Case Law Details
The Bengal Chamber of Commerce & Industry Vs ITO (ITAT Kolkata)
Conclusion: Order under section 143(1) denying benefit of exemption under section 11 in case of granting of deemed registration by CIT after expiry of time limit of six months was contrary to the legal principles and thus, rejection of assessee’s application for rectification under section 154 was invalid.
Held: In the instant case, AO rejected assessee’s rectification application against the intimation u/s 143(1) denying exemption claimed by the assessee u/s. 11. It was held the application for registration under section 12A dated 28.06.1973 ought to have been disposed by the Commissioner with six months i.e. on or before 28.12.1973 and in its absence the registration was deemed to be granted to the assessee on expiry of the said period of six months. Therefore, the order u/s 143(1) denying the benefit of exemption u/s 11 was contrary to the legal principle and therefore, the rejection of assessee’s application for rectification u/s 154 was not justified.
FULL TEXT OF THE ITAT JUDGEMENT
Both these appeals preferred by the assessee are against the separate orders of the Ld. CIT(A)-25, Kolkata dated 31.01.2019 for AYs 2011-12 and 2012-13. Since issues are identical and facts are common, we dispose, both these appeals by this consolidated order. For the sake of convenience we take up the appeal for AY 2011-12 in I.T.A. No. 705/Kol/2019 as the lead case, the result of which will be applicable in equal force to the other appeal also.
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