ITO (Exemption) Ward-1, Rajkot V. Sri Rajput Yuvak Mandal Sarvajanik Trust, Rajkot

MA 45/AHD/2023

AI Insights

The case involves a Miscellaneous Application by the Department against the order of the ITAT 'B' Bench, which had previously restored the file of Shri Rajput Yuvak Mandal Sarvajanik Trust to the ld. CIT(Exemption) for de-novo consideration regarding the registration under section 12AA of the Income Tax Act. The Department contended that the ITAT did not consider the amended provisions of section 12AA, effective from April 1, 2021, which could impact the eligibility for registration. The Tribunal dismissed the Department's application, stating that the ITAT's decision to restore the matter for fresh consideration was appropriate and did not require the inclusion of subsequent legislative amendments at that stage.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 131377 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 24 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 25-07-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 20-07-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 01-05-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 12; 12AA; 22

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “B” BENCH Before: Ms. Annapurna Gupta, Accountant Member And Shri Siddhartha Nautiyal, Judicial Member Th e CIT(Exe mption), Ward-1, Ah medabad (Appellant) Vs Shri Rajput Yuvak Man dal Sarvajanik Trust, May ur S mruti, Laxminaray an Mandir Street, Lakhdhirwas, Morbi PAN: AAQTS6 629D (Resp ondent) Asses see b y : Shri Man ish J. Sha h, A. R. Revenue by : M s. Sa umy a Pan dey Ja in, Sr. D. R. Date of hearing : 21-07 -2 023 Date of pronouncement : 26-07 -2 023 आदेश/ORDER PER : SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER:- This is a Miscellaneous Application filed by the Department against the order passed by ITAT “B” Bench in the case of Shri Rajp ut Yuvak Man dal Sarv ajanik Trust in ITA No. 176 7/Ahd /2019 dated 11-11- 202 2. MA No. 45/Ahd/2023 (in ITA No. 1767/Ahd/2019) Assessment Year 2019-20 M.A. No. 45/Ahd/2023 (In I.T.A No. 1767/Ahd/2019) A.Y. 2019-20 Page No. ITO (E) vs. Shri Rajput Yuvak Mandal Sarvajanik Trust 2 2. The brief facts are that th e asses see had made application for regi stration of tru st u/s. 12 AA of the Act on 27 t h March, 201 9, h owever, the ld. CIT(Ex emp tion) rejected the application filed by the a ss es see. In appeal, th e ITAT vide order dated 11- 11-20 22 restored the file to ld. CIT(Exemption) for de-no vo co nsid eration since it was of th e view that sufficient opp ortunity was no t granted to the assessee to produ ce necessary document s/sub mi ssions in supp ort of its ca se. The Depart ment has filed the pres ent M. A. in wh ich it has been submitted that the ITAT wh ile resto ring th e matter b ack to CIT(Ex emp tio n) to lo ok into the elig ibility o f gran t of regi stration u/s. 12 AA o f the Act afr esh ha s no t considered the relevant p ro vision of th e Act wh ich stood amend ed w. e. f. 01 -0 4-2021. Accord ing to the ld. Depart mental Represen tative, the Tribunal has erred in not tak in g into con sideration the amend ed provisions of section 12AA o f th e Act which h ave become in operativ e w. e. f. 01-04- 202 1 by inserting sub-section (5) in section 1 1AA of th e Act. It was sub mitted before u s that once the order of r ejection of CIT(Exe mption), Ah med abad has been set aside by Ho n’b le ITAT fo r de-no vo consideration, it wo uld amo unt th at the original applicatio n u /s. 12AA of th e Act is still pending as on the p resent date. However, sectio n 12AA(5) of th e Act p ro vides that nothing con tained in this shall apply after on 1 s t day of April, 2021 and th erefore registratio n cann ot be granted to th e as ses see u/s. 12AA of the Act since it is no longer in operatio n. M.A. No. 45/Ahd/2023 (In I.T.A No. 1767/Ahd/2019) A.Y. 2019-20 Page No. ITO (E) vs. Shri Rajput Yuvak Mandal Sarvajanik Trust 3 3. On g oing through the facts of the case and the argumen ts put fo rth by th e ld. CIT(A), we o bserve th at in the aforesaid order, the ITAT after taking into consideratio n the facts of th e case, resto red the matter to the file of ld. CIT(Exemption) for de- nov o consideration in accordan ce with law. In ou r con sidered view, the ITAT is no t under an obligatio n to take into co nsid eration subsequent amend ments which may have been introduced in the Statute while setting asid e the matter back to the file of concer ned authority for d e-novo consideration o n th e groun d that su ffi cient opportunity was not granted b y such Authority while d ismi s sin g the app lication /appeal of th e as ses see. The ITAT vide order dated 11-11-202 2 has r esto red the matter to th e file o f ld. CIT(Exemption) to pass approp riate order in acco rd ance with law. If ho wever, there are any amend men ts to th e Statute, which may have an i mpact on as ses see’s applicatio n for g rant of app ro val of the trus t, the same may be con sidered by the Department while adjudicating th e matter afre sh in s et aside proceedings. However, while restoring the matter to the file of ld. CIT(A), the o rd er o f Tribunal can not be held to be erroneous for o mitting to take into consideration subsequent amend ments to law which may have a possib le bearing on the case. In our co nside red view, it wou ld be su ffice if th e Tribu nal restores the matter back to the file of th e co ncern ed authority to pass an ord er in accordance with law, prev ailing as on date. M.A. No. 45/Ahd/2023 (In I.T.A No. 1767/Ahd/2019) A.Y. 2019-20 Page No. ITO (E) vs. Shri Rajput Yuvak Mandal Sarvajanik Trust 4 4. In the result, the Miscellan eous A pplication filed by th e Depart ment is dismi ssed. Order pronounced in the open court on 26-07-2023 Sd/- Sd/- (ANNAPURNA GUPTA) (SIDDHARTHA NAUTIYAL) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad : Dated 26/07/2023 आदेश क त ल प अ े षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/ आदेश से, उप/सहायक पंजीकार आयकर अपील य अ धकरण, अहमदाबाद