Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2022 (8) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (8) TMI 1464 - HC - Income TaxExemption u/s 11 and 12 denied - assessee was granted registration u/s 12AA for claiming exemption u/s 11 with retrospective effect from 01.04.2002, by order dated 16.06.2008 - assessee is not entitled to claim exemption, when no valid return was filed by them - as per revenue mere registration would not entitle the assessee to claim exemption under sections 11 and 12 of the Act and they have to fulfil the other re-requisite conditions stipulated thereon - HELD THAT:- Section 11 provides for the incomes from the property held for charitable or religious purposes which are liable to be exempted from total income of the assessee. Section 13 on the other hand, precludes the application of section 11 in certain cases. As such, while registration is the precondition to apply section 11, the entitlement of an assessee for exemption under section 11 depends on non-disqualification under section 13 and satisfaction of conditions under section 11. Therefore, this court is of the opinion that mere registration does not guarantee exemption under section 11 and it only entitles the assessee to claim exemption and the same will be granted to them, subject to fulfilment of other prescribed conditions. The overall analysis of the provisions of law viz., sections 11, 12, 12AA and 13, would compel this court to hold that the grant of registration under section 12AA in favour of the assessee cannot ipso facto give them exemption under sections 11 and 12 and an independent examination by applying the relevant provisions of law, is required by the authorities qua satisfaction of other conditions by the assessee for grant of exemption. In view of the same, the direction given by the Tribunal to the assessing officer to grant exemption to the assessee under sections 11 and 12 of the Act, merely on the basis of the registration obtained under section 12AA, is not correct and hence, the orders passed by the Tribunal to that effect, warrant interfere by this court. Accordingly, the orders impugned herein are set aside and the matters are remitted to the Assessing Officer to consider afresh, as to the entitlement of exemption by the assessee, in the light of the provisions of sections 11, 12 and 13 of the Act and by conducting appropriate enquiry, after giving due opportunity to the assessee. Both the contentions raised on the side of the appellant / Revenue are accordingly, answered.
|