INCOME TAX ACT, 1961

Section 12A(2), Proviso

Charitable trust - Reassessment proceedings initiated for non-registration under section 12AA for concerned assessment year- Granting registration for later assessment year however, before date of issuance of section 148 notice - -

Assessee was a non-profit making company. AO by way of section 148 notice, dt. 27-3-2014 reopened assessment for assessment year 2009-10 so as to deny exemption under section 11 on the ground of non-granting of registration under section 12A. Assessee's case was that it had been granted registration under section 12AA and, therefore, reopening was barred by limitation as per amended provision of section 12A. Held: In terms of second proviso to section 12A(2) which was retrospective in operation, in assessee's case, where registration had been granted to trust or institution under section 12AA, then no action under section 147 could be taken by AO in case of assessee only for non-registration of assessee -trust for any assessment year preceding the assessment year in which application was made for registration. In assessee's case, registration stood granted on 3-5-2013, therefore, reassessment proceedings initiated for assessment year 2009-10 on the non-registration under section 12AA was invalid.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2009-10

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