Doddaballapur Planning Authority Vs ITO (ITAT Bangalore)
ITAT Bangalore held that benefit of exemptions under section 11 and 12 of the Income Tax Act cannot be granted without valid registration u/s. 12A/12AA. Accordingly, exemptions u/s. 11 and 12 denied in absence of valid registration under Income Tax Act.
Facts- The assessee is a Town Planning authority constituted under the special act called The Bangalore Metropolitan Region Development Authority Act, 1985. The assessee filed its return of income for the AY 2019-20 belatedly on 29.11.2020. Thereafter, the said Return of Income was processed by Asst. Director of Income Tax, CPC and an Intimation u/s 143(1) of the Act dated 12.2.2021 was passed wherein the amount of Rs. 5,80,44,590/- deemed to have been applied during the previous year as per clause (2) of explanation to section 11(1) of the Act as claimed by the assessee in the return was denied by the CPC
CIT(A) dismissed the appeal of the assessee. Being aggrieved, the present appeal is filed.
Conclusion- Held that the activities of the Assessee is “the Advancement of any other object of general public utility” which comes under the purview of last limb of “Charitable Purpose” as defined u/s 2(15) of the Act but without valid registration u/s 12AA/12AB of the Act, the benefit of section 11 & 12 cannot be granted. Thus, the assessee is not entitled to claim benefit of exemptions under Sections 11 and 12 of the Act, 1961 in the absence of valid registration under the Income Tax Act.
