9911796707
TMI Blog2015 (4) TMI 1205X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the Registration U/s 12AA of the Income Tax Act, 1961. 2. That the learned Commissioner of Income Tax is not justified in treating the activities of the Assessee as that of general public utility whereas the case of the assessee squarely falls under the main section as its activities are "preservation of environment" which is undoubtedly "charitable purpose" as per definition U/s 2(15) of the Act. 3. That the learned Commissioner of Income Tax is not justified in rejecting the registration application on the ground that basic condition of getting the accounts audited U/s 12(i)(b) is not fulfilled, which is to be seen at the time of assessment and not at the time of granting of registration. 4. That the learned Commissioner of Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not produced from 2006-07 to 2011-12 and there was no evidence regarding application of 85% of its receipts for charitable purposes. The Ld. Commissioner further noted that assessee has failed to comply with basic condition of the provision u/s 12A(i)(b) of getting its accounts audited. It was further noticed that assessee vide letter No. HSPCB/A/cs/2013/450 dated 18.6.2003 has admitted that accounts were audited only up to 2003-04 by Comptroller and Auditor General of India. Further, assessee has not utilized 85% of its receipts for charitable purposes. It was also observed that income from banks deposits and misc. receipts was in the nature of other sources and could not be claimed exempt. In this background the application of assessee wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amely:- (a) the person in receipt of the income has made an application for registration of the trust or institution in the prescribed form and in the prescribed manner to the Commissioner before the 1st day of July, 1973, or before the expiry of a period of one year from the date of the creation of the trust or the establishment of the institution, [whichever is later and such trust or institution is registered under section 12AA]: [Provided that where an application for registration of the trust or institution is made after the expiry of the period aforesaid, the provisions of section 11 and 12 shall apply in relation to the income of such trust or institution,- (i) from the date of the creation of the trust or the establishme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which the application is made. Therefore, in view of the above clear legal position and also concession made by Ld. Counsel for the assessee, the additional ground raised by the assessee is dismissed. 11. As far as the other grounds are concerned, we find that it is settled law that at the time of registration, the concerned authority is required to examine only the aims and objects of a particular institution and if the same are found to be of charitable nature, the registration should be granted. The other issue like non audit of accounts, non application of 85% of the funds for charitable purposes etc. can be examined only at the time of assessment when exemption is being granted u/s 11 & 12 of the Act. In the case before us, the Ld. Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ced that income of the assessee was more than the taxable limit and that assessee has not filed the return for various years, therefore, a notice u/s 148 was issued. In response to the notice, assessee filed declaring nil income for all these years by claiming exemption u/s 10(23C)(iv). The assessee was required to furnish the approval from the prescribed authority u/s 10(23C )(iv). In response to this query, it was stated that assessee has applied to CIT, Panchkula for registration u/s 12A w.e.f. 2006-07. Since the application has not been decided, therefore, Assessing Officer was requested to keep proceedings in abeyance. The Assessing Officer noticed that explanation of the assessee was contradictory because on the one hand it was claime ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld. DR strongly relied on the order of Commissioner. 18. We have considered the rival submissions carefully. We have already extracted the provisions of sub section (2) of section 12A (relevant portion) while adjudicating additional ground in ITA No. 830/Chd/2013. Sub section (2) of section 12A makes it absolutely clear that exemption is not available for earlier years if application is made after Ist June, 2007. The exemption is available only in the assessment year immediately following the financial year in which such application is made. In the case before us, application is made on 31.1.2013 i.e in financial year 2012-13, therefore, exemption would be available if the same is granted through registration u/s 12A from the competent au ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
