SHRI PADMAVATI VENKTESH DE vs. THANAM NYAS,INDOREVS.INCOME TAX OFFICER -EXEMPTION, INDORE, INDORE

आदेश/ O R D E R

Per B.M. Biyani, A.M.:

Feeling aggrieved by the order of first appeal dated 24.07.2025 passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [“Ld. CIT(A)”], which in turn arises out of the assessment-order dated 24.01.2025 passed by learned Assessment Unit of Income-tax Department [“Ld. AO”] u/s 143(3) r.w.s. 144B of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2023-24, the assessee has filed this appeal on following grounds:

“1.That the learned CIT(A) erred in law and facts and confirmed in denying exemption under sections 11 and 12 despite the fact that the

Page 1 of 9

appellant trust has been granted provisional registration under section 12AB which was valid for AY 2023-24. 2.That the Ld. CIT(A) erred in law and facts and confirmed the Ld. Assessing Officers denial to appreciate that permanent registration was wrongly applied under section 10(23C) due to accidentally selecting wrong section, but the assessee had already been duly registered provisionally under section 12AB. 3.That the Ld. CIT(A) erred in law and facts of the case and confirmed the denial of exemption without appreciating the fact that sufficient opportunity was not provided to the assessee to explain the error. The denial therefore made violates the principal of natural justice. 4.That the learned CIT(A) erred both in law and on facts in confirming the addition of Rs.5,83,322/-, being 30 percentage of the total revenue expenditure of Rs.19,44,405/-, on the grounds that complete details of the expenses incurred towards the object were not filed. 5.That, the appellant further craves leave to add, alter and/OR amend any of the foregoing grounds of appeal at OR before hearing.” 2. The background facts leading to present appeal are such that the

assessee-trust filed its return of income of AY 2023-24 declaring a total

income of Rs. Nil after claiming exemption u/s 11/12. The case of assessee

was selected for scrutiny and the AO issued notices u/s 143(2)/142(1),

which the assessee complied. Ultimately, the AO passed assessment-order

u/s 143(3) assessing total income at Rs. 7,20,753/- without giving

exemption u/s 11/12. The AO denied exemption u/s 11/12 for the precise

reason that the assessee was not having registration u/s 12A. Aggrieved the

assessee carried matter in first-appeal but did not get any relief from Ld.

CIT(A). Still aggrieved, the assessee has come in next appeal before us.

which have taken place in assessee’s matter:

vide order dated 10/03/2026, the assessee has been granted registration

u/s 12A by Income-tax Department from AY 2023-24 (under consideration)

onwards. A copy of Order of Registration dated 10/03/2026 issued by the

office of Ld. CIT(Exemption), Bhopal, is also placed before bench; the same

is scanned and re-produced for an immediate reference:

5. The Ld. AR contended that in view of the subsequent grant of

registration, the assessee has become eligible for exemption u/s 11/12 of the Act, subject to verification of other conditions. He therefore prayed that the matter may kindly be restored to the file of the Ld. AO for fresh

adjudication in light of the registration now granted.

u/s 12A and pass a fresh order of assessment in accordance with law after providing reasonable opportunity of being heard to assessee.

Order pronounced in open court on 24/04/2026

Sd/- Sd/-

(PARESH M. JOSHI) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER

Indore िदनांक/Dated : 24/04/2026 Patel/Sr. PS

Page 8 of 9

Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order E COPYSr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore

Page 9 of 9