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2013 (1) TMI 82 - AT - Income TaxNon granting benefit u/s. 11 - assessee contested as the income is exempt u/s. 10(23C)(iiiad) - Held that:- As decided in U.P. Forest Corpn v. Dy. CIT (2007 (11) TMI 303 - SUPREME COURT) that registration u/s. 12A is a condition precedent for availing of benefit of section 11 & 12 of the IT Act. The assessee in this case has admitted before the AO at the assessment stage that the assessee society is not registered u/s. 12AA therefore, the assessee would not be entitled for any deduction u/s. 11. Even during the course of arguments, the assessee admitted that the assessee is not registered u/s. 12AA Since the assessee applied for registration before the CIT on 06.09.2005 he has neither refused to grant registration nor granted registration, therefore, it would amount to deemed registration granting benefit of deduction provided u/s. 11 - Held that: - Whether the CIT has granted registration or did not refuse to grant registration is an independent and distinct matter from the computation of income on the basis of regular assessment passed by the AO. In section 246A several provisions have been mentioned in which if any order is passed by the Assessing Authority, it would be appealable order before the Commissioner (appeals). No remedy is provided if the CIT did not pass any order u/s. 12AA for filing the appeal before the CIT(A). According to section 253(1)(c), the order passed by the Commissioner u/s. 12AA is appealable before the Appellate Tribunal if the assessee was aggrieved against the order of the CIT u/s. 12AA. It would mean that no remedy lies for grant of registration or refusal to grant registration before the CIT(A). As from the 'Smriti Patra' of the assessee that the assessee did not exist solely for educational purpose and it has other objects also. When the annual receipts exceed Rs. one crore, the approval of prescribed authority is required in the above provisions. In the case of assessee, aggregate annual receipts of the assessee were found exceeding Rs.1,00,00,000/-. As noted above, in the case of assessee, there is neither any registration u/s. 12AA nor is there any evidence to support the case of the assessee that the donations were received with specific direction that it will form part of corpus of the assessee Institution. Therefore, such a benefit could also not be given to the assessee. The CIT(A) on proper appreciation of facts and applying correct law rightly held that the donations were part of the annual receipts of the assessee and shall be treated as income of the assessee finding support from the provisions of section 12(1) - CIT(A) rightly declined benefit of exemption u/s. 10(23C)(iiiad) - against assessee.
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