9911796707
TMI Blog2012 (1) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... d 2007-08. He has observed that there was variation of administrative expenses in the three assessment years. Under the heads „administrative expenses‟, „community health wing‟ and „aids wing‟, the following expenses have been noticed : * Administrative Expenses : Asstt.Year 2007-08 Asstt.Year 2006-07 Asstt.Year 2005-06 CNI Synd Evaluation Commission 3,00,000 Nil Nil Building Rent 86,880 28,960 43,760 Committee Meeting Exp. 1,29,748 34,523 10,829 Legal & Professional fees 2,56,278 1,61,000 13,000 IEC Material 1,53,734 1,07,336 Nil Repairs & Maintenance 2,53,144 1,62,458 22,189 Stationary & Printing 1,39,743 1,59,291 35,689 Telephone Expenses 1,30,683 1,88,092 38,093 * B. Community Health Wing : Asstt.Year 2007-08 Asstt.Year 2006-07 Asstt.Year 2005-06 Travel and Conveyance 2,09,673 5,33,593 5,21,620 Legal & Professional fees 83,000 -- -- Training & Reorientation --- 2,30,828 4,50,091 Meeting, Travel & Field --- 1,98,969 5,54,836 Coordinator‟s Salary --- 1,43,000 2,14,000 Coordinator‟s Travel --- 42,632 1,90,708 Rent 86,880 28,9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ails of the persons who had undertaken the travel were mentioned/stated. The respondent had examined professional and legal expenses and has stated that external vouchers were not obtained or revenue stamp was not affixed on the receipt portion. In some cases, payment was made in cash. However, the purpose of payment was indicated. Similarly, with regard to the external consultancies, other services, extra work, gifts and other payments, similar objections have been recorded. 4. Thereafter, the respondent has observed as under : "From the above details, it can be seen that the applicant does not maintain proper accounts as expenses are not supported by external vouchers. In case of cash payments, the name and address of the recipient have not been mentioned on various vouchers. In some cases, even internal vouchers were not produced. The counsel for the applicant failed to offer any explanation for non-apparent that the books of account and vouchers were not properly maintained and it depended solely upon the sweet will of the applicant to debit whatever amount it chose to debit as expenses and no verification of the genuineness of these expenses was possible. Thus, the inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the second proviso, the PA is empowered before giving approval to call for such documents including annual accounts or information from the applicant to check the genuineness of the activities of the applicant institution. Earlier that power was not there with the PA. Under the third proviso, the PA has to ascertain while judging the genuineness of the activities of the applicant institution as to whether the applicant applies its income wholly and exclusively to the objects for which it is constituted/established. Under the twelfth proviso, the PA is required to examine cases where an applicant does not apply its income during the year of receipt and accumulates it but makes payment therefrom to any trust or institution registered under Section12AA or to any fund or trust or institution or university or other educational institution and to that extent the proviso states that such payment shall not be treated as application of income to the objects for which such trust or fund or educational institution is established. The idea underlying the twelfth proviso is to provide guidance to the PA as to the meaning of the words "application of income to the objects for which the instit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d conditions as it deems fit provided they are not in conflict with the provisions of the 1961 Act (including the abovementioned monitoring conditions). While imposing stipulations subject to which approval is granted, the PA may insist on certain percentage of accounting Income to be utilized/applied for imparting education in India. While making such stipulations, the PA has to examine the activities in India which the applicant has undertaken in its Constitution, MoUs, and Agreement with Government of India/National Council. In this case, broadly the activities undertaken by the appellant are - conducting classical education by providing course materials, designing courses, conducting exams, granting diplomas, supervising exams, all under the terms of an Agreement entered into with Institutions of the Government of India. Similarly, the PA may grant approvals on such terms and conditions as it deems fit in case where the Institute applies for initial approval for the first time. The PA must give an opportunity to the applicant-institute to comply with the monitoring conditions which have been stipulated for the first time by the third, proviso. Therefore, cases where earlier the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
