TaxTMI 
TaxTMI 
2018 (12) TMI 36
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....sons (AOP). The return of income was filed declaring income at Nil. The case was selected for scrutiny. During the relevant assessment year, the assessee did not have registration u/s 12AA of the Income Tax Act, 1961 (hereinafter called 'the Act') and the registration u/s 12AA was applied only on 15.12.2014. The Assessing Officer denied exemption to the assessee on the ground that the assessee did not have the required registration u/s 12AA of the Act. Addition was made by the Assessing Officer on account of corpus fund/donations amounting to Rs. 52,50,9501/-, addition on account of creditors amounting to Rs. 29,63,131/- and addition on account of disallowance of depreciation. The assessment was completed at an income of Rs. 83,47,8....
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.... existed solely for the purpose of education. It was also submitted that the assessee has since been granted registration u/s 12AA and this grant of registration essentially required the income tax authorities to check and assess the genuineness of the activities of the trust and, therefore, the grant of registration u/s 12AA was proof enough that the assessee's activities were genuine in nature. It was also submitted that the registration u/s 12AA was granted vide order dated 8.6.2015 and registration was to be effective from 1.4.2014. It was also submitted that it was during the course of appellate proceedings before the Ld. Commissioner of Income Tax (A) that the registration u/s 12AA was granted. He drew our attention to proviso to sect....
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....nse, the Ld Sr. DR placed reliance on the orders of the authorities below and vehemently argued that the assessee had failed to follow the due procedure as laid down by the Act and, therefore, the benefit of exemption had been rightly denied. 5.0 We have heard the rival submissions and perused the material available on record. Admittedly, the assessee did not hold registration u/s 12AA at the time when the return of income was filed although it claimed the benefit of exemption u/s 11 of the Act. However, we note that with the insertion of proviso to section 12A(2), the assessee is eligible for benefit of exemption u/s 11 of the Act. The said proviso reads as under:- "Provided that where registration has been granted to the trust or insti....