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TMI Blog2019 (6) TMI 139X X X X Extracts X X X X X X X X Extracts X X X X ..... or want of registration u/s 12AA, AO has brought gross receipts to tax which is against the basic tenets of law where only the real income which is determined after deducting expenses from gross receipts can be brought to tax. We therefore agree with the alternate contention so advanced by the AR and without going into merit of the other contention which is left open, the matter is set-aside to the file of the AO to examine the claim of the expenditure so claimed by the assessee trust against the gross receipts for each of the relevant years and where the AO determines the net receipts as not exceeding the maximum amount not chargeable to tax, allow the necessary relief to the assessee trust. - Appeals filed by assessee trust are allowed fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... longing to a particular community but is available to public at large, he would grant registration as per law. In the set aside proceedings, assessee brought on record evidences by way of list of the patients whose cost of medicines/ expenses is borne by the assessee and list of students whose fees is borne by it without any discrimination as to the caste. The Ld. CIT(E), however, required the assessee to make necessary amendment in the trust deed stating that it is not restricted to Jain Dharm only. Accordingly, assessee vide amendment deed dt. 19.09.2018 inserted following proviso in Para 4 of the trust deed:- Assessment Year Receipts assessed 2013-14 ₹ 3,14,665/- 2014-15 ₹ 4,34,675/- 2015-16 ₹ 4,54,710/- 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mption u/s 12AA is given based on its modified objects from 19.09.2018. Accordingly, he confirmed the orders of AO assessing the gross receipts as total income. 5 In the above factual matrix of the case, the ld AR submitted that the Tribunal has noted that the assessee trust is not for the benefit of any particular community and that the benefit of the trust is available to public at large. Therefore, the issue was set aside with the direction that CIT(E) would conduct an enquiry with regard to the objectives of the trust. Thereafter, the assessee in order to bring more clarity filed the amended deed by inserting a proviso to Para 4 of the trust deed as stated above as if the said clause is inserted in the original trust deed. Thus, the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s assessee received the donation only because the donors were satisfied that assessee is incurring the expenditure as per its objectives. Hence, the gross receipts cannot be taxed as income. Only the net surplus can be charged to tax. However, since the surplus is below the maximum amount chargeable to tax, the assessee is not liable to tax. Hence, the lower authorities be directed to compute the income after allowing the expenditure. 7. The ld DR is heard who has submitted that before invoking the proviso to section 12AA(2), what has to be seen is that the assessment proceedings are pending before the Assessing officer as on the date of such registration and the objects and activities of such trust or institution remain the same for such ..... X X X X Extracts X X X X X X X X Extracts X X X X
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