Trust Granted Section 11 Exemption for AY 2015-16; CIT(A)'s Income Enhancement Overturned for Charitable Compliance.

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....Assessee trust formed on 02.09.2014 but granted registration u/s 12AA from AY 2016-17 onwards. For AY 2015-16, exemption u/s 11 denied due to lack of registration. Relying on precedents, it was held that where registration is granted during pendency of appeal, benefit of Section 11 cannot be denied for the year under consideration. CIT(A)'s observations regarding applicability of Section 13 to loans/advances given to spouses of Principal/Administrator expunged, as provisions of Section 13(3)(cc) do not extend to manager/spouse of trust. CIT(A)'s enhancement of income by crediting Amalgamation Fund and Building Fund set aside, as assessee applied more than 85% of receipts for charitable objects, satisfying conditions for Section 11 exemption. CIT(A) exceeded enhancement powers by directing assessment on new source of income.....