ITO (EXEMPTION), Jaipur V. SHRI RAMPAL WALE HUNMANJI DEVALAY TRUST, Jaipur

ITA 1095/JPR/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 2064 (ITAT-JAIPUR)
• Duration Of Justice: 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 09-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R A VERMA ACIT
• Assessee Lawyers: MUKESH KHANDELWAL C A DHK
• Keywords: Question of law; Benefit of exemption
• Section: 143(3); 12AA; 148; 12; 11

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH DQY HKKJR] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS [KK LNL; DS LE{K BEFORE: SHRI KUL BHARAT, JM & SHRI VIKRAM SINGH YAD AV, AM VK;DJ VIHY LA-@ ITA NO. 1095/JP/2016 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2012-13. THE ITO (E), WARD-1, JAIPUR. CUKE VS. M/S SHRI RAMPALWALE HANUMANJI DEVEALAYA TRUST, VILLAGE-SIRSI JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AADTS 6541 F VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : SHRI R.A. VERMA (ACIT) FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI MUKESH KHANDELWAL (CA) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 24.05.2017. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 31/05/2017. VKNS'K@ ORDER PER SHRI KUL BHARAT, JM. THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LD. CIT (A)-III, JAIPUR DATED 15.09.2016 PERTAINING TO ASSESSMENT YE AR 2012-13. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APP EAL :- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW THE CIT(A) HAS ERRED IN ALLOWING EXEMPTION U/S 11 & 12 OF THE IT ACT NOTWITHSTANDING THE ASSESSEE FAILED TO PRODUCE 12AA REGISTRATION CERTIFICATE DURING ASSESSMENT PROCEEDINGS. 2. ANY OTHER QUESTION OF LAW AS DEEMED FIT IN THE FACTS AND CIRCUMSTANCES OF THE CASE MAY ALSO BE FRAMED BEFORE THE HONBLE T RIBUNAL IN THE INTEREST OF JUSTICE. 2. ONLY EFFECTIVE GROUND IS AGAINST ALLOWING THE EX EMPTION U/S 11 & 12 OF THE INCOME TAX ACT, 1961. 2 ITA NO. 1095/JP/2016. M/S SHRI RAMPALWALE HANUMANJI DEVEALAYA TRUST, JAIP UR. 3. BRIEFLY STATED THE FACTS ARE THE CASE OF THE ASS ESSEE WAS PICKED UP FOR SCRUTINY ASSESSMENT AND THE ASSESSMENT U/S 143(3) O F THE ACT (HEREINAFTER REFERRED TO AS THE ACT) 1961. WHILE FRAMING THE ASSESSMENT THE ASSESSING OFFICER DISALLOWED THE EXEMPTION ON THE GROUND THAT THE ASSESSEE WAS N OT REGISTERED U/S 12AA OF THE ACT AND THE ASSESSING OFFICER ALSO DISALLOWED THE E XPENDITURE CLAIM ON SUCH INCOME. AGGRIEVED BY THIS, THE ASSESSEE PREFERRED AND APPEA L BEFORE LD. CIT(A), WHO AFTER CONSIDERING THE SUBMISSIONS ALLOWED THE EXEMPTION. ON THE GROUND THAT THE ASSESSEE WAS SUBSEQUENTLY GRANTED REGISTRATION U/S 12AA OF THE ACT ON 9 TH OCT, 2015. AGGRIEVED BY THIS, THE REVENUE HAS PREFERRED THE PR ESENT APPEAL. 