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2024 (2) TMI 687 - AT - Income TaxBenefit of exemption u/s 11/12 - Effective date of grant of registration u/s 12A - Initially application was rejected by CIT(E), but the same was approval on the direction of ITAT w.e.f. 1.4.2017 - Assessee claimed the exemption u/s 11/12 for preceding AY 2016-17 and 2017-18 also - HELD THAT:- As the Co-ordinate Bench of ITAT Indore M/S. BARKATULLAH VISHWAVIDYALAYA VERSUS DCIT (E) BHOPAL [2022 (6) TMI 1459 - ITAT INDORE] following the decision of Shri Bhanushali Mitra Mandal Trust Vs. ITO [2016 (4) TMI 578 - ITAT AHMEDABAD] has accepted in principle that going by the purposive interpretation of statues, an assessment proceeding which is pending in appeal before the appellate- authority should be deemed to be 'assessment proceedings pending before the assessing officer' within the meaning of that term as envisaged under the proviso to section 12A(2). Therefore, the condition (ii) is also satisfied. Now what remains is the last condition (iii) according to which the object and activities of the assessee should remain same for preceding assessment year i.e. AY 2016-17 and 2017-18 in these cases. AR submitted that the assessee is a Govt. owned society and its object and activities remained same year after year. We prima facie find merit in the submission of Ld. AR but still the AO should get an opportunity to verify this condition (iii). Moreover, the claim of exemption u/s 11/12 involves a different type of working based on application and accumulation of income which the AO has not verified till now because he did not grant exemption for want of registration u/s 12A. For these reasons, we feel it most appropriate to remand these matters back to the file of AO for carrying out verification of fulfillment of condition (iii) discussed above and if that is held to be satisfied, to verify and allow exemption u/s 11/12. Appeals of assessee are allowed for statistical purpose.
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