|The Tax Publishers2020 TaxPub(DT) 5549 (Mad-HC) : (2021) 430 ITR 0440 : (2021) 279 TAXMAN 0210
INCOME TAX ACT, 1961
Section 11 Section 12A(2), Proviso
Factual position being that only after the deed of trust was amended, application for registration under section 12A was considered by CIT(E) that too registration having been granted with effect from 01-4-2015 only, and, therefore, ITAT rightly upheld disallowance of assessee's claim of exemption under section 11 for concerned assessment year 2013-14.
Charitable trust - Exemption under section 11 - No registration under section 12A available for concerned assessment year -
Assessee-trust claimed benefit under sections 11 and 12 for concerned assessment year 2013-14. AO denied assessee's claim on the ground that assessee was not registered under section 12A(a) which being the primary criteria for claiming exemption. Assessee challenged this Tribunal upheld disallowance. Assessee's case was that 1st proviso to section 12A(2) squarely applied for the assessment year 2013-14. Held: Admittedly, application for registration under section 12A was filed by assessee only on 23-2-2016. The application was not processed as CIT(E) was not satisfied that activities of assessee trust as mentioned in the deed of trust did qualify for an exemption. This necessitated assessee to amend the various clauses and covenants in the trust deed and the amended deed of trust was considered by CIT(E) and an order was passed on 02-3-2016, granting registration with effect from 01-4-2015. Therefore, on facts, assessee was precluded from contending that first proviso under section 12A should be made applicable and it should be granted with the benefit from the assessment year 2013-14, because factual position being that only after the deed of trust was amended, application was considered and that too, registration having been granted with effect from 01-4-2015 only. Therefore, Tribunal rightly upheld disallowance of assessee's claim of exemption under section 11.
FAVOUR : Against the assessee.
A.Y. : 2013-14
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