PIME Welfare Society Vs ACIT (ITAT Visakhapatnam)
In the matter abovementioned ITAT remanded matter to AO for adjudicating exemption by taking registration u/s 12 A as it is impossible for assessee to mentioned new registration particular in ITR-7.
Assessee is a Charitable Society registered initially U/s. 12A. Assessee applied for renewal of registration u/s 12AB in pursuant to the amendment brought in Statute with effect from 01/06/2022 where all the Charitable Trusts were supposed to apply for registration U/s. 12AB of the Act even though they were already holding registration. Assessee obtained registration u/s 12AB on 04.04.2022 hence assessee filed ITR-7 by giving old registration number, in view of the last date for filing of the return of income for the AY 2021-22 being 31/03/2022. The CPC denied total exemption by stating that assessee’s renewal details u/s 12AB were not available in ITR-7 as mandate by the amended provisions of section 12AB of the Act w.e.f., 01/06/2022.
On appeal, Addl/JCIT(A)-2, held that mere filing of the return of income with the existing Registration Number does not entitle the assessee to claim exemption U/s. 11 and dismissed the appeal after confirming the disallowance.
Before ITAT, it was submitted that it is impossible for the assessee to mention new registration number in ITR-7 as it was filed on 13.03.2022 and the same was obtained on 04.04.2022 after filing of ITR-7. Extension was time was provided by CBDT upto 30.09.2022 and hence existing registration number was valid for claiming exemption u/s 11 for AY 2021-22 till the communication of new registration number. Reliance was placed on decision taken by the Coordinate Bench of the Tribunal in the case of Shambhu Dayal Modern School vs. ITO (Exemption) in ITA No. 1236/Del/2024 (AY: 2021-22), dated 02/08/2024. On the other hand, revenue didnot contradict the fact that the CBDT by its Circular No. 08/2022, dated 31/03/2022 extended the time for filing the renewal applications till 30.09.2022 and renewal was communicated to the assessee on 04.04.2022.
