Sinhagad Technical Education Society, Pune V. Pr. Commissioner of Income-tax, (Central), Pune

ITA 82/PUN/2021

AI Insights

The case involves M/s Sinhgad Technical Education Society, which appealed against the order of the Principal Commissioner of Income Tax (Central), Pune. The appeal was directed against the revision of the assessment order for the assessment year 2015-16 under section 263 of the Income-tax Act, 1961. The original assessment had granted exemption under section 11 of the Act, but this was contested after the society's registration under section 12A was retrospectively cancelled. The Tribunal examined whether the revision of the assessment order was justified based on the subsequent cancellation of the registration.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 124846 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 10 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-02-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 23-01-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 25-03-2021
• Other Referred Cases: ITA No.996/PUN/2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Revision of order; Opportunity of being heard; Retrospective amendment; Cancellation of registration
• Section: 263; 11; 143(3); 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपीऱ सं. / ITA No.82/PUN/2021 M/s Sinhgad Technical Education Society 19/15, Erandwane, Smt. Khilare Marg, Off Karve Road, Pune – 411004 PAN: AABTS9900Q .......अऩीऱाथी / Appellant बनाम / V/s. The Pr. Commissioner of Income Tax (Central), Pune ......प्रत्यथी / Respondent Assessee by : Shri Suhas P. Bora Revenue by : Shri Keyur Patel, CIT-DR स ु नवाई की तारीख / Date of Hearing : 24-01-2023 घोषणा की तारीख / Date of Pronouncement : 07-02-2023 आदेश / ORDER PER INTURI RAMA RAO, AM: This is an appeal filed by the assessee directed against the order of Ld. Principal Commissioner of Income Tax (Central), Pune, dated 02.02.2021 passed u/s 263 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) for assessment year 2015-16. 2. Briefly, the facts of the case are as under: The appellant is a society formed under the provisions of Societies Registration Act, 1860 with an object of imparting education and to provide 2 ITA No.82/PUN/2021 M/s Sinhgad Technical Education Society medical care / facilities in rural and urban areas. The appellant trust was granted registration u/s 12A of the Act in the year 1994. The return of income for assessment year 2015-16 was filed on 25.09.2015 claiming exemption u/s 11 of the Act. Against the said return of income, assessment was completed by the Assessing Officer vide order dated 23.10.2017 passed u/s 143(3) at a total income of Nil after granting exemption u/s 11 of the Act. Subsequently, on review of the assessment record, ld. PCIT was of the opinion that the assessment order for assessment year 2015-16 is erroneous and prejudicial to the interest of revenue in as much as assessment was completed granting exemption u/s 11 of the Act for the reason that subsequent to the completion of assessment, the grant of registration u/s 12A was cancelled vide order dated 09.05.2018 with retrospective effect from financial year 2007-08, accordingly the ld. PCIT set aside the assessment order with direction to frame de novo assessment after affording an opportunity of being heard to the appellant vide order dated 02.02.2021 u/s 263 of the Act. 3. Being aggrieved, the appellant is in appeal in the present appeal. It is submitted that as on the date of assessment order, the appellant society continues to enjoy the registration u/s 12A of the Act and the Assessing Officer was very much aware of the fact of pending the proceedings for cancellation of registration granted u/s 12A of the Act. 4. On the other hand, the ld. CIT-DR placed reliance on the orders of lower authorities. 3 ITA No.82/PUN/2021 M/s Sinhgad Technical Education Society 5. We have heard the rival contentions and perused the materials available on record. The issue in the present case relates to the validity of assumption of jurisdiction u/s 263 of the Act. Admittedly, the Commissioner sought to revise the assessment order on the ground that subsequent to the completion of assessment proceedings, grant of registration u/s 12A was cancelled with retrospective effect. Admittedly, as on date of completion of assessment order, there was no order cancelling the registration u/s 12A of the Act. However, for the purpose of provisions of section 263, the term ‘record’ has been defined to include all records relating to any proceedings under the Income Tax Act available at the time of examination by the Commissioner. Therefore, in the light of order passed u/s 12AA(3) of the Act, dated 09.05.2018 which has been upheld by this Tribunal in ITA No.996/PUN/2018, the assessment order is erroneous and prejudicial to the interest of revenue. Therefore, we are of the considered opinion that the ld. PCIT was justified in exercising the power of revision, hence the appeal filed by the assessee is dismissed. 6. In the result, the appeal filed by the assessee is dismissed. Order pronounced in the open court on 7 th February, 2023. Sd/- Sd/- S.S.VISWANETHRA RAVI INTURI RAMA RAO JUDICIAL MEMBER ACCOUNTANT MEMBER ऩ ु णे / Pune; ददनाांक / Dated : 7 th February, 2023 GCVSR 4 ITA No.82/PUN/2021 M/s Sinhgad Technical Education Society आदेश की प्रतिलऱपप अग्रेपिि/Copy of the Order is forwarded to : 1. अऩीऱाथी / The Appellant; 2. प्रत्यथी / The Respondent; 3. ववभागीय प्रतततनधध, आयकर अऩीऱीय अधधकरण, ऩ ु णे “A” / DR ‘A’, ITAT, Pune; 4. गार्ड पाईऱ / Guard file. आदेशान ु सार / BY ORDER, //सत्यावऩत प्रतत// True Copy// वररष्ठ तनजी सधिव / Sr. Private Secretary आयकर अऩीऱीय अधधकरण, ऩ ु णे / ITAT, Pune