ITO(Exemptions) Vs P N Amersey Educational Trust (ITAT Mumbai)
ITAT Mumbai held that denial of exemption under section 11 of the Income Tax Act not justified since previous registration u/s. 12A continued to be valid till grant of provisional registration under the new scheme u/s. 12AB of the Income Tax Act.
Facts- The assessee is a charitable trust. The case was processed u/s. 143(1) whereby CPC added a sum of Rs. 2,38,68,846/- to the assessee’s income by denying the benefit of section 11 of the Act on account of non-availability of registration certificate. Aggrieved with the order of the CPC, the assessee preferred an appeal before CIT(A), who has decided the same in favour of the assessee vide appellate order dated 12.03.2025. Being aggrieved, revenue has preferred the present appeal.
Conclusion- Held that there is merit in the contentions of the assessee that till the grant of provisional registration under the new scheme, its previous registration continued to be valid. Further, no adjustment u/s. 143(1)(a) could have been made without giving proper opportunity to the assessee. However, it is clear from the documents furnished before us that the proposed adjustment (on the ground of belated filing of Form 10B) was different from the adjustment finally made u/s. 143(1)(a) of the Act, which means that no opportunity was provided to the assessee to explain the impugned addition on account of non-submission of the registration certificate. Accordingly, we hold that the decision of the Ld. CIT(A) that 143(1)(a) adjustment could not be made without providing proper opportunity is correct and does not call for any interference.
