Sankaramkulangara Devaswom Vs ITO (ITAT Cochin)
ITAT Cochin restores Religious Trusts’ claim for section 11 & 12 exemption – Benefit of proviso to Section 12A(2) available when registration granted during pending assessment
Cochin ITAT) in set aside the order of NFAC & restored the matter to AO for fresh adjudication of the assessee’s claim for exemption u/s 11 & 12.
Assessee, a religious trust in Thrissur, challenged the NFAC’s order confirming the assessment u/s 143(3) for AY 2013-14. Assessee pointed out a procedural lapse-although the hearing was fixed for 20.07.2022 (vide notice dated 15.07.2022), the appellate order was passed prematurely on 18.07.2022. On merits, the trust argued that since it had been granted registration u/s 12AA on 27.04.2015, when assessment proceedings pursuant to the return filed on 30.09.2014 were still pending, it was entitled to the benefit of the proviso to sec 12A(2).
Assessee contended that the proviso to sec12A(2) (inserted by Finance (No. 2) Act, 2014 w.e.f. 01.10.2014) provides that where registration is granted during the pendency of assessment proceedings, the benefit of sections 11 & 12 shall be available for that year, provided the objects & activities are the same as on the date of registration. As these conditions were satisfied, the exemption claim ought to be considered.
