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Income Tax Appellate Tribunal, BANGALORE BENCH ‘C’, BANGALORE
Before: SMT ASHA VIJAYARAGHAVAN & SHRI ABRAHAM P GEORGE
Act, confirmed the order of the AO not granting it the exemption claimed u/s 11 & 12 of the Act, 1961. Assessee has also raised a grievance that sec.40a(ia) of the IT Act, was applied considering the assessee to be earning income from business and profession.
When the appeals came up, learned counsel for the assessee submitted that assessee’s application for registration u/s 12A of the IT Act, 1961 filed on 12-03-2007 was never acted upon by the CIT. The assessment for the impugned assessment year was completed without giving it the eligible exemption u/s 11 & 12 of the IT Act, 1961 for a reason that registration was granted to it by the CIT only with effect from 02-01- 2013 based on a subsequent application. The learned AR submitted that the issue of non-grant of registration based on its application dated 12-03- 2007 had travelled upto this Tribunal and this Tribunal in its order dated 05-06-2015 in had held as under;
“ 5. Having considered the rival submissions and relevant material on record, we find that the Commissioner raised query vide letter dated 15-03-2007 and asked the assessee to explain the delay in filing of the application in Form No.10A dated 12-03-2007. Thereafter, the assessee filed three more applications in compliance with the direction of the Commissioner of Income-tax. However, the learned CIT has not discussed about delay in filing of the application and the date of the first application while passing the impugned order. In any case, when the Commissioner has not granted the registration from the date of application dated 12-03- 2007, the assessee should have been given an opportunity of hearing prior to pass such order. Accordingly, in the facts and circumstances of the case and in the interest of justice, we set aside the order of the learned CIT and restore this issue to the file of Commissioner to consider the registration w.e.f. the original application dated 12-03-2007 after giving an opportunity of being heard to the applicant society and decide the same as per law”.
As per the learned AR the matter was still to be decided afresh by the CIT(A).
Learned DR submitted that the assessment could be set aside and sent back to the lower authorities for framing it afresh once the CIT had decided on the issue of registration u/s 12A of the IT Act, 1961 pursuant to the directions of the Tribunal mentioned (Supra).
We have heard the contentions and perused the orders. Co- ordinate Bench of this Tribunal had set aside the issue of grant of registration u/s 12A of the IT Act, 1961 to CIT for consideration afresh, based on the application dated 12-03-2007 of the assessee. The assessments for all the impugned years would entirely depend upon the decision of the Commissioner with regard to the assessee’s application dated 12-03-2007 filed by the assessee. We are therefore of the opinion that the impugned assessments have to be set aside and remitted back to the file of the AO for consideration afresh in accordance with the decision of the learned CIT, on the application filed by the assesssee u/s 12A of the IT Act, pursuant to the Tribunal’s direction reproduced (Supra).
Accordingly, we set aside the order of the authorities below and remit the assessment back to the file of the AO, for de-novo consideration.
In the result, appeals of the assessee are allowed for statistical purposes.
In view of the above, the Stay Petitions filed by the assessee have become infructuous and are dismissed.
Order pronounced in the open Court on the 30th October, 2015.