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TMI Blog2022 (7) TMI 995X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee society by not disclosing the same as its income and paying taxes thereon, at the same time, he has himself stated that AO will be intimated to take remedial action in the matter which supports the contentions advanced by the Ld. AR that the same is a subject matter of examination by the AO at the time of assessment proceedings and cannot form the basis for denial of registration. Therefore, we agree that the said apprehension and reservation so expressed by the Ld. CIT(E) regarding treatment of donations for tax purposes where the remedy thereof admittedly and undisputedly lies with the Assessing officer at the assessment stage cannot act as the basis for denial of registration u/s. 12AA where the conditions for grant of such re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . DIVA SINGH , JUDICIAL MEMBER AND SHRI VIKRAM SINGH YADAV , ACCOUNTANT MEMBER Assessee by : Shri Satyam Aneja , Adv. Revenue by : Shri Sarabjeet Singh , CIT DR ORDER Per Vikram Singh Yadav , Accountant Member : This is an appeal filed by the assessee against the order of Ld. CIT(Exemptions), Chandigarh dated 15.09.2020 rejecting its application seeking registration under section 12AA of the IT Act, 1961. 2. During the course of hearing, the Ld. A/R submitted that the Ld. CIT(E) was not justified in rejecting the grant of registration to the assessee society as he was only expected to examine whether the objects of the assessee society were charitable in nature and whether the actual activities of the assessee so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unds have been shown as corpus fund in the Balance Sheet as against Income in the Income Expenditure account for the earlier years. It was accordingly submitted that there is no basis for denial of registration u/s. 12AA and the assessee society may be granted registration under section 12AA of the IT Act. 4. Per Contra, the Ld. CIT D/R. submitted that regarding the contention of the Ld. AR that the Ld. CIT(E) has not recorded any adverse findings regarding the objects being charitable in nature, it was submitted that a presumption cannot be drawn in this regard and a specific finding is required to be recorded in this regard and in absence of such a finding, the matter may be remanded to the file of the Ld. CIT(E). 5. Regarding Cor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 392 (Madras) [1977] and (E) Gouri Shankar Deity vs. Union of India, 145 ITR 67 (MP)[1984]. Before the period of grant of registration, all voluntary contributions (including the ones with specific direction that they shall form part of the corpus) are the income of a charitable, religious or chartable cum religious trust. Therefore, in the present case, the corpus donation shown by the applicant on record during F.Y. 2016-17, 2017-18 2018-19 (and for any other previous years) is the income of the applicant and, thus, the trust/society becomes liable to pay tax for all these years. Further, the ITR for A.Y. 2017-18, 2018-19 2019-20 corresponding to F.Y. 2016-17, 2017-18 2018-19 has been filed by the applicant showing 'nil' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the matter which supports the contentions advanced by the Ld. AR that the same is a subject matter of examination by the Assessing officer at the time of assessment proceedings and cannot form the basis for denial of registration. Therefore, we agree that the said apprehension and reservation so expressed by the Ld. CIT(E) regarding treatment of donations for tax purposes where the remedy thereof admittedly and undisputedly lies with the Assessing officer at the assessment stage cannot act as the basis for denial of registration u/s. 12AA where the conditions for grant of such registration otherwise stand duly fulfilled. 7. Now, coming to the other contention of the Ld. AR that no adverse finding has been recorded by the Ld. CIT(E) regar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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