Shambhu Dayal Modern School Vs ITO (Exemption) (ITAT Delhi)
In the case of Shambhu Dayal Modern School vs. ITO (Exemption), the Delhi ITAT addressed the denial of tax exemption under Section 11 of the Income-tax Act for an educational trust. The dispute arose when the Centralized Processing Center (CPC) denied the exemption due to the trust’s failure to update its registration details under Section 12AB of the Act in the income tax return, which was filed on March 31, 2022. The trust had obtained its new registration on April 5, 2022, making it impossible to include these details in the return. The trust had also submitted the audit report in Form 10B after the prescribed deadline. The ITAT noted that the filing of Form 10B is a procedural requirement and should not negate the substantive claim of exemption if the audit report is available before assessment completion. The tribunal concluded that the original registration under Section 12AA, dated January 8, 2001, was valid up to the assessment year 2021-22, and the fresh registration under Section 12AB protected the trust for subsequent years. Thus, the trust was granted exemption under Section 11 for the year 2021-22.
FULL TEXT OF THE ORDER OF ITAT DELHI
