Held that according to section\u00a012A(2)\u00a0of the Act, if any assessment proceeding was pending during the pendency of registration under section\u00a012AA\u00a0of the Act, then the registration granted shall be applicable to the pending assessment proceedings. The Central Board of Direct Taxes Circular No. 1 of 2015(2015) 371 ITR 22 (St) explained section\u00a012A(2)\u00a0of the Act. The proviso to section\u00a012A(2)\u00a0was introduced to remove hardship caused to genuine trusts. It had not been alleged by the Department that the assessee\u2019s activities or objects were not charitable in nature, rather it was an admitted fact that the assessee\u2019s objects and activities were charitable in nature. The Commissioner (Exemptions) after examining the objects and activities of the assessee-trust, had granted registration under section\u00a012AA\u00a0of the Act to the assessee-trust. The order under section\u00a0143(1)\u00a0was issued on January 2, 2018 and registration under section\u00a012AA\u00a0of the Act was granted on October 20, 2016, which meant that at the time of issue of the order under section\u00a0143(1), the assessee already had registration under section\u00a012AA\u00a0of the Act. Therefore, in terms of the proviso to section\u00a012A(2)\u00a0of the Act, the assessee is\u00a0 eligible for deduction under section\u00a011\u00a0of the Act for the assessment year\u00a02016-17\u00a0as it had received registration under section\u00a012AA\u00a0of the Act before the order under section\u00a0143(1)\u00a0for the assessment year\u00a02016-17\u00a0was passed. Tribunal also held that only the profit can be taxed and not the entire receipt if benefit of section\u00a011\u00a0is to be denied. Therefore, the CPC has erred in taxing entire receipt of the assessee under section\u00a0143(1)\u00a0of the Act.(AY. 2016-17)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 12A : Registration-Trust or institution-Assessment proceedings-Pendency of application for registration-Registration is granted-Denial of exemption on ground registration granted was prospective and not applicable for Assessment year in question is not proper-Only the profit can be taxed and not the entire receipt if benefit of section 11 is to be denied-Adjustment under section 143(1) is bad in law. [S.11, 12A(2), 12AA, 143(1)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-51285","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-dlb","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/51285","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=51285"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/51285\/revisions"}],"predecessor-version":[{"id":51286,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/51285\/revisions\/51286"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=51285"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=51285"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=51285"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}