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A-One Cycles Ltd. Vs. Asstt. Cit (1997) ... vs J.H. Gotla (1985) 156 Itr 323 (Sc) on 24 June, 1998

"6.6 On careful consideration of the submissions of the assessee and on the basis of relevant judicial pronouncements relied upon by the assessee trust more particularly of the Honourable ITAT, C-Bench, Kolkata which is directly on the issue and as that I have not come across any judicial pronouncement which is contrary to that as of today, I am of the view that there is a lot of force in the arguments put forth by the learned AR of the assessee. I am, therefore, in complete agreement with the arguments of the learned AR of the assessee that the first proviso to section 12A(2) of the Act is applicable to trust/institutions which have been granted registration under section 12AA of the Act even prior to amendment provided assessments are pending in their cases at the relevant time. I am also of the opinion that the provisions of section 11/12 of the Act shall apply in respect of any income derived from any 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. I am also in agreement with the arguments of the learned AR of the assessee trust that a proviso which is inserted to remedy unintended consequences and to make the provision workable, a proviso which supplies an obvious omission in the section and is required to be read into the section to give the section a reasonable interpretation, requires to be treated as retrospective, in operation so that a reasonable interpretation, can be given to the section as a whole. So, insertion of first proviso to section 12A(2) of the Act w.e.f. 01.10.2014 should be read as a retrospective in operation w.e.f. the date when the condition of eligibility for exemption under section 11/12 of the Act as mentioned in section 12A of the Act provided for registration under section 12A of the Act as per condition for applicability of section 12A of the Act. This argument of the learned AR of the assessee trust also gets strengthened from the judgment of the Honourable Supreme Court in the case of ALLIED MOTORS(P) LTD. ETC. vs. COMMISSIONER OF INCOME TAX (SC), COMMISSIONER OF INCOME TAX vs. SURESH N. GUPTA (SC), CIT VS VATIKA TOWNSHIP P LTD, COMMISSIONER OF INCOME TAX vs. J.H. GOTLA (SC) and CBDT circular No. 1/2015 dated 21.01.2015.
Income Tax Appellate Tribunal - Delhi Cites 17 - Cited by 42 - Full Document
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