BHARTIYA SADVICHAR PRASARAK MANDAL,CHANDRAPUR vs. INCOME TAX OFFICER WARD - 3 EXEMPTIONS, NAGPUR

ITA 164/NAG/2026Status: DisposedITAT Nagpur12 October 2026AY 2022-233 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal noted that the sole crux of the disputed issue was the denial of exemption under Section 11 due to the lack of valid registration under Section 12A. The Ld. AR submitted that the CIT(Exemption), Pune, had granted registration under Section 12AB for AY 2022-23 to 2026-27 vide an order dated August 14, 2025. The Ld. DR did not dispute this fact. Considering these submissions and the subsequent grant of registration, the Tribunal set aside the order of the CIT(A). The Tribunal directed the Assessing Officer to grant the benefit of exemption under Section 11 of the Act as claimed by the assessee. The grounds of appeal were allowed in favour of the assessee. No issue was expressly left undecided.

What were the facts?

The assessee, Bhartiya Sadvichar Prasarak Mandal, filed its return of income for Assessment Year 2022-23 on November 7, 2022, claiming Nil income after seeking exemption under Section 11 of the Income Tax Act, 1961. The return was processed under Section 143(1). The assessee had applied for registration under Section 12AB, but it was initially rejected by the CIT(Exemption) for non-compliance. Consequently, the Assessing Officer (AO) denied the exemption under Section 11, holding that the assessee lacked valid registration under Section 12A. The AO assessed the total income at Rs. 11,25,500/- and passed an order under Section 143(3) read with Section 144B on February 13, 2024. The assessee's appeal to the CIT(A)/NFAC was dismissed, confirming the AO's action. The assessee then appealed to the Income Tax Appellate Tribunal (ITAT).

What were the issues?

1. Whether the CIT(A) erred in sustaining the denial of exemption under Section 11 of the Income Tax Act, 1961, when the assessee did not possess valid registration under Section 12A of the Act? (Question of law and fact) Assessee's Contention: The Ld. AR argued that the CIT(A) erred by overlooking crucial information. Subsequent to the rejection order by the CIT(Exemption), the assessee filed an appeal with the Hon'ble ITAT, which restored the matter to the CIT(E)'s file. The CIT(Exemption), Pune, vide an order dated August 14, 2025, granted registration under Section 12AB of the Act for AY 2022-23 to 2026-27. The assessee prayed for the allowance of the appeal based on this subsequent registration. Revenue's Contention: The Ld. DR supported the order of the CIT(A).

Which sections of the Income-tax Act were involved?

Section 11,Section 12A,Section 12AB,Section 143(1),Section 143(3),Section 144B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, NAGPUR “SMC” BENCH :: NAGPUR

Before: SHRI PAVAN KUMAR GADALE

Hearing: 07.10.2026Pronounced: 12.10.2026

The Assessee has filed this appeal against the order of CIT(A)/NFAC, Delhi sustaining the denial of exemption u/sec. 11 of the Act made by the Assessing Officer.

2.

The brief facts of the case are that, the assessee-trust has filed the return of income for A.Y.2022-23 on 07.11.2022 disclosing a total income of Rs.NIL after claiming exemption u/sec. 11 of the Act and the return of income was processed u/sec. 143(1) of the Act. The assessee has filed the Form No.10AB for registration u/sec. 12AB of the Act whereas registration was rejected for non compliance by the CIT(E). The Assessing Officer (AO)

The order continues below.

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