Subsisting 12A registration preserves section 11 exemption and requires reassessment on that basis.

A charitable institution's registration under section 12A, read with section 12AA(1)(v), remained operative because the cancellation order had already been set aside. On that basis, the assessee continued to qualify for exemption under section 11, and the assessment could not be sustained on the premise that registration had lapsed. The assessment framed by the Assessing Officer and upheld in first appeal was therefore held unsustainable and required reconsideration in accordance with law. The matter was restored for fresh adjudication, with directions to compute income after allowing section 11 exemption, subject to the reassessment proceedings.

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Issues: Whether the assessee's registration under section 12A remained operative so as to entitle it to exemption under section 11 and require fresh assessment after setting aside the assessment order.

Analysis: The order cancelling registration had already been set aside by the Tribunal, and the registration granted under section 12A read with section 12AA(1)(v) continued to remain in force. In view of the subsisting registration, the assessment could not proceed on the footing that the assessee was disentitled to exemption under section 11. The assessment framed by the Assessing Officer and sustained by the first appellate authority was therefore not sustainable and required reconsideration in accordance with law.

Conclusion: The assessee was entitled to have the matter restored for fresh adjudication, and the Assessing Officer was directed to compute income after granting exemption under section 11, subject to the reassessment proceedings.

Ratio Decidendi: Where a charitable institution's registration under section 12A remains in force, the assessment must proceed on that basis and exemption under section 11 cannot be denied merely on the premise of a cancelled registration.

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