9911796707
TMI Blog2015 (10) TMI 804X X X X Extracts X X X X X X X X Extracts X X X X ..... ministrative Commissioner has to examine the application of the assessee as provided in section 12AA(1) r.w.s. 2(15) of the Act and satisfy himself about the genuineness of the activity of the object of the trust. Since the same was not examined by the Administrative Commissioner, this Tribunal is of the considered opinion that the matter needs to be re-examined by the Administrative Commissioner. Accordingly, the order of the Administrative Commissioner is set aside and the issue is remanded back to reexamine the matter afresh regarding the genuineness of the activities of the trust. The Administrative Commissioner shall examine specifically why the society was formed by the Government officials to implement health care programme when ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rman and the District Collector is the Co-Chairman. The other office bearers are all government employees like District Health Officer, Project Officer, District Programme Officer, Education Social Welfare Officers, Members of Parliament and State Legislators and other representatives of the local bodies. The ld.representative further submitted that the assessee requested the medical professionals, who are employed by Government of Kerala to serve in the rural area and pay a salary of ₹ 25,000 in addition to monthly salary paid by Government of Kerala. On a query from the bench as to when the society was formed by the District Panchayat Chairman and District Collector as Chairman and Co- Chairman, respectively and the District Medic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmediately preceding financial year. The section does not say that the financial statement filed before the Administrative Commissioner needs to be audited. Referring to section 12A(b) of the Act, the ld.representative submitted that once the society is registered u/s 12AA of the Act, in order to avail benefits u/ss 11 12 of the Act, the assessee mandatorily require to file audited statement along with the return of income. Therefore, according to the ld.representative, filing of audit report along with the return of income is not a pre-condition for registration. According to the ld.representative, the accounts of the assessee are regularly audited as provided in the bye law. Therefore, the Administrative Commissioner has no justificatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trict by the government officials, who are otherwise supposed to implement the policy of the government. The source of income of the society appears to be only aid from Government of India and the State government. The ld.representative for the assessee clarifies that the society will pay ₹ 25,000 to the doctors / medical practitioners, who are employed by state government over and above the salary paid by the state government. When the medical practitioners are employed by government of Kerala, they are expected to implement the policy of the government as a government employee. It is not known why the society is paying ₹ 25,000 in addition to salary paid by the state government. 6. We have carefully gone through the provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dministrative Commissioner may call for such document or information from the applicant / society. Therefore, if the Administrative Commissioner calls for the audited statement to satisfy himself about the genuineness of the activity of the trust, it is the obligation of the assessee society to file the same before the Administrative Commissioner to prove its genuineness. Though section 12A(b) requires the assessee to file audited statement alongwith the return of income for claiming exemptions u/s 11 12, there is no prohibition u/s 12AA of the Act to call for the audited statement at the time of registration by the Administrative Commissioner in order to satisfy himself about the genuineness of the activity of the assessee society. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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