9911796707
TMI Blog2023 (3) TMI 471X X X X Extracts X X X X X X X X Extracts X X X X ..... ble Trust [ 2022 (9) TMI 1086 - ITAT AMRITSAR ] We set aside the order of the ld. CIT(E) and directed the authority to allow the registration of the assessee as per Act. - Appeal of assessee allowed. - I.T.A. No.16/Asr/2021 - - - Dated:- 1-3-2023 - Dr. M. L. Meena, Accountant Member And Sh. Anikesh Banerjee, Judicial Member For the Appellant : Sh. J.S. Bhasin, Adv. For the Respondent : Sh. HitendraBhauraojiNinawe, CIT. DR ORDER PER:ANIKESH BANERJEE, JM: The instant appeal of the assessee is directed against the order of the ld. Commissioner of Income Tax (Exemptions), Chandigarh,[in brevity the CIT (E) ] order 24.03.2021, order passed u/s 12A of the Income Tax Act 1961, [in brevity the Act]. The assessee has taken the following ground: 1. That the Id.CIT(E) has misdirected himself in law and on facts in arbitrarily rejecting the assessee's application for registration u/s. 12A, on issues not relevant for grant of registration, more so when the genuineness of the activities of the trust, otherwise exempt u/s.10(23C)(iiiae), have not been doubted. 2. That the ld.CIT(E), grossly erred to hold that the assessee was liable to pay tax on c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 charitable cum religious trust. Therefore, in the present case, the corpus fund shown by the applicant on record during FY 2018-19is the income of the applicant and, thus, the trust/society becomes liable to pay tax for that year. Further, the ITR for A.Y. 2019-20 corresponding to F.Y. 2018-19 filed by the applicant does not include the income shown as corpus during the year and, therefore, no tax against the said income has been paid. The applicant should have added the amount shown against corpus/restricted funds during the year into its income and then it should have filed the correct ITR and paid taxes. Unless the legitimate tax against the income, as discussed above, is paid, the application for registration u/s 12AA of the Act cannot be considered. The trust has illegally taken the benefit of provisions of the Income Tax Act for getting tax exemption benefits and has tried to subvert the Income Tax laws. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee further received corpus donation of ₹ 15 lacs from three concerns. During the year under consideration, the only receipt of trust was of ₹ 5450/- from bank interest and there was net loss of ₹ 2100/-. There are certain undisputed facts that the registration under section 12AA of the Act has been granted to the assessee by the learned CIT w.e.f 1.4.2009 which is before the date of the assessment order passed on 30.12.2011 and obtaining registration under section 12AA is not mandatory for claiming the exemption under section 10(23C) (iiiad) of the Act. As per this section, any income received by any person on behalf of any university or other educational institution existing solely for educational purposes and not for the purpose of profit is exempt if the aggregate annual receipt of such university or educational institute do not exceed the amount of annual receipt as may be prescribed. The learned CIT(Appeals) has upheld the denial of exemption by the Assessing officer on the basis that no educational institute have been started by the assessee during the year but at the same time, he has not denied this material fact that it is the first year of the trust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d circumstances in totality, we are of the view that the learned CIT(Appeals) was not justified in upholding the action of the Assessing officer on the basis that no registration under section 12AA of the Act was available to the assessee trust for the year under consideration and as such corpus donation are liable to be included as income. We thus while setting aside the orders of the authorities below in this regard direct the AO to delete the addition treating the assessee as registered trust with charitable objects. The ground Nos. 3 to 5 involving the issue are thus decided in favour of the assessee and are allowed as such. The ground No.1 is general in nature and the issue raised in ground No.2 questioning the validity of initiation of the proceedings under section 147 of the Act has become infructuous in view of the finding on the main issue raised in ground Nos. 3 to 5 of the appeal. Also, the ld. Counsel relied on the relevant part of the order of ITAT-Amritsar Bench in the case of T.R. Gupta Public Charitable Trust vs. CIT(Exemptions) in ITA No. 148/Asr/2020 order dated 20.09.2022 is extracted as below: 6. We have heard both the parties, perused material avail ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
