THE AJAY G. PIRAMAL FOUNDATION,NEW DELHI vs. CIT (EXEMPTIONS), NEW DELHI

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ITA 4037/DEL/2015Status: DisposedITAT Delhi11 September 20183 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal noted that the assessee had not claimed exemption under Section 11 from AY 2008-09 onwards, making the issue of retrospective cancellation academic. The assessee then withdrew the appeal.

What were the facts?

The assessee trust voluntarily surrendered its registration under Section 12A/12AA prospectively from October 1, 2014. However, the CIT(Exemptions) cancelled the registration retrospectively from AY 2008-09 onwards.

What were the issues?

Whether the cancellation of registration under Section 12A/12AA by the CIT(Exemptions) can be retrospective, and if so, whether the assessee's appeal on this academic issue should be allowed to be withdrawn.

Which sections of the Income-tax Act were involved?

Section 12A,Section 12AA,Section 11,Section 13(1)(d)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘G’ NEW DELHI

Before: SHRI R. K. PANDA & MS SUCHITRA KAMBLE

Hearing: 11.09.2018Pronounced: 11.09.2018

This appeal is filed by the assessee against the order dated 24/4/2015 passed by CIT(Exemptions)- New Delhi for A.Y 2008-09.

2.

The Ld. AR submitted that the assessee trust was incorporated on July 30, 2005 with an object of providing benefits of healthcare, education, livelihood, rural empowerment and leadership. The assessee was registered u/s 12A read with Section 12AA vide Certificate dated January 31, 2006. The assessee has not claimed exemption u/s 11 of the Act for Ay 2008-09 onwards as the assessee held certain investments which are not permissible u/s 11 sub-section (5) of the Act and consequently ineligible as per proviso (iia), clause (iii) of Section 13 (1) (d) of the Act. Subsequently, in view of insertion of Section 12AA (4) of the Act w.e.f. October 1, 2014 vide Finance Act, 2014, the assessee Trust suo moto surrendered its registration u/s 12A/12AA vide letter dated October 6, 2014 prospectively. However, the CIT(E) cancelled assessee trust registration u/s 12A/12AA retrospectively from Assessment Year 2008-09 onwards. The assessee filed the present appeal against the said order on the limited issue that cancellation cannot be done retrospectively but has to be done prospectively. However, as the assessee trust itself has not claimed any exemption u/s 11 from A.Y. 2008-09 onwards, the issue is merely academic in nature. Therefore, though the assessee still believes that the action of the CIT(E) of retrospective cancellation of registration u/s 12A/12AA is bad in law but due to academic nature of the litigation and in order to save cost and time of all stakeholders, the assessee is withdrawing the present appeal. The Ld. AR however, submitted that the same shall not be construed as assessee’s acquiescence of the said retrospective cancellation. Thus, the Ld. AR requested that the assessee be allowed to withdraw the appeal by submitting letter dated 11/9/2018 before the Bench.

3.

The Ld. DR has not objected to the said withdrawal of appeal by the assessee.

4.

We have heard both the parties and perused the letter dated 11/9/2018 submitted by the Ld. AR before us which is taken on record. Accordingly in view of the above factual matrix, the appeal of the assessee is dismissed as withdrawn.

5.

In result, appeal of the assessee is dismissed as withdrawn.

Order pronounced in the Open Court on 11th September, 2018.

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