Swami Vivekananda Karma Tirtha, Kolkata V. ITO, Ward-44(1), Kolkata

ITA 12/KOL/2022

AI Insights

The case involves Swami Vivekananda Karma Tirtha, the appellant, contesting an order from the National Faceless Appeal Centre (CIT(A)) regarding the denial of exemption under Sections 11 and 12A of the Income Tax Act for the assessment year 2019-20. The appellant was registered under Section 12A on January 22, 2020, which was during the pendency of the assessment proceedings for the year 2019-20. The core issue was whether the exemption should apply retrospectively to the assessment year 2019-20, given that the registration occurred before the conclusion of the assessment proceedings and the trust's activities remained consistent with the previous year. The Tribunal referenced the Second Proviso after sub-section 2 of section 12A, which supports the appellant's position.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 128141 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-03-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 13-03-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 09-01-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 2; 11; 12A; 12AA; 250

Judgement Text

आयकर अपीलȣय अͬधकरण, कोलकाता पीठ ‘एसएमसी’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH KOLKATA Įी संजय गग[, ÛयाǓयक सदèय के सम¢ Before Shri Sanjay Garg, Judicial Member I.T.A. No.12/Kol/2022 Assessment Year: 2019-20 Swami Vivekananda Karma Tirtha.................................................. Appellant 46, Camal West Road, Ultadanga, Kolkata - 700004. [PAN:AAWTS0391Q] vs. ITO, Ward-44(1), Kolkata............................................................ Respondent Appearances by: Shri Manish Tiwari, FCA, appeared on behalf of the appellant. Smt. Ranu Biswas, Addl. CIT-DR, appeared on behalf of the Respondent. Date of concluding the hearing : March 14, 2023 Date of pronouncing the order : March 14, 2023 आदेश / ORDER The present appeal has been preferred by the assessee against the order dated 19.11.2021 of the National Faceless Appeal Centre [hereinafter referred to as ‘CIT(A)’] passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’). 2. The sole issue involved in this appeal is whether the assessee is entitled to exemption u/s 11 r.w.s 12A of the Act in respect of assessment year, the assessment proceedings relating to which was pending before the Assessing Officer on the date of registration of the assessee u/s 12A of the Act and the objects and activities of such trust or institution remained the same for such preceding assessment year. In this case, the registration was granted to the assessee on 22.01.2020 for assessment year 2020-21. However, on the date of grant of I.T.A. No.12/Kol/2022 Assessment Year: 2019-20 Swami Vivekananda Karma Tirtha 2 registration, the assessment proceedings relating to assessment year 2019-20 were pending before the Assessing Officer and it is not the case of the Revenue that the objects and activities of the assessee were different or to say there is no rebuttal to the plea of the assessee that the objects and activities of the assessee were the same for the preceding year i.e. 2019-20. The issue is squarely covered by Second Proviso after sub-section 2 of section 12A of the Act, which, for the sake of ready reference, is reproduced as under: “Provided further that where registration has been granted to the trust or institution under section 12AA or section 12AB], then, the provisions of sections 11 and 12 shall apply in respect of any income derived from property held under trust of any assessment year preceding the aforesaid assessment year, for which assessment proceedings are pending before the Assessing Officer as on the date of such registration and the objects and activities of such trust or institution remain the same for such preceding assessment year.” 3. In view of the above, the assessee is entitled to exemption u/s 12A of the Act for the assessment year under consideration. It is ordered accordingly. The impugned order of the CIT(A) is set aside and the Assessing Officer is directed to grant the admissible exemption to the assessee u/s 11 of the Act. 4. In the result, the appeal of the assessee stands allowed. Kolkata, the 14 th March, 2023. Sd/- [संजय गग[ /Sanjay Garg] ÛयाǓयक सदèय/Judicial Member Dated: 14.03.2023. RS I.T.A. No.12/Kol/2022 Assessment Year: 2019-20 Swami Vivekananda Karma Tirtha 3 Copy of the order forwarded to: 1. Swami Vivekananda Karma Tirtha 2. ITO, Ward-44(1), Kolkata 3. CIT (A)- 4. CIT- , 5. CIT(DR), //True copy// By order Assistant Registrar, Kolkata Benches