S.11 & 12 Exemption Cannot Be Denied Merely Due to Delayed Registration of Trust: ITAT

The Income Tax Appellate Tribunal (ITAT) has ruled that a tax exemption under Sections 11 and 12 of the Income Tax Act cannot be denied to a trust merely because there was a delay in its registration. These sections provide an exemption for the income of charitable and religious trusts. The tax department had denied the exemption because the trust had received its registration after some delay. However, the ITAT took a liberal and pro-assessee view, holding that the benefit of the exemption should be available from the date of the creation of the trust, provided the registration is eventually granted. The tribunal emphasized that the registration is a condition for availing the exemption, but a procedural delay in obtaining it should not lead to the denial of the substantive tax benefit for the period prior to the registration date.