The Commissioner of Income Tax (Exemptions), , Ahmedabad V. Association of Cricketers of Saurastra, Rajkot

MA 9/RJT/2023

AI Insights

The case involves the Income Tax Appellate Tribunal (ITAT) Rajkot Bench, which addressed a Miscellaneous Application filed by the Revenue seeking clarification/modification of a previous order concerning the Association of Cricketers of Saurashtra. The original dispute centered on the denial of registration under section 12AA of the Income Tax Act by the CIT(Exemption), which was contested and led to a Tribunal decision favoring the assessee. The Revenue's MA argued that due to the amendment and inoperation of section 12AA post-1.4.2021, the Tribunal's directions could not be complied with. However, the Tribunal dismissed the MA, emphasizing that the application should be considered under the provisions applicable at the time of the original filing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133698 (ITAT-RAJKOT)
• Duration Of Justice: 4 month(s) 24 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 26-09-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 14-09-2023
• Assessment Year: 2016-2017
• Appeal Filed On: 02-05-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PANDEY
• Section: 12A; 12AA

Judgement Text

आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरणआयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, राजकोट 瀈यायपीठ 瀈यायपीठ瀈यायपीठ 瀈यायपीठ, , , , राजकोट IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT (Conducted Through Virtual Court) BEFORE SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER Misc.Application No.09/Rjt/2023 IN ITA No.41/RJT/2018 Assessment Year : - The CIT(Exemption) Ahmedabad. Vs. Association of Cricketers of Saurashtra “Vijay” 5, New College Vadi Opp: G.T. Sheth School Kalawad Road, Rajkot. PAN : AAFTA 8600 B अपीलाथ / (Appellant) यथ /(Respondent) Assessee by : None Revenue by : Shri Ashish Kumar, Pandey, Sr.DR स ु नवाई क तार ख/Date of Hearing : 15/09/2023 घोषणा क तार ख /Date of Pronouncement: 27/09/2023 आदेश/O R D E R PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER Present MA is filed by the Revenue seeking clarification/ modification in the order of the Tribunal passed in ITA No.41/RJT/2018 dated 11.11.2022. 2. None remained present at the time of hearing on behalf of the assessee. Therefore, considering the material available on record, and after hearing the ld.DR we proceed to dispose of the Revenue’s MA ex parte qua the assessee-respondent. MA No.09/Ahd/2023 2 3. The crux of the grievances of the Revenue against the impugned order of the Tribunal (supra) are at para-3 and 4 of the MA which reads as under: “3. In this respect it is humbly submitted that the said order has been passed on 11/11/2022 and Hon'ble Tribunal has not considered the relevant provision of Act which stood after 01.04.2021. The matter relates to grant of registration u/s.12AA of the Act and it is brought to kind notice of the Hon'ble Tribunal that the provisions of section 12AA of the Act has become inoperative w.e.f. 01.04.2021 by inserting the sub-section (5) in section 12AA of the Act, which stipulates that "Nothing contained in this section shall apply on or after the 1st day of April 2021. 4. It is also submitted that the provision of section 12AA of the Act is procedural or machinery in nature and once the same becomes inoperative then no action can be taken therein after the date on which it has become inoperative. Further, once the order of rejection of CIT(Exemption), Ahmedabad refusing to grant registration u/s.12AA of the Act has been set- aside by the Hon'ble Tribunal and the matter has been sent back to the file of CIT(Exemption) apparently the original application u/s.12AA of the Act would tantamount to be pending as on date and as per strict interpretation of the provisions of section 12AB(2) of the Act may need to be treated as deemed to be an application made under sub-clause (vi) of clause(ac) of sub- section (1) of section 12A of the date on which section 12AB of the Act has come into force.” 4. The contention of the ld.DR was that since section 12AA of the Act had become inoperative from 1.4.2021, no action can be taken therein after the date on which it has become inoperative. He further contended that the impugned order of the Tribunal is dated 11.11.2022, and the directions contained therein cannot be complied with, since by virtue of section 12AB(2) of the Act the application of the assessee filed under section 12AA of the Act will have to be treated as an application made under 12A(1)(ac)( vi) of the Act. He accordingly sought a specific direction/modification of the impugned order of the Tribunal in this behalf. 5. We have heard the ld.DR and gone through the impugned order of the Tribunal, as also perused the contents of the MA. We find no justifiable reasons to intervene in the Tribunal’s impugned order for invocation of section 254(2) of the Act. The CIT’s denial of MA No.09/Ahd/2023 3 assessee’s application for registration under section 122A of the Act was based solely on the absence of documentary evidence, which after closer consideration of the material on record, Tribunal discerned that the assessee had reasonably demonstrated that they were not accorded a fair opportunity to represent their case. And also from the record it was gauged that the assessee had reasonably addressed to the queries advanced by the Commissioner. In the light of this valid reasons put forth by the assessee, in the interest of justice, the ITAT granted the assessee further opportunity and directed the ld.CIT(E) to reconsider the matter concerning the grant of registration under section 12AA of the Act in accordance with law. However, the Revenue has not contested this observation and finding made by the Tribunal in the present MA. Instead, the Revenue has introduced a different perspective by contending that since section 12AA of the Act became inoperative w.e.f. 1-4-2021, the application of the assessee for registration should be considered under the provisions of section 12A(1)(ac)(vi) of the Act. It is pertinent to take note that the assessee originally filed their application under section 12AA on 7.7.2017 in accordance with the provisions that were in effect, at that time. The ld.CIT’s order rejecting the application was passed on 1.17.2018. The assessee contested this order of the Commissioner on 8.2.2018 before the Tribunal. Subsequently the provision of the Act was amended which became effective on 1.4.2021 i.e. operates prospectively. The assessee’s appeal before the Tribunal was decided in favour of the assessee on 11.11.2022. The observations and finding of the Tribunal have not contested by the ld.DR in the present MA. Rather, the Department, by way of the present MA, has sought a specific direction from the ITAT regarding whether the Department should invoke the provisions of section 12AA or the newly amended MA No.09/Ahd/2023 4 provisions for consideration of the application filed by the assessee for registration. We are of the view that the determination of the applicable provisions should rightly rest with the relevant authority, and it is for the concerned authority to ensure under which provision it is to be decided. Therefore, taking into consideration the facts and circumstances of the case, finding no merit or logic in the Revenue’s contention raised in the MA, we dismiss the MA filed by the Revenue. 6. In the result, the Misc. Application filed by the Revenue is dismissed. Order pronounced in the Court on 27 th September, 2023 at Ahmedabad. Sd/- Sd/- (T.R. SENTHIL KUMAR) JUDICIAL MEMBER (ANNAPURNA GUPTA) ACCOUNTANT MEMBER Ahmedabad,dated 27/09/2023