Peoples Forum Foundation, Bhubaneswar V. ITO (Exemptions), Bhubaneswar

ITA 16/CTK/2022

AI Insights

The case involves People Forum Foundation, a charitable trust running a public school, which appealed against the order of the CIT(A), NFAC, Delhi, concerning the assessment year 2016-17. The primary issue was the recognition of the assessee's registration under section 12A of the Income Tax Act. Initially, the assessee was not recognized as having this registration for the assessment year 2016-17, as the registration was granted later, on 1.10.2021. However, the Tribunal considered the appellate proceedings as a continuation of the original assessment proceedings, following the decision of the Hon'ble Rajasthan High Court, and restored the matter to the Assessing Officer for re-evaluation under this premise.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 113066 (ITAT-CUTTACK)
• Duration Of Justice: 1 year(s) 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-04-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Next Hearing Date: 23-04-2023
• Assessment Year: 2016-2017
• Appeal Filed On: 16-02-2022
• Other Referred Cases: CIT (Exemptions) vs Shree Shyam Mandir Committee, 400 ITR 466 (Raj), CIT (Exemptions) vs Shiv Kumar Sumitra Devi Smarak Shikshan Sansthan, 422 ITR 468 (All), Shree Bhanushali Mitra Mandal vs CIT (Exemptions), SNDP Yogam vs CIT (Exemptions), Vegetable Products vs CIT, 88 ITR 192 (SC)
• Laws Referred To: Section 12A of the Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 12A; 192

