Vaish Vyayamshala And Gooshala Vs ITO (Exemption) (ITAT Delhi)
No Section 12AA Registration, No Section 11 Exemption– ITAT Delhi Dismisses Gaushala Society’s Appeal
Assessee, a society running a gaushala, filed return for AY 2017-18 declaring nil income after claiming exemption u/s 11. Its gross receipts were ₹1.03 crore with a surplus of ₹8.58 lakh. Since the society was not registered u/s 12AA, AO denied exemption & assessed income at ₹8.58 lakh.
On appeal, Addl. CIT(A) confirmed the denial, holding that the assessee did not have a valid 12AA registration, & its application for re-registration had already been rejected. He observed that exemption u/s 11 cannot be granted in absence of registration.
Before Tribunal, Assessee remained unrepresented. Tribunal noted that registration u/s 12AA is a basic & mandatory condition for availing exemption u/s 11. Since Assessee did not have such registration, the authorities below were justified in denying the claim. Tribunal further held that whether to keep the appeal pending till disposal of registration proceedings before CIT(E) was the prerogative of CIT(A), & ITAT cannot interfere in that discretion. However, it clarified that if registration is granted later with retrospective effect, consequential relief will follow in accordance with law. Accordingly, the ITAT upheld the orders of AO & CIT(A) & dismissed the appeal.
