TaxTMI 
TaxTMI 
2023 (10) TMI 16
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....FAC while sustaining the addition failed to appreciate that the assessee was registered as Charitable Trust u/s 12A as per the previous history the exemption u/s 11 was allowed to the assessee. 3. That the CIT (A) NFAC had given a wrong finding that the new registration as per the amended provisions of sec 12AB are applicable to AY 2020-21 whereas the same are applicable from A.Y 2022-23. 4. That the CIT (A) NFAC failed to appreciate that disallowance of exemption u/s 11 could not have been made while processing the return u/s 143(l)(a). 5. That the orders of AO and CIT (A) NFAC are against the Law and Facts of the case. 2. During the course of hearing, the ld. AR submitted that the assessee Trust is registered u/s 12A of the Act....
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..... It was further submitted that the assessee has also applied for renewal of registration in Form 10A and registration has been approved by the Department by issuing Form 10AC dated 24.09.2021 for assessment year 2022-23 to 2026-27. 5. It was submitted that the ld. CIT(A) NFAC was not correct in holding that the earlier provisions of Section 12AA are not applicable and new Section 12AB are applicable in the instant case. It was submitted that the new provisions have been introduced only w.e.f. assessment year 2022-23 and are, therefore, not relevant for impugned assessment year 2020-21. 6. It was further submitted that the Central Board of Direct Taxes has also came out with Circulars from time to time and in this regard, our reference wa....
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.... at Rs. 61,77,016/- which was added to the total income by CPC. Bengaluru. The appellant is a trust as Dharamshala at Shimla and Palampur has registered u/s. 12A vide its order dated 30.01.1986 for A.Y. 1985-86 onwards. During appeal proceedings, the appellant submitted the copies of order for the A.Ys. 2010-11 2011-12, 2012-13 & 2015-16 wherein the appellant got exemption u/s. 11 as the registration was allowed by the CIT, Patiala u/s 12A. The appellant has produced an Approval Form 10AC dated 24.09.2021. However, it is seen that the order for registration in Form No. 10AC dated 24.09.2021 in which registration is being granted under section 12A(1)(ac)(i) of the IT. Act, 1961 from A.Y. 2022-23 to A.Y. 2026-27. This appeal is for the A.Y....
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.... appellant is not eligible for the exemption u/s 11." 10. We have heard the rival submissions and perused the material available on record. The ld CIT(A) NFAC has stated two reasons while confirming the denial of benefit of exemption u/s 11 to the assessee trust. Firstly, it has been stated that during the appellate proceedings, the assessee trust could not submit copy of its registration u/s. 12A originally granted on basis of which the past assessment were completed allowing exemption u/s section 11 of the Act. In this regard, we find that in the assessment order for assessment year 1984-85, there is a clear mention of the assessee Trust being granted registration u/s 12A vide ld. CIT, Patiala letter dated 30.01.1986 and following the s....
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....r section 11 of the Act. 12. In this regard, we refer to sub-section (5) to section 12AA which states that "Nothing contained in this section shall apply on or after the 1st Day of April 2021" which has been inserted by the Taxation and other laws (Relaxation and Amendment of certain Provisions) Act, 2020 w.e.f 01/04/2021. The ld CIT(A) has apparently referred to earlier sub-section (5) which was inserted by the Finance Act, 2020 w.e.f 01/06/2020 and which has since been omitted by the Taxation and other laws (Relaxation and Amendment of certain Provisions) Act, 2020 w.r.e.f 01/06/2020. As per the provisions of sub-section (5) to section 12AA, the registration granted to the assessee trust continue to exist and in any case has not been wit....