9911796707
TMI Blog2015 (4) TMI 1205X X X X Extracts X X X X X X X X Extracts X X X X ..... ime of assessment when exemption is being granted u/s 11 & 12 of the Act. In the case before us, the Ld. Commissioner has not recorded any findings, how the objects of the assessee are not charitable. He has considered various other issues like non audit of accounts, the non application of 85% of the funds for charitable activities etc. which are not relevant for grant of registration, therefore, in the interest of justice, we set aside the order of Ld. Commissioner and remit the matter back to the file of Ld. Commissioner for reexamination of the issue and decide the same in accordance with law. - ITA No. 830 /Chd/2013 , ITA No. 261 to 266 /Chd/2014 - - - Dated:- 28-4-2015 - SHRI. BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI T.R. SOOD, ACCOUNTANT MEMBER Appellant By : Sh. Sudhir Sehgal Respondent By : Dr. Amarveer Singh ORDER PER BENCH The appeal by the assessee is directed against the order dated 29.07.2013 passed by the CIT, Panchkula . ITA No. 830/Chd/2013 2. In this appeal assessee has raised the following grounds which is as under: 1. That the learned Commissioner of Income Tax has erred in law as well as on facts of the case in rejecti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 was rejected. 6. Before us, Ld. counsel with reference to the additional ground fairly admitted that after amendment in section 12A w.e.f. 1.6.2007, by Finance Act 2007, the assessee is not entitled to exemption u/s 11 12 of the Act. Even the provision for condonation of delay has been deleted by Finance Act, 2007. With reference to the normal grounds he submitted that at the time of registration, the Commissioner is only required to examine the objects of the Board and not the actual activities or other issues like audit of accounts. The issue like audit of accounts and genuinene ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2006. Further, sub section (2) of section 12A reads as under:- [(2)] Where an application has been made on or after the 1st day of June, 2007, the provisions of sections 11 and 12 shall apply in relation to the income of such trust or institution from the assessment year immediately following the financial year in which such application is made.] 10. The above provision was also inserted by Finance Act 2007 w.e.f. 1.6.2007 and makes it clear that where application is made after first day of June 2007 then the benefit of sections 11 12 is available only with reference to the assessment year immediately following the financial year in which such application is made. This means that the benefit of sections 11 12 is not available to the earlier years for 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 s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing 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 claimed that assessee has exempt income u/s 10(23C)(iv) but later on it was claimed in response to the query that assessee has applied for registration u/s 12A with CIT, Panchkula. Further, assessee has not filed any approval from the competent authority u/s 10(23C)(iv). Therefore, exemption was denied and income was assessed accordingly for various years. 15. On appeal, initially various adjournments were sought and then it was pointed out that assessee has filed an appeal against the order of rejection for registration u/s 12A before the ITAT, Chandigarh. It was further submitted that application could have been considered with retrospective effect and various case laws were relied on for this purpose. It was also contended that Minister of Environment and Forest have asked for exemption from filing of return for all State Pollution Control Boards. The Ld. CIT(A) examined these submissions and noted that since assessee has not filed any approval from competent authority in respect of exemption u/s 10(23 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
