SOCIAL EDUCATIONAL AND WELFARE ASSOCIATION,HALDWANI vs. ITO, HALDWANI, HALDWANI

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ITA 184/DDN/2024Status: DisposedITAT Dehradun21 March 2025AY 2021-22Bench: Sh. Satbeer Singh Godara, Judicial Member & Sh. M. Balaganesh (Accountant Member)3 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that since the assessee had obtained Section 12AA registration on 05.04.2022, the Assessing Officer needs to frame the assessment de novo after verifying all necessary facts. The denial of exemption was therefore set aside.

What were the facts?

The assessee, a charitable association, was denied Section 11 exemption by the lower authorities. The denial was based on the AO's addition of Rs. 10,94,500 under Section 68 and the assessee's alleged inability to prove its registration under the new regime.

What were the issues?

Whether the denial of Section 11 exemption is justified when the assessee possesses a valid Section 12AA registration, and if the assessment needs to be re-framed in light of statutory amendments.

Which sections of the Income-tax Act were involved?

Section 11,Section 12AA,Section 12AB,Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DEHRADUN BENCH, DEHRADUN

Before: Sh. Satbeer Singh Godara & Sh. M. Balaganesh

Hearing: 21.03.2025Pronounced: 21.03.2025

Asstt. Year : 2021-22 Social Educational and Welfare Vs Income Tax Officer, Association, Vishnu Vihar, Village Haldwani, Bari Bukhani, Kaldhungi Road, Uttarakhand-263139 Haldwani-263139 (APPELLANT) (RESPONDENT) PAN No. AAFTS6429J Assessee by: Sh. Taran Deep Singh, Adv. Revenue by: Sh. Amar Pal Singh, Sr. DR Date of Hearing: 21.03.2025 Date of Pronouncement: 21.03.2025 ORDER Per Satbeer Singh Godara, Judicial Member:

This assessee’s appeal for Assessment Year 2021-22, arises against the CIT(A)/NFAC, Delhi’s DIN & order No. ITBA/NFAC/S/250/2024-25/1065075911(1) dated 22.05.2024, in proceedings u/s 154 of the Income Tax Act, 1961 (in short “the Act”).

2.

Heard both the parties at length. Case file perused.

3.

It emerges during the course of hearing that both the learned lower authorities have denied section 11 exemption to the assessee, in the course of assessment framed in it’s case dated 07.03.2023, and upheld in the CIT(A)/NFAC lower appellate discussion as under:

“7.5 From the proper evaluation and appreciation of the findings of the AO with regard to addition of Rs. 10945000 u/s 68 on account of undisclosed income and appellant’s submission/reply filed during appellate proceedings, it is seen that AO has made addition of Rs” 3.1 This leaves the assessee aggrieved.

4.

Mr. Taran Deep Singh vehemently argues during the course of hearing that both the lower authorities ought to have treated the assessee is entitled for section 11 exmeption once it carries section 12AA registration since 12.07.2010. The Revenue on the other hands seeks to buttress the point that given the fact that once the assessee could not plead and prove it’s registration u/s 12AA in the new regime, the impugned denial of section 11 exemption deserves to be upheld in the instant case.

5.

Faced with this situation, Mr. Singh firstly invited our attention to the assessee’s paper book pages 7 to 9 indicating it to have been granted section 12AA registration on 05.04.2022. He further takes us to the statutory amendment in section 12AB; inserted by the taxation and other laws relaxation and amendment of certain provision Act 2020 w.e.f. 01.04.2021. And that it was earlier “omitted” with retrospective effect from 01.06.2020. Reference is further drawn to the CBDT’s circular dated 24.05.2023 enabling fresh application

6.

Be that as it may, we are of the considered view that once the assessee/appellant stands registered as per the above certificate, learned Assessing Officer requires to frame assessment in its case de novo as per law after verifying all the necessary facts. Ordered accordingly.

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