exemption u/s 11 and 12 - allowable on retrospective basis.

[CHAMAN BANTHIA]

Assessee is an AOP Registered under Societies act 1860 with Registrar of Societies, Assam. It runs an educational institution with sole purpose of providing education to the students [charitable within the meaning of Sec 2(15)] and administered by the members of the society. Assessee(Appellant) has failed to furnish return u/s 139 for the AY 17-18 and subsequently after receiving notice u/s 148 dated 15.01.2019 the appellant has filed the return on 16.02.2019. The Notice u/s 143(2) was issued on 10.04.2019. During the assessment proceedings the Appellant got themselves registered u/s 12AA of the income tax Act dated- 22.05.2019. Thereafter the Notice u/s 142(1) was issued on 17.06.2019. All the relevant documents as inquired were furnished from time to time and along with that assesse (appellant) also submitted the following

Since the registration of 12AA has been granted during assessment proceedings then as per the 1st proviso of Sec 12A(2) –where registration has been granted to the trust or institution under section 12AA, then, the provisions of sections 11 and 12 shall apply in respect of any income derived from property held under trust of any assessment year preceding the aforesaid assessment year, for which assessment proceedings are pending before the Assessing Officer as on the date of such registration and the objects and activities of such trust or institution remain the same for such preceding assessment year exemption u/s 11 and 12 is allowable.

Moreover, at the time of filing ITR the registration certificate was not available with us so we could not enter the Approval No. and claim the exemption in the return. Thus, we hereby request you to allow the exemption u/s 11 and 12 for the AY 17-18.

The Submission made by the assesse was disallowed by the assessing officer vide order u/s 147 r.w.s 143(3) on the basis that there are no provisions under income tax act to make amendment in the return of income.

As aggrieved by the disallowance, hence the appeal.

AI Summary

Association Appeals Income Tax Exemption Denial Despite Late Filing, Citing Section 12A(2) Retrospective Provision An association registered under the Societies Act sought income tax exemptions under Sections 11 and 12 for the assessment year 2017-18. Despite not filing a timely return, the association filed after receiving a notice. During assessment, they obtained registration under Section 12AA, which they argued should allow retrospective exemption under the first proviso of Section 12A(2). However, the assessing officer disallowed the exemption, citing the absence of provisions to amend the return of income. The association, disagreeing with this decision, has appealed the disallowance.