TaxTMI 
TaxTMI 
2026 (3) TMI 815
X X X X Extracts X X X X
X X X X Extracts X X X X
....ioner for the Assessment Year 2016-2017 has been rejected. 4. Operative portion of the impugned order of rejecting the request of the petitioner is reproduced below :- "5. Decision :- 5.1.It is pertinent to note that only Trust or institution registered under Section 12A are required to furnish the said Form No.10B within the due date. In the assessee's case, for the AY 2016-17, the assessee is not a registered Trust as the assessee got approval only from AY 2017- 18 i.e. with effect from 01.04.2016 onwards. The assessee is not entitled to claim exemption for the Asst. Year 2016-17. 5.2.It is relevant at this juncture to get into the amendment brought in Section 12A by Finance Act 2014 with effect from 01.10.2014 by way of insertion of first proviso to Sec.12A(2) of the Act, which is reproduced below for the sake of convenience : "...(2) Where an application has been made on or after the 1st day of June 2007, the provisions of Sections 11 and 12 shall apply in relation to the income of such trust or institution from the assessment year immediately following the financial year in which such application is made: "Provided that where reg....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of Madras. Hence, reliance is placed on the following recent case laws :- a. Shiv Kumar Sumitra Devi Samarak Shikshan Sansthan - 138 Taxmann.com197(2022):- In this case, the Hon'ble Supreme Court dismissed the SLP filed by the assessee against the decision of Allahabad High Court according to which the benefit under Section 11 and 12 would be available to assessee from assessment year following financial year in which application for registration under Section 12A was given and not from any previous year. b. U.P.Forest Corporation v. Dy. CIT (2007) 165 Taxman.533:- The Hon'ble Supreme Court observed that a conjoint reading of sections 11, 12 and 12A makes it clear that registration under Section 12A is a condition precedent for availing of benefit under Sections 11 and 12. Unless and until an institution is registered under Section 12A, it cannot claim the benefit of section 11(1)(a). Keeping in view the fact that the assessee had not been granted registration under section 12A, it was not entitled to claim exemption from payment of tax under sections 11(1)(a) and 12. c. Soundaram Chokkanathan Education & Charitable Trust (2021) 125 Taxm....
X X X X Extracts X X X X
X X X X Extracts X X X X
....me of such trust or institution from the assessment year immediately following the financial year in which such application is made. However, as per the Proviso to Sec.12(A)(2) of the Income Tax Act, 1961, where registration has been granted to the trust or institution under Section 12AA, then the provisions of sections 11 and 12 shall apply in respect of any income derived from property held under trust of any assessment year preceding the aforesaid assessment year, for which assessment proceedings are pending before the Assessing Officer as on the date of such registration and the objects and activities of such trust or institution remain the same for such preceding assessment year. Thus, the benefit of Sec.11 and Sec.12 of the Income Tax Act, 1961 is to be given to the petitioner. 9. The due date for filing the Return of Income after due extension as per Central Board of Direct Taxes Circular for the Assessment Year 2016-2017 was on 17.10.2016. As per Section 44-AB of the Income Tax Act, 1961, the petitioner was also required to file an Audit Report in Form No.10B along with Return of Income under Section 139(1) of the Act on 17.10.2016. 10. However, the petitioner belated....
X X X X Extracts X X X X
X X X X Extracts X X X X
....essment year, for which assessment proceedings are pending before the Assessing Officer as on the date of such registration. 17. As per second proviso to Section 12A(2), no action under Section 147 shall be taken by the Assessing Officer in the case of such trust or institution for any Assessment Year preceding the aforesaid year except for non-registration of such trust or institution for the said Assessment Year. 18. This has been clarified vide Circular No.1/2015 dated 21.01.2015 bearing Reference F.No.142/13/2014-TPL, which contains Explanatory Notes to the provisions of the Finance (No.2) Act, 2014. 19. As far as applicability of registration granted to a trust or institution to earlier years are concerned, in Paragraph Nos. 8.2 and 8.3 of Circular No.01/2015 dated 21.01.2015, it has been clarified as under :- "8.2 Non-application of registration for the period prior to the year of registration caused genuine hardship to charitable organisations. Due to absence of registration, tax liability is fastened even though they may otherwise be eligible for exemption and fulfill other substantive conditions. However, the power of condonation of delay in seeking regis....