the reassessment proceedings initiated under Section 147 for assessment years prior to the date of the assessee's Section 12A/12AA registration were invalid, citing the third proviso to Section 12A(2) of the Income Tax Act. Relying on a Punjab & Haryana High Court decision, subsequently upheld by the Supreme Court, the Tribunal quashed the assessment order.
Key Issues
The key issue was the validity of reassessment proceedings initiated under Section 147 for assessment years preceding the date of a religious trust's Section 12A/12AA registration, specifically whether such action is barred by the third proviso to Section 12A(2) of the Income Tax Act.
Sections Cited
12A, 12A(2), 12AA, 147, 148, 144, 144B, 11, 12
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM
आदेश की प्रनतनलनप अग्रेनर्त/ Copy of the order forwarded to:- 1. निर्धाररती/The : Sri Sahasralingeswara Swamy Temple, Ponnur Town and Ponnur Mandal, Guntur Assessee District-522124, Andhra Pradesh 2. रधजस्व/ : The Income Tax Officer (Exemptions), The Standard House, Behind SBI Commercial Revenue Branch, Nagarampalem, Guntur, Andhra Pradesh 3. The Principal Commissioner of Income Tax, Visakhapatnam 4. नवभधगीय प्रनतनिनर्, आयकर अपीलीय अनर्करण / DR,ITAT, Visakhapatnam. 5. The Commissioner of Income Tax 6. गधर्ाफ़धईल / Guard file
आदेशधिुसधर / BY ORDER
Sr. Private Secretary ITAT, Visakhapatnam.