Swaminarayan Satsangis Organisation Vs CIT (Exemption) (ITAT Ahmedabad)
ITAT Ahmedabad held that registration to trust under section 12AB of the Income Tax Act granted since assessee demonstrated that exemption under section 11 of the Income Tax Act is not claimed. Accordingly, appeal allowed.
Facts- The solitary plea of the assessee, vide the present appeal, is with regard to denial of grant of registration by CIT(E). Notably, the assessee-trust had sought registration as a charitable entity under the new regime provided u/s.12AB of the Act. The assessee-trust had applied for registration as a trust having commenced its activities and seeking registration for the first time in terms of Section 12A(1)(ac)(vi) sub-clause (B) of the Act.
CIT(E) rejected the assessee’s application finding that the assessee has violated this very condition since he found the assessee to have claimed exemption of its income u/s.11 of the Act for the Assessment Year (AY) 2022-23.
Conclusion- Held that the assessee having now demonstrated that it had not claimed any exemption u/s.11 of the Act in AY 2022-23, the impediment for the grant of registration as per the Ld.CIT(E), stands removed. The Ld.CIT(E) is directed therefore to grant registration to the assessee-trust u/s.12AB of the Act. In the result, the appeal of the assessee is allowed.
