INCOME TAX ACT, 1961

Section 11

Charitable trusts - Registration under section 12AA granted subsequently - Exemption under section 11 -

Issue arose as to whether assessee having been granted registration under section 12AA by CIT(E) during pendency of proceedings before CIT(A) would be entitled to exemption under section 11 for year under consideration in view of the proviso to sub-section (2) of section 12. Held: Benefit of the proviso is available not only when assessment proceedings are pending before AO but also when an appeal against assessment order is pending before CIT(A). It is so for reason that appeal proceedings are nothing but continuation of the assessment proceedings. As at the time of granting registration by CIT(E) to assessee, appeal of assessee was pending before CIT(A), benefit of first proviso to section 12A(2) ought to have been granted. Thus, assessee was entitled to exemption under sections 11 and 12 for the year under consideration on the reason that the registration was, in fact, granted to the assessee under section 12AA during the pendency of proceedings before CIT(A).

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2012-13

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