IN THE INCOME TAX APPELLATE TRIBUNAL BENCH-RANCHI VIRTUAL HEARING AT KOLKATA Before Shri Sonjoy Sarma, Judicial Member and Shri Ratnesh Nandan Sahay, Accountant Member Assessment Year: 2017-18 SKP Charitable Trust……..…….……….……...................……….……Appellant Bunglow No.1, Ratnam Apartment, Prakash Nagar, Telco, Jamshedpur, Jharkhand- 831004.

[PAN: AAETS2565G]

vs.

ITO, EXEMPTION WARD, JAMSHEDPUR ....……........……...…..…..Respondent Appearances by:

Shri Devesh Poddar, Adv., appeared on behalf of the appellant.

Md. Shadab Ahmed, DR, appeared on behalf of the Respondent.

Date of concluding the hearing : February 05, 2026 Date of pronouncing the order : March 12, 2026

ORDER

Per Sonjoy Sarma, Judicial Member:

This appeal filed by the assessee is directed against the order of the NFAC, Delhi (hereinafter referred to as “CIT(A)”) dated 20.12.2023 passed under Section 250 of the Income-tax Act, 1961 (hereinafter referred to as the “Act”).

2. Brief facts of the case are that the assessee, is a Charitable Trust, filed its return of income for the assessment year 2017–18 declaring total income of ₹5,86,510, treating the status as AOP. The case was selected for scrutiny. The assessee trust was established with the primary objective of promotion of education. However, at the time of filing the return, the trust was not registered under section 12A/12AA nor approved under section 10(23C) of the Income-tax Act, 1961. During the course of assessment, the Assessing Officer observed that the assessee had filed its return in Form ITR-5 along with audit report under section 44AB of the Act, declaring surplus of income over expenditure amounting to ₹5,86,510, and had paid tax on such surplus. The Assessing Officer further noted that registration under section 12A/12AA of the Act was granted to the assessee only with effect from AY 2019–20. Accordingly, the Assessing Officer assessed the income in the hands of the assessee as AOP, denying the benefit of sections 11 and 12 of the Act.

3. Aggrieved, the assessee preferred an appeal before the learned CIT(A). Before the first appellate authority, the assessee contended that once registration under section 12A/12AA of the Act is granted, the benefit of sections 11 and 12 is available for all pending assessments as on the date of grant of registration, in view of the first proviso to section 12A(2) of the Act. It was argued that merely because the return was filed earlier as an AOP, the charitable character of the assessee could not be denied. The learned CIT(A) partly allowed relief to the assessee on the issue of disallowability of expenses of Rs.1263300/-. However, no categorical direction was issued to grant exemption.

4. Dissatisfied with the order of the Ld. CIT (A) Assessee is in appeal before this tribunal. The learned counsel for the assessee reiterated that registration under section 12A/12AA of the Act was granted to the assessee and as per section 12A(2) of the Act, the benefit of sections 11 and 12 of the Act shall be available in respect of all pending assessments as on the date of registration. Therefore, the assessment for AY 2017–18 ought to have been completed by treating the assessee as a charitable trust, and not as an AOP.

5. The learned DR supported the orders of the authorities below and submitted that since registration was effective only from AY 2019–20, exemption was rightly denied.

6. We have heard the rival submissions and perused the material available on record. There is no dispute that the assessee was granted registration under section 12A/12AA of the Act, though effective from AY 2019–20. The only issue is whether such registration entitles the assessee to claim exemption under sections 11 and 12 of the Act for earlier pending assessments. The first proviso to section 12A(2) of the Act clearly provides that where registration is granted, the provisions of sections 11 and 12 of the Act shall apply in respect of any income derived from property held under trust for any assessment year