No retrospective benefit of registration

Current Position: proviso to sub section 2 to section 12A

 The exemption under Sections 11 and 12 shall be available for assessment year which assessment proceedings are pending before the Assessing Officer as on the date of such registration.

 Assessing Officer shall not take any action for reopening of an assessment for any assessment year preceding the first assessment year for which the registration applies, merely for the reason that such trust or institution has not obtained the registration for the said assessment year.

 However, this benefit would not be available in the case of any trust or institution that had applied for registration, and the same was refused, or the registration was cancelled.

Proposed Amendment [From 1st April 2023]:

 Finance Bill has proposed to omit the second, third and fourth proviso to Section 12A(2). Thus, the benefit of exemption provisions under Section 11/12 shall not be available for the earlier years.