4. LD. DEPARTMENTAL REPRESENTATIVES SUPPORTED THE O RDER OF THE AO AND SUBMITTED THAT LD. CIT(A) WAS NOT JUSTIFIED IN GRAN TING THE EXEMPTION WHEN ADMITTEDLY THE ASSESSEE WAS NOT REGISTERED U/S 12AA OF THE ACT. MERELY MAKING AN APPLICATION U/S 12AA WOULD NOT ENTITLE THE ASSESSEE FOR EXEMPTION. 5. LD. COUNSEL FOR THE ASSESSEE OPPOSED THE SUBMISS IONS AND REITERATED THE SUBMISSIONS AS MADE IN THE WRITTEN SYNOPOSIS. LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ISSUE IS SQUARELY COVERED IN FAV OUR OF THE ASSESSEE BY THE DECISION OF THE TRIBUNAL IN THE CASE OF SHREE BHANU SHALI MITRA MANDAL TRUST VS. INCOME TAX OFFICER, ITA NO. 2515 (AHD.)2015, SREE S REE RAMKRISHNA SAMITI V. PUTY CIT CIR-2, 44 ITR (TRIB.) 678 (KOL). 6. WE HAVE HEARD THE RIVAL CONTENTIONS, PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT LD. CIT(A) HAS DECIDED THE IS SUE IN PARA 5.3 AS UNDER:- 5.3 I HAVE CAREFULLY CONSIDERED THE FACTS OF THE CASE, FINDINGS OF THE AO AND SUBMISSIONS OF THE APPELLANT. IT IS SEEN THAT AFTER ASSEMENT ASSESSEE WAS GRANTED REGISTRATION U/S 12AA ON 09.10.2015. T HEREFORE, THE LD. AR PLEADED THAT EXEMPTION BE ALLOWED IN VIEW OF AMENDM ENT IN ACT. 3 ITA NO. 1095/JP/2016. M/S SHRI RAMPALWALE HANUMANJI DEVEALAYA TRUST, JAIP UR. THE CONTENTION OF THE LD. AR THAT RETROSPECTIVE AME NDMENT WAS BROUGHT BY STATUTE IN PROVISIONS OF SECTION 12AA VI DE FINANCE ACT, 2014 CARRIES WEIGHT AS VIDE THIS AMENDMENT, IT WAS SAID THAT IF AT ANY TIME REGISTRATION IS GRANTED, THE PENDING ASSESSMENTS SH ALL ALSO BE DEEMED AS COVERED WITH SUCH REGISTRATION AND THE BENEFIT OF P ROVISIONS OF SECTION 11 SHALL BE GRANTED TO THE ASSESSEE FOR THE PAST YEARS AND N O ACTION U/S 148 WOULD BE TAKEN FOR ANY YEAR PRIOR TO THE YEAR OF GRANTING RE GISTRATION U/S 12AA ON ACCOUNT OF NON-AVAILABILITY OF SUCH REGISTRATION IN PAST YEARS. THE CBDT NO. 1/2015 (F. NO. 142/13/2014-TPL) DATED 21.01.2015 WH EREIN THE INTENTION OF THE GOVERNMENT HAS BEEN EXPLAINED TO PROVIDE BENEFI T TO THE GENUINE TRUSTS AND INSTITUTIONS. AS PER THIS AMENDMENT THE PENDIN G ASSESSMENT ARE ALSO DEEMED TO HAVE BEEN COVERED WITH THE REGISTRATION C ERTIFICATE U/S 12AA OF THE INCOME TAX ACT, 1961. IN THE PRESENT CASE THE ASSE SSMENT WAS COMPLETED BY THE LD. AO ON 27TH MARCH, 2015 AND THE ASSESSEE HAD APPLIED FOR FRESH REGISTRATION DURING MAY, 2015 AND THEREFORE IT IS U NDISPUTED FACT THAT DURING THE ASSESSMENT PROCEEDINGS THE ASSESSEE TRUST DID N OT HAVE REGISTRATION CERTIFICATE U/S 12AA OF THE INCOME TAX ACT, 1961. THE SAME WAS GRANTED ON 09.10.2015. IT HAS BEEN CLAIMED BY THE LD. AR THAT SINCE THE RE GISTRATION CERTIFICATE HAS BEEN GRANTED BY THE CIT (EXEMPTION) DURING THE PENDENCY OF THE PRESENT APPELLATE PROCEEDINGS AND HENCE BENEFIT OF THE ABOV E AMENDMENT HAS TO BE ALLOWED TO IT IN VIEW THAT APPEAL PROCEEDINGS BEFOR E CIT (APPEALS) IS AN EXTENSION OF ASSESSMENT PROCEEDINGS ONLY AND THEREF ORE THE CASE OF THE APPELLANT IS COVERED WITH THE ABOVE SAID RETROSPECT IVE AMENDMENT. FOR SUCH