PARAM EDUCATIONAL SOCIETY,HYDERABAD vs. ITO, EXEMPTION WARD -1(3), HYDERABAD

The assessee challenged the assessment order passed by the A.O. and filed an appeal before the Ld. CIT(A) on 12.04.2025. In the meantime, the assessee had also filed an appeal before the Tribunal against the order passed by the Ld. CIT(E) rejecting the application filed by the assessee. The ITAT, Hyderabad while passing the order dated 30.07.2025 in ITA No.635/Hyd/2025, set aside the order of the Ld. CIT(E) and restored the issue back to his file for fresh consideration. In pursuant to the order of the Tribunal, the Ld. CIT(E), Hyderabad, vide order dated 11.09.2025, granted registration u/s 12AB of the Act, from A.Y. 2022-23 to A.Y. 2026-27. Thereafter, the assessee filed written submissions before the Ld. CIT(A) along with the order passed by the Ld. CIT(E) dated 11.09.2025 and submitted that, the additions made by the A.O. towards income by rejecting the exemption claimed u/s 11 of the Act, should be deleted. But the Ld. CIT(A), without considering the submissions of the assessee, dismissed the appeal and upheld the addition made by the A.O. on the ground that the assessee has not been able to controvert the findings of the A.O.

Aggrieved by the order of the Ld. CIT(A), the assessee is now in appeal before the Tribunal.

The learned counsel for the assessee, Shri H. Srinivasulu, Advocate, referring to the assessment order and subsequent order passed by the Ld. CIT(E) in Form No.10AD dated 11.09.2025, submitted that the A.O. denied exemption u/s 11 of the Act, only on the ground that the Ld. CIT(E) had rejected the application filed by the assessee for registration, however, fact remains that finally the Ld. CIT(E) has granted registration to the assessee from A.Y. 2022-23 to 2026-27 vide order dt.11.09.2025. Since the A.O. has denied the exemption u/s 11 of the Act only on the ground of not having valid registration and further, the assessee is having valid registration from A.Y. 2022-23 onwards, a direction may be given to the A.O. to allow exemption claimed by the assessee u/s 11 of the Act and delete the addition made towards income.

The learned Sr. A.R. for the Revenue, Shri K. Prasad, on the other hand, fairly agreed that the only ground on which the A.O. denied exemption was not having valid registration u/s 12AB of the Act. However, the learned counsel for the assessee has now produced the registration granted by the Ld. CIT(E), which is valid for the assessment year under consideration. Therefore, the matter may be remanded to the A.O. to allow exemption as claimed by the assessee.

We have heard both parties, perused the material available on record and had gone through the orders of the authorities below. The only ground on which the A.O. denied exemption u/s 11 of the Act, was rejection of application filed by the assessee for registration u/s 12AB of the Act, by the Ld. CIT(E). No doubt, when the A.O. passed the order u/s 143(3) r.w.s. 144B of the Act, on 14.03.2025, the assessee was not having valid registration u/s 12AB of the Act, because of the rejection of the application filed by the assessee by the Ld. CIT(E). However, when the Ld. CIT(A) dismissed the appeal filed by the assessee, the registration u/s 12AB of the Act, has been granted to the assessee in view of the order passed by the Tribunal in ITA No.635/Hyd/2025 dated 30.07.2025 and the Ld. CIT(E), vide order dated 11.09.2025 in Form No.10AD, has granted registration to the assessee from A.Y. 2022-23 to A.Y. 2026-27. Since the assessee is having valid registration u/s 12AB of the Act, for the year under consideration and further the only reason for the A.O. to deny exemption u/s 11 was not having valid registration, in our considered view, the Ld.

In the result, the appeal filed by the assessee is allowed.

The Principal Commissioner of Income Tax, Hyderabad. 4. नवभधगीयप्रनतनिनर्, आयकर अपीलीय अनर्करण, हैदरधबधद / DR, ITAT, Hyderabad 5. गधर्ाफ़धईल / Guard file