31 May 2012
A registered Educational Trust was claiming Deductions u/s 10 (23)(c) vi since last three financial years. Now the Trust has applied for 12 A certificate and 80-G exemption certificate. The CIT in his Order ask the clarification from the Assessee that in case of registration U/S 12 is granted, the assessee will not be liable to claim exemption of income u/s 10 (23c) for the earlier years also. Is it lawfull? If the 12 A registration applicable with retrospective effect, the deductions u/s 10 (23c) claimed will be dis-allowed and no deduction u/s 12 A will be alloed for those years. Kindly clarify whether the contention of CIT is right.
01 June 2012
The Ld. CIY can tell that in addition to exemption under section 10(23c) you shall not be eligible for exemption under section 11 & 12 for pre registration period. If it is the final order of the Ld CIT then you may prefer an appeal before ITAT.
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