SUBHAS HARILAL DOSHI CHARITABLE TRUST,KOLKATA vs. CIT(EXEMPTIONS), KOLKATA, KOLKATA

The assessee in the present case is a Trust, which filed its return of income for the year under consideration on 21.12.2010 declaring total income at ‘NIL’ after claiming the benefit of section 11. In the assessment completed under section 147/144 vide an order dated 29.03.2014, although addition of Rs.6,00,000/- was made by the Assessing Officer on account of donations received in cash, he allowed the claim of the assessee for benefit under section 11 keeping in view the registration granted to it under section 12AA, which was in vogue. Thereafter the Assessment year: 2010-2011 Page 2 of 3 registration granted to the assessee under section 12AA was cancelled by the ld. CIT(Exemptions), Kolkata vide an order dated 19.01.2016 with retrospective effect from 01.04.1999. He also initiated proceedings under section 263 and issued a notice to the assessee on 01.02.2016 requiring it to show-cause as to why the order passed by the Assessing Officer under section 147/144 dated 29.03.2014 allowing the benefit under section 11 should not be revised keeping in view of the cancellation of its registration under section 12AA. Since there was no compliance on the part of the assessee to the said notice, the ld. CIT(Exemptions), Kolkata proceeded to pass an order dated 15.02.2016 under section 263 setting aside the order of the Assessing Officer dated 29.03.2014 passed under section 147/144 with a direction to him to make the assessment afresh considering all the issues after giving due opportunity to the assessee. Against the order of the ld. CIT(Exemptions), Kolkata dated 15.02.2016 passed under section 263, the assessee has preferred this appeal before the Tribunal.

We have heard the arguments of both the sides and also perused the relevant material available on record. Although the ld. Counsel for the assessee has submitted that the order of the ld. CIT(Exemptions), Kolkata dated 19.01.2016 cancelling the registration of the assessee under section 12AA with retrospective effect from 01.04.1999 has been challenged in the appeal filed before the Tribunal, the said appeal is still pending as informed by the ld. Counsel for the assessee himself. As further informed by him, the Assessing Officer in pursuance of the impugned order passed by the ld. CIT(Exemptions), Kolkata under section 263 has also passed a fresh assessment order disallowing the assessee’s claim for benefit under section 11 and the appeal filed by the assesese against the said order of the Assessing Officer is pending before the ld. CIT(Appeals). It is thus clear that if the assessee succeeds in its appeal filed before the Tribunal in the matter of cancellation of registration under section 12AA, it can claim the consequential relief on the issue of benefit under section 11 in the appeal filed before the ld. CIT(Appeals), Assessment year: 2010-2011 Page 3 of 3 which is pending. Be that as it may, the fact that remains to be seen is that the registration of the assessee under section 12AA having been cancelled by the ld. CIT(Exemptions), Kolkata vide an order dated 19.01.2016 with retrospective effect from 01.04.1999, the order of the Assessing Officer dated 29.03.2014 passed under section 147/144 allowing benefit of section 11 to the assessee had become erroneous as well as prejudicial to the interest of the revenue and the ld. CIT(Exemptions), Kolkata, in our opinion, was fully justified in revising the same vide his impugned order passed under section 263. We, therefore, find no infirmity in the said order passed by the ld. CIT(Exemptions), Kolkata and upholding the same, we dismiss this appeal filed by the assessee.

In the result, the appeal of the assessee is dismissed. Order pronounced in the open Court on May 23, 2018. Sd/- Sd/- (Satbeer Singh Godara) (P.M. Jagtap) Judicial Member Accountant Member Kolkata, the 23rd day of May, 2018 Copies to : (1) Subhas Harilal Doshi Charitable Trust, C/o. S.L. Kochar, Advocate, 86, Canning Street, Kolkata-700 001