ITR-7 Selection Alone Cannot Establish Sections 11 and 12 Exemption: ITAT Jodhpur

Jai Shri Ram Anath Gaushala Samiti Vs CIT (ITAT Jodhpur)

Summary: The appeal was filed by Jai Shri Ram Anath Gaushala Samiti, Taranagar, against the order dated 27.09.2025 passed by the Commissioner of Income Tax (Exemptions), Jaipur in Form No. 10AD, rejecting its application dated 28.02.2025 in Form No. 10AB for registration under section 12A of the Income-tax Act, 1961. The application was filed under section code 4A. The CIT(E) considered the assessee’s filing of ITR-7 returns for A.Ys. 2021-22 to 2024-25 and concluded that the assessee had availed the benefit of sections 11 and 12, contrary to its declaration that no income had been excluded from total income under sections 11 and 12 or the specified provisions of section 10(23C).

Before the Tribunal, the assessee contended that merely filing ITR-7 did not establish that exemption had actually been claimed, allowed or acted upon, and that it had consistently incurred a deficit or had income below the taxable limit. The Tribunal held that code 4A corresponds to item (B) of section 12A(1)(ac)(vi), while the reference to section 12A(1)(ac)(ivB) in the impugned order was an apparent error. It further held that the statutory condition requires verification of whether income was actually excluded from total income by applying sections 11 or 12 or the specified provisions of section 10(23C).