PURPOSE HE HAS PUT RELIANCE ON THE CASE DECIDED BY THE HON'BLE ITAT, AHMEDABAD SMC BENCH IN THE CASE OF SHREE BHANUSHALI MITRA MANDAL TRUST V/S INCOME-TAX OFFICER, WARD-3, VAPI (68 TAXMANN.CO M 250) VIDE ORDER DATED 22.02.2016 AND ON THE CASE DECIDED BY THE HON 'BLE COCHIN BENCH OF ITAT IN THE CASE OF SNDP YOGAM V/S ADIT (EXEMPTION) (68 TAXMANN.COM 152) WHEREIN SUCH VIEW HAS BEEN UPHELD. IN MY VIEW THE CONTENTION OF THE LD. AR DESERVES TO BE ALLOWED AND HENCE THE GROUND OF APPEAL IS DECIDED IN FAVOUR OF THE APPELLANT. 6.1 FROM THE ABOVE, IT IS EVIDENT THAT THE LD. CIT( A) HAS FOLLOWED THE DECISION OF THE TRIBUNAL RENDERED IN THE CASE OF SHREE BHANUSHA LI MITRA MANDAL TRUST VS. INCOME TAX OFFICER AND ALSO IN THE CASE OF SNDP YO GAM VS. ADIT (E). THE CO- ORDINATE BENCH IN THIS TRIBUNAL IN THE CASE OF SREE SREE RAMKRISHNA SAMITI VS. CIT(SUPRA) HAS HELD AS UNDER:- 4 ITA NO. 1095/JP/2016. M/S SHRI RAMPALWALE HANUMANJI DEVEALAYA TRUST, JAIP UR. 6.13 WE HOLD THAT SINCE THE ONLY REASON FOR DENIAL OF EXEMPTION U/S 11 WAS ABSENCE OF REGISTRATION U/S 12AA (WHICH WAS GRANTED TO ASSESSEE SOCIETY ON 29.10.2010 WITH EFFECT FROM 01.04.2010) FOR THE REL EVANT ASSESSMENT YEARS AND ON NO OTHER GROUND, THE BENEFIT OF CHANGE IN LAW AS AB OVE BY FINANCE ACT 2014 SHOULD BE AVAILABLE AND FOR ALL THE YEARS, THE BENEFIT OF EXEMPTION SHOULD BE AVAILABLE ON THE DATE OF REGISTRATION AS ALL THE ASSESSMENTS WER E PENDING AS SHOWN ABOVE. IN THIS CONNECTION, IT REQUIRES MENTION SPECIFICALLY T HAT ALL THE RECEIPTS OF THE DONATION WERE PROVED ON ENQUIRY TO HAVE BEEN RECEIVED FROM T HE CLAIMED DONORS AND UTILIZED FOR THE SPECIFIC PURPOSE (CONSTRUCTION OF OLD AGE H OME) FOR WHICH THEY WERE RECEIVED. IN CONCLUSION, WE HOLD THAT THE INSERTION OF THE PR OVISO TO SECTION 12A(2) OF THE ACT HAS TO BE CONSTRUED AS RETROSPECTIVE IN OPERATION. RESPECTFULLY FOLLOWING THE VARIOUS JUDICIAL PRECEDE NTS RELIED UPON AND IN THE FACTS AND CIRCUMSTANCES OF THE CASE, WE ALLOW THE GROUND NO. 3 TO 8 RAISED BY THE ASSESSEE. 6.2 IN VIEW OF THE ABOVE BINDING PRECEDENTS, WE DO NOT SEE ANY REASON TO INTERFERE INTO THE ORDER OF THE LD. CIT(A) SAME IS HEREBY AFFIRMED. THUS, GROUND RAISED IN THIS APPEAL IS DISMISSED. 7. IN THE RESULT, APPEAL OF THE REVENUE IN ITA NO. 1095/JP/2016 IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON WEDNESDAY, THE 31ST DAY OF MAY 2017. SD/- SD/- FOE FLAG ;KNO ( DQY HKKJR ) (VIKRAM SINGH YADAV) ( KUL BHARAT ) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 31/05/2017. POOJA/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- THE ITO(E),WARD-1, JAIPUR. 2. THE RESPONDENT- M/S. SHRI RAMPALWALE HANUMANJI DEVEALAYA TRUST, JAIPUR. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 1095/JP/2016) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR 5 ITA NO. 1095/JP/2016. M/S SHRI RAMPALWALE HANUMANJI DEVEALAYA TRUST, JAIP UR.