VIVEKANAND VIDYAPITH TRUST,DEHRADUN vs. INCOME TAX OFFICER, EXEMPTION WARD,DEHRADUN, DEHRADUN

Though the assessee has raised several grounds of appeal before us, the only effective issue to be decided in this appeal is as to whether the Learned CPC was justified in denying the exemption under Section 11 of the Act on the ground that assessee did not apply for fresh registration under the amended provisions of the Act.

We have heard the rival submissions and perused the materials available on record. The assessee is a trust engaged in the charitable activity of educational purpose and the benefit of registration under Section 12A of the Act is available to the assessee trust as per the erstwhile provisions of the Act. The assessee trust had filed its return of income for the Assessment Year 2021-22 on 21-12-2021 declaring total income at Rs. Nil after claiming exemption under Section 11 of the Act. The said return of income was processed under Section 143(1) of the Act by the Learned CPC on 14-09-2022 determining total income at Rs. 13,02,674/-. While processing the said return, the exemption claimed under Section 11 and 12 of the Act for Rs. 13,02,674/- was denied to the assessee. This denial was made on the ground by stating that section under which the registration has been applied is not mentioned by the assessee and that the Act has been amended from 01-06-2020 wherein all the existing charitable trusts have to get new registration approval under Section 12AB of the Act in order to claim exemption under Section 11 of the Act. Since the new registration approval details were not made available by the assessee in the return, exemption under Section 11 of the Act was sought to be denied to the assessee by the Learned CPC. Aggrieved, the assessee preferred an appeal before the Learned NFAC.

We find that the requirement of the existing charitable trusts to obtain fresh registration under the new amended provisions of the Act is applicable only from assessment year 22-23 onwards. The year under consideration is assessment year 21-22. The amendment brought by Taxation and Other Laws Amendment Act 2020 is applicable only from assessment year 22-23. Accordingly, the assessee trust not applying for fresh registration during the year under consideration would not become fatal to the claim of exemption under section 11 of the Act. It is pertinent to note that assessee did apply for fresh registration and obtained the same on 24-09-2021. Hence we hold that the lower authorities grossly erred in denying the claim of exemption under section 11 and 12 of the Act for the assessee trust. The grounds raised by the assessee are allowed.

In the result, the appeal of the assessee is allowed.