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TMI Blog2025 (1) TMI 324X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee who has got registration u/s 12A of the Act, in order to get the benefit it has to file its return of income. Therefore, in the given case, it is fact on record that assessee has not filed its return of income, therefore, assessee loses the benefit of claiming exemption u/s 11 of the Act. Therefore, the case of the assessee has to be assessed on the basis of commercial terms as in AOP. We observed that the AO has assessed the income after considering gross receipts and relevant expenditure. In our considered view, CIT (A) has given the relief without considering this aspect on record. We observed that since there was no representation on the part of the assessee before the AO and CIT (A) has granted the relief based on various documents submitted before him without giving opportunity to the AO. Therefore, considering the nature of charitable institution which serves the widows and dependants of army soldiers, we deem it fit and proper to remit this issue back to the file of AO to consider various documents and redo the assessment as per law and consider various submissions made by the assessee before the CIT (A) with regard to term deposits and renewal of the same and als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pts of Rs. 10,09,74,281/- and the expenses of Rs. 8,67,49,278/- and the surplus of Rs. 1,42,25,002/- which is less than 15% of the total receipts. It was submitted that the deposits/investment in the various banks of the assessee are out of the receipts declared by the assessee in its income and expenditure account of Rs. 10,09,74,281/- and some of the deposits were made out of the earlier renewed deposits. Further it was submitted that the AO has disallowed 10% of the expenditure incurred by the assessee of Rs. 86,74,928/- on estimate basis. With the above plea, the assessee has filed an appeal before the ld. CIT (A) and raised various grounds. 5. After considering the submissions of the assessee, ld. CIT (A) gave relief to the assessee on the issue of addition made by the AO of Rs. 1,42,25,0002/- on account of taxable surplus by not granting the exemption u/s 11 of the Act. Ld. CIT (A) proceeded with the various charitable activities carried on by the assessee and also observed that the assessee contested that it is registered as charitable society within the definition of section 12A of the Act and also observed that the assessee has applied the total receipts more than 85% for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufficient opportunities of being heard. 2. The Ld.CIT(A) has erred in law and facts by allowing relief to the assessee on account of additions of Rs. 1,82,43,279/-(unexplained investment in Time deposits) made u/s 69A R.W.S. 115BBE of the LT. Act by entertaining additional evidences in violation of provisions of rule 46A of I.T. Act, 1961. These evidences never filed before AO during assessment proceedings even providing sufficient opportunities of being heard. 3. The Ld. CIT(A) has erred in law and facts by allowing relief to the assessee on account of additions of Rs. 1,42,25,002/- ( disallowance of surplus under business head) by ignoring decision of the Hon'ble Allahabad High Court Lucknow bench decision dated 15.11.2019 (ITA No.66/2018) rendered in the case of Army Wives Welfare Association(AWWA)- Lucknow which is umbrella organization of Army Wives Welfare Association wherein the Court held that the assessee has failed to prove income on behalf of regimental fund or non-public fund established by 111.8 armed forces of the Union and also in the case of assessee, the assessee failed to prove income of behalf of regimental fund or non-public fund established by the armed for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decision of Hon ble Allahabad High Court in the case of Army Wives Welfare Association, Lucknow (2020) 116 taxman.com 215 (Allahabad). Further he brought to our notice page 233 of the paper book in which he brought to our notice letter submitted by the assessee before the AO and submitted that assessee has applied more than 85% of the income towards charitable purposes. Further he brought to our notice page 45 of the paper book which is application u/s 12AA of the Act on 26.07.1975 and finally he prayed that the issue may be remitted back to AO for proper appreciation of facts on record. 14. Considered the rival submissions and material placed on record. We observed that assessee is a charitable institution and had granted for 12A registration by CIT, Delhi-II, New Delhi on 26.07.1975. Assessee has placed copy of the registration at page 45 of the Paper Book. No doubt, assessee was granted registration nu/s 12A of the Act and it is also a fact on record that assessee has not filed its return of income even though notice u/s 148 of the Act was issued by the Assessing Officer based on the financial informations available with him with regard to various deposits and renewal on time de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... commercial terms as in AOP. On careful consideration, we observed that the Assessing Officer has assessed the income after considering gross receipts and relevant expenditure. In our considered view, ld. CIT (A) has given the relief without considering this aspect on record. Further we observed that since there was no representation on the part of the assessee before the Assessing Officer and ld. CIT (A) has granted the relief based on various documents submitted before him without giving opportunity to the Assessing Officer. Therefore, in our considered view, considering the nature of charitable institution which serves the widows and dependants of army soldiers, we deem it fit and proper to remit this issue back to the file of Assessing Officer to consider various documents and redo the assessment as per law and consider various submissions made by the assessee before the ld. CIT (A) with regard to term deposits and renewal of the same and also cash deposits which has generated by the assessee out of schools and other activities. We also direct the Assessing Officer to redo the assessment as per above direction after giving proper opportunity of being heard to the assessee. 16. I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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