20 November 2023
my question->for asst.2122, in itr7, in 1st page, Part A, general info, do we have to write new 12AB registration details? my view, no only 12A is required for asst.2122.
my facts -->for asst. 2122 , 12A old registration is required, but 143(1) disallowed my section 11 exemptin stating 12AB is required, not 12A so i am in cit(a) now
my view--> 12AB is only for asst.22-23 onwards, not for old asst.2122 because, 12AA(5) was amended w.e.f. 1.4.2021 onwards in finance act 2020 (hence 12AA(5) omitted w.e.f. 30.6.2020 date and postpone new 12AB to 1.4.21 (i.e. asst.2223 onwards) i have chandigarh tribunal also in my favour, but anxious , awaiting cit appeal disposal... ,
anyone has filed asst.2122 itr7 for no bussines income pure religious trust?
09 July 2024
Based on the details provided, here's a clarification regarding the registration requirements for a charitable or religious trust for assessment year 2021-22 (AY 2021-22):
1. **Registration Requirement**: For AY 2021-22 (FY 2020-21), the registration under Section 12A of the Income Tax Act, which provides exemption to charitable or religious trusts, is still based on the old registration process (i.e., under Section 12A).
2. **Introduction of 12AB**: The requirement to obtain registration under Section 12AB, which replaced Section 12A from April 1, 2021 (AY 2022-23 onwards), does not apply to AY 2021-22. This means for AY 2021-22, trusts should still rely on the old registration under Section 12A.
3. **ITR-7 Filing**: When filing ITR-7 for AY 2021-22 (FY 2020-21), you should provide details of the old registration under Section 12A in Part A (General Information) of the form. There is no requirement to provide details of registration under 12AB because it does not apply to this assessment year.
4. **Legal Position and Tribunal Decisions**: Your understanding aligns with the legal position that for AY 2021-22, trusts should continue to rely on the registration under Section 12A. If there has been a disallowance under Section 143(1) citing the need for registration under 12AB, and considering that this provision is applicable only from AY 2022-23 onwards, you may have a strong case based on the existing legal framework.
5. **Appeal Process**: It's understandable to await the decision of the Commissioner of Income Tax (Appeals) (CIT-A) in your appeal against the disallowance. If the Chandigarh Tribunal has ruled in favor of trusts in similar situations, it provides precedent that supports your case.
6. **Consultation**: It's advisable to continue consulting with a tax advisor or a legal expert who specializes in income tax matters concerning charitable and religious trusts. They can provide specific guidance tailored to your situation and assist in navigating the appeal process effectively.
In summary, for AY 2021-22, trusts should continue to mention the old registration details under Section 12A in ITR-7. The introduction of Section 12AB applies from AY 2022-23 onwards and does not impact the assessment for the current financial year.
CAclubindia
