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2013 (12) TMI 777 - AT - Income TaxDenying exemption u/s. 11 and 10(23C) - Rescinding of the approval granted u/s. 10(23C)(vi) - unaccounted income as also unaccounted investment in land and cash - incriminating documents found during search and seizure - Held that:- The objects of the trust have been violated in a wholesome manner and the basis on which registration is granted no longer survives or holds good, would call immediate interference by the registration granting authority. In these circumstances, the registration authority cancels the registration. The argument placed before us by learned AR is superficial which cannot be considered. - Decided against the assessee. Estimation of unaccounted receipt collected from students towards management quota fees - Held that:- the receipts as per seized documents accepted to have been collected by Sri R. Kondal Rao during the course of search action as well as before us and offered for taxation by Sri R. Kondal Rao, the same cannot be considered in the hands of the assessee once again in the event he complied with the payment of tax. - AO to pass fresh orders - Decided in partly in favor of assessee. Addition towards capital fund - funds contributed by members of the trust for specific purpose - Held that:- voluntary contributions in the nature of tied up grant received by the assessee cannot be brought to tax even the trust is not registered u/s. 12AA of the Act. The tied up donations received by the assessee should not be taxable as income of the assessee, if it is used for specific purpose for which it has been given and it cannot be considered as revenue receipts so as to tax the same. - On the other hand, the donations used for the benefit of the trustees it should be brought to tax as income of the assessee. The AO is directed to segregate these donations which are diverted for personal benefit of the Members of the trust and tax the same accordingly. - Decided partly in favor of assessee. Addition on account of amount collected over and above the prescribed fees and that amounts were not brought in the books of account - Held that:- it is seen that while the seized documents indeed showed receipt of such unaccounted income by the assessee society, M/s. J.B.· Educational Society's books do not show anything payable on this account to the assessee. Therefore, it cannot be said that the amount received by JB Educational Society was not over and above the total amount recorded in the. seized documents pertaining to the assessee society. Accordingly, he was of the view that the claim of double addition is not tenable in the facts and circumstances of the case. - Decided against the assessee.
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