Omm Muruga Educational Trust Vs ITO (ITAT Chennai)
Section 154 Has Limits: Later Registration Can’t Rewrite 143(1)- No 12A on Filing Date, No 11 Exemption: ITAT Rejects Rectification
In Omm Muruga Educational Trust Vs. ITO (Exemptions), Ward-2, Chennai, ITA No.1505/Chny/2025, AY 2014-15, order dated 31.12.2025, Chennai ITAT dismissed Assessee’s appeal & upheld denial of exemption u/s 11 through rectification proceedings u/s 154.
Assessee-trust had filed return claiming exemption u/s 11, which was denied by CPC u/s 143(1) as trust was not registered u/s 12A at the relevant time. Subsequently, Assessee obtained 12AA registration on 28.03.2017 & filed rectification application u/s 154 seeking allowance of exemption by invoking second proviso to s.12A(2). AO rejected rectification holding that no assessment proceedings were pending on date of registration & exemption could not be granted retrospectively through 154. CIT(A) confirmed rejection.
Tribunal held that intimation u/s 143(1) had already been issued on 14.03.2016 & no regular assessment was pending when registration was granted. Since Assessee did not hold 12A registration on date of filing return or CPC processing, denial of exemption was not a mistake apparent on record capable of rectification u/s 154. Tribunal ruled that subsequent registration cannot revive concluded 143(1) processing. Accordingly, rectification was rightly rejected & appeal dismissed.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
