SACRED HEART EDUCATIONAL TRUST,CHENNAI vs. ITO, EXEMPTIONS WARD-2,, CHENNAI

The common issue involved in both the appeals filed by the assessee is against the denial of exemption u/s. 11 of the Income-tax Act, 1961 (hereinafter “the Act”) by the Ld. Addl. CIT(A). The exemption was denied on the ground that the assessee-trust has not renewed the registration and therefore did not have a valid registration u/s. 12A of the Act, 3. The assessee is a Trust registered u/s. 12A of the Act vide certificate dated 29.10.1992. The assessee did not renew the registration u/s. 12A of the Act by filing the renewal application u/s. 12A(1)(ac)(i) of the Act before 30.06.2021 . The assessee subsequently filed its return of income for A.Y 2022-2 on 18.07.2023 claiming exemption u/s. 11 of the Act. The CPC, Bengaluru, vide intimation u/s. 143(1) of the Act, did not allow the exemption u/s. 11 of the Act as the assessee was not registered u/s. 12A of the Act. Thereafter, the assessee made an application before the Ld. CIT(Exemptions), Chennai, along with a petition for condonation of delay in filing the renewal application in Form 10A u/s. 12A(1)(ac)(i) of the Act, which is still pending. However, the Ld. Addl. CIT(A) confirmed the denial of exemption on the ground that the assessee did not have a valid registration u/s. 12A of the Act.

The Ld. Authorized Representative (A.R.) of the assessee submitted that exemption u/s. 11 of the Act has been denied solely because the assessee missed the timeline for filing the renewal application u/s. 12A(1)(ac)(i) of the Act. Since the assessee has now filed an application before the Ld. CIT(E), Chennai, along with petition for condonation of delay, it was prayed that the matter may be remitted back to the Ld. Addl. CIT(A) to await the decision of the Ld. CIT(E) on registration . 5. On the other hand, the Ld. Departmental Representative (DR) relied on the orders of the lower authorities. 6. We have heard the rival submissions and perused the materials available on record. The CPC has denied the exemption u/s. 11 of the Act as the assessee had not renewed its registration u/s. 12A of the Act by filing the application u/s.12A(1)(ac)(i) of the Act before 0.06.2021. The assessee has now filed the renewal application before the Ld. CIT(E) along with a petition for condonation of delay. We are of opinion that the Ld. Addl. CIT(A) was not justified in dismissing the appeals without awaiting for the decision of the Ld. CIT(E) on the registration u/s 12A. We therefore remit the matters back to the file of the Ld. Addl. CIT(A) for fresh adjudication after receipt of the decision