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2018 (4) TMI 249 - AT - Income TaxDenied exemption u/s. 11 - initiating reassessment proceedings on the basis of non grant of registration (u/s. 12AA) - Held that:- Assessee registered u/s. 12AA of the Act is to be, in view of s. 12A(2), deemed to be so registered for any other year for which the proceedings are pending at any (appellate) stage, provided of course that there is no change in the objects and activities of the entity during the intervening period. AR the assessee’s counsel, has shown us that there has been no change in the objects of the assessee’s society, qua which we are prima facie satisfied, as section 12A(2) cannot be invoked otherwise. No doubt the assessee stands refused approval u/s. 10(23C) and, in fact, twice. However, it is only the refusal (or subsequent cancellation) of registration u/s. 12A, that would attract the rigor of the third proviso to section 12A(2). We, accordingly, setting aside the impugned order/s, restore the assessments back to the file of the AO for consideration of the assessee’s claim for exemption u/s. 11 without being influenced by the grant of registration subsequently, and complete the assessment in accordance with the law. This aspect; the provisions of section 11 & 12 being not applicable in the absence of registration, remain to be examined.
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