IN INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH , MUMBAI BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NO. 4372/MUM/2014 : (A.Y : 2006-07) Kshatriya Union Club Vs. Income Tax (Exemption)-11(1), Vanmali Hall, 70-D, Chhabildas Mumbai (Respondent) Road, Dadar, Mumbai 400 028. PAN : AAATK0073H (Appellant) Assessee by : Shri Anil Sathe Revenue by : Ms. Savita Bundas Date of Hearing : 01/09/2016 Date of Pronouncement : 23/09/2016 ORDER PER SAKTIJIT DEY, JM : instant appeal of assessee is directed against order dated 30.4.2014 for Assessment Year 2006-07. Though assessee has raised multiple issues in grounds of appeal, but core issue relates to disallowance of assessees claim of exemption u/s 11 of Income Tax Act, 1961 (in short Act ). 2. Briefly put, facts are that assessee public charitable trust stated to be established in year 1885 is registered under Societies Registration Act. trust was also granted registration u/s 12A of Act by DIT(E), Mumbai vide order dated 16.10.1984. For 2 Kshatriya Union Club ITA No. 4372/Mum/2014 impugned assessment year, assessee filed its return of income on 27.10.2006 declaring NIL income after claiming exemption u/s 11 of Act. Assessing Officer having found that registration granted u/s 12A of Act was withdrawn by DIT(E) vide order dated 4.3.2011 from date of registration, reopened assessment u/s 147 of Act. During assessment proceedings, Assessing Officer called upon assessee to explain why exemption claimed u/s 11 of Act should not be disallowed in view of withdrawal of registration u/s 12A of Act. Though, assessee objected to proposed disallowance, however, Assessing Officer, rejecting explanation of assessee, disallowed assessee s claim of exemption u/s 11 of Act on ground that registration granted u/s 12A of Act having been withdrawn, assessee is not eligible for exemption u/s 11 of Act. Accordingly, he completed assessment by treating receipts of assessee as income from other sources. Being aggrieved by such assessment order, assessee preferred appeal before CIT(A). Ld. CIT(A) also confirmed assessment order passed by Assessing Officer on reasoning that registration granted u/s 12A having been withdrawn, assessee is not eligible for exemption u/s 11 of Act. Being aggrieved, assessee is before us. 3. ld. AR submitted that against order of cancellation of registration u/s 12A of Act, assessee had filed appeal before ITAT and ITAT vide order dated 10.8.2012 in ITA No. 2782/Mum/2011 had restored matter back to file of DIT(E) to consider issue afresh. It was submitted that ld. DIT(E) on re-hearing matter pursuant to directions of ITAT has restored registration granted 3 Kshatriya Union Club ITA No. 4372/Mum/2014 u/s 12A of Act vide order dated 19.5.2014. He, therefore, submitted that since reason on basis of which assessee s claim of exemption was denied no longer exists, matter may be remanded back to file of Assessing Officer for deciding afresh assessee s claim of exemption u/s 11 of Act. 4. ld. DR has not opposed aforesaid contention of assessee. 5. We have considered submission of parties and perused material on record. It is evident from record that only reason on basis of which Assessing Officer disallowed assessee s claim of exemption u/s 11 of Act and ld. CIT(A) also sustained such disallowance is that registration granted u/s 12A of Act to assessee has been withdrawn. However, as brought to our notice by ld. AR, DIT(E) in pursuance to directions of Tribunal considered issue afresh and vide order dated 19.5.2014 has restored registration granted u/s 12A of Act. As aforesaid development was not either before Assessing Officer or before CIT(A), in our considered opinion, matter has to go back to Assessing Officer to consider assessee s claim of exemption u/s 11 of Act afresh as registration granted u/s 12A of Act has been restored in meantime. Accordingly, we set aside impugned order of CIT(A) and restore matter back to file of Assessing Officer for deciding afresh after considering all facts and material on record and only after due opportunity of being heard to assessee. 4 Kshatriya Union Club ITA No. 4372/Mum/2014 6. In result, appeal of assessee is allowed for statistical purpose. Order pronounced in open court on 23rd September, 2016. Sd/- Sd/- (D. KARUNAKARA RAO) (SAKTIJIT DEY) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai, Date : 23rd September, 2016 SSL Copy to : 1) Appellant 2) Respondent 3) CIT(A) concerned 4) CIT concerned 5) D.R, Bench, Mumbai 6) Guard file By Order Dy./Asstt. Registrar I.T.A.T, Mumbai Kshatriya Union Club v. Income-tax (Exemption)-11(1), Mumbai