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TMI Blog2018 (7) TMI 1466X X X X Extracts X X X X X X X X Extracts X X X X ..... ails of other chapters of Society and its financial and administrative relations with such chapters. Hence, we set aside the impugned order and restore the issue of registration u/s 80G to the file of ld. CIT(E) for decision afresh. It is also clarified that the issue is setaside on the submissions of the Ld. Counsel for the assessee that the other chapters of the society are independent entities and the assessee has nothing to do with their financial affairs. The ld. CIT(E) would make enquiry for the limited purpose with regard to the administrative and financial relation of the assessee with other chapters. - I.T.A. No. 92/Ind/2018 - - - Dated:- 18-7-2018 - SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER For The Appellant : Shri Pawan Ved, Adv. For The Respondent : Shri Lalchand, CIT DR ORDER PER KUL BHARAT, J.M. : This appeal filed by the assessee is directed against the order of ld. Commissioner of Income-tax (Exemption) dated 29.01.2018 relating to assessment year 2017-18. 2. The assessee has raised the following grounds of appeal :- 1. The Ld. CIT(E) was not justified in rejecting the application for approva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aterial available on record. We are unable to accept the contention of the assessee that the order passed by the ld. CIT is barred by time. We are in agreement with the submission of the Ld. Departmental Representative that the limitation prescribed under Rule 11-AA(1B) would not be applicable under the facts of the present case. For the sake of clarity, the direction of the Tribunal in I.T.A.No. 236/Ind/2017 embodied in para 7 is reproduced as under :- 7. We have considered rival submissions and perused the material on record. We find that the notices of hearing were issued at the address of AIIMS, Delhi which were apparently received late by the appellant society, hence, it appears that the assessee society could not make due compliance of production of books of accounts and other supporting documents thereon before the CIT(E). Further, we find that the application u/s 8OG (paper book page nos.3 4) has been filed with the CIT(E), Bhopal. The CIT(E),Bhopal has passed an order u/s 12AA(1)(b)(i) of the Act registered the trust under said Section on 25.04.2016 (paper book page no. 1). Therefore, the CIT(E) was having jurisdiction over the case, when the application for registra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that once the ld. CIT himself has satisfied in respect of registration u/s 12A, the ld. CIT ought not to have rejected the registration u/s 80G of the Act. He submitted that registration u/s 80G after grant of registration u/s 12A is consequential. He placed reliance on the decision of the Tribunal in the case of Shri Gian Ganga Vocational Educational Society v. CIT, Rohtak, (2013) 35 taxmann.com 17 (Del.Trib.). 12. The Ld. Departmental Representative has also placed reliance on the decision of Coordinate Bench of this Tribunal in the case of Anand Incubation Centre v. CIT (E), Jaipur, (2017) 86 taxmann.com 250 ( Jaipur-Trib ). 13. The Ld. Counsel for the assessee placed reliance on the judgement of the Hon'ble Gujarat High Court in the case of Hiralal Bhagwati v. CIT, (2000) 246 ITR 188 (Guj). The Ld. Counsel for the assessee has also relied on the juidgment of the Hon'ble Supreme Court in the case of ACIT vs. Surat City Gymkhana, (2008) 300 ITR 214 (S.C.), IN Civil Appeal Nos. 4305 and 4306 of 2002 dated 4th March, 2008. The Ld. Counsel for the assessee has taken us through the relevant provisions of law to buttress the argument that the assessee is entitled fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rson in receipt of the income was prevented from making the application before the expiry of the period aforesaid for sufficient reasons; ( ii) from the 1st day of the financial year in which the application is made, if the Principal Commissioner or Commissioner is not so satisfied: Provided further that the provisions of this clause shall not apply in relation to any application made on or after the 1st day of June, 2007; ( aa) the person in receipt of the income has made an application for registration of the trust or institution on or after the 1st day of June, 2007 in the prescribed form and manner to the Principal Commissioner or Commissioner and such trust or institution is registered under section 12AA; Following clause (ab) shall be inserted after clause- (aa) of sub-section (1) of section 12A by the Finance Act, 2017, w.e.f. 1-4-2018 : (ab) the person in receipt of the income has made an application for registration of the trust or institution, in a case where a trust or an institution has been granted registration under section 12AA or has obtained registration at any time under section 12A [as it stood before its amendment by the Finance (No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot be liable to inclusion in its total income under the provisions of section 11 shall not apply in relation to such income, if,- ( a) the institution or fund maintains separate books of account in respect of such business; ( b) the donations made to the institution or fund are not used by it, directly or indirectly, for the purposes of such business; and ( c) the institution or fund issues to a person making the donation a certificate to the effect that it maintains separate books of account in respect of such business and that the donations received by it will not be used, directly or indirectly, for the purposes of such business;]] ( ii) the instrument under which the institution or fund is constituted- does not, or the rules governing the institution or fund do not, contain any provision for the transfer of application at any time of the whole or any part of the income or assets of the institution or fund for any purpose other than a charitable purpose; ( iii) the institution or fund is not expressed to be for the benefit of any particular religious community or caste; ( iv) the institution or fund maintains regular accounts of its rece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e relevant direction of this Tribunal in I.T.A.No. 236/Ind/2017 are reproduced as under :- In these circumstances, we are of the considered opinion that the original jurisdiction is vested with the CIT(E), Bhopal and who has also passed the order u/ s 80G as well as u/s 12AA of the Act in respect of assessee society, therefore, in the interest of justice and fair play we deem it fit to restore the matter to the file of the CIT(E) to decide the matter afresh without any prejudice in accordance with law on production of books of accounts and required documents. The assessee society is also directed to cooperate with the proceedings and produce necessary books of accounts and other documents as contemplated under Rule 11AA(3) of I.T. Rules, 1962 and as are the necessary for grant of approval u/ s 80G of the Act within the reasonable time. In the light of aforesaid fact the entire issue in respect of all grounds of appeal is set aside to the file of CIT(E) with de novo consideration and in accordance with law. 17. From the above, it is evident that the assessee was directed to file documents as contemplated under Rule 11AA(3) of the Income Tax Rules, 1962 (hereinafter refer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that Hon'ble ITAT Indore Bench Indore vide its order dated 13/06/2017 restore the matter to the file of the CIT(E) to decide the matter afresh without any prejudice in accordance with law on production of books of accounts and required documents. The Hon'ble ITAT has directed the assessee in Para 7 of the ITAT order to cooperate with the proceedings and produce necessary books of accounts and other documents as contemplated under Rule 11 AA(3) of I.T.Rules, 1962 and as are the necessary for grant of approval u/s 80G of the Act within the reasonable time. Further as regards above, it is worthwhile to reproduce the requirements for approval of an institution or fund under Section 80G:- ( 3) The Commissioner may call for such further documents or information from the institution or fund or cause such inquiries to be made as he may deem necessary in order to satisfy himself about the genuineness of the activities of such institution or fund. 7. Vide para 6 of the reply dated 16.01.2018, it is contended that the queries raised do no relate to applicant society. It is clarified further here that the details of conferences as per query 1 2 stated in Para 3 and I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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