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Facts
The assessee applied for registration under Section 12A of the Income Tax Act, 1961, which was granted on 17/09/2020. The assessee had filed returns for AY 2017-18 and 2018-19, and their appeals were dismissed by the CIT(A). The assessee had also filed a rectification application under Section 154, which was disposed of later.
Held
The Tribunal noted that the 12A registration was granted to the assessee before the order under Section 154 was passed. Therefore, the assessee would be entitled to the benefits of Section 12A for all pending proceedings.
Key Issues
Whether the assessee is entitled to the benefits of Section 12A for assessment years prior to the grant of registration, when the registration was granted before the final assessment orders.
Sections Cited
12A, 154, 143(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, RANCHI BENCH, RANCHI
Before: SHRI GEORGE MATHAN & SHRI RATNESH NANDAN SAHAY
Assessee represented by Shri Devesh Poddar, A.R. Department represented by Shri Rajib Jain, CIT-DR Date of hearing 05/01/2026 Date of pronouncement 05/01/2026 O R D E R PER: BENCH 1. These are the appeals filed by the assessee against the orders of the ld. CIT(A), NFAC, Delhi both dated 19/12/2024 for the A.Y. 2017-18 and 2018- 19 respectively.
Shri Devesh Poddar, ld. Authorised Representative represented on behalf of the assessee and Shri Rajib Jain, ld. CIT-DR represented on behalf of the revenue.
It was submitted by the ld. Authorised Representative that the assessee had applied for registration under Section 12A of the Income Tax Act, 1961 (in short, the Act) on 30/03/2020. The return of income had been filed by the assessee and the return was processed under Section 143(1) to the impugned assessment year 2017-18 on 27/03/2019. It was a submission that the registration under Section 12A had been granted to the assessee on 17/09/2020. It was a submission that the assessee had filed rectification & 31/Ran/2025 Lady K.C. Roy Memorial Trust Vs ITO(E) application under Section 154 of the Act which came to be disposed by an order dated 07/02/2022. It was a submission that against the said 154, the appeal had been filed before the ld. CIT(A) and the ld. CIT(A) came to dismiss the appeal of the assessee vide order dated 19/12/2024. It was a submission that as the assessee had made the application for 12A and the assessee had been granted the registration on 17/09/2020. Much before the order under Section 154 was passed as the assessee had been granted registration, the assessee would be entitled to the benefits of Section 12A of the Act for all the years where the proceedings are pending. It was a submission that he had no objection if the issues are restored to the file of Assessing Officer for readjudication.
In reply, the ld. CIT-DR did not raise any serious objection.
Considering the submissions of the ld. AR and considering the fact that the assessee has been granted registration under Section 12A on 17/09/2020, the issues in both the appeals are restored back to the file of Assessing Officer for readjudication after granting the assessee adequate opportunity of being heard.