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Sunday 13 December 2015

Suggestion on S. 12(2) first proviso

1. As per proviso to section 12A(2) inserted by Finance Act 2014 w.e.f. 01-10-2014
where registration has been granted to the trust or institution under section 12AA, then, the provisions of sections 11 and 12 shall apply in respect of any income derived from property held under trust of any assessment year preceding the aforesaid assessment year, for which assessment proceedings are pending before the Assessing Officer as on the date of such registration and the objects and activities of such trust or institution remain the same for such preceding assessment year

​2. ITAT Kolkatta in ITA 1680 to 1685/2012 Sree Sree Ramkrishna Samity , pronounced on 09-10-2015 ​held that the above proviso is retrospective in operation.

3.Further that the  Appeal proceedings are continuation of assessment proceedings and powers of appellate authority are coterminuous with assessing officer has been held by supreme court in CIT v Kanpur Coal Syndicate (1964) 53 ITR 225 (SC); CIT v Jute Corporation, 187 ITR 688; National Thermal Power Co. Ltd. v CIT (1998) 229 ITR 383 (SC); Ahmedabad Electrecity Co. Ltd. v CIT 199 ITR 351 (Bom) (FB)

4. However inspite of above position of law, if on the date of registration of trust the case of the assessee trust is pending before appellate authorities, the assessee may be denied the benefit of section 11 and 12 inspite of the fact that Para 8.2 of memorandum explaining the provisions of Finance Act says that
8.2 Non-application of registration for the period prior to the year of registration caused genuine hardship to charitable organisations. Due to absence of registration, tax liability is fastened even though they may otherwise be eligible for exemption and fulfil other substantive conditions. However, the power of condonation of delay in seeking registration was not available”


5.Hence the position of law should be clarified to provide benefit to trusts even if proceedings are pending before appellate bodies.

Voice recorded CDs are documents under evidence Act Held by SC in Shamsher Singh Verma CRIMINAL APPEAL NO. 1525 OF 2015 (Arising out of S.L.P. (Crl.) No. 9151 of 2015)24-11-2015

“………..11. Word “document” is defined in Section 3 of the Indian Evidence Act, 1872, as under: - “ ‘Document’ means any matter expressed or described upon any substance by means of letters, figures or marks, or by more than one of those means, intended to be used, or which may be used, for the purpose of recording that matter