N A RAMACHANDRA RAJA CHARITY TRUST,RAJAPALAYAM vs. ITO, EXEMPTION WARD,, MADURAI

Since identical facts and issues are involved in both these appeals, these appeals were heard together and disposed of by this common order. For the sake of clarity and convenience the facts relevant in the ITA No.4024/CHNY/2025 for the Assessment Year 2018-19 are stated herein:

The Assessee in ITA No.4024/CHNY/2025 raised the following grounds of appeal : “1. That the order dated 31.10.2025 passed by the National Faceless Appeal Centre, Delhi, under section 250 of the Income-tax Act, 1961, for AY 2018-19 is contrary to law, facts and circumstances of the case and is liable to be set aside.

Briefly, the facts of the case are that the appellant is a Trust incorporated under the provisions of Trust Act. It is formed with charitable objects. No regular return of income u/s.139(1) of the Act was filed by the appellant trust. However, based on the information that the appellant trust made cash deposits in the bank account and earned interest income during the previous year relevant to assessment year under consideration, the Jurisdictional Assessing Officer formed an opinion that income got escaped assessment from tax, accordingly, a notice u/s.148 of the Act was issued on 02.04.2022 after duly complying with the procedure laid down u/s.148A of the Act. In response to notice u/s.148, the appellant filed the Return of Income on 02.05.2022 declaring NIL income. Against the said Return of Income, the assessment was completed by the e- Assessment Unit of the Department (hereinafter called ‘AO’) vide order dated 11.03.2024 passed u/s.147 r.w.s 144B of the Act at a total income of Rs.NIL. While doing so, the Assessing Officer denied the exemption u/s.11 of the Act on the ground that the appellant trust had not submitted the details of the registration u/s.12A of the Act.

Being aggrieved by the above assessment order, the appellant preferred an appeal before ld.CIT(A), who vide impugned order confirmed the action of the Assessing Officer.

Being aggrieved by the order of ld.CIT(A), the appellant is in appeal before us in the present appeal. The Learned Counsel submits that the appellant was granted registration under the provisions of section 12A of the Act on 05.04.1980 and the appellant continues to enjoy the registration u/s.12A of the Act under the provisions of section 12A of the Act. Therefore, the Department cannot deny exemption u/s.11 of the Act merely on the ground that the appellant was unable to produce copy of registration u/s. 12A of the Income Tax Act as it can very well be verified from the records of ld.CIT(E).

On the other hand, Learned Sr.DR vehemently opposed the above submissions and submits that the Assessing Officer was justified in denying exemption u/s.11 of the Act in the absence of any details of registration u/s.12A of the Act.

We heard rival submissions and perused the material available on record. The issue that arises for our consideration is that whether the ld.CIT(E) was justified in confirming the action of the Assessing Officer denying the exemption u/s.11 of the Act. On mere perusal of the assessment order, it would reveal that the Assessing Officer denied the exemption u/s.11 of the Act only for the reason that the appellant had not furnished the details of registration u/s.12A of the Income Tax Act, as it could not trace the registration certificate, was unable to furnish to the Assessing Officer as required by him. Undoubtedly, grant of registration u/s.12A of the Act is a condition precedent for availing the exemption u/s.11 of the Act. The onus lies upon the appellant society to satisfy the Assessing Officer about the registration u/s.12A of the Income Tax Act. Since the appellant had been harping that it was granted registration on 05.04.1980 and it was cancelled till date, the certification could not be traced, the Assessing Officer could very well verify from records of the ld.CIT(E) to find out the status of the registration of the appellant trust and accordingly decide the issue of exemption u/s.11 of the Act. Therefore, we are of the considered opinion that the matter requires remand to the file of Assessing Officer for the purpose of verification of status of registration of the appellant trust and accordingly, decide the issue of exemption u/s.11 of the Act.

In the result, appeal filed by the Assessee stands partly allowed for statistical purpose.

To sum up, both appeal filed by the Assessee are partly allowed for statistical purpose. Order pronounced in the open Court on 11th June, 2026.