Tribunal Orders Re-evaluation of Trust's Tax Exemption Amid New Registration Pending u/s 12AB.

The ITAT allowed the appeal for statistical purposes, directing the CIT(A) to re-examine the issue. The Tribunal emphasized the importance of considering the validity of the old registration under Sec. 12A while the new registration under Sec. 12AB was pending, ensuring the charitable trust's exemption claim under Sec. 11 is properly evaluated.

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Issues Involved:
Appeal against order u/s 154 for denial of exemption u/s 11 to a charitable trust due to failure in furnishing new registration details u/s 12AB in return of income.

Analysis:
1. The appeal was filed by the assessee against the order passed by the CIT(A) dismissing the appeal against the order u/s 154 for denial of exemption u/s 11. The assessee contended that there was no mistake apparent from the record as the trust was registered u/s 12A, and the old registration number was mentioned in the return of income. The CPC denied exemption u/s 11 due to the absence of the new registration number, even though the application deadline for the new number was extended by the CBDT. The CIT(A) erred in not allowing the rectification petition based on these grounds.

2. The assessee, a charitable trust registered u/s 12A, filed its return of income for the relevant assessment year without furnishing details of the new registration approval u/s 12AB to be eligible for exemption u/s 11/12. The Assessing Officer, while processing the return u/s 143(1), disallowed the exemption claim due to the absence of the new registration details, leading to a demand raised on the assessee. Subsequently, the rectification request u/s 154 was rejected by the CPC on the same grounds, which was challenged by the assessee before the CIT(A).

3. The Tribunal noted that the assessee had applied for new registration on Form 10A, granted in Form 10C, and the old registration u/s 12A remained valid until the new registration was granted. However, the Assessing Officer did not consider this aspect while passing the order, leading to the dismissal of the appeal by the CIT(A). The Tribunal directed the CIT(A) to re-examine the issue after providing a reasonable opportunity for the assessee to be heard, ultimately allowing the appeal for statistical purposes.

In conclusion, the Tribunal's decision highlighted the importance of considering the validity of old registration in cases of applying for new registration, emphasizing the need for a thorough examination of relevant facts before denying exemptions to charitable trusts.

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