HC allowed the appeal challenging ITAT's rejection of Section...

HC allowed the appeal challenging ITAT's rejection of Section 12AA registration benefits. ITAT erroneously held that assessment proceedings pending in appeal before ITAT did not constitute 'assessment proceeding' under first proviso to Section 12A(2). HC ruled that appellate proceedings before ITAT are continuation of original AO proceedings and deemed assessment proceedings within Section 12A(2) meaning. Court held first proviso to Section 12A(2) is retrospective, citing CBDT Circular 01/2015 and legislative intent to prevent hardship to charitable organizations. Registration granted on 14-7-2023 operates retrospectively for AY 2016-17 despite registration effective from 1-4-2019. Society entitled to exemption under Sections 11 and 12. AO directed to pass consequential order expeditiously.