Retrospective effect of Section 12A.

M S Tekkur (CHARTERED ACCOUNTANT) (10 Points)

17 April 2025  

I have query regarding 

Retrospective effect of section 12A

Can a trust who is provisionally registered under section 12, claim section 11 exemption for the prior period i.e AY 2020-21. 

Points to consider:- before 1-4-2023  Section 12A(2) provides exemption for trust who claim exemption for prior period based on the registration taken subsequently.

But after amendment as per Finance Act 2023, the section of roll back provision of 12A(2) was removed.

No my question is can a trust claim 11 exemption for the AY 2020-21 based on the 13A registration taken on 2024. 

One more doubt is that which finance act should we refer FA 2023 which is effective from 1-4-2023. 

Or Finance Act 2014. Which provides section 12A(2) retrospective effect of section 12 on certain conditions. 

I need guidance to file an apeal in this matter.

Thanks in advance.🤝🏻