Section 11 & 12A of the Income-tax Act, 1961 – Charitable or religious trust – Once the cancellation of registration has been set aside and registration granted under section 12A has been restored by the Tribunal, learned Commissioner (A) decision for disallowance of exemption under section 11 becomes redundant, hence, has to be set aside.

Facts: Grievance of the assessee is against denial of exemption claimed under section 11.

Held, that Tribunal while deciding the issue has categorically held that nothing has been brought on record to show or to prove that the activities carried out by the assessee are in violation of its objects. Be that as it may, as observed earlier, the only reasoning on the basis of which Commissioner (Appeals) has upheld the disallowance of assessee's claim of exemption under section 11 is due to withdrawal/cancellation of assessee's registration under section 12A. However, after restoration of the registration granted under section 12A by virtue of the order passed by the Tribunal, the reasoning of learned Commissioner (Appeals) in rejecting assessee's claim of exemption under section 11 cannot be upheld. Facts in the present case are identical as the only reasoning on the basis of which Commissioner (Appeals) has upheld the rejection of exemption under section 11 is due to cancellation of assessee's registration under section 12A. Once the cancellation of registration has been set aside and registration granted under section 12A has been restored by the Tribunal, learned Commissioner (A) decision for disallowance of exemption under section 11 becomes redundant, hence, has to be set aside. Accordingly, we set aside the impugned order of learned Commissioner (Appeals) and allow assessee's claim of exemption under section 11 – AMATEUR RIDERS CLUB Vs. ASSTT. DIT [2020] 181 ITD 401 (ITAT-MUMBAI)