The Tax Publishers2020 TaxPub(DT) 5441 (Mum-Trib)

INCOME TAX ACT, 1961

Section 11

Where assessee's claim of exemption under section 11 was disallowed by AO due to cancellation of registration, however, without considering the restoration of registration under section 12A, issue was restored to AO for the limited purpose to verify and examine the facts and do the assessment based on restoration of registration under section 12A.

Charitable trust - Exemption under section 11 - Denial on the ground of cancellation of section 12A registration - AO took plea of subsequent restoration of registration

AO disallowed assessee's claim of exemption under section 11 due to cancellation of registration granted under section 12A by DIT(E) vide Order, dated 18-12-2011. Assessee's case was that Tribunal later on set aside the order of DIT(E) and restored registration granted under section 12A with specific observation that there was no proper reasoning and the basis of DITE) in rejecting assessee's claim. Held: Factual aspects and restoration of registration under section 12A by the Tribunal in the year 2016 at the time of passing the assessment order for concerned assessment year did not have knowledge or information that Tribunal had set aside the order of cancellation in the year 2016 as assessment order was passed for concerned assessment year under section 143(3) on 21-3-2015. Therefore, assessment without considering the restoration of registration under section 12A was not a valid assessment and issue was restored to AO for the limited purpose to verify and examine the facts and do the assessment based on restoration of registration under section 12A.

REFERRED :

FAVOUR : Matter remanded.

A.Y. :


INCOME TAX ACT, 1961

Section 11

SUBSCRIBE TaxPublishers.inSUBSCRIBE FOR FULL CONTENT