Trust granted tax exemption under Section 11 despite initial disallowance, Tribunal rules in Trust's favor.

The Trust, registered under Section 12A of the Income Tax Act, initially faced disallowance of exemption claim due to the absence of Form 10B. Despite later filing the form and a Rectification Petition seeking exemption, both were rejected. The Tribunal ruled in favor of the Trust, stating it was eligible for exemption under Section 11. The AO was directed to reassess considering the relevant Form 10B. The CIT(A)'s order was set aside, and the appeal was allowed for statistical purposes.

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Issues involved:
The judgment involves issues related to the order under Section 154, natural justice, consideration of relevant records, assessment under specific provisions of the Income Tax Act, disallowance of expenses, and rectification of assessment.

Issue 1: Order under Section 154
The appellant challenged the order under Section 154, arguing that the CIT(A) unjustly dismissed the appeal based on a circular issued after all assessment proceedings had taken place. The appellant contended that the circular should not have been invoked in disposing of the appeal.

Issue 2: Natural Justice
The appellant claimed that the assessing officer did not provide notice of defects or an opportunity to rectify them before making the order under Section 143(1)(a). The appellant argued that this lack of natural justice was against the principles of fairness and the CIT(A) erred in relying on a circular issued after the assessment proceedings.

Issue 3: Consideration of Relevant Records
Citing legal precedents, the appellant argued that the assessing officer should have considered Form 10B while making the rectification petition. The appellant contended that the failure to consider the form was unjustified and contrary to the provisions of the Income Tax Act.

Issue 4: Assessment under Specific Provisions
The appellant contended that the assessment was erroneously made under general provisions of the Act without considering the registration under Section 12AA. The CIT(A) was criticized for not addressing this ground of appeal while dismissing the appeal petition.

Issue 5: Disallowance of Expenses
The appellant argued that the assessment should have considered the claim of application under Section 11 of the Act and not treated gross receipts as assessable income. The CIT(A) was faulted for not addressing this ground of appeal in the dismissal of the appeal petition.

Issue 6: Rectification of Assessment
The appellant claimed that the rectification order should have considered the fact that the defect of not filing the Audit Report was cured before moving the petition under Section 154. The appellant argued that the rectification should have been made under the provisions of Section 11, considering the filed Form 10B.

Judgment Summary:
The judgment involved a Trust registered under Section 12A of the Income Tax Act, which had filed a return of income without Form 10B. The assessing officer disallowed the exemption claim due to the absence of Form 10B. The Trust later filed Form 10B and a Rectification Petition seeking exemption, which was rejected by the AO and CIT(A). The Tribunal found that the Trust was eligible for exemption under Section 11 and directed the AO to reconsider the issue in light of the relevant Form 10B filed by the Trust. The Tribunal set aside the CIT(A)'s order and allowed the appeal for statistical purposes.

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