Exemption u/s 11(1)(d) Corpus Donations to Charitable Religious Trust, Income Tax

[LALIT MUNOYAT]

1) The Trust was created on 26-12-2013 as per PAN.

2) Application for its registration with Office of the Charity Commissioner Mumbai was made in Jan 2013. The registration was granted on 15-04-2013.

3) Application for exemption certificate u/s 12 AA was made on 15-10-2013 and the registration approval was received on 21-04-2014 making the registration effective from 15-10-2013.

4) Return of Income for the A.Y. 2013-14 was filed on 31-03-2014 claiming exemption of corpus donations of ₹ 82 Lakhs. By intimation u/s 143(1) the exemption was denied because registration was not received upto 31-03-14 and corpus donations were fully taxed.

Point of Issue

a) Is the trust eligible for exemption for A.Y. 2013-14 u/s 12A(1)(aa) for registration which is effective from 15-10-13; If not

b) Is the Trust eligible for exemption u/s 12A(2) read with First Proviso which provides that

i) The exemption is available w.e.f. 1st day of April 2014 or

ii) The exemption will also be applicable to A.Y. 2013-14 if assessment proceedings for A.Y. 13- 14 are pending before the Assessing Officer as on the date of such registration.

iii) Can it be said that as on the date of such registration assessment proceedings for A.Y. 2013-14 were pending particularly when the Return of Income was filed only on 31-03-14