TaxTMI 
TaxTMI 
TaxTMI 
2025 (12) TMI 620
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....ders of the lower authorities, is that the assessee, a charitable trust registered under section 12A of the Act since 05.01.2011, filed its return of income for the Assessment Year 2021-22 in Form ITR-7 on 31.12.2021. The assessee declared nil income after claiming exemption under section 11. It is on record that the assessee had incurred revenue expenditure of Rs. 3,67,53,006 towards its charitable objects and had claimed accumulation under section 11(1)(a) amounting to Rs. 59,97,501. 2.2 The return filed by the assessee was processed by the CPC under section 143(1). The CPC disallowed the exemption under section 11 on the ground that in the Schedule Part A General of the return of income the details of registration under the amended provisions of section 12AB or section 10(23C) were not filled in the specific column relating to the section under which registration was obtained. The Central Processing Centre noted that the law had been amended with effect from 01.06.2020 requiring all existing charitable entities to apply afresh for registration under section 12AB or section 10(23C). On this basis the CPC considered the assessee as not having a valid registration for the purpos....
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....s 59,97,501. 4. That the CIT (A) NFAC 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. 5. 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. 6. 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). 7. Intimation passed U/s 143(1) is against fact that, though we have filled the audit report in Form 10B vide Ack No. 521657880220922 on 22/09/2022, in the Intimation it has been mentioned that "NO FORMS FILED". 8. Intimation passed U/s 143(1) is itself erroneous, as correct amount worked out in the Annexure - Schedule ER (Revenue Expenditure) at Sl No F of Rs 36753006, which was mentioned ZERO in the calculation sheet at Sr No 4(i). 9. Your appellant craves, leave to add, alter, & or to emend modify substitute all or any ground of appeal before final hearing i....
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....earlier registration under section 12A continued to remain valid up to 30.09.2023. It was therefore argued that for the previous year 2020-21 relevant to AY 2021-22, the assessee's registration under section 12A/12AA was fully valid and subsisting and the assessee was eligible for exemption under sections 11 and 12. The learned Authorised Representative submitted that the CIT(A) failed to appreciate the effect of the extension of time granted by the CBDT and wrongly proceeded as if the new provisions were applicable for AY 2021-22. 4.5. The learned AR submitted that the assessee had applied for re- registration in Form 10A on 06.01.2022, i.e., within the extended time permitted by CBDT. It was further submitted that the return of income was filed on 31.12.2021 and the order granting re-registration under section 12AB was passed only on 13.01.2022. Therefore, it was impossible for the assessee to mention the new registration details in the ITR which had already been filed much earlier on 31.12.2021. The AR argued that the non-mentioning of the new registration number in the ITR was purely technical and could not be used as a ground to deny exemption. 5. The learned Departm....
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....ailable for any assessment year for which an application for registration was made, provided the objects and activities remain the same. The proviso further grants relief by ensuring that where the registration is granted after the due date, the exemption shall not be denied merely on the ground that the application for registration was filed belatedly, so long as the objects and activities remain unchanged. 6.4. The legal effect of the proviso to section 12A(2), read in its proper context, makes it clear that the registration once existing and validly continued under the pre-amended law cannot be ignored to deny exemption for an assessment year during which the trust's application for renewal or revalidation is pending or eventually approved. The assessee has placed on record its earlier registration under section 12A, which had not been withdrawn, suspended or cancelled at any time. The re-registration under section 12AB granted subsequently from AY 2022-23 onwards does not extinguish the earlier registration for the period prior thereto. The transition from section 12A/12AA to section 12AB was legislatively intended to be non-disruptive, ensuring continuity of benefits while ....