M/S SETH JAMUNADAS MUNDHRA SEVA SANSTHAN,KOLKATA vs. ITO, WARD-1(3) -EXEMPTION, KOLKATA

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ITA 733/KOL/2024Status: DisposedITAT Kolkata08 July 2024AY 2021-22Bench: Shri Sonjoy Sarma (Judicial Member), Shri Sanjay Awasthi (Accountant Member)4 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(A) failed to appreciate that the old registration under Section 12A was valid until the fresh registration was granted. Therefore, the issue was not examined properly by the lower authorities.

What were the facts?

The assessee, a charitable trust, filed its return claiming exemption under Section 11/12. The CPC denied this exemption in the intimation under Section 143(1) for not furnishing the new registration details under Section 12AB. The assessee's rectification petition and subsequent appeal to the CIT(A) were dismissed.

What were the issues?

Whether the denial of exemption under Section 11/12 for not furnishing new registration details under Section 12AB was justified when the old registration was still valid. Whether the CIT(A) erred in dismissing the appeal without proper examination of the facts.

Which sections of the Income-tax Act were involved?

Section 11,Section 12A,Section 12AB,Section 143(1),Section 154,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH KOLKATA

Before: Shri Sonjoy Sarma & Shri Sanjay Awasthi

order

: July 08, 2024 ORDER

Per Sonjoy Sarma, Judicial Member:

1.

The present appeal is filed by the assessee pertaining to assessment year 2021-22 is directed against the order passed by National Faceless Appeal Centre [hereinafter referred to as ‘CIT(A)’] dated 31.01.2024 u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’). The assessee is in appeal before this Tribunal raising the following grounds of appeal, which are as under:

“1. For that the Ld. CIT(A) erred in dismissing the appeal filed against order u/s I54 on the ground that there was no mistake apparent from record which could have been rectified w/s 154 when there was no debatable issue that the assessee trust was registered u/s 12A, the old registration number were duly mentioned in the return of income and the action of CPC in denying exemption u/s 11 to the assessee trust in the intimation u/s 143(1) for not mentioning the new registration number in the return of income when the date for making application for obtaining new registration number was extended by the CBDT which was much after the date of the intimation.

2.

For that the Ld. CIT(A) should have allowed the rectification petition since there was glaring mistake of CPC apparent from record that the Assessment Year: 2021-22 M/s Seth Jamunadas Mundhra Seva Sansthan assessee trust was registered u/s 12A, the old registration number were duly mentioned in the return of income and the action of CPC in denying exemption u/s 11 to the assessee trust in the intimation u/s 143(1) for not mentioning the new registration number in the return of income when the date for making application for obtaining new registration number was extended by the CBDT which was much after the date of the intimation.

3. For that the Ld. CIT(A) should have allowed the rectification petition since such adjustments of denying exemption u/s 11 to the assessee trust in the intimation /s 143(1) for not mentioning the new registration number in the return of income when the old registration number was duly mentioned in the return of income was outside the scope of adjustments permissible u/s 143(1).”

3.

The brief facts of the case are that the assessee is a charitable trust registered u/s 12A of the Act. The assessee filed its return of income for the assessment year under consideration on 04.03.2022 admitting total income as ‘nil’ after claiming exemption u/s 11/12 of the Act. On the date of filing of return of income the assessee-trust did not furnish the details of new registration approval u/s 12AB of the Act to be eligible for exemption. The said details were not furnished in the return of income as the assessee had not obtained new registration u/s 12AB of the Act on the date of submitting the original return. Therefore, the assessee furnished the details of previous registration u/s 12A of the Act dated 29.10.1997 in the return of income. The Assessing Officer while processing the return of income of the assessee u/s 143(1) of the Act did not allow the claim of the assessee of benefitting of exemption u/s 11/12 of the Act as the assessee failed to furnish new registration in the return of income. As a result, a demand of Rs.13,79,960/- was raised upon the assessee.

4.

Aggrieved by the order passed by the Assessing Officer, the assessee filed a rectification request u/s 154 of the Act. However, the claim of the assessee was turned down on the ground that the new registration details under new provisions of section 12AB were not furnished, therefore, the deduction was not allowed u/s 11 of the Act.

Assessment Year: 2021-22 M/s Seth Jamunadas Mundhra Seva Sansthan 5. Aggrieved by the order of the CPC u/s 154 of the Act, the assessee carried the matter in appeal before the ld. CIT(A), however, the ld. CIT(A) did not look into the matter and simply dismissed the appeal of the assessee. 6. Dissatisfied with the above order, the assessee filed the appeal before this Tribunal raising multiple grounds of appeal

. However, the only contention of the assessee is that the assessee applied for new registration on Form 10A on 29.03.2022, which was granted in Form 10C on 05.04.2022. Since, the registration was granted to the assessee on 29.03.2022 from A.Y 2022-23 to A.Y 2026-27, therefore, the old registration u/s 12A, which was granted in the year 1997 continues to remain valid upto A.Y 2021-22. Therefore, there is no question for treating the assessee-trust as unregistered in the intervening period. The ld. AR, therefore, prayed before this Bench that the matter may be set aside and remanded back to the ld. CIT(A) with a direction to reconsider the issue afresh after affording reasonable opportunity of being heard to the assessee.

7. On the other hand, the ld. DR supported the order of the lower authorities below.

7. We, after considering the rival submission of the parties on this issue and material available on record, find that the assessee’s application for new registration in Form 10A, which was granted in Form 10C on 05.04.2022 granted from A.Y 2022-23 to A.Y 2026-27, however, the ld. CIT(A) failed to appreciate that old registration u/s 12A was valid till fresh registration was granted to the assessee. However, this fact was never examined by the Assessing Officer while passing the main order by simply rejecting the appeal of the assessee. We, therefore, direct the ld. CIT(A) to re-examine the issue after affording reasonable opportunity of being heard to the assessee. 3 Assessment Year: 2021-22 M/s Seth Jamunadas Mundhra Seva Sansthan

8. In terms of the above, the appeal of the assessee is allowed for statistical purposes. Kolkata, the 8th July, 2024.

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