9911796707
TMI Blog2022 (6) TMI 725X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. The assessee has raised the following grounds of appeal: 1) That Hon'ble CIT(A)/Ahmedabad has erred in passing the appeal order by attracting provision of section 164 of the IT Act which is covered in the case of your appellant and dismissed the apeal 2) That your appellant is a recognized registered charitable trust and not a Association of Person (A.O.P) as treated by Dy CIT(CPC)/Banglore as well as Hon'ble CIT(A)-9/A'bad which is erroneous and unjustifiable. 3) That the Dy CIT (CPC), Banglore has passed the order u/s 143(1) of the I T Act determined total income of Rs 82,360/- which is below taxable income but applied Maximum Marginal rate @ 30%and tax payable them on Rs 26,150/-. 4) That the trust has made entire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 143(1) of the Act. 5. Aggrieved assessee preferred an appeal to the learned CIT-A. 6. The assessee before the learned CIT(A) contended that its status should be considered as AOP which is chargeable to tax Act at normal/ slab rate of tax as applicable to an individual. Therefore, the assessee is entitled for the basic exemption limit as available to an individual and therefore slab rate of tax should be applied. As per the assessee the basic exemption limit available to it for the year under consideration is of Rs.2.50 lacs which is much higher than the amount of income declared by it in the income tax return. 6.1 It was also contended that income received by the assessee represents the interest income on the fixed deposits which is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore the benefit of the proviso to section 12 AA of the Act cannot be granted. The learned DR in support of his contention has relied on the judgment of Hon'ble Gujarat High Court in the case of S.R. Koshti vs. CIT reported in 276 ITR 165. The learned DR vehemently supported the order of the authorities below. 10. We have heard the rival contentions of both the parties and perused the materials available on record. In the present case, the assessee being a trust was registered in the year 1998 as Public Trust with Charity commissioner, Ahmedabad under Mumbai Public Trust Act 1950. The assessee has filed the application for the registration under section 12AA of the Act vide application dated 21st March 2016 which was approved by the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ported in 276 ITR 165 wherein it was held as under: On a plain reading of the Explanation to section 143 which was omitted by Finance Act, 1999, with effect from 1-6-1999, it became clear that even for the limited period when the Legislature wanted the intimation to be deemed to be an order, it was for limited purpose, namely, for the purposes of appeal under section 246 and revision at the instance of an assessee under section 264. Thus, even when the said Explanation was on the statute book, the power to invoke the provision of section 263 could not be exercised in the circumstances. For the year under consideration, admittedly, the said Explanation was not on statute book. The Commissioner, therefore, could not have, in the circumstanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der clause (iv) of section 160 of the Act. To this proposition, there is no dispute. It is also not under challenge that the trust on hand is a discretionary trust meaning thereby the beneficiaries of the trust are not known. In other words the trust being public trust was formed to carry out the charitable activities as evident from the trust deed, placed on pages 9 to 15 of the paper book. It was also provided in the trust deed that ownership of all money and the properties of the trust shall be of the trust and no member/organization shall have right of ownership. Likewise, in the event of dissolution of the trust, all the property of the trust after meeting the liabilities would be transferred to some other trust carrying on similar act ..... X X X X Extracts X X X X X X X X Extracts X X X X
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