Loading judgment…
Facts
The assessee's claim for Section 11 exemption was rejected by lower authorities, and its entire receipts were assessed as business income. The assessee did not have Section 12A registration, which was pending before the CIT (Exemption).
Held
The tribunal restored the appeal to the assessing authority for fresh adjudication. The assessing authority was directed to await the final status of the assessee's Section 12A registration application before making a decision.
Key Issues
The key legal issue was the eligibility for Section 11 exemption without a valid Section 12A registration, which was pending approval.
Sections Cited
Section 11, Section 12A, Section 143(3)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DEHRADUN “DB” BENCH, DEHRADUN
Before: SHRI SATBEER SINGH GODARA & SHRI S. RIFAUR RAHMAN
This assessee’s appeal for assessment year 2017-18, arises against the Commissioner of Income Tax (Appeals)/Addl./JCIT(A), Panchkula’s order dated 05.03.2025 having DIN and order no. ITBA/APL/S/250/2024-25/1074028995(1), involving proceedings under sections 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
Heard both the parties. Case file perused.
It emerges during the course of hearing that both the learned lower authorities have inter alia rejected the assessee’s section 11 exemption claim and further assessed its entire receipts under the normal head of business income in assessment order dated 26.12.2019 as upheld in the lower appellate discussion.
Learned departmental representative vehemently submits in this backdrop that the assessee has been found as not to have been granted section 12A registration which is stated to be pending before the appropriate authority i.e. CIT(Exemption) since long. That being the case, we deem it appropriate to restore the assessee’s appeal back to the learned assessing authority for its afresh appropriate adjudication after awaiting the final status of the assessee’s foregoing section 12A registration application as per law. Ordered accordingly.