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Facts
The appellant, an educational trust, filed a NIL return claiming exemption under Section 11 of the Income Tax Act. The Assessing Officer rejected the exemption and made an addition of Rs. 15,08,510/-, which was confirmed by the CIT(A) on the ground that registration under Section 12AA was not renewed before the due date.
Held
The Tribunal remanded the matter back to the Assessing Officer for a fresh adjudication. This decision was made because the appellant's application for condonation of delay in renewing the exemption registration is currently pending before the Commissioner of Income Tax (Exemption).
Key Issues
Whether the rejection of Section 11 exemption due to non-renewal of Section 12AA registration is justified when an application for condonation of delay in renewal is pending before the Commissioner of Income Tax (Exemption).
Sections Cited
11, 12AA, 143(1)
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Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM
O R D E R This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Appeals)-5, Mumbai [CIT(A)] dated 09.01.2025 for Assessment Year (AY) 2023-24.
Brief facts of the case are that the appellant filed the return of income for AY 2023-24 on 04.11.2023 declaring total income of Rs. Nil after claiming exemption u/s. 11 of the Income Tax Act, 1961 (the Act) of Rs. 15,08,510/-. The said return of income was processed u/s. 143(1) of the Act on 21.11.2024 by the CPC 15,08,510/-. While doing so, the
Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order confirmed the action of the AO stating that registration u/s. 12AA was not renewed before the due date.
Being aggrieved, the appellant is in appeal before the Tribunal in the present appeal.
The learned A.R. submitted that the assessee had filed an application before the Commissioner of Income Tax (Exemption), Kochi on 19.12.2024 for condoning the delay in renewal of the exemption registration. Therefore, it is prayed that the matter may be restored to the AO for adjudication in accordance with the outcome of the application of the assessee.
The learned Sr. DR did not raise any serious objection to the submission of the assessee.
I heard the rival contentions of both the parties and perused the material available on record. Since the application filed by the appellant for condonation of delay in renewing the exemption is pending before the Commissioner of Income Tax (Exemption), in order to meet the ends of justice I am of the considered opinion that the matter is required to be remanded back to the file of the AO for de novo adjudication in accordance with law after affording reasonable opportunity of hearing to the assessee. Ordered accordingly.
Order pronounced in the open court on 8th April, 2025.