SAINT MARYS EDUCATIONAL SOCIETY,ALLAHABAD V. INCOME TAX OFFICER (EXEMPTION), PRAYAGRAJ, PRAYAGRAJ

ITA 61/ALLD/2025

AI Insights

Saint Mary’s Educational Society appealed against the decision of the CIT(A) and the Assessing Officer, which denied them exemption under section 11 of the Income Tax Act for the assessment year 2018-19. The denial was based on the fact that the society did not have a valid registration under section 12AA due to a change in the trust's objects. The CIT(Exemptions), Lucknow had previously rejected their application for fresh registration under section 12AA. The Tribunal found no infirmity in the lower authorities' decisions and dismissed the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 785846 (ITAT-ALLAHABAD)
• Duration Of Justice: 6 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Appeal Filed On: 04-04-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: REVENUE DID NOT EXPRESS ANY; A.K. SINGH
• Assessee Lawyers: N.C.AGRAWAL
• Keywords: Condonation of delay; Set aside
• Section: 143(3); 142(1); 11; 12AA; 12A; 6

Judgement Text

"I.T.A. No.61/Alld/2025 Assessment Year:2018-19 1 IN THE INCOME TAX APPELLATE TRIBUNAL ALLAHABAD BENCH, ALLAHABAD BEFORE SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER AND SHRI SUBHASH MALGURIA, JU DICIAL MEMBER I.T.A. No.61/Alld/2025 Assessment year:2018-19 Saint Mary’s Educational Society 32, Bishp House, Thornhill Road Prayagraj-211002 PAN:AABTS1919H Vs. Income Tax Officer (Exemptions) Prayagraj. (Appellant) (Respondent) O R D E R PER SUBHASH MALGURIA:J.M. This appeal vide I.T.A. No.61/Alld/2025 has been filed by the assessee for assessment year 2018-19 against impugned appellate order dated 30/05/2024 (DIN & Order No.ITBA/NFAC/S/250/2024- 25/1065271437(1) of Commissioner of Income Tax (Appeals) [“CIT(A)” for short]. 2. This appeal has been filed by the assessee, beyond time limit prescribed under section 253(3) of the I.T. Act. The assessee has submitted an application dated 04/04/2025 for condonation of delay in filing of the appeal pleading that the delay was unintentional and beyond the control of the assessee and has requested to admit the appeal for hearing. The learned Sr. Departmental Representative for Revenue did not express any objection to assessee’s application for condonation of delay in filing of the Appellant by Shri N. C. Agrawal, C.A. Respondent by Shri A. K. Singh, Sr. D.R. Printed from counselvise.com I.T.A. No.61/Alld/2025 Assessment Year:2018-19 2 appeal. In view of the foregoing, and in specific facts and circumstances of the present appeal before us, the delay in filing of this appeal is condoned; and the appeal is admitted for hearing. 3. The facts of the case, in brief, are that the assessee trust was registered under Section 12A of the I.T. Act on 28/10/1999. The assessee filed its return of income for the year under consideration on 21/09/2018 declaring nil income after claiming exemption u/s 11 of the I.T. Act. The return filed by the assessee was processed u/s 143(1) of the Act. Subsequently, the case of the assessee trust was selected for complete scrutiny. Accordingly, the Assessing Officer issued notices u/s 143(2) and 142(1) of the Act. In response thereto, the assessee filed details as called for by the Assessing Officer. On perusal of the return of income, the Assessing Officer noticed that there was a change in the objects of the assessee trust. The Assessing Officer also noticed that the assessee had filed Form 10A on 10/05/2018 seeking fresh registration u/s 12AA of the Act as per the amended provisions of the Act consequent upon change in the objects of the assessee trust. The CIT(Exemption), Lucknow rejected the application filed by the assessee vide order dated 22/11/2018. Since the application of the assessee, seeking fresh registration u/s 12AA after change in the objects of the assessee, was rejected by learned CIT (Exemptions), the Assessing Officer opined that the assessee trust had become ineligible to claim exemption u/s 11 of the Act and the assessee was treated as AOP. The Assessing Officer issued show cause notice proposing the denial of exemption u/s 11 of the Act and treating the assessee as AOP. In response to show cause notice, the assessee submitted that order passed by the CIT(Exemption) rejecting the fresh application filed for registration u/s 12AA of the Act was set aside by the Hon'ble ITAT, Allahabad and was now pending before the CIT(Exemption), Lucknow. The Printed from counselvise.com I.T.A. No.61/Alld/2025 Assessment Year:2018-19 3 Assessing Officer did not find the reply of the assessee acceptable and completed the assessment u/s 143(3) read with section 144B of the Act passed on 28/04/2021 assessing total income at Rs.4,91,24,101/- after allowing expenses allowable to the extent of Rs.5,21,98,664/- from the gross receipts of Rs. 10, 13,22,765/-. Aggrieved, the assessee went in appeal before the learned CIT(A), who has dismissed the appeal of the assessee. Aggrieved further, the assessee is in appeal before the Income Tax Appellate Tribunal. 4. During the course of hearing in the Income Tax Appellate Tribunal, learned Counsel for the assessee strongly opposed the order of Assessing Officer and learned CIT(A). In support of his contention, learned Counsel for the assessee submitted the paper book, containing the following documents: Printed from counselvise.com I.T.A. No.61/Alld/2025 Assessment Year:2018-19 4 5. On the other hand, learned Departmental Representative supported the orders of the authorities below and submitted that since the assessee was not having registration under section 12AA of the Act, it was not eligible to claim exemption under section 11 of the Act. He also submitted that the Assessing Officer had made the addition in absence of registration under section 12AA of the Act for the assessment year 2018-19 and learned CIT(A) has correctly dismissed the appeal of the assessee on this ground. Printed from counselvise.com I.T.A. No.61/Alld/2025 Assessment Year:2018-19 5 6. We have heard the rival parties and have gone through the material placed on record. While dismissing the appeal of the assessee, the learned CIT(A) has observed as under: Printed from counselvise.com I.T.A. No.61/Alld/2025 Assessment Year:2018-19 6 u/s 12A of the Act for the AY 2018-19, the addition made by the AO by denying the benefit under section 11 of the Act is hereby confirmed. Accordingly, the ground nos. 2 to 12 are dismissed.” 7. In view of the foregoing, it is clear that the assessee was not having registration u/s 12AA of the Act consequent to the change of objects of the trust for the assessment year 2018-19, and the registration under section 12AA read with section 254 of the Act granted by CIT (Exemptions), Lucknow on 13/12/2022 is with effect from the assessment year 2019-20 only. We find no infirmity in the above findings of learned CIT(A), which is confirmed and the appeal filed by the assessee is dismissed. 8. In the result, the appeal of the assessee stands dismissed. (Order pronounced in the open court on 31/10/2025) Sd/. Sd/. (ANADEE NATH MISSHRA) (SUBHASH MALGURIA) Accountant Member Judicial Member Dated:31/10/2025 *Singh Copy of the order forwarded to : 1. The Appellant 2. The Respondent. 3. Concerned CIT 4. D.R., I.T.A.T., Allahabad Printed from counselvise.com "