Exemption u/s 11(1)(d) Corpus Donations to Charitable Religious Trust

[LALIT MUNOYAT]

1) The Trust was created on 26-12-2013 as per PAN.

2) Application for its registration with Office of the Charity Commissioner Mumbai was made in Jan 2013. The registration was granted on 15-04-2013.

3) Application for exemption certificate u/s 12 AA was made on 15-10-2013 and the registration approval was received on 21-04-2014 making the registration effective from 15-10-2013.

4) Return of Income for the A.Y. 2013-14 was filed on 31-03-2014 claiming exemption of corpus donations of ₹ 82 Lakhs. By intimation u/s 143(1) the exemption was denied because registration was not received upto 31-03-14 and corpus donations were fully taxed.

Point of Issue

a) Is the trust eligible for exemption for A.Y. 2013-14 u/s 12A(1)(aa) for registration which is effective from 15-10-13; If not

b) Is the Trust eligible for exemption u/s 12A(2) read with First Proviso which provides that

i) The exemption is available w.e.f. 1st day of April 2014 or

ii) The exemption will also be applicable to A.Y. 2013-14 if assessment proceedings for A.Y. 13- 14 are pending before the Assessing Officer as on the date of such registration.

iii) Can it be said that as on the date of such registration assessment proceedings for A.Y. 2013-14 were pending particularly when the Return of Income was filed only on 31-03-14

AI Summary

Charitable Trust Seeks Tax Exemption for 2013-14; Eligibility Questioned Due to Registration Timing Under Sections 12A and 11 A charitable religious trust, established in December 2013, sought exemption for corpus donations under section 11(1)(d) for the assessment year 2013-14. The trust applied for registration with the Charity Commissioner in January 2013 and received it in April 2013. It applied for an exemption certificate under section 12AA in October 2013, which was approved in April 2014, effective from October 2013. The income tax return for 2013-14, filed in March 2014, claimed an exemption of 82 lakhs, but it was denied as registration was not received by March 2014. The issue is whether the trust is eligible for exemption under sections 12A(1)(aa) or 12A(2) given these circumstances.