Judgement Text

BEFORE People Forum Plot No.44, 751030 PAN/GIR No.AABTP 5882 A (Appellant This is an appeal filed by the assessee agai CIT(A) , NFAC, Delhi, No.ITBA/NFAC/S/250/2021 2016-17. IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK ‘SMC’ BENCH, CUTTACK BEFORE SHRI GEORGE MATHAN, JUDICIAL ITA No.16/CTK/2022 Assessment Year : 2016-17 People Forum foundation, Plot No.44, Dharma Vihar- Vs. ITO (Exemption Bhubaneswar AABTP 5882 A (Appellant) .. ( Respondent Assessee by : Shri S.K.Agarwala, CA Revenue by : Shri S.C.Mohanty, Sr DR Date of Hearing : 24/04/20 Date of Pronouncement : 24/04/20 O R D E R This is an appeal filed by the assessee against the order of the ld , NFAC, Delhi, dated 9.12.2021 A/NFAC/S/250/2021-22/1037650259(1) for the assessment year P a g e1 | 6 IN THE INCOME TAX APPELLATE TRIBUNAL, , CUTTACK JUDICIAL MEMBER Exemption) Bhubaneswar Respondent) S.K.Agarwala, CA S.C.Mohanty, Sr DR 2023 /2023 nst the order of the ld 9.12.2021 in Appeal for the assessment year ITA No.16/CTK/2022 Assessment Year : 2016-17 P a g e2 | 6 2. Shri S.K.Agarwalla, CA appeared for the assessee and Shri S.C.Mohanty, ld Sr DR appeared for the revenue. 3. It was submitted by ld AR that the assessee is a charitable trust running a public school. It was the submission that the assessee had filed application for registration u/s.12A of the Act on 1.2.2019 and the assessee was granted registration u/s.12A of the Act on 1.10.2021 consequent to the order of the Tribunal dated 15.7.2020. It was the submission that the order of the CIT(A) is 9.12.2021 and as the proceedings before the CIT(A) is an extention of the assessment proceedings, in view of the provisions of sub- section (2) of Section 12A of the Act, the assessee is held to be having registration u/s.12A of the Act. It was the submission that the Assessing Officer has taken a stand that the assessee does not have the registration u/s.12A of the Act. It was the submission that the issues in the appeal may be restored to the file of the Assessing Officer for re-adjudication after considering that the assessee has the registration u/s.12A. Ld AR also placed reliance on the decision of the Hon’ble Rajasthan High Court in the case of CIT (Exemptions) vs Shree Shyam Mandir Committee, 400 ITR 466 (Raj), wherein in para 30, it has been held as follows: “30. This brings us to the next question, i.e. whether the assessment proceedings “pending before the AO” as stated in the first proviso to section 12A(2) can be taken as “pending in appeal”, or, in other words, whether proceedings pending in appeal can be taken to be proceedings pending before te AO. This issue also stands answered in favour of the assessee by Shree Bhanushali Mitra Mandal (supra), ITA No.16/CTK/2022 Assessment Year : 2016-17 P a g e3 | 6 wherein, it was held that appeal is a continuation of the original proceedings and assessment proceedings pending before an appellate authority should be deemed to be “assessment proceedings pending before the AO” within the meaning of S.12A SNDP Yogam (supra), is to the same effect. Again, no contrary decision has been brought to our notice. Accordingly, it is held that the appellate proceedings before the appellate authorities are deemed to be assessment proceedings pending before the AO.” 4. In reply, ld Sr DR submitted that in view of the decision of the Hon’ble Allahabad High Court in the case of CIT (Exemptions) vs Shiv Kumar Sumitra Devi Smarak Shikshan Sansthan, 422 ITR 468 (All), the provisions of sub-section(2) of Section 12A refers to assessment proceedings pending before the Assessing Officer. It was the submission that admittedly, the assessment proceedings u/s.143(3) of the Act came to be completed on 24.8.2018 and the assessee is not entitled to be treated as having registration u/s.12A of the Act for the assessment year 2016-17. He drew my attention to paras 18 to 21 of the order of the Hon’ble Allahabad High Court in the case of Shiv Kumar Sumitra Devi Smarak Shikshan Sansthan,(supra), which read as follows: ITA No.16/CTK/2022 Assessment Year : 2016-17 P a g e4 | 6 “ ITA No.16/CTK/2022 Assessment Year : 2016-17 P a g e5 | 6 5. In reply, ld AR submitted that as there are contrary decisions, the decision in favour of the assessee is to be considered in view of the decision of the Hon’ble Supreme Court in the case of Vegetable Products, 88 ITR 192 (SC). 6. I have considered the rival submissions. The facts of the present case clearly show that the assessee has been granted registration w.e.f 1.10.2021. Admittedly, the assessment order has been passed as early as 24.8.2018. The assessee has applied for registration u/s.12A of the Act on 1.12.2019 and after prolonged litigation, the assessee has been granted registration on 1.10.2021. The CIT(A)’s order admittedly is on 9.12.2021. The Hon’ble Rajasthan High Court in the case of Shree Shyam Mandir Committee(supra) has categorically held that the proceedings before the ld CIT(A) are extention of assessment proceedings. The Hon’ble Allahabad High Court in the case of Shiv Kumar Sumitra Devi Smarak Shikshan Sansthan (supra) has held that the proceedings must be pending before the Assessing Officer. We are faced with two contrary decisions. Consequently, in view of the principles laid down by the Hon’ble Supreme Court in the case of Vegetable Products (supra), the view in favour of the assessee is being adopted and respectfully following the decision of Hon’ble Rajastan High Court in the case of Shree Shyam Mandir Committee(supra), the issues in the appeal are restored to the file of the Assessing Officer for ITA No.16/CTK/2022 Assessment Year : 2016-17 P a g e6 | 6 re-adjudication after considering that the assesee has registration u/s.12A of the Act. 7. In the result, appeal of the assessee stands partly allowed for statistical purposes. Order dictated and pronounced in the open court on 24/04/2023. Sd/- (George Mathan) JUDICIAL MEMBER Cuttack; Dated 24/04/2023 B.K.Parida, SPS (OS) Copy of the Order forwarded to : By order Sr.Pvt.secretary ITAT, Cuttack 1. People Forum foundation, Plot No.44, Dharma Vihar-751030 2. The Respondent: ITO (Exemption) Bhubaneswar 3. The CIT(A)-,NFAC, Delhi 4. Pr.CIT-,Cuttack 5. DR, ITAT, Cuttack 6. Guard file. //True Copy//