TMI Blog2011 (9) TMI 222X X X X Extracts X X X X X X X X Extracts X X X X ..... direction to examine the matter, on merits, for eligibility to tax exemption as a result of the registration under s. 12AA now available to the assessee - Appeal allowwed - ITA Nos. 2206 to 2208 (Mum.) of 2009 - - - Dated:- 30-9-2011 - D. K. AGARWAL, AND PRAMOD KUMAR, JJ. Deepak Tralshwala and H.K. Panda for the Appellant. Smt. Kusum Ingle for the Respondent. ORDER Pramod Kumar, Accountant Member The short grievance raised by the assessee before us is against CIT(A)'s not directing the AO to compute the income, in accordance with ss. 11 to 13 of the IT Act, 1961, despite the fact that the assessee is a charitable institution and registered under s. 12AA of the IT Act. The assessment years involved are 2003-04, 2004 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eturn in the status of a charitable institution, that the IT return did not accompany the requisite audit report and other mandatory details which are sine qua non for exemption of income of charitable trust, and that the AO does not have any authority to entertain a claim otherwise than made in the IT return. In a lengthy order, which contains elaborate extracts from submissions made by the assessee and the AO, the CIT(A) rejected the claim of the assessee. 4. The assessee filed appeals against the stand so taken by the CIT(A), and the assessee also approached the CoD (Cabinet Secretariat) for permission to pursue these appeals. In the proceedings before the Committee on Dispute, the above facts were noted and the CoD also made the follo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... partmental Representative), however, vehemently opposes the prayer of the assessee. She submits that the assessee does not derive any advantage from grant of registration at this stage as the assessee does not have the opportunity to file the revised return, and that unless a claim is made in a valid revised return, the assessee cannot make claim for exemption. She also elaborately addresses us on other procedural issues and technicalities in the light of which assessee's claim cannot be entertained now - which, for the reasons we will now set out, are not really relevant for our purposes. 8. We find that a large number of assessees, who were covered by the wider definition of the expression 'local authority' before the scope of s. 10(22) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plementing an order passed under s. 254(1). The restrictions on the powers of the AO, therefore, do not affect our powers to issue appropriate directions to the AO in the interest of justice. In view of the foregoing discussions, and respectfully following the guidance of Hon'ble Supreme Court in U.P. Forest Corpn. case (supra), we deem it fit and proper to remit the matter to the file of the AO with a direction to examine the matter, on merits, for eligibility to tax exemption as a result of the registration under s. 12AA now available to the assessee and in the light of the requisite audit report and other documents now filed by fix assessee. While doing so, the AO shall decide the matter by way of a speaking order, in accordance with the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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