New Order on Income Tax Exemption to Chartitable Trust if Registration Pending Sec 12AA I CA Satbir

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Facts of the Case

Assessee is a trust, engaged in social and religious activities. The assessee filed its return of income for the A.Y. 2008-09 declaring NIL income.

Assessing Officer noted that assessee had not taken registration under section 12A, thus, he disallowed exemption under section 11

During the pendency of appeal before ld CIT(A), the assessee applied for registration under section 12AA and the assessee was granted registration vide order dated 9-5-2016 with effect from 1-4-2015.

Decision of ITAT

An assessment proceeding which is pending in appeal before the appellate authority should be deemed to be ‘assessment proceedings pending before the assessing officer’ within the meaning of that term as envisaged under the proviso. It follows there-from that the assessee who obtained registration under section 12AA of the Act during the pendency of appeal was entitled for exemption claimed under section 11of the Act.

Assessee was granted registration under s.12AA w.e.f. 1-4-2015,  when the appeal of assessee was pending before learned CIT(A). Therefore we direct the Assessing Officer to grant the benefit of Section 11 & 12 for AY 2008-09.