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2016 (8) TMI 1532 - AT - Income TaxExemption u/s 11 - assessability of Voluntary Corpus Donations received by the assessee during the year under consideration - registration under section 12A - HELD THAT:- The year under appeal is assessment year 2011-12, wherein the order of assessment under section 143(3) of the Act was passed on 16.12.2013 i.e. after the date of filing the application for registration under section 12A of the Act on 12.11.2013. On the date when the application for registration was moved u/s 12A of the Act, the assessment proceedings relating to instant assessment year were pending. Admittedly, the objects and activities of trust remains the same i.e. running of an old age home and there is no change in that. Whether the assessee since has been granted registration under section 12A of the Act in lieu of application moved on 12.11.2013, on which date the assessment proceedings were pending, then whether the assessee is entitled to the claim of exemption under sections 11 and 12 of the Act? - The answer to the same is yes, in view of proviso inserted under section 12A(2) of the Act. The proviso very clearly provides that in case the assessment proceedings were pending and the assessee has been granted registration under section 12A of the Act, then the provisions of sections 11 and 12 of the Act would apply to such income derived from any property under the trust, of any assessment year, for which the assessment proceedings were pending. Applying the said ratio to the facts of the present case, we hold that the assessee is entitled to the aforesaid claim. We find support from the ratios laid down by Kolkata Bench of Tribunal in Sree Sree Ramkrishna Samity Vs. DCIT [2015 (11) TMI 119 - ITAT KOLKATA] and Shree Bhanushali Mitra Mandal Trust Vs. ITO [2016 (4) TMI 578 - ITAT AHMEDABAD] Departmental Representative for the Revenue on the other hand, has placed reliance on the ratio laid down by Cochin Bench of Tribunal in Al-Madeena Charitable Trust Vs. ACIT [1999 (11) TMI 104 - ITAT COCHIN] wherein the said trust was engaged in the business of printing newspaper and it was held that it had not carried out any charitable activities and hence, it was held to be not entitled to the benefit of section 11 of the Act in respect of income as well as its voluntary contributions received towards corpus - in the facts of the present case, the assessee has received the corpus donations and has utilized the amount for purchase of land to the extent which has been referred to by the CIT(A) and in the totality of the above said facts and circumstances of the case, we find no merit in the orders passed by the authorities below and reversing the same, we hold that the assessee is entitled to the claim of deduction under sections 11 and 12 of the Act. The grounds of appeal raised by the assessee are thus, allowed.
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