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TMI Blog2025 (3) TMI 641X X X X Extracts X X X X X X X X Extracts X X X X ..... fore Ld. CIT(A), the assessee has not submitted the sufficient evidences to prove its claim. Therefore, we are of the view that the matter may be remitted back to the file of the AO for limited purpose to examine the receipts of the assessee for the purpose of claiming exemption Sections 10, 11 & 12 of the Act.
We make it clear that since we have already taken the view that assessee- trust, is eligible to take the exemption u/s 10, 11 & 12 of the Act, in the assessment year 2020-21, under consideration. Aappeal filed by the assessee is allowed for statistical purpose. X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Considering the wrong filing of return by the assessee and incorrect claim of exemptions by the assessee, vide notice u/s 142(1) of the Act, various details were asked from the assessee, including the details regarding the receipts shown by the assessee, bifurcation of the receipts, nature of receipts, details regarding expenditure claimed, bills and vouchers in support of claim and documentary evidences in support of claim of expenditure. 5. In this connection, the assessee submitted its reply on 24.01.2022 and 02.03.2022. In its reply assessee submitted a few details and documents but no details have been submitted by the assessee regarding the nature and source of receipts and the details regarding expenditure. Therefore, assessing officer noted that assessee has failed to submit single documentary evidence substantiating the source of such receipts and nature of such receipts. In this connection, a Show cause notice was issued to the assessee on 26.03.2022 In response to the show cause notice assessee submitted its response on 30.03.2022 and on 26.08.2022. 6. However, the assessing officer rejected the contention of the assessee and observed that the assessee has claimed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion. (iii). The assessee in its return has claimed total expenses to the tune of Rs. 8,84,214/-, which includes expenditure on religious activities return of income. In connection to the expense's assessee was asked to submit the details of expenses, bills and vouchers and other documentary evidences. However, the assessee has failed to submit a single documentary evidence and any detail substantiating the allowability of the expense, as claimed by it. Further, the assessee has failed to submit the proof regarding the deduction and deposition of TDS on such expenses. The assessee even has failed to explain the nature and bifurcation of such religious expenses claimed. All the above facts prove that the expense claimed by the assessee are non-genuine and without any documentary evidence which point to the fact that all the transactions shown by the assessee in its ITR are manipulated to adjust unaccounted money of the assessee in the form of unaccounted receipts to enjoy conceal income. (iv). Assessee has shown receipts of Rs. 23,98,804/- during the year under consideration but during assessment proceedings it has failed to submit a single documentary evidence, substantiatin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Registrar, Kutch-Bhuj 22-01-1962 Intimation u/s 143(1) of the Act for A.Y. 2018-19, granting deductions u/s 11 as claimed in the return of income 11-09-2019 Intimation u/s 143(1) of the Act for A.Y. 2019-20, granting deductions u/s 11 as claimed in the return of income 04-05-2020 1st application for registration u/s 12A in Form 10A made by Appellant-Trust (under unamended law) 20-07-2020 Audit report under the Bombay Public Trusts Act, 1950 obtained by the Appellant 19-12-2020 Audit report in Form 108 filed online by its Chartered Accountant 30-12-2020 Due date for filing of Form 108 31-12-2020 Return of income for the year filed 19-01-2021 Order u/s 12AA(1)(b)(ii) of the Act rejecting 1st application of the Appellant for registration u/s 12A 29-01-2021 Due date of filing return of income u/s 139(1) (extended) 31-01-2021 2nd Application for registration u/s 12A in Form 10A made by Appellant-Trust (under amended law) 08-10-2021 Order for registration u/s 12A(1)(ac)(i) of the Act granting registration u/s 12A of the Act to the Appellant (from A.Y. 2022-23 to A.Y. 2026-27) 15-10-2021 Order u/s 143(3)-impugned order 09-09-2022 Shri Rindani, submitted in brief ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee's case under consideration, falls under dubious activities. Therefore, Ld. DR submitted that assessee`s appeal may be dismissed. 13. We have heard the rival contentions, perused the material on record and duly considered facts of the case in the light of the applicable legal position. We find that CBDT had issued the Circular No.01/2015, dated 21.01.2015, wherein Para No.8.3 of the Circular is favouring to the assessee and squarely applicable in the case of the assessee, under consideration, the relevant part of the Circular is reproduced below: "8. Applicability of the registration granted to a trust or institution to earlier years 8.1 The provisions of section 12A of the Income-tax Act, before amendment by the Act, provided that a trust or an Institution can claim exemption under sections 11 and 12 only after registration under section 12AA of the said Act has been granted. In case of trusts or institutions which apply for registration after 1st June, 2007, the registration shall be effective only prospectively. 8.2 Non-application of registration for the period prior to the year of registration caused genuine hardship to charitable organizations. Due to absence of regi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same as those on the basis of which such registration has been granted. It is a settled law that the Circulars issued by CBDT are binding on the Revenue. This position was confirmed by the Apex Court in the case of Commissioner of Customs vs Indian Oil Corporation Ltd. reported in 267 ITR 272 wherein their Lordships examined the earlier decisions of the Apex Court with regard to binding nature of the Circular and laid down that when a circular issued by the Board remains in operation then the Revenue is bound by it and cannot be allowed to plead that it is not valid or that it is contrary to the terms of the statute. 15. For the sake of clarity and also being pertinent, we reproduce, the second proviso to sub-section (2) of section 12A of the Income Tax Act, which was omitted by the Finance Act, 2023, with effect from 01.04.2023, prior to its omission, it reads as follows: "Provided further that where registration has been granted to the trust or institution under section 12AA or section 12AB, then, the provisions of sections 11 and 12 shall apply in respect of any income derived from property held under trust of any assessment year preceding the aforesaid assessment year, for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act, (impugned order) was framed by the assessing officer on 09.09.2022 and on this date, the registration of the trust was effective, (in-force). Hence, we note that the registration was effective, at all the times, therefore, we are of the view that the assessee-trust, is eligible to take the exemption under Sections 10, 11 & 12 of the Act. 19. On merit, we note that before assessing officer, as well as before Ld. CIT(A), the assessee has not submitted the sufficient evidences to prove its claim. Therefore, we are of the view that the matter may be remitted back to the file of the assessing officer, for limited purpose to examine the receipts of the assessee of Rs. 23,98,804/-, for the purpose of claiming exemption Sections 10, 11 & 12 of the Act. 20. Before parting, we make it clear that since we have already taken the view that assessee- trust, is eligible to take the exemption under Sections 10, 11 & 12 of the Act, in the assessment year 2020-21, under consideration. Therefore, the case is remitted back to the file of the assessing officer, only for Limited purpose, to examine the correctness of receipts of the assessee-trust of Rs. 23,98,804/-, in the light of the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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