Demand due to non mentioning Regn.No.of trust u/s 12AA in the ITR.

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S N UNNI

TAX PRACTITIONER

44 Points Posted on 14 September 2024

One of my client, who is a trust, duly registered u/s 12AA of IT Act filed their i ITR for 19-20 AY without mentioing the Reg.No.u/s 12A already issued long back. The trust was filing their returns since last 20 years with Regn.No. Due to oversight they did not mention the Regn.No. in 19-20 in their ITR. No reply was also given to the department for the defects mentioned by them through notice. The expenses claimed by the trust was disallowed and a huge demand was created. Rectification application was filed thrice, but of invain. How can the trust cancel the demand created due to a minor mistake of not mentioning the Regn.No.

Pl.help..

Replies (3)

Quick Summary

A trust failed to mention its 12AA registration number on its Income Tax Return (ITR) for AY 2019-20, leading to disallowed expenses and a significant tax demand. Despite multiple rectification attempts, the issue persists. This discussion explores options for the trust to resolve this, including filing rectification applications, appealing to the CIT(Appeals), approaching the Income Tax Ombudsman, or even a High Court writ petition. It highlights that courts have previously ruled in favour of trusts where exemption was denied solely due to the omission of the registration number, provided the trust was indeed registered.

Rama chary Rachakonda

Master in Accounts & high court Advocate

7021 Points Posted on 16 September 2024

The trust can explore the following options to cancel the demand: 1. File a rectification application under Section 154 of the Income-tax Act, 1961, highlighting the minor mistake and requesting correction. 2. Appeal to the Commissioner of Income Tax (Appeals) under Section 246A of the Income-tax Act, 1961, if the rectification applications have been rejected. 3. Approach the Income Tax Ombudsman for assistance in resolving the issue. 4. File a writ petition in the High Court if all other avenues fail. It is essential to note 2. Ensure all documentation and records are in order. 3. Follow the proper procedure for filing appeals and rectification applications. 4. Be prepared to justify the minor mistake and demonstrate that it was a genuine error. Please consult a tax professional or chartered accountant for specific guidance on this matter.

Aashok Kumar Sharma

Finance/Compliance Consultant

75672 Points Posted on 08 November 2026

A trust's ITR without the 12AA registration number:

• If a trust filed ITR-7 without the 12AA/12AB registration details, CPC may deny the Sec 11 exemption, raising a demand.

• Fix: file rectification (154) with the correct registration number and date (if the return form had the field), or a revised return (if within time). For AY 2019-20, the revision window has passed, so rectification or appeal.

• Courts have held that exemption can't be denied for not mentioning the registration number if the trust was actually registered (a procedural lapse).

Aashok Kumar Sharma

Finance/Compliance Consultant

75672 Points Posted on 08 November 2026

A trust's ITR without the 12AA registration number:
• If a trust filed ITR-7 without the 12AA/12AB registration details, CPC may deny the Sec 11 exemption, raising a demand.
• Fix: file rectification (154) with the correct registration number and date (if the return form had the field), or a revised return (if within time). For AY 2019-20, the revision window has passed, so rectification or appeal.
• Courts have held that exemption can't be denied for not mentioning the registration number if the trust was actually registered (a procedural lapse).