2019 (3) TMI 2093 - AT - Income Tax

Assessment orders set aside for denying s.11 exemption where s.12AA registration was granted after assessments; AO to reassess

ITAT, Pune (AT) set aside the impugned assessment orders denying exemption under s.11 because the trust obtained registration under s.12AA after the ... Denial of benefit of exemption u/s. 11 - assessee trust was not registered u/s. 12AA - HELD THAT:- It is observed that subsequent to the passing of the assessment orders, the assessee got registration from the ld. CIT vide order dated 02-12-2016. Under these circumstances, we are of the considered opinion that the ends of justice would meet adequately if the impugned orders are set-aside and the matter is restored to the file of AO. We order accordingly and direct him to finalize the assessments afresh as per law after taking into consideration the fact of grant of registration granted to the assessee trust u/s. 12AA of the Act. Assessee, a trust registered under the Societies Registration Act, filed returns for A.Y. 2011-12 to 2013-14. The Assessing Officer denied exemption under s. 11 because the trust was not registered under s. 12AA at the time of assessment and computed income accordingly; the CIT(A) upheld the assessments. Subsequent to the assessments, the trust obtained registration under s. 12AA (order dated 02-12-2016). The Tribunal observed that, in view of the post-assessment registration, 'the ends of justice would meet adequately if the impugned orders are set-aside and the matter is restored to the file of AO.' The AO is directed to 'finalize the assessments afresh as per law after taking into consideration the fact of grant of registration granted to the assessee trust u/s. 12AA of the Act,' with a reasonable opportunity of hearing. All three appeals are 'allowed for statistical purposes.'