SALVA WELFARE TRUST,PANDIKKAD vs. ITO, EXEMPTION WARD, KOZHIKODE

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ITA 864/COCH/2023Status: DisposedITAT Cochin22 May 2025AY 2021-22Bench: the CIT(A), who after considering the fact that there was no registration was granted under Section 12A of the Act for AY 2021-22, confirmed the action of the CPC by holding that the benefit under Section 11(2) would be available to the assessee from the assessment year following the financial year in which registration under Section 12AC was given placing reliance on the decision of the Hon'ble Allahabad High Court in the case of CIT v. Shiv Kumar Sumitra Devi Smarak Shikshan Sansthan 442 3 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Income Tax Appellate Tribunal dismissed the appeal, confirming that the appellant did not possess the required registration under Section 12AC for AY 2021-22. It reiterated the legal position that without valid registration under Section 12AC, the exemption benefit under Section 11 cannot be granted.

What were the facts?

The appellant, a charitable trust registered under Section 12A, filed its return for AY 2021-22 claiming nil income after Section 11 exemption. The CPC, under Section 143(1), denied this exemption due to the absence of Section 12A registration for that year, a decision upheld by the CIT(A).

What were the issues?

Whether exemption under Section 11 of the Income Tax Act can be claimed by a charitable trust for an assessment year when it lacks proper registration under Section 12A or Section 12AC for that specific assessment year.

Which sections of the Income-tax Act were involved?

Section 12A,Section 11,Section 143(1),Section 11(2),Section 12AC

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, COCHIN BENCH

Before: SHRI INTURI RAMA RAO, AM & SHRI PRAKASH CHAND YADAV, JM

For Respondent: Smt. Leena Lal, Sr. D.R
Hearing: 19.05.2025Pronounced: 22.05.2025

O R D E R Per: Inturi Rama Rao, AM This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi [CIT(A)], dated 26.11.2023 for Assessment Year (AY) 2021-22.

2.

Brief facts of the case are that the appellant is a charitable trust duly registered u/s. 12A of the Income Tax Act, 1961 (the Act). The return of income for AY 2021-22 was filed on 13.01.2023 disclosing Nil income after claiming exemption u/s. 11 of the Act. The said return of income was processed by the CPC u/s. 143(1) of

3.

Being aggrieved, an appeal was filed before the CIT(A), who after considering the fact that there was no registration was granted u/s. 12A of the Act for AY 2021-22, confirmed the action of the CPC by holding that the benefit u/s. 11(2) would be available to the assessee from the assessment year following the financial year in which registration u/s. 12AC was given placing reliance on the decision of the Hon'ble Allahabad High Court in the case of CIT v. Shiv Kumar Sumitra Devi Smarak Shikshan Sansthan 442 ITR 468.

4.

Being aggrieved, the appellant is in appeal before us in the present appeal.

5.

When the appeal was called on nobody appeared on behalf of the assessee despite due service of notice of hearing. Therefore, we proceeded to dispose of the appeal after hearing the learned Sr. DR.

6.

The material on record clearly shows that the appellant was not enjoying registration us 12AC of the Act under the new regime for AY 2021-22. There is no dispute about the proposition that in the absence of registration u/s. 12AC the benefit of exemption u/s. 11 cannot be granted. In the light of this discussion, the order passed by the CIT(A) is in consonance with the settled position of law, therefore, no interference is called for.

Order pronounced in the open court on 22nd May, 2025.

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