Assistant Commissioner Of Income Tax, (Exemrtion), Bhubaneswar V. Shri Jagannath Education & Charitable Trust, Bhubaneswar

ITA 238/CTK/2023

• Counselvise Citation: [2023] 102 COUNSELVISE.COM (IT) 0823 (ITAT-CUTTACK)
• Duration Of Justice: 3 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-10-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 11-10-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 03-07-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution
• Section: 12; 11; 12A

Judgement Text

आयकर अऩीऱीय अधधकरण, कटक न्यायऩीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK (THROUGH VIRTUAL HEARING) श्री जाजज माथन, न्याययक सदस्य एवं श्री राजेश क ु मार, ऱेखा सदस्य के समक्ष । BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER आयकर अऩीऱ सं/ITA No.238/C TK/2023 (ननधाारण वषा / Asses s m ent Year : 2018-2 019) ACIT(Exemption), Bhubaneswar Vs Shri Jagannath Education & Charitable Trust, Plot No.209, Unit-3, Kharvel Nagar, Bhubaneswar-751001 PAN No. :AAQTS 1600 Q (अऩीऱाथी /Appellant) .. (प्रत्यथी / Respondent) ननधााररती की ओर से /Assessee by : Shri K.K.Bal, Advocate राजस्व की ओर से /Revenue by : Shri Charan Dass, Sr. DR स ु नवाई की तारीख / Date of Hearing : 12/10/2023 घोषणा की तारीख/Date of Pronouncement : 12/10/2023 आदेश / O R D E R Per Bench : This is an appeal filed by the revenue against the order of the ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated 02.11.2022, passed in DIN & Order No.ITBA/NFAC/S/250/2022- 23/1046705886(1), for the assessment year 2018-2019. 2. It was the submission by the ld. Sr. DR that the assessee was granted registration u/s.12A of the Act on 12.02.2020. It was submitted that no proceedings were pending in the case of the assessee for the assessment year 2018-2019 insofar as the intimation in respect of the assessment year 2018-2019 had already been issued to the assessee as early as on 17.10.2019. It was the submission that as no proceedings were pending before the AO in respect of the impugned assessment year, ITA No.238/CTK/2023 2 the ld. CIT(A) erred in granting the assessee the benefit of registration u/s.12A of the Act and directing the AO to allow the claim of the assessee after verifying the objects and activities of the trust in relevant assessment year as to whether the same were for which the registration has been granted. He placed reliance on the decision of the Hon’ble Allahabad High Court in the case of M/s Shiv Kumar Sumitra Devi Smarak, passed in Income Tax Appeal No.11 of 2019, dated 6 th August, 2019, wherein the Hon’ble High Court has categorically held that the assessment proceedings for the year 2011-12 were not pending before the Assessing Officer, but before the Tribunal and, therefore, the assessee was not entitled to the benefit of registration u/s.12A of the Act. It was the submission that the order of the ld. CIT(A) is liable to be reversed. 3. In reply, ld. AR of the assessee vehemently supported the order of the ld. CIT(A) and submitted that the proceedings before the ld. CIT(A) were extension of the assessment proceedings, therefore, the order of the ld. CIT(A) deserves to be upheld. 4. We have considered the rival submissions. A perusal of the proviso to Section 12A of the Act categorically mentions that where the registration has been granted to the trust or institution u/s.12AA of the Act, then, the provisions of Sections 11 and 12 of the Act 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 ITA No.238/CTK/2023 3 remain the same for such preceding assessment year. The notice u/s.143(1) of the Act has been issued in the case of the assessee on 17.10.2019. The assessee has filed appeal against the said order before the ld. CIT(A) on 09.03.2020 Thus, the proceedings in respect of the said assessment year 2018-2019 were very much open before the ld. CIT(A). The proceedings before the ld. CIT(A) admittedly are proceedings open before the AO because the proceedings before the ld. CIT(A) are considered to be an extension of the assessment proceedings. The Hon’ble Allahabad High Court had categorically denied the registration because the appeal thereon was pending before the ITAT. The appellate proceedings before the ITAT are not an extension of the assessment proceedings. In these circumstances, the decision relied upon by the ld. Sr. DR will not have any bearing on the facts of the present case. In view of the above, we find no error in the order of the ld. CIT(A) in directing the AO to grant the assessee the benefit of the provisions of Section 11 & 12 of the Act. Thus, the order of the ld. CIT(A) stands upheld. 5. In the result, appeal of the revenue is dismissed. Order dictated and pronounced in the open court on 12/10/2023. Sd/- (राजेश क ु मार) (RAJESH KUMAR) Sd/- (जाजज माथन) (GEORGE MATHAN) ऱेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER कटक Cuttack; ददनाांक Dated 12/10/2023 Prakash Kumar Mishra, Sr.P.S. ITA No.238/CTK/2023 4 आदेश की प्रनतलऱपऩ अग्रेपषत/Copy of the Order forwarded to : आदेशान ु सार/ BY ORDER, (Assistant Registrar) आयकर अऩीऱीय अधधकरण, कटक/ITAT, Cuttack 1. अऩीऱाथी / The Appellant- ACIT(Exemption), Bhubaneswar 2. प्रत्यथी / The Respondent- Shri Jagannath Education & Charitable Trust, Plot No.209, Unit-3, Kharvel Nagar, Bhubaneswar-751001 3. आयकर आय ु क्त(अऩीऱ) / The CIT(A), 4. आयकर आय ु क्त / CIT 5. ववभागीय प्रयतयनधध, आयकर अऩीऱीय अधधकरण, कटक / DR, ITAT, Cuttack 6. गार्ज पाईऱ / Guard file. सत्यावऩत प्रयत //True Copy//