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2022 (2) TMI 641 - ITAT DELHIExemption u/s 11 - Donation receipt from foreign donors - belated filing of Form No.10AA - HELD THAT:- As assessee, during the course of assessment proceedings, has filed the requisite details as asked for by the AO and also produced the books of accounts which were gone through by him on test check basis. AO has not pointed out any other defect other than (a) the belated filing of Form No.10AA and (b) the sworn affidavit filed by Mr. Michael Masih, Head of Finance of the assessee Trust stating that foreign donors are not assessee instead of any of the trustees. Other than the above two objections, there is no other objection by the AO regarding any defect or any diversion of funds by the trust for the benefit of the trustees. As mentioned earlier, the trust is functioning in accordance with the aims and objectives as per its Memorandum of Association. There is no allegation of the AO that the assessee has violated in any manner regarding the non-fulfillment of the conditions prescribed u/s 12(3) of the Act after the application was accepted by the competent authority. The submission the assessee society is already registered under FCRA and is entitled to receive the foreign contribution for charitable activities and, therefore, it is out of the purview of section 2(7)/12(3) of the IT Act, 1961 could not be controverted by the ld. DR. Assessee has filed Form No.FC-III-FCRA-2010 which has been duly assessed with the Ministry of Home Affairs, Government of India. Under these circumstances and considering the fact that since the assessee, during the course of assessment proceedings, has produced the relevant details and produced the books of account which have been gone through by the AO and no other defects were pointed out, therefore, considering the totality of the facts of the case and this being a very old matter relating to AY 2004-05, the argument of the ld. DR that the matter should be remanded back to the AO for verification, in our opinion, is not justified. We, therefore, set aside the order of the CIT(A) and direct the AO to allow the exemption. - Decided in favour of assessee.
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