SRI MODH VISA GOWBHUJA SAJNA,HYDERABAD vs. DCIT., EXEMPTION CIRCLE-1(1), HYDERABAD

Facts

The assessee society filed its return of income for AY 2019-20 claiming exemption under Section 11. The CPC/AO declined this claim as the assessee had not provided details of registration under Section 12A/12AA or approval under Section 10(23C). The assessee argued that its application for registration filed in 1991 was pending and thus deemed to be granted.

Held

The Tribunal held that the assessee's application for registration under Section 12A, filed in 1991, was not validly pending as it did not comply with the procedures for condonation of delay and reasons. Therefore, the provisions for deemed registration under Section 12AA were not attracted. Consequently, the denial of exemption under Section 11 by the lower authorities was upheld.

Key Issues

Whether the assessee society was entitled to exemption under Section 11 when it lacked valid registration under Section 12A/12AA due to a non-compliant application process?