Once registration is granted, it is for the AO while framing assessment to consider the other provisions of the Act

IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH: KOLKATA

[Before Shri Mahavir Singh, JM & Shri Sanjay Arora, AM]

I.T.A No. 1291/Kol/2011

Assessment Year:

GMCKS Light Workers Trust

(PAN: AABTG4884B)

(Appellant)

Vs.

 Director of Income-tax, Exemption, Kol.

 (Respondent)

For the Appellant: N o n e

For the Respondent: Shri A. K. Pramanik

Date of hearing: 23.08.2012

Date of pronouncement: 23.08.2012

ORDER

Immediately upon conclusion of hearing of this appeal on 23rd August, 2012, the bench passed the following order:

“23rd August, 2012

Assessee’s appeal is dismissed. Order pronounced in open court. Detailed order will follow.

Per Mahavir Singh, JM

This appeal by assessee is arising out of order of DIT(E), Kolkata vide M No. DIT(E)/8E/511/10-11/283-85 dated 29.07.2011.

2. At the outset, it is to be mentioned that none present from the assessee side but after going through the order of DIT(E), Kolkata it is noticed that the DIT(E), Kolkata has granted registration u/s. 12AA of the Income-tax Act, 1961 (hereinafter referred to as the “Act”) w.e.f. 13.08.2010 from the date of Memorandum of Association/Trust Deed executed by assessee Trust. But the assessee has raised the issue that the DIT(E) has erred in holding that the proviso to section 2(15) of the Act will be applicable once the gross receipt crossed the limits specified therein. For this, assessee has raised following ground nos. 1 and 2:

“1. That the Ld. DIT(E) on granting registration u/s. 12AA has erred in holding the object of the trust as advancement of general public activity inspite of the objects and activities of the trust being related to provision of medical relief and education etc for charitable purposes only.

2. That the Ld. DIT(E) has erred in holding that the proviso to section 2(15) shall be applicable once the gross receipts cross the limit specified therein despite the fact that such provso is applicable only on the specified activity mentioned therein is carried out.”

3. We have heard Ld. Sr. DR Shri A. K. Pramanik and noticed that the DIT(E), Kolkata vide his order in M No. DIT(E)/8E/511/10-11/283-85 dated 29.07.2011 has allowed registration u/s. 12AA of the Act and therefore there cannot be any grievance to the assessee.

However, the DIT(E) also should not have mentioned what is the entitlement regarding the operation of the provisions of sections 11, 12 and 13 of the Act. Once registration is granted, it is for the AO while framing assessment to consider the other provisions of the Act. In effect, this appeal of assessee is dismissed with above observations.

4. In the result, appeal of assessee is dismissed.

5. Order pronounced in open court.

                                                            Sd/-                Sd/-

                                                 (Sanjay Arora)     (Mahavir Singh)

                                              Accountant Member Judicial Member

Dated: 23rd August, 2012

Jd.(Sr.P.S.)

Copy of the order forwarded to:

1. APPELLANT – GMCKS Light Workers Trust, Rajhans, Flat 1D, 6, Hastings Park Road, Kolkata-700 027.

2. Respondent – DIT (E), Kolkata.

3. Addl. Director of Income tax (Exemption), Kolkata

4. DDIT(E)-1, Kolkata.

5. DR, Kolkata Benches, Kolkata

True Copy,

By order,

Asstt. Registrar.